Directory_and_Chronicle_1916 — Page 776

CHINA

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a somewhat smalier quantity of green tea exported. The demand from the United States and Canada was larger, and Europe took more black tea than in 1913, but required less green tea. Although there was this small increase in the quantity of black tea exported, the export was below that of any previous year except 1913, 1905, and 1906 ; and it is quite evident that the bulk of this trade, by which is meant all of it with the exception of a small portion represented by the finer qualities, demands the careful consideration of the Government. This has been to some extent realised and the export duty on leaf tea was reduced from Hk. Tls. 1.25 to Hk. Tls. 1 from the 1st November. But this reduction will do nothing to help the finer teas, and leaves the duty upon the inferior qualities, of which by far the greater proportion of the trade consists, much too high, when taken in conjunction with likin, to enable them to compete under ordinary conditions with the duty-free teas from India and Ceylon, the trade having for many years declined to the position that the inferior China" teas are only wanted when short supplies from India and Ceylon have so raised prices that China t as are worth buying on account of their cheapness. While it is useless to expect that further reduction in duty and likin would ever raise China teas to their former predominance, it woul appear certain that the continued decline of the trade might be arrested by the abolition of taxation and by more careful preparation; and it is a hopeful sign that the Government has appreciated the advisability of lightening the present load of duty and likin, and a still more hopeful sign is the fact that numbers of rolling machines have been purchased and sent into the interior. The export of brick tea did not maintain the advance made in 1913. Black brick fell off by 84,038 piculs, and the total export declined by 22,137 piculs, notwithstanding an advance of green brick of 61 901 piculs,

The export of beans, in spite of a temporary stoppage when war was declared, and in spite of the destruction of the crops by floods in the districts serving Chinkiang, actually showed a small increase, rising from 10,323,959 to 11,157,147 piculs. Oils, principally required for the Continent, such as groundnut oil and wood oil, felt the effects of the war; but bean oil, cotton seed oil, sesamum seed oil, and tea oil all improved in quantity. Among seeds, while cotton seed and rape seed showed a decided advance, there was a falling off in linseed and especially in sesamum seed, which receded from 2,034,647 to 1,251,180 piculs, although there was a large supply offering. Hides, of course, show reduced figures, as do skins, except that dressed sheep skins were purchased in large quantities. Straw braid fell from 101,037 to 16,648 piculs, a very serious decline, partly due to the absence of statistics from Kiaochow and partly due, it is said, to a change of fashion in Western countries. The total decrease in the value of the export trade amounted to about 14 millions of pounds sterling.

Shipping-Although the tonnage recorded under Austrian and German flags represents little more than the first half of the year, while British, French, and Russian tonnage was largely employed on Government work from the same date, and vessels under neutral flags found plenty of profitable business elsewhere, it will be seen that steamier tounage increased by 1,855,913 tons and exceeded the record for all other years, rising from 87,613.969 tons in 1913 to 8:4,469,882 tons. There was great difficulty in Ending accommodation for cargo offering both in Europe and in China, and the consequent rise in freights and the expense of war risks did not tend to encourage trade. Although not directly concerned in foreign trade, the addition of four new specially-designed steamers to run between Ichang and Chungking deserves notice, as there can be no doubt that the facilities of steain traffic will do much to develop the trade of the rich province of Szechwan.

Treasure-The price of silver remained fairly steady until July, chiefly owing to the expectation that China would be purchasing for purposes of currency reform, and that India also would have to buy. Both these expectations were disappointed and in July the price fell from 274d. to 221d., and remained approximately at that figure until the end of the year. Exchange followed silver values, and, as the difficulty of financing exports reduced demand and lowered prices, leading to a serious curtailment of the export trade and conseqently to less demand for silver for purchases in the interior, the ever-increasing stock of silver in the local banks tended to weaken exchange below the parity of silver.

The demand for gold in Europe and Japan and its dearness as compared with silver led to the sale of the former metal by China, and there was an excess of exports over imports of Hk. Tls. 13,000.750, the bulk of the shipments having taken place after the commencement of the war. That gold valued at Hk. Tls. 4,397,531 was sent to