TIMES - 261 March 1930
9,03
Extract from refort of speech by Ms. J.M. Ryrie,
CHINA AND HONG-KONG
If, in referring to China, I say it is very difficult to understand or follow the constantly changing political situation, I know you will not express surprise. But from the informa- tion at my disposal it seems clear that, in spite of civil war, indifferent transport facili- ties, increased taxation and predations by bandits, there was a further improvement in trade last year, the very large increase in the receipts of the Maritime Customs giving evidence of this, though of course much of this increase is due to higher tariffs and probably to anticipation of these coming into force. At the same time I find that the shipments of cotton piece-goods from the United Kingdom to China and Hong-kong last year decreased in both quantity and value when compared with 1928, the value falling from £6,450,000 to £6,170,000, this no doubt being due to Japanese competition. The fall in silver, how- ever, from 261d., the average price in 1928, to 24 d., the average price last year, with the consequent decline of the Shanghai tael from an average rate of 2s. 7 d. to 2s. 4 d., and the decline in the average rate of the Hong-kong dollar from 2s. Old. to 1s. 1011d., was not helpful to Manchester shippers, while the further fall in silver this year to a record low level must be making business with China; and Hong-kong very difficult.
Arising from the decline in the value of silver the notes issued by the banks in Hong- kong rose to such a premium on silver dollars that the export trade of that Colony was han- dicapped in competition with Shanghai, and to remedy this position the banks were asked to cooperate with the Government in bringing Hong-kong dollar notes more on a parity with the silver dollar-that is, to re-establish ex- change on a silver basis, and this has now been accomplished, one of the results being the coinage of a large number of silver dollars for shipment to Hong-kong, which I regard with apprehension. It will be interesting to see what action China takes to protect herself against this serious depreciation in the value of silver, particularly as she now the most important market for the metal. At present there are various rumours as to this, one going so far as to say that the importation will be prohibited, and another that, following the example of India, she will impose a duty upon imports of silver. In the meantime and from February 1 last import duties have been levied on a gold basis.
Chairman
the Mercantile
of the
Bank of India at anned
ગૃ
general meet it, london,
25.3.30