June 21, 1909.]
CHINA'S CURRENCY.
ACTION BY THE SHANGHAI CHAMBER OF COMMERCE.
The following correspondence on the Currency question has been published by the Shanghai General Chamber of Commerce :—
Shanghai, 21st May, 1909, L. E. Canning, Esq., Secretary, Shanghai General Chamber of Commerce, 6 Peking
Road.
CURRENCY.
Dear Sir,-With reference to my letters of March 9th, upon which the Chamber of Com- merce has kindly taken action, I now beg to submit a note of our percentages of loss by exchange of small silver and copper respectively sustained since February, the last month in the table included in my letter above mentioned. It will be observed that the depreciation of one cent pieces has steadily increased, and that recently the loss on small silver also has become greater.
Month
1909
Silver. Per cent.
Copper. Per cent
10.9
24.03
March April
10.86
24.95 Yours faithfully,
Total. Per cent. 22.61 23.39
D. MCCOLL, General Manager. The Shanghai Electric Construction Co., Ld.
Translation of Letter from the Spanish Lega- tion, Peking, dated 26th May, 1909-
Dear Mr. Anderson :-In reply to your letter dated 8th April last, on the subject of the depreciation of the current currency in Shanghai, I am glad to be in the position to bring to your notice the enclosed copy of the letter, which at the hearty desire of the Diplomatic Corps, I wrote to Prince Ching on the 21st inst.
I take this opportunity, dear Mr. Anderson, to reassure you of my devoted respect.
(Signed) M. Carcer.
Peking, 21st May, 1909.
Your Imperial Highness.
The onsular officers of the various Treaty Powers and the foreign Chambers of Commerce and other business organizations in China have of late repeatedly called the earnest attention of the Diplomatic Body to the highly unsatisfactory state of the currency in China, resulting, in a large measure, from the depreciation of the copper cash currency and the constantly increas- ing issue of banknotes. Both of these causes have already proved serious obstacles to trade in all parts of the country, and it is feared by the foreign business interests that unless some measures are promptly taken to regulate these evils, they may precipitate in a financial crisis, the consequences of which will be far-reaching and not improbably disastrous.
In a communication which the Dean of the Diplomatic Body had the honour to address to Your Imperial Highness on November 28, 1908, he called your serious attention to the danger of allowing the uncontrolled issue by Chinese Banks in Shanghai and in the Province of Che- kiang of dollar bank-notes without the security of properly regulated metallic reserves. Your Highness replied under date of December 17, 1908, that the subject was receiving the atten. tion of the Ministry of Finance and that would advise the Diplomatic Body at an early date of the conclusion reached by that Depart- ment of the Government.
you
It is a serious disappointment to the Diplo. matic Body that down to the present time no indication has been given it by the Imperial Government of the decision it has reached, in the matter.
In the meanwhile the depreciation of the copper currency, due solely to excessive issue, is steadily increasing every month and adversely affecting the interests of many millions of people throughout the Empire. At Shanghai, for example, when these coins (10 cash pieces) were first issued they circulated at par, although intrinsically worth only abou: 50 pe cent. of their face value. Excessive supplies, however brought about their depreciation and of late the profit on minting them has disappeared, Debased coins of a lower standard are now being issued which also circulate at a constantly increasing discount. The continuance of these unfortunate conditions must inevitably aug.
CHINA OVERLAND TRADE REPORT. • ment the difficulties and dangers of the general
financial situation.
Deeply sensible of the danger of delay in remedying the evils arising from these two causes, the Diplomatic Body has directed me to urge upon Your Imperial Highness, in its name, the importance of taking prompt and effective steps to deal with them. In the opinion of the Diplomatic Body, as well as in that of all our consular representatives in China, and of all foreign Chambers of Commerce, the first measure to be taken should be the immediate suspension of the further issue of bank-notes and of copper currency
I avail myself of this opportunity to renew to Your Imperial Highness the assurance of my highest consideration.
(Signed) M. DE C'arcer, To His Imperial Highness
Prince of Ch'ing,
President of the Board of Foreign Affairs.
SHANGHAI SHAREBROKERS IN
COURT.
On the 11th inst. Mr. F. S. A. Bourne. Acting Judge of H. M.'s Supreme Court at Shang- hai, delivered judgment in the cases of . H. Michael r. J. E. Ellis as follows:--
The plaintiff, an outside broker, claims from defendant Tls. 885.87, difference between buying and selling price of 50 Dock shares, brokerage and interest.
The plaintiff as broker is entitled to no more than an indemnity from the defendant against any claims that can legally be made against him because of the transaction he entered into as defendant's agent. Who then can bring a legal claim against plaintiff? The evidence shows that the 50 Docks were bought from Mr. Allanson, a jobber, at Tls. 89 per share and sold to Mr. Moosa at Tls. 723 per share. Mr Allanson received Mr. Moosa's cheque and is out of pocket to the extent of the difference; and if anyone has a claim it is he. So far as Mr. Allanson was concerned the transaction appears to have been quite legitimate. But can he sue plaintiff He sold to Messrs. Michael and Somekh, outside brokers, who bought for the concerned, on the instructions of the plaintiff who bought for the concerned, who, he says, is the defendant. It was shown that there were three distinct contracts entered into, namely:
(1) Contract dated 27th July between
Allanson and Michael and Somekh.
