52
CHINA.
economical in its habits and less influenced by outward appearance than the Chinese, from the highest to the lowest; and dress is no criterion of station in either rank or fortune. Hence, if a necessary of life becomes, from circumstances, unusually dear, they simply do without it, and have no hesitation in saying so. This economical system is not advantageous to the foreign importer, who might, judging from most other markets in the world, hope to find an increased demand to supply a deficiency, but in China he will discover that a deficiency but slightly influences the demand. The same observations apply to cotton yarn. Notwithstanding the failure in the supply of the raw material, which has been severely felt in this province producing no cotton, the increase in the import of that article has been comparatively slight. Whether ultimately the Chinese will have to resort to it more freely, it is impossible to say. For Indian raw cotton there was at one time an active demand on the part of the Kwangsi traders and the country weavers; but, whatever caused the excitement, it soon died out, and never materially affected the trade.
An attempt was made, during the year, by the Cotton Guild, or rather by sundry wealthy traders, whose storehouses are lying empty, and who brought pressure to bear on that fraternity, to re-establish the trade in raw cotton by binding the merchants to buy it only at Canton, instead of at Hong Kong, as the practice now is. The matter was brought to my notice by the Governor of Hong Kong, who had been petitioned by the resident native merchants there against the attempted coercion. On inquiry, I found that in reality the Cotton Guild had very little interest in the matter; nevertheless, the Guild represented the movement, and with that only I had to deal. I at once laid the matter before the Chinese authorities, and having convinced them the action of the Guild was entirely illegal, and with a view of obtaining a monopoly of the trade, it was at once forbidden by Proclamation, and the scheme fell through. Had it not been suppressed, another monopoly would quickly have followed, for trade combinations are the life and soul of Chinese commerce, and monopolies in strict accordance with its institutions. Foreign trade, however, must be kept free and clear of such deteriorating influences.
In woollen goods the increase has been but small, and scarcely worthy of note; and in metals, such as iron—nail rod, bar and hoop—lead, spelter and quicksilver, the balance, with the exception of lead, is against the preceding year.
In native goods some show an increase, and others a decrease, but the amounts either way are of no consequence.
It is in exports the trade of the foreign merchant chiefly lies. The Chinese are not sufficiently advanced to monopolize this branch of foreign commerce, although symptoms of a change of system are not wanting. At present it pays them better to sell at once, than to ship on account, and the profits to be derived from foreign competition are more certain than what the English market has to offer, besides the absence of risk.
Notwithstanding the lamentable accounts of the state of the tea market at home, the export of that produce during the past year shows an increase to some extent over that of 1866; in black, to the amount of 14,133 piculs (1333 lbs. to the picul); in green, 5,382 piculs—total, 19,515 piculs, or 2,600,374 lbs., and full rates may be said to have ruled during the season. Indeed, the firmness with which the dealers held out for long prices was a matter of surprise, but to some extent justified by occasional clearances, at rates which home advices scarcely supported. The stock at the commencement of the year was about 14,000 piculs. The first crop was good, and realized fair prices, and the teamen had every reason to be satisfied with their transactions. The second crop, called district teas, was on an average cheaper than formerly, owing to the demand for money for the interior; but for these, in all probability, the best returns will be realized in the home market. Besides, the quantities shown in the export returns, it is estimated above 12,000 piculs, say 1,599,000 lbs., went to Hong Kong by native junks, and, therefore, did not pass through the Foreign Custom-house; and about 30,000 piculs, or 3,997,500 lbs., to the Portuguese settlement of Macao, for shipment to England and America. The probability, however, is that a larger amount than this was exported from Macao, as the route from the tea districts by the great West River, in the estuary of which that settlement is situated, affords every facility for conveying this produce to the coast without much interference from inland Custom-houses. The amount in stock at the close of the year was about 30 chops.
A reduction has lately been made by the Chinese Government in the duty on tea dust, which now stands at 1 tael, 2 mace, 5 candarines per picul of 1334 lbs., if under the value of 15 taels per picul. It had been raised to that of leaf tea, viz., 2 taels 5 mace per picul.
A considerable business is done in the preparation of teas for the foreign markets, and well-known as Canton made teas. The leaf undergoes various processes by which it is converted into the required sort; and there is even a class called "Lie Teas" which have little or none of the leaf in their composition. This manufacture is carried on openly and without any pretensions to concealment.
The following Table gives the highest and lowest market quotations during the year—
TEA Country congous Per pical Taels. 14, 21, 24, 30 Canton district congous 13, 22, 28, 30 Scented orange pekoe 17, 26, 29, 32, 35 Young hyson 11, 19, 25, 28, 31 Hyson. Imperial 11, 15, 24, 28, 30 Country greens 17, 21, 25, 27, 30 Hyson. 28 '' capers. 14, 21, 23 Canton greens. Gunpowder 16, 22, 30, 37, 38 S 57, 63The average exchange of the tael into sterling may be taken at 6s. 7d. The export of silk has varied but little since last year owing, probably, to this article being rather limited in production. Generally, as it arrived it was brought up, and, consequently, the stocks at no time were large. The following Table gives the highest and lowest prices during the year:-
Description. Tsatlee, No. 1 Per bale Dollars. 480 to 620 Loon Kong, No. 1 480 to 610 Kow Kong Per picul 370 to 560 Lack-low and Cum-chuck Per bale 465 to 600 Reeled Cut-chucks Per box 490 to 660 Seulam Per picul 320 to 460 Ponjum 100 to 160 Pierced cocoons 70 to 95 Waste silk 45 to 90The prices on an average being rather lower than were paid for the same quantities in 1866. But, although the quantities exported show a slight
CANTON,
53
52
CHINA.
economical in its habits and less influenced by outward appearance than the Chinese, from the highest to the lowest; and dress is no criterion of station in either rank or fortune. Hence, if a necessary of life becomes, from circumstances, unusually dear, they simply do without it, and have no hesitation in saying so. This economical system is not advantageous to the foreign importer, who might, judging from most other markets in the world, hope to find an increased demand to supply a deficiency, but in China he will discover that a deficiency but slightly influences the demand. The same observations apply to cotton yarn. Notwithstanding the failure in the supply of the raw material, which has been severely felt in this province producing no cotton, the increase in the import of that article has been comparatively slight. Whether ultimately the Chinese will have to resort to it more freely, it is impossible to say. For Indian raw cotton there was at one time an active demand on the part of the Kwangsi traders and the country weavers; but, whatever caused the excitement, it soon died out, and never materially affected the trade.
