1935-02-02 — Page 12

TEXTILES AND YARN

Hong Kong Market

Report: 1934

The lamentable state of trade and poor prospects reported at the end of 1933 unfortunately became intensified during the ensuing twelve months, and träding results for 1934 represent a sorry record Indeed.

COTTON

season, contract prices were ob-. Imports from United Kingdom tainable, losses soon became the again show a very marked decline, rule rather than the exception. as confirmed by Hong Kong Gov- The weight bf bankrupt stocks Brument trade statistics. Not-carried over from previous seasons withstanding exceedingly meagre proved a severe obstacle and to importations from Lancashire for this must be added fears of im- March/June consumption the pending competition from Japan- weight of bankrupt stocks remain- ese manufacturers. The latter has ing from the reckless buying of since materialised, and Japanese 1931 overloaded the market and goods have found their way to this depressed values. The season had market at prices with which it for barely opened before prices for would be quite impossible new goods had dropped out of all Bradford or the Continent to com relation to either true

Allegations of inferior market pete. value or replacing costs, and sales quality of manufacture, so often were only possible at losses rang- alleged, have been effectually dis- ing from twenty

be dimcult to thirty per pelled and it would cent, whlist later, sales could not always be effected even at these aacrifices.

New

HONG KONG DAILY PRESS, SATURDAY, FEBRUARY 2, 1935...

THE DOLLAR

Gradual Rise During

The Year

The following are the official opening quotations of the Hong Kong dollar on the first business- day of each month:-

January 2

February 1

March 1

April 3 May 1 June 1 July 3.... August 1. September 1 October-1 November. 1 December 1 December 31

15. 51d. 18. id.

is old.

Ls. 51d.

15. 4td.

1s.. 41d.

1a 5fd. 13. sid. Is. Bjd. is. 7c.

18. Tid.

la 7 d. ..... ls Sid

CHINESE ENTERPRISE

Manufacturers In Hong Kong And The New Territories In Serious Competition

(BY G. W. SEWELL)

OWO

The Chinese are still in their Industrial infancy in this Co- lony and they would appear to be most successful in their

their enterprises when they are entirely cut off from 'country as 'evidenced by their activities in the Strafts Settle=" ments and other places. It is not easy to obtain reliable infor- mation regarding local industries but it is hoped that the following will give an idea "of the existing conditions.

It will be seen from the appended classified Est of focal manufacturers that their number is approximately 268 including those so-called factories' run on a small domestic scale.

As

selves to such an extent that the quality of their products suffer

and business becomes uneconomic,

Chinese Manufacturers do not, like, those of other Countries, am- ploy experienced Travellers nor do they enjoy the advantage of com- mercial Consuls or Trade Commis-

sioners.

1. Machine & Metalware:

(1) Machine Making &

Repairing

.30

most of the factories are ing to meet outside competition. private concerns their financial the Chinese Manufacturers indul- YARNSWOOL

status is not easily ascertainablege in price cutting amongst them- and the number of workmen em- The wool yam trade has been ployed varies from time to time. generally satisfactory, except in The leading factories use steam or the hostery section where, again, electric power and a few depend

proved a bankrupt stocks

very principally on

manual labour. severe drag on the market The About 10% of the. IBW material advent of Japan and North China used in the factories comes from of the foreign sources and the balance of lato the knitting section to distinguish Japanese counter-trade presages a diminished bus-30% from the Interior of China. qualities from either their Brad-ness in Yorkshire and Continen- The chief markets for these fac-

tal spinnings.

tories are Java, Straits Settle ford or Continental prototypes.

GENERAL

ments, China,. Great Britain and. Colonies. The latter

Lake Currency troubles have added to her the many difficulties of traders. principally rubber shoes and Torch In Swatow, for instance, within Light Cases whilst exports to the recent weeks, exchange depreciat- Dutch East Indies consists princi- ed from, a normal 12 per cent, topally of Cotton. Textiles.

The local manufacturers are in 38 per cent. on Hong Kong In

Kwangtung Provincial a more favourable position than Canton. bank notes of $10 denomination I those in the interior of China' have remained at a discount of owing to the following advantages. approximately 35 per cent.

