Directory_and_Chronicle_1937 — Page 822

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CANTON

return of more prosperous times. Remittances from abroad, which contribute so much to the wealth of the province, dropped by two-thirds, and the silk industry, on which so many are dependent, experienced one of the worst years on record. Floods and unseasonable rains further

further aggravated the agrarian situation. Merchants had also to contend with difficulties caused by the high price of silver, extraordinary fluctuations in exchange, the delicate situation in the North, and the Italo-Abyssinian dispute, all of which very seriously affected trading conditions. The following are the value statistics recorded for the various trade accounts of Canton during the year under review: direit, foreign imports, 33.8 million dollars, the same figure as for 1934; coastwise importations of Chinese merchandise, 99.6 million dollars as against 87.4 millian; direct exports to foreign countries, 39.9 million dollars as against 47.1 million; and coastwise exports of Chinese merchandise, 25.3 million dollars as against 23.2 million. These figures serve as a guide to the trend of the trade of the port, but cannot be considered as representative of the true volume. A more approximate estimate of the actual amount of trade may be obtained by reading these figures in conjunction with those of Kowloon, as many of the foreign imports into Canton are passed and recorded by the Kowloon Customs. During the first

the first six months of the year the American silver-purchasing policy forced the exchange to a height which enabled the purchase of foreign commodities to be made at a silver cost practically half that required in 1934, thus facilitating the import trade Even so, the market for imports was rather dull and lifeless as a whole, and the statistics for this section of the trade would not have equalled the previous year's figures had it not been for the steady arrivals of machinery, the renewed demand for foreign foodstuffs due to the high exchange, and the reappearance in the Returns of importations of sugar. These importations consisted of raw sugar for refining, and amounted in value to approximately 1 million dollars.

dollars. The growing strength of the domestic import trade is well illustrated by the creditable increase shown during sc adverse a year, even though this figure is well below that of 1933. The value of all classes of domestic goods throughout the year was low, due to keen competition from the North and from Japan. Extreme fluctuations between the local currency and Shanghai currency, and the heavy provincial taxes imposed to protect local industries, further added to the difficulties of this section of the trade. The high exchange made it impossible for those interested in direct to meet outside competition, and it was not until the sudden drop in the price of silver, consequent on the change in the American silver-purchasing policy, that business again became active. The domestic export figures compare favourably with those of the previous year, principally owing to the greatly increased. exports of rice, sugar, cement, and fruit. Only a small section of the people benefited by the exceptional shipments of sugar and cement; by far the greater number were interested in the export of rice and fruit, both of which, despite heavy shipments, proved barely profitable, due to extremely low market prices. The exceptional fluctuations in domestic exchange made collection of accounts difficult, seriously affecting trade, and merchants were said to be worse off in 1935 than they were in 1934. Though the actual trade of the year and the impoverished condition of merchants and farmers alike make depressing reading, certain signs of business revival are to be dis- cerned. The Government, despite financial stringency, have extended much- needed relict to farmers through experimental work, instruction, and demonstration in modern methods of production and farming. They have given attention to the increased production of the "bik kau," an improved hybrid silkworm. Two egg-production stations have been established, and three are under construction. Plans are at present under consideration for the bringing of the silk industry under Governmental control similar to that of wolfram ore. Prices for the three lealing export qualities were quoted in January at Hongkong $410, $345, and $320 respectively per bales by June quotations had receded, due to the spectacular rise of silver prices, to

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