1919-12-06 — Page 15

THE HONGKONG TELEGRAPH. SATURDAY. DECEMBER 6,1919.

COMMERCIAL SUPPLEMENT

BRITISH TRADE WITH THE EAST,

THE BEST METHOD OF PROTECTION.

ing that the peak of production has been definitely passed.

To-day the United States is threatened with a speedy loss of its supremacy," the article con tinues. "Within a very short time Great Britain may have regained production may have crossed the

THE CURRENCY PROBLEM.

the Daily Telegraph as follows:- wrong in his inference that only its lost laurels and the palm of that of this 1,280,000 tons had been reduces the danger of air pockets certainly a comparatively few peo rencies of foreign countries it is

Us

Sir Oswald Stoll is entirely Mr. Mark B. F. Major writes to A brief examination of the work-gold and silver are real money, and ing of the foreign exchanges that paper money is not A paper may help your readers to form a currency, the issue of which is re- sound opinion with respect to Sirgulated to conform to the economic Oswald Stoll's criticism of Mr. needs (not desires) of the country, Moreton Frewen's view of the unbacked by gold, silver, or any -effect on British trade of the rise other commodity, is the only sound and in the Eastern exchanges, as few system of currency for people trouble to obtain a clear every other country in the same understanding of the subject. The stage of economic development. 'great point to remember is that an import into a country by its own nationals domiciled in that country necessitates a previous export to obtain command over foreign cur- rency. Taking trade with China as an example; an exporter frors this country who ships goods which hare cost him 3s. per unit here, and which he arranges to sell at one tael per unit in China, has no use for taels even if they were sent to him, and does not wish to wait

back goods from China of an equi- valent value to those shipped. He therefore draws a bit in taels on the merchant in Shanghai to whom he consigned the goods, and seeks to sell the bill to someone who wishes to import goods from China

For the sake of argument let it be assumed that he does so at an

Less Competition Than Before.

"Since June there has been a gers of the most menacing des- service would not be capable of) farther lessening of the gap. Fig-cription. Further, the work of carrying sir passengers or mail ures for England are not yet avail-pilot was infinitely hard. To keep equivalent to their weight. It is able, but the Shipping Board's his machine flying level, he was at very much open to question whe

In the course of an article on and own statement shows that, at the work all the time on the controls.ther there is the need for such International Economics

To-day all this is changed. The rapid transport between these Finance & writer in the World's end of August. 3,470,000 gross tons were under construction and angle at which the planes are set places as to make the use of acro Trade Review says: To put an planes by any means common, and end to the depreciation of cur The near plane launched. The total of 3,470,000 to a minimum.

enables the pilot to

Bane pie would want to go "joy riding necessary first to consolidate, by a ocean for the second time since tons represents a decline of over the beginning of the war. Ameri-400,000 tons from the June figure, level without effort. As many Hongkong. The service might funding operation, the outstand

do better in the carrying of mails, can shipyards have passed the although this would be slightly parts of the machine as possible but one is inclined to seek careful in floating debts of the countries duplicated, and accidents whether there would be suff-inking funds. This will free the with necessary provisions for peak of production and are on the lessened by the construction under descending scale, while British way for other interests than the should be the exception.

are on the ascent,

cient support in this direction with Shipping Board.

currencies' of the belligerent nai yards

either. In fact it is much open to tions from the burdensome weight every prospect of continued pro-

sistance of a government subsidy, War Paper which, as outlined in question whether, without the as- of the floating and undigested gress.

such a service could continue in

Shipping Board's Statement. "America's rapid advance from On the same subject Mr. R. Aan inconsequential place among the maritime nations to the past Alien writes:-

Mr. Moreton Frewen in his letter

These

observations are

"How does this claim jibe with the known facts? The latest fig- ares on world shipbuilding are those already qucted of Lloyd's Register for the quarter ending il-June 30th last. These show that

tzels,

at that period, when American pro- duction was considerably greater than it is to-day, the division of output under construction in gross tonnage and number of ships was as follows:-

Number Gross Toas, of Ships. 3.874,000 994

Rest of World, 4,143,000

"At the end of August, then, the United States was building about 3,475,000 tons, in comparison with about 3,375,000 tons at the end of September, 1918, and there is rea- son, to believe that the excess of

100,000 tons was more than wiped

The aircraft exhibition which the Bund foreshore. opened on

are

Of course, accidents do happen, but their incidence becomes less and less. For instance a piece of melted solder choking the feed pipe of the radiator caused a ker to come down in the Atlantic. That was on a flight of extraordin- |

men that given a high state of ex-

the East..

