!
Own account.
50
A noteworthy feature of German competition in the Philippines has been the enterprise shown by young Germans of late years in commencing business on their Whereas several such houses have begun trading in the past few years, I cannot trace que similar British house. This fact is probably due to the more liberal facilities accorded to them by the manufacturers and banks in their own country than has been the case in Great Britain, Credit must, however, be given for their undoubted industry and energy, and for the fact that many of them start, on the whole, better equipped with a sound commercial education than do their British con- temporaries, who acquire their special knowledge haphazard in the service of established firms rather than in the schools.
Japanese Competition.-The principal items of import from Japan in 1913
were:-
£
£
Coal C'ement
Cotton Yarns, Grey
160,000 (210,000 in 1914) 5,000 (25,000 in 1914) 11,000 (47,000 in 1914)
11
SH
bleached dyed
|
26,000 14,000 in 1914)
5,000 (11,000 in 1914) inercerised 21,000 ( 30,000 in 1914)
22,000 Cotton Cloth, bleached
11
dyed
all other Wearing Apparel
21,000 1,000 60,000
Since the outbreak of war, however, Japanese competition, particlarly in textiles, has become more acute, and is being severely felt in underwear, umbrellas, yarns (40's), Turkey red cloths and other goods.
Japanese shipping is only surpassed in total number of vessels and tonnage by the British. In 1914, of all shipping entered and cleared at Manila, the Japanese flag was flown on 132 vessels of a total net tonnage of 422,265. (British shipping for the same period-350 vessels, and 822,648 tons.)
The Mitsui Bussan Kaisha are established at Manila, and handle a steadily increasing import and export trade. The reason for the relative increase in imports from Japan may be explained in a sentence: cheap labour and geographical position.
Japanese competition is undoubtedly increasing in severity, but it will be seen from the figures that it is not as yet really serious, and has not so far adversely affected local British interests to any appreciable extent.
American Competition. As we have seen, the United States supplies the major portion of the articles imported into the islands, a state of affairs entirely brought about by the Customs preference. I am informed that as the Philippines Government usually finds difficulty in raising revenue, it is possible that at some future time a small duty may be imposed on goods from the United States, but there is little hope that, in any event, foreign goods will be allowed to enter on the same terms as those from the United States so long as a virtual protectorate over the islands is continued.
In the local competition among merchants, American houses have not made the headway that might have been expected. Messrs. Macleod & Co. are strong competitors in hemp shipments, and transact a shipping agency business. Messrs. Macondray & Co. (in which there are British interests) do a considerable shipping and import trade. The American Trading Co., and several other smaller United States firms, are moderately active, particularly as regards engineering and hardware.
British merchants, however, with their old-established connections and trade marks, and their strong financial position, are successfully maintaining their hold on the bulk trade.
General Methods of Business. The distribution of merchandise in the interior and throughout the islands is almost entirely in the hands of Chinese, who also act as merchants and brokers for the sale of produce to foreign exporters. Each foreign house in Manila, and elsewhere, employs a Chinese compradore for the transaction of its business, and he usually guarantees the accounts.
The usual credit terms granted by British houses on imported goods is from one to two months clear, and interest at the rate of 5-7 per cent. is charged after the expiry of this term. German firms frequently give 4-6 months credit, handing over the goods against promissory notes. Produce for export is paid for in cash upon
51
delivery and after inspection, and this system has been found to work satisfactorily. In some cases advances are made, but this is not really necessary, and the custom is pernicious.
Shipping Facilities. In normal pro-war times direct shipping services were maintained between the United Kingdom and Philippine ports (Manila and Iloilo) by the Cia. Transatlantica and by Messrs. Alfred Holt & Co. The former line loaded at Liverpool and Glasgow, and called en route at Spanish ports and Singapore. This service has been suspended. The Blue Funnel steamers (Alfred Holt & Co.) load also at Glasgow and Birkenhead, and call at Penang and Singapore, but direct shipment has been suspended since the war, and cargo for the Philippines is transhipped at Hong Kong. Goods can also be shipped from London by the P. & O., Glen, Shire, and Nippon Yusen Kaisha lines with transhipment at Hong Kong, and occasionally a steamer loads at Middlesboro', taking Philippines cargo as far as Hong Kong. All these lines are members of the Eastern Shipping Conference, and a very efficient service was maintained.
The Trans-Pacific trade, prior to the war, was largely in the hands of the Pacific Mail S.S. Co., the Toyo Kisen Kaisha, and the Nippon Yusen Kaisha. The first-named company has now withdrawn its service owing to the operation of the La Follette Seaman's Bill, according to the terms of which 75 per cent. of the seamen on vessels entering United States ports must understand the language of their officers. This greatly-criticised measure has given a direct premium to Japanese shipping, which now largely predominates on the Pacific. In June 1914 the Canadian Pacific Steamship Company made Manila a port of call for its "Empress" boats on the outward voyage from Vancouver to Hong Kong, and this service will be fully maintained after the Messrs. Alfred Holt & Co. operated a service between Manila, Seattle and Puget Sound ports, and trans-Pacific connections were also maintained by steamers, of the Barber, Dodwell, and Bank lines.
war.
In 1914 an arrangement was made whereby three steamship companies, viz., the Ocean Steamship Co. (Alfred Holt & Co.) and two Dutch companies-Rotterdamn Lloyd and the Netherlands-will in turn send one ship a month from New York via the Suez Canal, making Manila its terminus point after calling at Batavia and Macassar, and calling at Batavia, Colombo, and Gibraltar on the return voyage. The Indra line also run regular services from New York to the Far East vid Suez.
A very good local service between Manila and Hong Kong is maintained by the China Navigation Co. (Messrs. Butterfield and Swire), the Indo-China S.S. Co. (Messrs. Jardine, Mathieson, & Co., Ltd.), and numerous Japanese steamers,
The share of the principal flags engaged in the foreign trade of the islands will be seen from the following figures abstracted from the Consular Report, and showing the vessels cleared at Manila during 1913 and 1914-
Nationality.
British
United StatĖS Danish
Freuch
German
Japanese
Norwegian
Philippine
Portuguese
Russian Spanish Swedish
Total
Vessels.
1913.
1014.
Net Tonnage.
Vessels.
Net Tonnage,
3.59
827.246
360
822,648
29
204,582
27
193,049
10
997
81
250,321
GL
191,847
133
402,496
182
422,265
+
5.17
8
16,220
45
60,961
37
$1,700
t
207
1
995
13
32,558
12
28,355
2
6,882
2
4,645
669
1,791,203
631
1,721,931
NOTE.-Coastwise vessels are not included in the foregoing table, only those entering and clearing Manila direct in foreign trade being mentioned here. The others appear in the Cebu and Iloilo returns according as they called at either of these ports before or after Manila.
Interned German Shipping. Twenty-five German vessels entered Manila Harbour for safety after August 5th, 1914, of which seven put to sea again, but three
نا
622