The year 1909 opened with bright prospects due to the promise of a good harvest of rice and other crops. A fairly extensive business was transacted in the beginning, but as the year advanced, the continually increasing price of cotton considerably enhanced yarn values, and consumption became slightly reduced in the end. On the whole, the year was particularly remunerative to importers and Chinese dealers alike, seeing that the market ruled ever on an upward tendency. On the other hand, owing to the increasing cost of manufacture as a result of extraordinarily dear raw material, the mills fared very badly. The year closed with stocks light and prices abnormally high.
A new feature in the Yarn Trade of the Colony was the floating of several limited liability companies with Chinese capital for the transaction of business in cotton and cotton yarns, which have given a new life to the trade.
Piece Goods.-The year was a good one for dealers in piece goods. The large orders placed towards the close of 1908 went, with one or two exceptions, rapidly into consumption.
Silk. The year opened with but little demand from Europe and America, and the market for the first quarter of the year ruled quiet. There was a slight activity in the middle of the year, and the year closed with better prospects in the immediate future.
Matting. Owing to the uncertainty that prevailed in the United States during the first half of the year as to what new rate of duty would result from the tariff revision, the trade was much interfered with. Business done showed a considerable decrease.
Mats and Carpets.-The market was fairly active during the year, the largest exports being to Europe.
Metals.-Prices ruled fairly low, with a consequent increase in business.
Flour. The total reported imports of flour during the year amounted to 58,583 tons, as against 91,312 tons in 1908, a decrease of 35.8%. The decrease is due to the fact, noted last year, that direct shipments to coast ports are now made. Another disposing cause for the decrease is the fact that the Shanghai flour mills, which obtain their raw material locally, are now successfully competing with American flour at the coast ports: Foochow, Amoy, Swatow, &c., and are even sending through cargoes to Canton.
Rice. In spite of a hopeful outlook last year, rice has failed to come back to its previous figure. It has again declined from 721,254 tons to 541,078 tons, or 25%. This is due to a partial failure of the crops in Cochin China and to the fact that many cargoes of rice from Saigon have been sent direct to coast ports without touching, much less transhipping, at Hongkong.
The total reported imports during the year amounted to 4,195,968 tons, as against 4,169,856 in 1908, an increase of 0.6%. Exports also show an increase, from 2,102,857 tons to 2,239,731 tons, or 6.5%; and Transit Cargo increased from 3,372,993 tons to 3,991,347 tons, or 18.3%, but for the reason given, these figures are not reliable.