while

PRODUCTION.

a previous article, is responsible for credit expansion. A further step will consist in the devaluation

What we need is

of leadership in shipbuilding was

ary length, and it is satisfactory to THE WORLD'S RUBBER of the depreciated monetary units If note that his Rolls engine perform

on the basis of their actual de- of August 27 remarked that "The not only phenomenal, but is a fair out during September, 1919.

preciation (as measured by de June efficiency until the boiling radia- expansion of our trades to India augury for the permanence of its this is the case and Great Britained its work with the most absolute

new merchant marine, built un- during the quarter since

preciated rates of exchange), All A GENERAL SURVEY. and China is about to become the

these measures will allow a retura In the case of the journeys to dominating economic incident of der the stress of war. At the out- made a gain equal to that of the tor let it down.

Sir break of the world struggle mer. June quarter. American tonnage

While the world's consumption

to the gold basis if coupled with a the twentieth century."

was heard lately, these were pre-of rubber greatly increased dux-banking and with a stringent con

general conservative policy of Oswald Stoll in your issue of to-chant marine construction had al- under construction to-day is not Egypt, about which a good deal most become a lost art in the coun-more than about 500,000 tons in day, challenges this very sound

try. To-day the nation has more excess of Great Britain's and the viously conducted in the most sating the war, especially that in the trol of government agencies on aa- The flights United States, the gain of productional finances. Naturally, any. statement as follows-

Expansion on what basis? No-shipworkers, more shipyards, more shipbuilding lead will have cross isfactory manner. until his correspondent has sent thing less than that the Shanghai shipways, more vessels under con- led the ocean again before the end averaged 250 miles, and at the tion was even more rapid than [ónancial measures, in order to be

struction and is turning them out of the year."

end of each the aeroplanes were that of demand. The world's pro- examined, and anything not abduction of rubber, which in 1913 successful, must go hand in hand merchant shall obtain the same

solutely in best working order was was only 108,000 tons, was 239,000 with a sound policy of national quantity and quality of our handi-more rapidly and in greater num-

and one-half economy consisting in reducing AVIATION IN THE EAST. set to rights before the journey toss in 1918, two yards of all the world." craft for three taels as he used bers than now issue from the ship-

national expenditure to a possible times as great as at the beginning minimum. Care should be taken was resumed. to obtain for eight taels. In other

of the war. American importa- words, that our producers shall

ITS POSSIBILITIES AND

The Factor of Organisation. DIFFICULTIES.

tion has grown even more rapidly that the expenditure be metas make and we shall sell for three

The success of these flights de than world production, being for much as possible by revenue, the taels, instead of eight laels, the

pended principally upon organiza- the fiscal year ended June 30th sources of which shall be suffic❤ same goods."

tion, and it is the opinion of air 1919, practically three times that ently extended, not beyond, how- of 1913, whereas world production ever, the point where it may be exchange of 35. per tael, which luminating, showing as they do

Shanghai, recently, calls, ssrs thecellence in this direction, the re- only doubled. The Central Euro-come a check or production. If means that he has sold the British the extent only to which this vital

North China Daily News, increased mainder is comparatively easy.

Powers, formerly large the revenue is not sufficient to expenditure, borrowings goods at 3. per unit, while the subject of exchange is under

attention to the future of aviation It can be seen how much organisa-importers, of course imported but cover

tion is required when the size of small quantities during the war. may be resorted to. taels the British importer has ac-stood and appreciated. When an

in the East, a subject which has quired cost him 3s. each. The article valued £ is sold to Shang

already occupied the considera- the advance party" for d'Annun-

Russia, also formerly a As soon as gold again becomes & tion of the public. Aircraft com-

zio's fight is considered... British importer, if he is not to hai it is quite immaterial to the

large importer, has taken prac-real standard and free for sale panies to-day are in competition

In this connexion it is not neces-tically none during the past year, and purchase, its price in depreci make a loss, must buy goods in exparter whether John Chinaman

with each other to span the sary to go further than China and thus leaving England and France ated paper of the European coun China which, when sold here, wil has to expend eight taels or three

stretches between the commercial

Japan. A group of officers and

as the only large consumers of tries will go up. realize at least 3s. per tael cost, to meet his bill so long as when United States

