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COREA
The foreign trade of the country continues to exhibit steady growth. In 1903 it reached the highest figures yet attained both as regards imports and exports. The value of the trade amounted to £2,827,381 of which £1,859,876 represents imports and £967,505 exports. To this must be added the gold export amounting to £557,006, making a grand total of £3,384,387. The average for the previous five years was a little under £2,500,000.
The principal articles of import are cotton manufactures, and of export, rice, hides and bones, beans, and gold. There is a considerable paper-making industry, which is entirely in the hands of the peasantry, its great drawback being lack of capital. The export of gold is yearly increasing. In 1897 it amounted to £240,047, in 1902, £516,961, and in 1903 to £557,006. There are several gold mines now being worked owned by British, American and German syndicates. The Pritchard Morgan Concession is now developing the Gwendoline mine, and the Unsan district, over the whole of which this Company possesses mining rights, has been shown to contain silver, copper and coal deposits. The German concession is at Tangokae (Kim-song).
In 1894, owing to a rebellion in the Southern provinces, application was made to China for assistance, and Chinese troops were sent to restore order. Japan also sent troops and invited China to co-operate in reforming the government of the country, but China declined, and war resulted, Japan driving the Chinese out of Corea and carrying the war into China itself.
The Corean standing army, which used to consist of about 5,000 men, badly armed, drilled, clothed and fed, is now stated to number 10,000 men. For a few years the army was trained by a Russian colonel who was assisted by three commissioned and ten non-commissioned officers, but in 1898 their engagement came to an end. There is no- conscription in Corea, but there is no difficulty in obtaining recruits, the pay, G yen a month with free equipment and kit, being considered high, and, moreover, there is no standard of age or physical qualities. The army consists entirely of infantry, but though the standard of training is low, the young officers make a very favourable impression on foreign military experts.
The chief difficulty in the way of trade is the lamentable state of the currency in Corea. The monetary system lacks a reserve of precious metal and reliance is placed on a nickel coin of small intrinsic value. In 1901 and 1902 an enormous number of spurious 5 cent coins were put into circulation in Corea. As many as 3,573,138 pieces (coins and blanks) were confiscated by the customs officers at Chemulpo during 1902, and it was considered that fully ten tiines that number must have been smuggled into the country. It seemed to be clearly established that large numbers of these counterfeit coins were coming from Japan, and the Government of the latter country issued a stringent ordinance which gave Japanese customs officers power to prevent the ship- ment of counterfeit coins and enabled the Corean customs to institute proceedings against Japanese found guilty of importing nickels of this description. During 1903 this traffic seemed to have practically ceased. This may be set down as due, perhaps not so much to the Japanese ordinance as to the fact that the coin fell to a value which rendered counterfeiting an unprofitable occupation. For a short time in November, 1903, it was possible to obtain 245 cents for a Japanese yen. The British Consular report for 1902, commenting on this currency question, rightly remarked that "while the counterfeiters and the passers of debased coin cannot be too severely censured, the Corean Government have paved the way for fraud by filling the country with a depreciated currency of insignificant value, as they have issued without stint permits enabling private persons to undertake the work of coining. Thorough reform of the financial system is the only remedy, and the longer it is delayed the greater will be the plight of the people." A few Corean statesmen appear to recognise this, but though there has been much talk of taking action, no serious attempt has yet been made to replace the wretched nickel coinage. The Government had been considering a proposal to establish a Central Bank which should issue notes and undertake financial business generally in various parts of the country, but actual operations have not yet commenced,. and it is surmised that the originators of the project appreciate the fact that the market value of notes issued without a bullion reserve would immediately become insignificant. Meanwhile the notes of the Japanese Bank, Dai Ichi Ginko, are being received in growing confidence in Corea. The largest of the copper cash continue to be exported to Japan, where they are melted down for the value of the copper they contain. No- progress has been made by the Corean Government with their projected subsidiary silver coinage, although silver to the value of some £85,000 was imported by the Imperial Mint for this purpose.
Original from UNIVERSITY OF MICHIGAN
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