Directory_and_Chronicle_1938 — Page 844

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CANTON

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which may mark the turning-point in the port's recovery. From the begin- ning of the year until the spring, retail trade was hampered by a shortage of bank-notes of small denominations,, the use of which had become necessary on account of the sudden withdrawal of silver in November 1935. Wholesale trade was affected and, ultimately, foreign trade. This state of affairs was remedied as sufficient legal tender notes arrived and were put into circulation, so that by April there was comparative stability. In May financial uncer- tainty again arose because of lack of confidence in the existing political regime and normal conditions were not restored until after the political reorganisa-· tion of the 20th July. During the first seven months of the year there were rapid and violent fluctuations in the exchange value of the local currency, the Canton dollar at times being worth only half the value of the Hong Kong dollar. Conditions rapidly improved after the restoration of political and financial stability, and during November and December there was a distinct trade revival. This improvement was offset to some extent by the unsatisfac- tory conditions resulting from the rice shortage. As the news spread that the November harvest had failed to come up to expections, owing to an unusually long spell of drought, prices soared and the purchasing power of the bulk of the population was greatly restricted. The following are the values for the various trade headings recorded for Canton during the year, with comparative statistics for the preceding year; direct foreign imports, $30.9 million as against $33.8 million in 1935; coastwise importations of Chinese merchandise, $106.2 million as against $99.6 million; firect exports to foreign countries, $42.5 million as against $39.9 million; and coastwise exports of Chinese mer- chandise, $38.3 million as against $25.3 million. These figures serve as a rough guide to the trend of the trade of the port. They are, however, incom- plete, as they do not include the considerable amount of cargo destined for the Canton area which was passed at Kowloon and is recorded in the Kowloon statistics. A more representative estimate of the actual volume of trade can be obtained by combining the figures for Canton with those of Kowloon. An interesting reversal in the direction of trade is revealed by the decline in direct import from abroad and a corresponding advance in domestic imports. The figures for foreign import trade would have fallen even more had they not been augmented by importations of raw sugar for refining, which amounted to approximately St. $1,500,000. The value of rice importations, chiefly from Siam and Indo-China, was greater than in 1935 and added approximately St. $1.4 million to the total. Although the available figures do not give a complete picture of the situation, there is no doubt that there was a steep decline in the use of manufactured goods of all varieties imported from abroad While this tendency has been apparent in the Canton area ever since the in- dustrialisation of China gained momentum, the movement was definitely accented during 1936. This was caused mainly by the improvement in quality of the domestic articles.. The effects of industrialisation in Kwangtung itself are demonstrated by the fall in imports of cement to negligible figure as a result of the competition of the local Saichuen Cement Works. In spite of the handicap of the low value of the Canton dollar as compared with the Shanghai dollar, the domestic import trade held its own during the first half of the year and improved steadily after August, when credit facilities were being extended more freely. Domestic exports, on the other hand, benefited by the favourable exchange, especially as wages and most payments could be inade in local currency, and the volume of freight carried out of the port on coastal vessels increased considerably. The most encouraging aspect of the year's trade was the increase in exports abroad and the strengthening of foreign markets for Kwangtung s products. Trade in silk, which had in the past been the, staple export of the province, revived to an encouraging extent from the low state to which it had fallen in the preceding year. The price of Canton silk rose in sympathy with the advance in world raw silk prices and encouraged increased production among the mulberry, growers and cocoon raisers. The seven silk crops yielded approximately 4,500 bales more than those of the previous year. The price of the leading export quality did not

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