1,532 centres of the earth. Thereise race men landed in Shanghai, and p india-rubber outside of the United The world on the whole is now after all expenses are paid. Let the tsels are transferred to London

to introduce their machines in far

now they are spread over the

States.

not poorer than it was in the mid- the exporter repeat the operation, the exporter receives his £1, and

538 countries, and following the tremen-country, in the different places obtaining the goods at the same with it his profit. He does not V. S. deficiency 269,000

figures "These

include all dous development in aircraft con- where the airman is to touch. Even in the period following the die of 1914; its productive capaci- unit cost, but this time, because of pay for his raw material, his rent,

classes of ships, but in terms of struction seen during the war, the making preparations. Were it not war, the United States has con- ty, althought maladjusted, is pro- arise in exchange, selling his draft wages, and income-tax in

steel steamers, which are what manufacturers are on the outlook for the two race courses Shanghai tinued to increase her rubber im bably even larger, andmore goldis for 6s. per tael instead of for 38. but in sterling! Instead of merely covering cost as Sir Oswald Stoll deplores the count in foreign trade, the com-for an equally great development would offer no sort of facilities portations, the total quantity im available for monetary purposes

in commercial work. D'Annunzio's for aviation. Paddy fields will not ported since the artistice being t before. before he will now make a hand-fact that Ching Foo can buy eight parison would be as follows:--

Sumber plan to join Rome and Tokio by make & landing ground. A space about 20 per cent. more than in courage to face the situation as some profit, and he will be able,

Gross Tons. of Ships. air is the one which most inter-of hard ground giving a run of the corresponding period of the it 3.

to a The gold holdings of the various if necessary, either (a) to reduce taels, but has it occurred to him United States 3.165,000 680 ests the local public at the moment, 300 yards is an essential, and 500 preceding year, according

that the exporter's profit is exactly Rest of world 3,939,000

and to-morrow's exhibition will yards is still more to be desired. statement by the National City countries have increased consider- and so be able better to hold the the same? The fact that, by rea-

give an idea of the type of ma-Obviously in same places it will Bank of New York In fact the ably during the war. Gold is now trade for this country against the son of exchange only. Ching Foo. S. deficiency 4,000 506 ichine on which he proposes to

be necessary to spend a consider-United States has been, during hoarded to a lesser extent than competition of America. Japan can buy English goods to the value Peak Reached Last May. carry it out.

abl amount of money in the pre-most of the war period, consuming at any time in history, and it Germany, etc.: bi to pay a higher of 41 for only three taels has creat

about two-thirds of the production should be easier now to build a "The Shipping Board's own fig- But it is only one of several vision of landing places alone.

sound credit structure on gold price for the goods in this country.ed a position which, broadly speak-ures are evidence that the peak of schemes which are of importance

This, of course, is, but a start, of the world, despite the tremen-

than holdings than ever before. The importer, on the other hand, ing means that (1) Chine can buy production has been attained and to the Far East. There are the for at each of these places a depot dous increase, and more

The situation can be relieved will only be able to buy half the large quantities of goods from the descent begun. They show wonderful Handley Pages at Pek with the necessary repairing mat- $750,000,000 has been sent out to

even without actual shipments of quantity of goods that he did be- England cheaper than they can that both deliveries and launching to form the nucleus of the govterial has to be established, and buy indiarubber. fore, and he will have either (a) manufacture; (2) America shouldings touched the high water mark ernment's air force, there is a we know that in Shanghai, at any All of this increase in world gold from one country to another to reduce the price in taeis that not be able to compete satisfac in May last and have since been French scheme to link up towns in rate, d'Annunzio has a spare aero-production, the jump from 108,000 as, at the worst, credits may be he is willing to give for the goods torily: (3) Japan-to szy the diminishing at a rate that indi-the Far East by a fast mail ser-plane to be used in the event of a tons in 1913 to 259,000 in 1918, opened or gold earmarked by such in China, (b) to increase the price least is very considerably handi- cates that there is little likelihood, vice. and later on we expect to

has occurred in the plantations of countries that have more gold than the Orient. Forest production is necessary for them in favour of capped; (4) millions of Chinese the previous maximums will be ex-see the preparations for the round-

Counting the Cost.

has not only shown no.increase, countries poor in gold, which will will be in a position to bay articles ceeded. In gross tons, the board's the-world aerial Derby which will

In any scheme of commercial but in fact a sight decline. The count those credits "as gold held at the rate of three taels to the £1 figures for the current year are as assuredly touch here.

abroad" aviation for the East this, gives an world production of rabber may which they could not possibly have follows:-

Making a Beginning.

