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are other classes of business hardly so important which have also been diverted for good.
With regard to those trades which still remain with us, some inquiry is necessary as to what extent they are likely to follow the above, or in how far the depression now existing may be caused by their having already done so to a smaller or greater extent.
Take the case of yarn. Hitherto all yarn intended for South China has been purchased by Hong Kong dealers and resold to Haiphong, Canton, Swatow, and other ports. But the Japanese have started selling direct to these places, and as their steamers are able to go direct to these ports, Hong Kong also loses the transhipping business. It is also reported that the Hong Kong Mill is going past the dealers in Hong Kong and selling direct in the coast ports, and there are instances of sales by European importers to the agents of Canton and Haiphong firms without the usual intervention of a Hong Kong yarn merchant.
As regards piece-goods, the dealers in Hong Kong are complaining that much of their former business has been taken away by direct importations. The Japanese are said to be the most prominent in this direction, their competition being keenest in Swatow and Amoy. Their goods, principally of a low class, besides cutting into the trade of similar British and Indian productions, are also taking the place of cloths formerly manufactured from Bombay yarn, so that our trade is affected in more than one way. But, apart from this Japanese competition, there is also an effort being made by certain Hong Kong houses to deal direct with Canton, Swatow, Amoy, and Foochow. This is in addition to business done direct by firms already established in these ports. The travellers from Manchester and Bradford, who have been coming to China in such numbers of recent years, caused some trouble in the north by selling to Tien-tsin dealers direct certain goods for which they had already received orders in Shanghae, the Chinese in the latter port expecting to sell their purchases to Tien-tsin. In consequence double quantities were ordered and the market suffered severely. Something similar is evidently going to happen here, either through the pushfulness of travellers or salesmen. There is at least one recorded instance of a traveller booking orders through the Canton branch of a European firm here, to the annoyance, it is said, of the Hong Kong office. It is certainly a fact that some firms here send their salesmen up regularly to Canton for orders, to the certain loss of such business to the Chinese firms in the Colony. Others have acted in a similar way at the coast ports.
In the case of flour, as mentioned previously, this Colony used to be the distributing centre for a large district, and when the trade of the most out-lying ports left Hong Kong it was naturally hoped that Canton, Swatow, and other places near at hand would certainly be left undisturbed. Large quantities, however, have within the last year been sold direct to Canton dealers, and several lots to those of Swatow.
One big Swatow dealer in flour has now a representative here who buys direct from European houses. It is also reported that the Japanese have done a fair business direct.
In metals the tendency is not nearly so well marked. Certain Canton men have, however, visited Hong Kong and placed orders direct with Europeans, such business being formerly transacted through Chinese merchants here.
As regards sundries, such as singlets, socks, &c., it is now almost essential for European houses which wish to do a good business in these goods to deal direct with Canton dealers. Representatives of the various firms in this trade visit that city regularly for the purpose of getting orders, which are becoming larger and more varied as time goes on.
The above are some of the principal branches of merchant business carried on between Hong Kong and China; it may be that others would show a similar tendency.
With regard to Manila, which place Hong Kong formerly supplied with goods of all classes, a falling off is particularly noticeable. This may be due to some extent to the fact that the American mail-steamers run a service now calling at that port, giving direct shipment. It may also be due to American goods taking the place of British and continental, but many such goods formerly bought through the Chinese in Hong Kong are now shipped direct from Europe.
Formosa is another market which has been to a great extent lost to us, the Japanese finding a good outlet there for many of their products.
Thus it would seem probable that the depression existing is in some measure due to direct purchases by the consuming districts. That Hong Kong population has grown in districts outside those occupied by merchants is most likely due to the development of manufactures, and this is a most hopeful sign in the present position of the Colony. The thin end of the wedge has, however, been inserted into much of our merchant trade, and even although Hong Kong may prosper in other ways there is no reason why steps should not be taken to retain at least what is left. We still have practically all the transhipping of the cargo, we have the storing of a fair proportion of it. What has been lost is the Chinese and sometimes the European merchant's profit. We have also the prospect that the larger this direct business grows the greater the chance that it will pay Shipping Companies to run steamers calling at these ports, with the loss to the Colony of the transhipping. The firms which have been pushing this direct business have been principally Germans and Japanese, people with no interest in the future of the Colony. But their actions force others to follow suit, and whilst the merchants here may in the end suffer little, as they will simply establish themselves where the business is to be had, the Colony will feel the effects of losing its former position as the distributing centre for South China, Formosa, and the Philippine Islands.
(Signed) ALEX. S. D. COUSLAND, April 3, 1908.