(2) Contract dated 27th July between Michael and Somekh and S. J. Michael, plaintiff.
(3) Contract dated 28th July between S. J. Michael, plaintiff, and J. E. Ellis, defendant.
In regard to contract (3) defendant admits "that the plaintiff signed this contract as broker for the concerned and according to local usuage or custom of trade was thereby rendered personally liable for it ". But whether plaintiff is liable or not is a question of law which should not be pleaded and cannot be admitted it is for this court, and this court had indeed decided the very reverse (see Lui V. Graham, Northhina Daily News, 13th July, 1903). Plaintiff was either broker, when he might be entitled, as I have said, to an indemnity from his principal, or was himself the other principal. If he was broker, as he purports to have been, there is nothing to indemnify him against, for ac cording to law Mr. Allanson, the seller-principal, has no right of action against him, the broker, as soon as the buyer-principal, Mr. Ellis, is disclosed (cf. Fleet Murton L.R. 7Q.B.P. 126). If on the other hand the plaintiff was himself principal as the dates of the contracts would suggest I find without the least hesitation that as between the plaintiff and defendant the contract was one for differences only and void under the Gaming Act (cf. Stachan v. Universal Stock Exchange (1895) 2 Q.B. (1896) A.C. p.166).
|
STEEL MAKING IN CHINA.
535
One of the advantages which the Chinese Foundry has over its Foreign competitors is that of the wages question, The company in Hankow employs some 20,0.0 hands and the monthly wages bill reads approximately as follows per month.
Rollers, on mills
Heaters, on furnaces... Assistants, on furnaces Steel Maiters (open hearth) First Assistanta Second Assistants Blacksmiths
Boilermakers
Mexican
.8 8.00 to $16.00 12.00 8.00 to 10.00
12.00
9.00
8.00
15.0 to 10.0) 15.00 to 20.00
Coolies labour ranges about 14 cents to 20 cents per day, women being also employed at as low a rate as ten cents per diem. The coolies are as a rule paid daily and either the same men or a new gang are taken on the following morning. This is a necessity for people of this class live from hand to mouth and must have the cash in order to procure their daily food.
The Chinese foremen and gangers get from 40 to 860 Mexican per month and their duties entail the "driving" of the coolies so that the maximum of work is produced for the minimum of wages.
Practically all the coolie labour is in the hands of contractors who undertake the various jobs, appoint their own overseers and hire their own coolies.
There can be no doubt but that the mechanical ability of the Chinese employed in the Hanyang Iron and Steel works is of a very high standard. The Chinese seem to have a natural instinct for handling foreign tools and in the production of metals they very rarely injure the materiai placed in their hands. As experts in tempering inetals they have but few compeers seemingly to know by intuition the crucial moment when to apply the various processes.
In that most difficult branch, the handling of the electric plant, the Chinese have also proved themselves to be more than competent. A tribute of the highest order is paid to his Chinese staff by the mechanical engineer of the Works, Mr. B. Durchscher. He stated to a visitor that he was absolutely astounded on one occasion when all the parts of a locomotive arriv- ed without the working plans. Naturally the assembling of the machine was not to be under- taken until these came to hand but he forgot to inform his Chinese foremen of this. Shortly after he was astonished to see the engine run- ning up and down a siding line on trial runs. It had been assembled entirely without plans and had been correctly done.
Mr. Durchscher remarked, I would not have undertaken to do this without the drawings, and I do not think many engineers would have done so either.“
44
He further illustrated the ogrefulness of detail which the Chinese display by remarking that the clerks in the drawing office, in making tracings, copy even the blots and accidental markings, from the originals.
The Hanyang Iron and Steel works are practically in the hands of German eng- ineers and a naturalized American Mr. Durchscher being the chief engineer. Mr. Rupert is general Manager and Mr. F. P. Soisson is managing the steel plant and rolling mills. European foremen are in charge of the open hearths and the mills and direct the opera- tions throughout. H.E. Sheng Kung Pao, is president of the concern and H. E. V. K. Lee, director general, with F. V. Trang as his sub- director.
Mr. Lee gained much experience in America, visiting many steel foundries in that country, before he took over charge of the Hanyang Iron and Steel Foundry the premier institution of its class in China-Peking Daily News.
A fatal drowning accident occurred at Further, I find on the evidence that the
Woosung early last Saturday morning. Mr. purchase of the 50 Docks was a joint venture on Werner Borsche, who was the victim, was First the part of the plaintiff and the defendant. Lieutenant of S. M. S. Iltis, and had only come Plaintiff is therefore entitled to no more than out to China recently with the draft of 600 brokerage on the purchase and sale of 25 Dock reliefs which the N. D.L. 8.8. Oldenburg brought shares, namely. Tls. 20.18, Judgment accord-out for the German Cruiser Squadron. It ingly. Plaintiff must pay defendant's taxed costs appears that Lient. Borsche fell overboard about less $7.50. the amount of court fees he would 4.30 a.m. and though every effort was made to have had to pay if he sued summarily for the
rescue him, or recover the body, it was not until brokerage.
4 p.m. that the corpse was found.