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BRITONS V. GERMANS IN CHINA
in the trade in Fancy Cottons. It is not proposed to go into the lengthy details and ramifications of this system; suffice it to say that it is one open to many objections, and with few if
any ad. vantages. It has been the cause of serious overtrading, and still more serious losses. Apart from the fact that the Chinese merchant does his business better and more carefully when thrown more on his own re- sources than when tempted into extravag ant speculations by the prospect of long credit, the whole system is fraught with considerable danger and inconvenience. Several times in the past twenty years, a halt has been called by the commercial community and attempts made to revert to a cash basis of trading. On every occasion there were German firms who refused to enter into any agreement which bound them to abstain from giving credit. That
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is on all except the last occasion, when in 1915 the British firms in Hongkong held a conference, and agreed not to give any more credit for cotton and woollen piece goods. This is a matter for congratulation, and it is devoutly to be hoped that nothing will occur to render a reversion to the abominable and insidious credit system
necessary.
It is now necessary to explain that only a few German firms made money out. of their business in Manchester and Brad- ford goods. The liquidations brought to light the same extraordinary state of affairs. The same price-cutting had been indulged in as in other branches of trade, but in cotton and woollen goods they had
they had appar- ently been fighting amongst themselves for the trade to such effect that very heavy losses were made, whereas, owing to the impossibility of joining in such a suicidal
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