Directory_and_Chronicle_1916 — Page 770

CHINA

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Mr. F. E., Vaylor, Statistical Secretary to the Maritime Customs, in his report on the Fo eign Trade of China for 1914, says:

Notwithstanding the difficulties to be overcome after the tremendous upheaval of 1911, when the whole government of the country was temporarily disorganised, followed in 1913 by a serious rebellion against constituted authority that destroyed credit and paralysed trade over a large tract of territory, the year 1914 opened with more favourable prospects, and there was evidence that Chinese merchants were gradually regaining confidence in the stability of the Central Government. There was every reason for such confidence. The provincial officials had been working hard, to restore order, and provincial finances had been improved to such an extent that most of the provinces had become self-supporting. The issue of paper money has now been brought under control, and there is reason to hope that the reform of the currency, perhaps the most important reform needed, will before long become an accomplished fact. The outbreak of the war in Europe prevented the conclusion of the loan under negotiation with the Quintaple Group, which was destined partly to serve this purpose, but the difficulty of obtaining funds from out-ide led the Chinese to make more strenuous efforts to solve their financial problems at home, and the increased revenue derived from salt, under the able direction of Sir Richard Dane, and the success of the internal loan, together with the absorption of the premium bonds issued through the Hsin Hua Savings Bank, may be taken as evidence of the potential resources of the country at the disposition of a Government in which the people have confidence.

When the year opened exchange was favourable to imports and clearances had greatly improved, while at the same time exports did not appear seriously impeded. Trade continued brisk until April, when it became very dull; but notwithstanding this the Customs revenue at the end of June showed a gain over the previous year's collec- tion to the same date of Hk. Tls. 889,200, in spite of a shortage in opium duty and likin of Hk. Tls. 1,192,782. Trade was thus doing better than might have expected in view of many adverse circumstances, which it may be useful to touch on as showing how the energy of the Chinese merchant overcon es apparently h peless conditions. In the first place banking facilities, upon which the whole trade, both domestic and foreign, has been built up, were greatly restricted. The famous Shansi banks, through whose hands nearly all Government funds formerly passed, and who were the chief agents for all inter-provincial remittances, were compelled to close their doors when the Manchu Govern- ment lost power; while all other banks, with a few notable exceptions, being unable to collect money due to them on account of alvances, ceased doing business. The few that remained showed extreme caution and engaged only in transactions involving no risk whatever. The foreign banks, upon whom the Chinese banks at the ports are chiefly dependent for their supply of silver, were compelled to abstain from giving to the Chinese banks the facilities customary before the Revolution. Chinese dealers, therefore, found many impediments to their business; more especia ly was it difficult to arrange for remittances and for sending money into the interior to buy produce. But, while the restriction of banking facilities greatly hampered trade, it is generally felt that the disappearance of so many mushroom banks, engaged rather in speculation than in legitimate banking transactions, has placed business on a safer and sounder basis.

As regards climatic conditions, crops were fairly satisfactory; but in Kwangcung during the summer vast tracts were inundated along the West and North Rivers by foods that devastated 15 districts, causing extensive damage to proper y and crops and involving much loss of life, The disaster is said to have been the worst of the kind ever experienced in that quarter. Crops, such as beans, groundnuts, and sesamum, were also extensively damaged, and in some cases totally destroyed, by floods in North Kiangsu. In September parts of Manchuria, after a prolonged drought, were also visited by disastrous floods.

Hurtful as were these floods, it is possible that their injurious effects on commerce were small as compared with the paralysis of trade brought on by the ravages of a brigand who called himself White Wolf, and whose baneful activities brought trade almost to a standstill in parts of some of the central provinces. In January he and his band devastated South-east Honan, parts of Hupeh, Anhwei, Shensi, and Shansi alt suffered from the band, which reached Kansu but failed to enter Szechwan.

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The

mobility of the brigands as compared with the more slowly moving troops sent against them by the Government enabled the band to escape capture for some months; but it was officially reported, after his followers had been dispersed, that White Wolf was killed on the 5th August near Lushan, in Honan.

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