(1) Convenient means of com-" throughout the year, and this in munication spite of many Government pro- rises that they would be restored

business

Most new arrivals of British and booked during August/September with Lancashire Continental woollens cleared well, for Spring arrival, 1935, suffered mainly because they consisted of accordingly and it is doubtful if new and fashionable designs and total market operations amounted colourings, but, as previously in- to more than 2,000 to 2,500 pack-dicated, they showed either poor ages (these mainly composed of returns or losses to the dealers. the better-class coloured stripe There still remains a not incon- poplins) against a previous recent siderable amount of bankrupt average of something like 15,000 stock in old designs and shades to packages. The year.bas marked be liquidated and high customs an almost unbelievable reduction duties and the impoverished state In British imports, whilst Japan of neighbouring Provinces, presage and Shanghai mills have increas- little hope of early liquidation or ed their share of the trade.

WOOLLEN

this old stock.

to par.

OUTLOOK

(2) Hongkong being a free port (3). Comparative stability, of 10- cal currency.

-(4)

YARNS COTTON

It seems futile to look for any

Absence of serious labour.

Recent exchange rates have

early improvement in Hong Kong troubles. Progress is greatly ham- proved very detrimental to exports trade while the bulk of the inpered in the Interior of China by or finished goods (socks and sinhabitants of adjacent Provinces frequent disputes between

which are the Colony's outlets

Textiles fared-little better than *Cottons. Notwithstanding very conservative buying in the Spring of 1934 (approximately 2,000 pack glets) and although some counts ages in all, against a normal 9.000 have moved satisfactorily the cot-

are on a bare subsistence level. to 12,000) for. Autumn arrival, a ten yarn trade has been disap- Never, in recent times, have the position similar to that in respect pointing and is passing through prices of Chinese daily necessities of cottons obtained almost as soon bad times. The disappearance of been so cheap-effective corro- B5 Autumn demand eventuated. some fifty per cent of factories boration of lack of purchasing

has not materially-assisted Prices, even

the power-and added to this is the for old and well- established chops, failed in most survivors, owing to resulting bank-killing Chinese Customs duties on cases to show, any return to deal-rupt stocks (unsaleable except at foreign" imports of all descriptions, ers on contracted prices. and, heavy loss) interfering with the whereas, at the beginning of the flow of trade in new goods.

am

trade.

insurmountable barler

to

ployers and workmen.

em-

A few of the difficulties con-

fronting local manufacturers are: (1) High Chinese Customs tarif" wall

.

(2) Insufficiency of capital (3) Existence of Cut throst competition amongst the various factores. Although they have formed talons they do not keep their pledges, Instead of combin-

PAPER TRADE

Poor Business In 1934

COASTAL SHIPPING

(Continued from Page 2), · available space in regular Bangkok Kongkong liners having been book- ed for rice cargoes for Shanghai with transshipment at Hongkong at rates between 50/55 cents," Mex, per picul, several China Nav. Co's steamers were also taken up for Bangkok Shanghai direct at 55 cents, Mex, on usual berth terms.

December

The past year has by no means been a good one for the Paber trade and is likely to prove an un- profitable one for all concerned.

There has been a considerable decline in imports of most leading qualities. This can be attributed to a lesser demand from the In terior and outports. The cause is twofold. Firstly while the general trade depression has in no small degree been responsible, high Cus- There was not the slightest sign toms Tarriffs plus additional duties of an immediate improvement in

by and Taxes imposed

other December, although the volume of authorities has done much to pro- [idle tonnage is extremely light duce the poor trading condition of Earnings of steamers Hongkong the past year,

Singapore Bangkok Hongkong on than ex- berth terms were less pected.

Competition has been severe among dealers resulting in de- pressed prices. The improved rate of exchange during the past few months has done little to improve better and the situation but brighter conditions during the current year is foreshadowed,

7. Dressing:

(4) Others

- (2) Leather Articles......11

(1)

Hats

4

(2) Rübber Shoes.

5

(3) Handkerchief

4

(2)

Steel Window Frames 3-

(3) Cans

8. Tannery & Leather Articles

(1) Tannery

3

(4). Clocks

(5) Metalware

2. Electrical:

(1) Battery

8

(2) Torch-light Cases

5

(3) Electrical Articles

5

(4) Electro-plating....

