Directory_and_Chronicle_1918 — Page 673

CHINA

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they reach the spinning stage and also affects the weight and quality of a large majority of the cocoons. It is a disappointing fact that the establishment of filatures run on European lines and the consequent increase in the demand for cocoons, leading to com- petitive buying between the filatures, has during late years brought about a rapid deterioration in the quality of the cocoons produced.

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The quarterly memoranda on trade received from the ports continue to show that in the demand for foreign goods and the supply f exports all the factors of an expanding commerce were present during the year, but were checked chiefly by the disturbances due to war

to war conditions. In the Manchuria districts trade with Russia hampered by the fall in the rouble exchange, by the prohibition of exports from Russia and the high import duties levied on goods entering Russian territory, by the shortage of rolling-stock on the Chinese Eastern Railway system, and by low water and high freights on the Sungari; while a severely felt dearth of silver and of subsidiary silver coinage, added to the moratorium applied to the notes of the Bank of China and the Bank of Communications in May, increased the difficulties experienced by merchants. The harvests, however, were quite good, although unseasonable weather and the presence of an insect pest interfered with the spring crop of wild silk cocoons, which was short but of good quality. Unfortunately, the outturn of the autumn crop was also disappointing, and the total production was estimated at only about one-fourth of the yield in 1915. The chief feature in imports was the enormous increase in Japanese products, especially cotton goods, which are ousting British and American makes. Cheap cotton underwear, of very inferior quality and finish, was in great demand. The importation of Japanese kerosene oil also increased. Among exports there were large increases in frozen meats, groundnuts, animal tallow, and eggs, while timber was in such demand owing to a shortness of supply from America that prices were about doubled, and many demands from South China and Singapore could not be met on account of high freiglits. The demand for wild silk and for cocoons was very brisk, but the high exchange made business with Japan difficult. Large quantities of bean oil were shipped to Europe and America, and the price rose 50 per cent. partly because this oil was in demand for replacing kerosene, the price of which had made it too dear for general Chinese consumption. The flour mills were very active. A shipping combine, known as the "Amurski Flott," acquired the ownership of almost all the Russian steamers plying on the Sungari and Amur Rivers, and the result of the combination under one inanagement was a regular and reliable service. At Hunchun there was noticed during the June quarter a remarkable increase in the importation of alcohol and tin sheets and inquiries led to the discovery of a most lucrative smuggling traffic across the frontier into Russian territory, rendered easy by the withdrawal of the greater part of the Russian frontier posts. The tin sheets were used for making flat flasks, four of which could be concealed under the clothes of a smuggler. This traffic was said to give a profit of 180 per cent. The Chinese authorities, in accordance with a Chinese-Russian mutual agreement concerning the restriction of the movements of opium and alcohol, did their best to stop the smuggling, and the Japanese and Korean authorities, although the Japanese Government was not a party to the agreement, evidently quietly discouraged the traffic, for by the end of December it appears to have ceased. Foreign matches are giving way in the competition with those made in China. It was noted that the high steamer freights from Japan led to an increase of imports through the parcel post. The first appearance of produce from the Tienpaoshan copper mine is reported from Lungchingtsun. It passed through in the form of large moulds of roughly separated metal, mostly composed of copper, but mixed with other metals. The Penkihu Coal and Iron Mining Company, with a view to doubling its output of iron, has increased its capital from 5.15 millions of yen to 8.65 millions, and new smelting furnaces are in course of construction. A company has been formed for opening up the Anshianchan iron mines, south of Liaoyang. Another company has been formed with a capital of 10 millions of yen to establish a refinery- probably near Fushun-to make sugar from beets grown locally and to refine crude sugar from Java.

From the northern ports good crops were reported, but all have the same complaints to make of the scarcity of silver, violent fluctations in Chinese exchanges, high freights, and lack of tonnage. Mild weather enabled the ice-breakers to keep the Hai River open to navigation throughout the winter, bnt the shipping companies, fearing a cold spell night close the port and imprison their steamers, did not take advantage of the conditious. A break in the banks of the Peiho near Tungchow diverted the clear waters from the upper reaches of the river and reduced the usual dilution of the mudly waters of the Hunho, which joins the Peiho below Yangtsun.