Directory_and_Chronicle_1932 — Page 620

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SHANGHAI

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exchange, coupled with still further disturbing political news, tended to upset the local market, and under these circumstances both Japanese and British importers of piece goods endeavoured to inaugurate a policy of selling in taels in order to eliminate the gamble in exchange. Most of them are re- ported to have arranged for the delivery of cargo already contracted for by granting concessions in exchange ranging from 2 per cent. upwards and cut- ting part or all of their commission, storage, interest, and insurance charges. Even with these allowances dealers in many cases failed to take delivery, and · several native banks were consequently forced to close their doors, partly due to the inability of importing firms to meet their obligations and partly to their own failure in exchange commitments, especially during the month of June. Conditions remained unchanged during July and August. Chinese buyers were reluctant to settle exchange at what they considered the unfa vourable rates ruling and failed to take delivery. By September the partial recovery of silver afforded some relief, while the lower prices prevailing abroad, due to the world-wide business depression, contributed to a limited extent in compensating for the fall in silver. Imports into Shanghai appeared to be increasing, and the report of excellent crops stimulated the hope of an increase in the purchasing power of the usual consuming areas. The Septem- ber quarter may be said to have closed with a feeling of optimism, which had- been completely lacking in previous months, but the announcement of the Government shortly after that the financial year must end on 31st December caused considerable agitation amongst local merchants, and, although the annual settlement of account was finally compromised, business in general suffered not a little. It was felt, however, that in view of the depleted stocks in the interior any fresh demand would quickly overcome the difficulties of finance. The lull in import activity applied equally to exports. Disruption of transportation, irregular taxation, banditry, Communism, and incessant warfare gradually drove producers out of business, and, while exchange rates were the most favourable for many years for the general movement of China's produce, this was more than offset by the business depression ruling in the various buying centres of America and Europe. Uncertainty of exchange, even at low levels, created a waiting attitude among buyers, and, although the slump in silver in the month of June did stimulate activity in certain com- modities, the volume transacted was still far from satisfactory. With the somewhat stabilising tendency of exchange that characterised the September quarter, business was not slow to improve, and a further fall in exchange in December gave an additional impetus to many lines of exports. But the state of the Country did not as yet permit of the free and regular movement of commodities from the interior, and the volume of business done was still restricted.

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Among events of local importance were the installation in April of a new and more powerful radio station near Lunghwa for the transmission of mes- sages mainly between China and the Philippines. The construction of an In- ternational Radio Station at Chenju, near Shanghai, was completed under the direction of the Chinese Government Radio Administration and was put into operation on the 5th December. This new radio service makes direct connexion with the United States at San Francisco, and, in addition, com- municates directly with France, Holland, Germany, and England, at rates equal to those charged by the cable companies. The sale of the Shanghai. Mutual Telephone Company to the International Telephone and Telegraph Company was completed on the 5th August, when a 40 years franchise and contract of sale was signed by the representatives concerned. The new company has contracted to provide the city with 45,000 lines within two years and com- pletely after the system to automatic instead of partially hand operation. The installation of a long-distance telephone system between Shanghai and Hangchow was completed, and the service has been open to the public since May. Arrangements for the reorganisation of the Provisional Court of the new Chinese Special District Court was formally installed on the 1st April