10. Printing!

3. Communication:

(1) Ship-builders &

Repairs

4. Stone & Earth:

(1) Ceramic

(2) Glass

5. Chemicals:

9. Food, Drink & Tobacco!

(1) Confectionery, Biscuits

& Canned Gooda......16 (2) Aerated Water ......... 2 (3) Tobacco

(1) Printing Press

(2) Type-Foundry

11. Sundries: «

(1) Ice-Hot Flasks

3

(2) Pencils

5

(1) Soap

(2) Toilet & Perfumery... 7

(3) Paint

2

(4) Printing Ink

(5) Fire-crackers

(6) Pharmaceutical

6. Textiles:

(1), Cotton Shirting (2) Suk Plece-goods

(3) Tooth Picks (4) Writing Ink

2

The rate $2.-per ton for ... · 4,000. tonners, or $2.30 per ton for 2,000 tonners for Hongay Hongkong. $2.80 far. Hongay Canton, $3.20, for Port Wallut Hongkong, HK. $6,000. per month for singledeck 2000 eon- ners and HK. $10, 250. per montha for a British steamer of 4,300 tons deadweight with a Höngkong Gov. ernment Passenger License. сп timecharter was accepted.

To all shipowners, trip and time- charterers as well as merchants, the year drawing to its close has. been a most disappointing one. Because of the increased · surtax on foreign rice imposed by the

less Canton Government,

rice cargoes were carried. Because of the vast territory devastated by Reds in the Klangs province,

5 fewer salt cargoes were imported into Canton. Because of the econ- omic policy of the Chinese GovernTM own sugar ment in growing its

I

1. cane and refining its own sugar, dry and/or centrifugal “sugar in reduced- quantities. was imported into China. Because of the in- creased import duty on foreign coals, more native coal was mined in the North River`and consumed in Canton adn because of Cheaply operated foreign steamers serious- ly competing for the restricted Volume of business available. Three British steamers of a higher standard owned locally were sold- no efforts were made. to replace them.

The stagnation throughout the 6 while year under review" has B0 1 crippled Chinese merchants and weakened, their confidence, that in spite of owners' willingness to 8 entertain longterm timecharters for their modern and expensively- kept-up steamers, at reasonable. rates, charterers prefer to adopt a #wait and see" policy. Owners anxieties are therefore by no means at an end.

2

(3) Cotton & Silk Knit

ting Factories

75

3

(4) Weaving and Dyeing

Factories

(Continued On Next Col

(Continued on Previous Col)

"PUBLISHED ANNUALLY

SINCE 1862

$12.00

PER COPY

AN

ESSENTIAL

REFERENCE

BOOK

FOR ALL BUSINESSMEN

B

Big News!

NOW

H's Ready!

ON SALE

DIRECTORY AND CHRONICLE

OF

CHINA, JAPAN, MALAYA, STRAITS SETTLEMENTS, BORNEO, SIAM,

PHILIPPINES, KOREA,

for

INDO-CHINA, NETHERLANDS

1935

FEATURES OF THE DIRECTORY

INDIA, ETC.

COMPLETE ALPHABETICAL LIST OF MERCHANTS, MANUFACTURERS, IMPORTERS & EXPORTERS

FOR THE FAR EAST.

· CLASSIFIED LIST OF TRADES & PROFESSIONS, LISTS OF POWER STATIONS, TIN MINES, SUGAR

CENTRALS, COTTON, OIL & FLOUR MILLS, SILK FILATURES, ETC.

·

BUYERS' GUIDE. SPECIAL ENGINEERING SECTION. TREATIES. TRADE REGULATIONS. CUSTOMS.

TARIFFS. LIST OF CABLE ADDRESSES, ETC., ETC.

USE THIS ORDER FORM

TO THE HONGKONG DAILY PRESS, LTD.,

11, ICE HOUSE ST., HONG KONG,

DIRECTORY & CHRONICLE OF CHINA, JAPAN ETC. 1985 EDITION $12.00 PER COPY (PACKING AND POSTAGE EXTRA)

PLEASE SEND

COPIES OF THE 1935 EDITION

PLEASE USE THIS FORM