An attempt was made, during the year, by the Cotton Guild, or rather by sundry wealthy traders, whose storehouses are lying empty, and who brought pressure to bear on that fraternity, to re establish the trade in raw cotton by binding the merchants to buy it only at Canton, instead of at Hong Kong, as the practice now is. The matter was brought to my notice by the Governor of Hong Kong, who had been petitioned by the resident native merchants there against the attempted coercion. On inquiry, I found that in reality the Cotton Guild had very little interest in the matter; nevertheless, the Guild represented the movement, and with that only I had to deal. I at once laid the matter before the Chinese authori- ties, and having convinced them the action of the Guild was entirely illegal, and with a view of obtaining a monopoly of the trade, it was at once forbidden by Proclamation, and the scheme fell through. Had it not been suppressed, another mouopoly would quickly have followed, for trade combinations are the life and soul of Chinese commerce, and monopolies in strict accordance with its institutions. Foreign trade, however, must be kept free and clear of such deteriorating influences.
In woollen goods the increase has been but small, and scarcely worthy of note; and in metals, such as iron--nail rod, bar and hoop--lead, spelter and quicksilver, the balance, with the exception of lead, is against the pre- ceding year.
In native goods some show an increase, and others a decrease, but the amounts either way are of no consequence.
It is in exports the trade of the foreign merchant chiefly lies. The Chinese are not sufficiently advanced to monopolize this branch of foreign commerce, although symptoms of a change of system are not wanting. At present it pays them better to sell at once, than to ship on account, and the profits to be derived from foreign competition are more certain than what the English market has to offer, besides the absence of risk.
Notwithstanding the lamentable accounts of the state of the tea market at home, the export of that produce during the past year shows an increase to some extent over that of 1866; in black, to the amount of 14,133 piculs (1333 lbs. to the picul); in green, 5,382 piculs-total, 19,515 piculs, or 2,600,374 lbs., and full rates may be said to have ruled during the season. Indeed, the firmness with which the dealers held out for long prices was a matter of surprise, but to some extent justified by occasional clearances, at rates which home advices scarcely supported. The stock at the commencement of the year was about 14,000 piculs. The first crop was good, and realized fair prices, and the teamen had every reason to be satisfied with their transactions. The second crop, called district teas, was on an average cheaper than formerly, owing to the
CANTON,
53
demand for money for the interior; but for these, in all probability, the best returns will be realized in the home market. Besides, the quantities shown in the export returns, it is estimated above 12,000 piculs, say 1,599,000 lbs., went to Hong Kong by native junks, and, therefore, did not pass through the Foreign Custom-house; and about 30,000 picule, or 3,997,500 lbs., to the Portuguese settlement of Macao, for shipment to England and America. The probability, however, is that a larger amount than this was exported from Macao, as the route from the tea districts by the great West River, in the estuary of which that settlement is situated, affords every facility for conveying this produce to the coast without much interference from inland Custom-houses. The amount in stock at the close of the year was about 30 chops.
A reduction has lately been made by the Chinese Government in the duty on tea dust, which now stands at I tael, 2 mace, 5 candarines per picul of 1334 lbs., if under the value of 15 taels per picul. It had been raised to that of leaf tea, viz., 2 taels 5 mace per picul.
A considerable business is done in the preparation of teas for the foreign markets, and well-known as Canton made teas. The leaf undergoes various processes by which it is converted into the required sort; and there is even a class called "Lie Teas" which have little or none of the leaf in their composition. This manufacture is carried on openly and without any pretensions to concealment.
The following Table gives the highest and lowest market quotations during the year -
TEA.
Country congous
Per pical
Canton district congous Scented orange pekoe
Young hyson Hyson. Imperial
Country greens
Hyson.
''
capers.
Canton greens. Gunpowder
S
1+
Taels.
144, 21, 24, 30
13, 22, 28, 30 17, 26, 29, 32, 35
11, 19, 25, 28, 31 11, 15, 24, 28, 30
17, 21, 25, 27, 30
28
14, 21, 23
16, 22, 30, 37, 38 57, 63
The average exchange of the tael into sterling may be taken at 6s. 7d. The export of silk has varied but little since last year owing, probably, to this article being rather limited in production. Generally, as it arrived it was brought up, and, consequently, the stocks at uo time were large. The following Table gives the highest and lowest prices during the year :-
Description.
Tsatlee, No. 1 Loon Kong, No. 1
Per bale
Dollars.
480 to 620 480 to 610
Kow Kong
•*
Per picul
370 to 560
Lack-low and Cum-chuck
Per bale
465 to 600
Reeled Cut-chucks
Per box
490 to 660
Seulam
Per picul
320 to 460
Ponjum
2
Pierced cocoons Waste silk
100 to 160
70 to 95
45 to 90
The prices on an average being rather lower than were paid for the same quantities in 1866, But, although the quantities exported show a slight
444
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