It is certainly a good thing to The most successful air service indication of some of the expenses be divided into two great groups, afforded when they had to pay nearly three tims as much.

in the world is of course that be-which have to be met. These land-forest rubber and plantation rub supply European countries with In other words, the present rates of

tween Paris and London, the re-ing places and depots will take ber. The forest product is divided raw materials and tools, but as exchange in India and China

liability of which is stated at 90 time and money to prepare, and into "Brazilian" and "Other For-less it is cone simultaneously with April

per cent it is a wonderful ex- they have to be considered over est Products," some of these other purely financial assistance for the should enable ourmanufacturers to

May attand to the requirements of

ample of what we may expect in and above the cost of the aero- forest areas being found in coun- purpose of putting the world's June 200,000,000 of people with less

the future. It must be borne in planes, say £6,000 each.

Then as to the aeroplanes ther-tries adjacent to Brazil and a part finances on a solid foundation, na mind, however, that commercial

in the Congo Valley of Africa, perceptible change in the world's competition than we have ever had August 344,584 252,683

conditions there are especially fa-selves. During the war the Bri- The plantation areas are divided economic situation can be expect In regard to raw material tycable during the latter part of the necting towns

Taking the first returns avail-vourable for such a service. Con- tish Air Force calculated the life into two distinct sections, first ed.

of a machine as 100 flying hours. the Malayan Peninsula and second

The sooner we return to pro- of such great cannot have it both ways, you are

As soon as it had been in use for All Other Plantations" which in-war standards of sound finance porters' drafts if the exchange rose saying!), my answer is, purchase war, those for the quarter ending, wealth, there is naturally a stream this period it was sent to the base clude Dutch East Indies, Borneo, and sound banking, the better off

September 30th, 1918, shortly be of fore the armistice, it is seen that sufficient affluence to pay the ne- passengers forthcoming of

to be rebuilt. Naturally its life Ceylon and certain sections of will the world be, as all the United States then had under

con di-

India, with a small quantity now other systems will prove elusive cessary fare, which, of course, is was shorter under these construction 3,382,000 gross tons, considerable.

tions than it would be in commer-produced in the Philippines. The dreams that give promise of müch cial flying, for the "stunts" in use as compared with England's 1,746,-

There is the start-already an

ed in the Malayan Peninsula, speak of the defects of our.ânan- the machine. For commercial fly:

tons in 1913 to 132,364 tons in a better one. And who would risk

taek worth of goods for three

his selling price in thels in China.

he will sell the goods for here. (c) to cease to import the goods, or (d) to combine (a) and (b).

Following the Natural Course. If our foreign exchanges are left to follow their natural course with

out interference from outside, Six Oswald Stoll will find that the trade between Great Britain and the East will adjust itself, so that it acts for the benefit of both parties in the transaction. Before the embargo on the shipment of gold from this country, would be importers could avoid buying ex-

before.

BRITAIN FORGING

AHEAD.

REGARDING SHIPBUILDING

January February March

July

1,136

Deliveries Launchings.

107,070 202,817 .: 151,500 248,764 162.717 323,038

379,313 392,711 541,900 482.638 400,672 338,233 475,271 414,538

breakdown of his own.

Products" from 21,500 tons to

in exchante wil

too much, because it was open to every ounce of raw material within them to buy silver instead for ship-the Empire. If you must purchase ment to the East and to pay for outside the Empire, Russia will it in gold. In effect, therefore, have plenty to supply in a few after so-called "gold point" was months. at a favourable rate of 1000, a lead for this country of efficient service-but it is to be for fighting would bear hardly on biggest growth by far has occurr-but hold little. It is of no use to reached, they had the exporters at exchange. In conclusion, I would 1,636.000 tons. We were then noted that even those most in- their mercy and could dictate ex-like to ask: What steps are being building practically two tons to terested in commercial aerial de ing a life of 300 hours in the air! whose output jumped from 33,641 cial system as long as we have rot change rates to them. I have no taken in India against the dumping every one for Britain. At the endvelopment do not anticipate it to has beed suggested at Home, and 1918; that of other Oriental coun-giving up tried-out systems before doubt it is because exporters are of German goods there? Also: Did of March last the American figure be followed immediately by a sen- even if it could be increased to tries from 15,661 tons to 80,226; absolutely sure that that which freed from this control that we we have a discussion with our late had risen to 4.185,000 tons, against sational extension on similar lines 500 that still shows a very big item while that of Brazil dropped from is offered see exchanges beginning to move Ally, China, on the same matter?

