September 13, 1909.]
F
CHINA OVERLAND TRADE REPORT.
THE RUBBER BOOM,
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CHINA'S IMPORT DUTIES.
219
exemption thus given would attach to make it possible for the Central Government | rubber, it appears, can be produced at a cost foreign imports wherever they went to into effect a reform in this direction such as of 1s. 6d. per lb. inclusive of all charges and China, and in whosesoever hands they could not be brought about in former days, freight to the market, and it is expected that might be. This would, in fact, amount to a But before foreign nations can entertain matured experience will lessen this con- complete abolition of the system of likin, any proposition for an increase in the Cus-siderably. On the other hand, wild rubber which worked so unfavourably against the toms Duties, as agreed to by Treaty, they from Brazil, owing to the difficulty of spread of foreign manufactures in the must be satisfied that such an arrangement collecting and a large export duty, costs 38. interior. With the comparatively limited has been come to, and also that it will be to bring to the market. The price of knowledge which the best informed Eur loyally carried out. Until this has been cultivated rubber has recently been as high opeans had at that time as to Chinese made clear, it is manifestly unreasonable as 8s. 6d. per lb. Even if it dropped to 3s. financial matters, this was a reasonable for the Chinese Government to ask that an the profit would still be 100 per cent., so that construction for foreigners to put upon increase in the Customs Tariff should be on these reckonings sound rubber companies the agreement. Whether the Chinese knew considered, and it rests with them to satisfy appear to be well worth the investor's atten- that this was what was expected, it is, of the Foreign Ministers upon this point. tion so long as there is any prospect of the course, impossible to say. They may have
present demand for rubber continuing* The known it perfectly well, and have from the
possibilities which suggest caution are: (1) first seen a way in which the stipulation
over production, (2) the invention of a com- could be avoided, and with this they have (Daily Press, September 7th.)
mercially efficient substitute for rubber; (3) generally been credited, though it must be The inclusion of quotations for Straits the discovery of a process of prolonging the admitted that, looking at the matter from Settlements rubber shares in almost every life of the manufactured rubber; and (4) the Chinese, standpoint, it is possible they share report issued in the Far East suffi. disease in the trees. But neither of these were under the impression that the exempciently attests the fact that there is a growing possibilities seem likely to trouble investors sion was only intended to apply so long as interest among investors in this part of the in rubber in the immediate future. the goods were in the hands of the foreign world in the prospects of the market for merchants, and that, once they had this commodity. Large profits have already passed into Chinese hands, they became been made out of cultivated rubber, and subject to the same local taxes that the consensus of opinion among experts is would be placed upon all goods be that there is a most remunerative market in longing to Chinese and carried by Chinese prospect for some years to come, yet having traders through the country. How regard to the remarkable crop of new com- ever this may be, such is the construc- panies which have of late been floated, a tion which the Chinese have put upon the word of caution is frequently dropped by matter, and upon which they have acted, and most writers on the subject. Glancing certainly will continue to act unless some down a share list in one of the Straits more definite and satisfactory arrangement newspapers we notice that out of twenty can be come to on the subject. That the companies whose last dividends " Chinese did not intend to give up all likin recorded, ten of them paid over 25 per cent. dues seems likely from one very obvious The list includes dividends of 30, 45, consideration, namely, that the Peking 50, 55, 60, 75 and even 80 per cent. It is authorities could not do so without the not surprising, therefore, that rubber shares concurrence of the Provincial Officials, who, should be attracting attention in places far so far as is known, were never consulted in distant from the rubber plantations. Indeed, the matter, and who certainly never agreed it seems to be the distant investor who to give up any of their established rights as
has reaped the lion's share of these huge to local revenue. The change would be a profits rather than the men on the spot, for complete departure from the system which we find one of our Penang contemporaries has existed for ages in China, by which remarking that "properties situated almost these dues go to the Provincial Exchequers, within sight of the town have been floated and without some clear arrangement with in Singapore or taken up by syndicates in them any agreement with foreign nations to Hongkong and Shanghai, the profits which do away with internal dues must of neces-
might legitimately have been made here sity be abortive. Such certainly has proved naturally going to those places." It is to be the fact, and the question now is recorded as an extraordinary fact" that whether any equitable arrangement can be while hundreds of people at Home and come to, possibly, as suggested, including scores in Singapore and Kuala Lumpur some increase in the import duties, whereby have made huge profits out of the what undoubtedly was the understanding of recent rubber boom," hardly any the foreign Governments and was, when the body in Penang seems to have derived Treaties were concluded, believed to be the any direct pecuniary benefit at all intention of the Chinese Authorities; can be therefrom. This simply illustrates, what really put into effect.
