Directory_and_Chronicle_1939 — Page 812

A426

CANTON

lative purposes was more and more being invested in sound enterprises. Circumstances during the seven months all seemed to combine to aid this anticipated recovery. In spite of the failure of the fruit crop, due to the cold spring, agricultural conditions, as far as staple food crops were concern- ed, were satisfactory. Most important of all, the first rice crop harvested in July was successful and did much to arrest the food shortage, which had been the jarring note in the trade revival of the closing months of 1936. Monetery conditions contributed to the renewed activity in business and trade.

As a result of the financial reforms of the previous year, exchange stability had definitely been achieved. In decided contrast to its erratic course during 1936, the exchange relationship of the Canton dollar to the Hongkong dollar and to national currency was steady. In June there was announced a definite plan for the gradual retirement of the local currency and its replacement by national legal tender. The outbreak of the Sino-Japanese hostilities obscured the development of normal trends and tendencies.

Notwithstanding the dislocation of markets and transport facilities, and other disturbing repercussions of the conflict, the return for the year reveal a substantial advance in almost every category of trade. 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, $45.2 million as against $30.9 million in 1936; coastwise importations of Chi- nese merchandise, $114.8 million as against $106.2 million; direct exports to foreign countries, $63.8 million as against $42.5 million; and coastwise exports of Chinese merchandise, $27.5 million as against $38.3 million. As has been repeatedly stated in previous reports, these figures can serve only as an ap- proximate guide to the trend of the trade of the port. They are, of necessity, incomplete, as they do not include the considerable amount of cargo destined for the Canton area which was passed at Kowloon and recorded in the Kow- loon statistics. A more representative estimate of the actual volume of trade can be obtained by combining the figures for Canton with those for Kowloon. The effects of the conflict complicate the drawing of conclusions from the statistics regarding the direction and expansion of trade. Domestic exports alone showed a decrease, the decline being concentrated in the later months of the year as a result of the blockade of the China coast and the economic repercussions of the situation on the China markets for Kwangtung's exports. There was a rise in the totals for domestic imports, and this branch of trade was considerably benefited by the absence of frequent or violent fluctuations of local currency. Credit was easy during the first half-year, and this en- couraged domestic trade, but as a result of the situation, beginning in July, there was an immediate tightening of credit until it finally became very difficult to obtain, many transactions having to be conducted on a cash basis. The statistics for direct import trade include considerable quantities of kero- sene oil and gasosene for the Canton area which would, under normal condi- tions, have paid duty at the Taishan station of the Kowloon Customs and have been included in the Kowloon Customs returns. It will be noticed that there was an increase in importation for both sulphate of ainmonia and aniline dyes, the consumption of these two commodities being generally considered a reliable index to the state of the purchasing power of the population. The returns for the value of exports abroad soared, the advance made representing more than half of the previous year's total. The figures include large quan- tities of Central China produce which, in other circumstances, might have been shipped abroad via Shanghai, but because of the situation had to find their outlet through Canton via the Canton-Hankow Railway. On the other hand, the staple commodities which had been major export items in previous Canton returns either surpassed of maintained their gains of the past years. The further advance in the silk trade was evidence that the recovery indicated by the 1936 figures had not proved abortive. The price of the leading export quality did not fall below Hongkong $515 per picul and reached Hongkong $670, as compared with Hongkong $625-the highest figure for 1936,-which