for depreciation. England's 2,254,000, and the the world over. Thus a man such Over and above the wages of 39,370 tons in 1913 to 34,419 tons be at least as good as that which naturally, and if Sir Oswald Stall

American lead had increased to as Mr. Holt Thomas of the Air- and your readers will follow the

Many excellent suggestions have 1,931,000. In the succeeding quarcraft Manufacturing Co., the mak-personnel will be found an item in 1915, and for "Other Forest it aims to substitute? matter up carefully they will come.

been made in connexion with the ter, however, conditions changeders of the famour D. H.'s, merely of no small size-the cost of petrol 10,000 tons. to see that the fall in the exchange

radically. At the end of June the asks the interest and attention of one of these aeroplane engines value of our currency is the true

total of our shipping under con- business men to such schernes at will consume 30 gallons of petrol A very large proportion of the improvement of international er in the United change settlements, among which economic method of obtaining com-

struction bad declined to 3,874,000, present. "We want business men,"

an hour, and where there are dou-rubber consumed ble engines it makes a still great States is utilized for automobile the cae adrocating an internation- plete protection for our industry,

a decrease of 311,000 tons; while he says, 'to have sufficient con-

tyres, the annual value of tyre al settlement and gold clearing SUPREMACY.

the British total had advanced to fidence in us, even while commer- by ensuring that if the balance of

production being now estimated at agency is highly interesting. But 2,524,000 tons, an increase of cial aerial transport is in its in- trade with a country is against us

A Local Mail Service.

about $450,000,000. A recent esti-these and other plans are all pre- America's world supremacy in 270,000 tons.

long as national mone- the consequent fall in the exchange

fancy, to select certain of their ar- One of the proposals on foot at mate of world expenditure for mature

grand tary an pneumatic tyres put the

systems are in disorder. America Behind Britain.

gent letters and deliberately con- the moment is to establish value of British sterling will act ship production, attained during automatically to ensure the restore the war, is being rapidly lost and

"Still more significant, however, sign them by air mail in order to aerial mail service between Tokio, total at atent $600,000,000 a year. "International Money," if at all by the end of the year Great Bri- tion of the balance, and it is this tain may have regained the supre- is the fact that the American total watch results. And Mr. Thomas Shanghai, Hongkong and Manila. process which is undoubtedly go- ing on as regarda our trade with aty which she held so many at June 30 'showed an increase makes the statement that they will So far as can be seen from the ports have been the largest in sway with foreign exchanges In the East. To think that the fall years, according to Henry C. Wilt over the figure for the preceding and punctuality and reliability in above there is likely to be no dif-history, price per pound has been ternational exchanges of trade are iculty in the carrying out of the the lowest in any year since 1890, not of equal size and scope, and service once it is inaugurated. The 400,000,000 pounds of rubber their co-relations determine rates. in the exchange value of British bank, who writes on the shipbuild- September of only 492,000 tons, in its operation.

ing crisis in a recent issue of the comparison with a British increase sterling denotes a decline in Rudder, a shipping publication.

This subject of reliability is one The progress which aviation and cost on an average only 40 cents A monetary unit of a credit use of 775,000 tons. To put it more national credit, and is due to over- While the United States Ship simply, the American increase on which the manufacturers may aircraft have made in the past few per pound against an average of 60 tion, whatever the name of

suggests "a considerable cents per pound in the last five unit may be, will alwayn command issues of our paper currency, isping Board is giving out state- from the pre-armistice figure to well feel confidence. The start of years

years, 4 cents in 1914, 97 cents a premium while that of a debt entirely fallacious. It is due to ments that America is building that at the end of June was only the war Lound the aeroplane & degree of reliability.

The important question is then in 1913, 84 cents in 1912 and $106, nation will be neg the simple working of the laws of more tonnage than all the rest of 14 per cent, while Great Britain machine of instability. Air poc

The machines, per pound in 1911-The Trans- ita par: value an supply and demand operating on the world combined, says Mr. Wilt for the same period made a ton kets fuls which the mackina mogli foreign billa

bank, it is giving out records show-nage gain of 44 per cent,

at any moment plangs moen tips which it

Beliability.

er cost.

While America's 1919 rubber impossible to introduce, will not de

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