t

448

held in Hongkong. Apart from the heavy losses in interest

and the severe drop in prices due to the stoppage or

business, there was a danger of failures among Chinese

Merchants owing to their inability to meet engagements and

to take delivery of stocks already contracted for as the

market for Opium was practically closed. Apart from the

enormous lock up of money for an indefinite period,

Merchants dealing in Indian Opium were subjected to the

heavy strain of carrying such large stocks. It was quite

evident that if the trade were longer restricted by the

operation of the new regulations there was very great

danger that very serious losses would result.

The prices realised at auction in

Calcutta in April before the tax was imposed were Rupees

per chest

3,700 to Rupees 4,000 After the new regulations and tax

were imposed they fell to:-

In May.

In June.

.Rupees 3,100 to Rupees 3,065,

In July

2,205 to

2,155 to

.

2,150

1,970.

The stocks of Indian Opium in Hongkong and Shanghai in

August, 1909, were about 17,000 chests with a 10 per centum

larger export from India than in the current year.

3.

The situation has been slightly

relieved

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