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There are, at the present time, many reasons why the whole subject might be re-considered, and it is not impossible that something may be done if all the parties concerned are duly consulted and can come to some bond fide understanding that may be satisfactory to all. It is obvious that a mere assurance on the part of the Peking Government cannot be considered an ab- solute guarantee that the inland duties will be entirely given up unless it is first made clear that an agreement to this e effect has been come to with the Provincial Authorities. No doubt the Central Government might I consider itself strong enough to force the abolition of the dues by the Viceroys, but all experience shows that this is at best doubt ful, and that, in order to be certain that they can do so, they must come to some understanding as to the terms upon which they will ask the Provincial Officials to do away with the likin taxes. It is not impossible that the changed relations be- tween Peking and the Provinces, which has been brought about by improved inter communication through the railways, may
are
(Daily Press, September 9th.) The leading British newspaper, REUTER informs us to-day, thinks that the Powers will not object to an increase of the import duties if they receive from the Chinese Government the assurance that the increases will be intelligently and honestly applied. Was it, then, in consequence of the absence of that assurance that the British Govern ment only about three months ago refused to entertain the suggestion when it was put forward by the Chinese Government, or does this pronouncement on the part of The Times indicate a change of attitude on the part of the Government? The Chinese Government is very intent on an early revision of the duties, and the proposal is certain to be brought forward again, notwithstanding that the suggestion met with little encourage- ment from the British Government, acting, it may be presumed, in this matter, in concert with the other foreign nations concerned. There can be no doubt that, before any proposition for an increase in the duties on foreign importa can be enter tained, the Chinese Government may fairly be called upon to place before the foreign representatives some absolute assurance that the inland duties will either be abolished altogether or will be so regulated that they will not continue to be an undue hindrance to foreign trade. If this can be has preached about home- done, there are reasons at the present time staying people. If we may slightly alter why a proposition to make a moderate Kipling, we might ask, "What do they increase in the Import duties might be know of Penang, who only Penang know?" considered, but before this can be acceded to Perhaps, however, the neglect of the Penang there must be a guarantee that the duties people to catch fortune as it flies may have thus agreed to shall be final, and shall not been due to a lack of funds available for continue to be supplemented in an inde investment. In the first six months of the finite way by the continued imposition of present year no fewer than thirty rubber com- the likin or inland barrier taxes. What panies (most of them for exploitation in the particular form any scheme for the adjust East Indies) were floated in England with an ment of this matter would have to take aggregate capital of £4,230,000, of which must very largely depend upon the attitude £2,346,000 was offered to the public. And which the Provincial Officials might adopt the list looks like being indefinitely extend- in the matter; but it would not be beyond ed. Therein, as many think, lies the danger the powers of the Peking authorities to make -over cultivation. In the Malay Peninsula it clear to them that their interests, as well Ceylon, Borneo, Sumatra and Java there
as those of the Imperial Government and of are at the present time over three hundred the nation at large, would be served by companies engaged in the cultivation of some reasonable understanding upon the rubber, but the present output of cultivated subject. This might be arrived at, of rubber even now is only about 5 per cent. course, in either of two ways-either of the world's production, the balance by relieving the Provincial Authorities being wild rubber from Brazil and Africa. from certain payments, which they are now 8 Central Govern- A comparison of the cost of bringing wild expected to make to the and cultivated rubber to the market is very ment, or by allowing them a certain propor- satisfactory to the man who has bis money tion of the monies paid through the invested in rubber plantations. Cultivated Customs in commutation of the internal
KIPLING