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are other classes of business hardly so important which have also been diverted for good.
With regard to those trades which still remain with us, some inquiry is necessary as to to what extent they are likely to follow the above, or in how far the depression now existing may be caused by their having already done so to a smaller or greater
extent.
Take the case of yarn. Hitherto all yarn intended for South China has been purchased by Hong Kong dealers and resold to Haiphong, Cantor, Swatow, and other ports. But the Japanese have started selling direct to these places, and as their steamers are able to go direct to these ports, Hong Kong also loses the transhipping business. It is also reported that the Hong Kong Mill is going past the dealers in Hong Kong and selling direct in the coast ports, and there are instances of sales by European importers to the agents of Canton and Haiphong firms without the usual intervention of a Hong Kong yarn merchant.
As regards piece-goods, the dealers in Hong Kong are complaining that much of their former business has been taken away by direct importations. The Japanese are said to be the most prominent in this direction, their competition being keenest in Swatow and Amoy. Their goods, principally of a low class, besides cutting into the trade of similar British and Indian productions, are also taking the place of cloths formerly manufactured from Bombay yarn, so that our trade is affected in more than one way. But, apart from this Japanese competition, there is also an effort being made by certain Hong Kong houses to deal direct with Canton, Swatow, Amoy, and Foochow. This is in addition to business done direct by firms already established in these ports. The travellers from Manchester and Bradford, who have been coming to China in such numbers of recent years, caused some trouble in the north by selling to Tien-tsin dealers direct certain goods for which they had already received orders in Shanghae, the Chinese in the latter port expecting to sell their purchases to Tien-tsin. In consequence double quantities were ordered and the market suffered severely. Some- thing similar is evidently going to happen here, either through the pushfulness of travellers or salesmen. There is at least one recorded instance of a traveller booking orders through the Canton branch of a European firm here, to the annoyance, it is said, of the Hong Kong office. It is certainly a fact that some firms here send their salesmen up regularly to Canton for orders, to the certain loss of such business to the Chinese firms in the Colony. Others have acted in a similar way at the coast ports.
In the case of flour, as mentioned previously, this Colony used to be the distributing centre for a large district, and when the trade of the most out-lying ports left Hong Kong it was naturally hoped that Canton, Swatow, and other places near at hand would certainly be left undisturbed. Large quantities, however, have within the last year been sold direct to Canton dealers, and several lots to those of Swatow.
One big Swatow dealer in flour has now a representative here who buys direct from European houses, It is also reported that the Japanese have done a fair business direct,
In metals the tendency is not nearly so well marked. Certain Canton men have, however, visited Hong Kong and placed orders direct with Europeans, such business being formerly transacted through Chinese merchants here.
As regards sundries, such as singlets, socks, &c., it is now almost essential for European houses which wish to do a good business in these goods to deal direct with Canton dealers. Representatives of the various firms in this trade visit that city regularly for the purpose of getting orders, which are becoming larger and more varied as time goes on.
The above are some of the principal branches of merchant business carried on between Hong Kong and China; it may be that others would show a similar tendency.
With regard to Manila, which place Hong Kong formerly supplied with goods of all classes, a falling off is particularly noticeable. This may be due to some extent to the fact that the American mail-steamers run a service now calling at that port, giving direct shipment. It may also be due to American goods taking the place of British and continental, but many such goods formerly bought through the Chinese in Hong Kong are now shipped direct from Europe.
Formosa is another market which has been to a great extent lost to us, the Japanese finding a good outlet there for many of their products.
Thus it would seem probable that the depression existing is in some measure due to direct purchases by the consuming districts. That Hong Kong population has grown in districts outside those occupied by merchants is most likely due to the development of manufactures, and this is a most hopeful sign in the present position of the Colony. The thin end of the wedge has, however, been inserted into much of our merchant
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trade, and even although Hong Kong may prosper in other ways there is no reason why steps should not be taken to retain at least what is left. We still have practically all the transhipping of the cargo, we have the storing of a fair proportion of it. What has been lost is the Chinese and sometimes the European merchant's profit. We have also the prospect that the larger this direct business grows the greater the chance that it will pay Shipping Companies to run steamers calling at these ports, with the loss to the Colony of the transhipping. The firms which have been pushing this direct business have been principally Germans and Japanese, people with no interest in the future of the Colony. But their actions force others to follow suit, and whilst the merchants here may in the end suffer little, as they will simply establish themselves where the business is to be had, the Colony will feel the effects of losing its former position as the distributing centre for South China, Formosa, and the Philippine Islands.
(Signed) ALEX. S. D. COUSLAND, April 3, 1908.
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