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THE HONGKONG WEEKLY PRESS AND
[August 12, 1897, per cent., and other countries Tls. 21,371,000, | the two metals. But something will have to or 284 per cent. This is a fairer as well as a be done before very long. Let us hope that more satisfactory way of stating the position. that something will not be of a nature to The above calculations, however, it should further depreciate silver. be noted, are to some extent vitiated by the fact that the origin of the goods imported from Hongkong is unknown, and the whole amount is put down as British, whereas in fact a large proportion of it is foreign.
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THE CURRENCY QUESTION IN
CHINA.
make the most of it, and the presen generation will receive an object lesson int "the good or evil effects of having the "cheaper metal as a monetary standard "In twenty-five years, if no change takes "place in the relative rates of gold "and silver, we shall be able to see "by a study of Chinese manufactures "whether those who advocate the silver “standard are right.”, Twenty-five years is rather a long time to wait. We do no believe, however, that China's prosperity- as a manufacturing country depends so much on the monetary standard as seems to In the Consular reports for last year, as be generally supposed. With her large well as in the Customs reports, reference is consuming markets, an abundant supply of made to the scarcity of copper cash in China labour, and her manufacturing and trad- and the high rate at which they now ex- ing facilities generally, it would seem that change with the dollar. From Mr. TRAP China is bound to prosper, whatever her MAN's report on the trade of Chung- monetary standard, provided that the Go- king we learn that the scarcity has vernment treats industry and commerce been very seriously felt at that port, and with anything like moderate fairness. As that an attempt, which the Consul terms to the cost of labour Sir NICHOLAS makes ill-advised, of the authorities to call in the one remark that will cause surprise to many small or debased coins which form about people. He has, he says, "been informed twenty-five per cent. of the currency did that the women operatives in the filatures not improve matters. Silver coinage and "around Shanghai are now receiving higher cash notes were introduced, some $20,000 wages than the same class of operatives in worth of the silver tokens produced at the Italy." He adds, however, that with the Wuchang mint being brought to Chung- enormous population of China one cannot king and placed for circulation, and Go- help thinking that competition in the labour vernment notes of the face value of 1,000 market will bring down wages, but, without cash being printed. "These latter are," being organised into trade unions, the Chi- Mr. TRATMAN continues, "unfortunately nese labourers have a means of their own of "not 1,000 cash notes in reality, because keeping up wages, and once a rate is "they are fixed to exchange at 8 mace established it is very difficult to lower "of silver, which now only produce a it. With the decline in the value of "little over 900 cash. Whether from silver, which is at last making itself" 'pure conservatism or from distrust of their felt even in China, the tendency of wages, "officials where money is concerned, the we should think, will be upward rather 'people have shown no inclination to make than downward. Moreover, industrial use either of the silver coins or of the notes, devolopment will in China as elsewhere "and cash continues tight. Meanwhile, an lead to a higher standard of living, which "order has been placed with a foreign firm in turn means a higher rate of wages. "for the machinery for two mints, one to "coin dollars at Chungking and one for cash "at the provincial capital. It is to be hoped that the cash mint will turn out a smaller or cheaper coin than the existing one. So long as the metal produced by melting "down. 1,000 cash can be sold for more than that sum so long will good "cash be scarce.' Mr W. HOLLAND, the Cousul at Ichang, says "The fall in the purchasing power of silver has "affected the market in Ichang as regards "the exchange between silver and copper cash, though, no doubt, the primary "factor in this question was, and still is, the 'scarcity of cash.” Here we have a partial illustration of the working of bimetallism, the metals concerned being silver and copper instead of gold and silver; but it cannot be taken as conclusive, in view of the confused condition of the currency in China and the imperfect application of the law of legal tender. So far as the illustration goes, it is not very favourable to the bimetallic theory, as the fall in the value of the one metal leads to a debase- ment of the coins of the other metal; but that does not prove that civilised States like those of Europe and America could not by joint action establish a legal ratio between the two precious metals, or, for the matter of that, between silver and copper, if it were deemed desirable. There is no probability, however, of the States that have discarded silver retracing their steps, and now that the white metal has fallen so low China is confronted with a serious problem in the regulation of her currency of silver and copper. The lower silver falls the greater will be the induce ment to melt down the copper cash, and it appears impossible for the Chinese Govern ment to maintain any fixed ratio between
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As to China's competition with other coun- tries, Sir NICHOLAS HANNEN says that “ one circumstance consoling to British trade is "that she will only be affected in the same way as every other nation, and that as her "trade with China is larger than that of any other nation China's prosperity is likely to be of more advantage to her "than, to any other country.' In the meantime it is rather refreshing, in these days of jeremiads on the decline of British, trade, to find that the Consul- General at Shanghai does not deem it necess- ary to adopt a pessimistic tone. A table is given showing the imports into Shanghai, and their origin, for the years 1882, 1894, 1895, and 1896, on which the Consul General comments as follows:- "From this table it appears that if percentages are looked at, countries other than Great Bri- "tain have increased their trade more rapidly "than we have; their rate of increase being "at the rate of about 68 per cent., whereas "ours has only been, at the rate of 23 per cent. It is to be noted, however, that our import trade is three times as great as that of all other countries put together; that in 1882 it was 78 per cent. of the whole, in 1894 it was 76 per cent., in 1895 it was 79 per cent., and in 1896 it was 75 per cent., not a very material falling off" In fact there has been no falling off at all. The fallacy of taking percentages of increase as a basis of comparison has often been pointed out, as it always gives a fictitious advantage to the smaller figures. The total foreign imports into the port of Shanghai in 1882 amounted to a value of H. Tls. 54,993,000, and in 1896 to Tls. 130,098,000, showing an increase of Tls. 75,105,000. Ofthis increase great Britain and her possessions claim Tls. 53,734,000, or 713
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BRITISH NORTH BORNEO.
Investments in British North Borneo have left somewhat bitter memories in the minds of the Hongkong public, but it would seem that the great territory. which owns the sway of the Chartered Com- pany, so far from being merely a land of buried hopes, is beginning to justify its claim to be regarded as a land of promise. The reasons of the failure of most of the Hongkong Companies formed some years ago to carry on planting enterprise in North Borneo are perhaps not far to seek. The capital was raised and expended before the country had been sufficiently pioneered; the Companies lacked the knowledge neces- sary to carry them to a successful issue and were launched years too soon. The country is now being opened up by roads and railways and the organisation necessary for successfully carrying on planting enterprise and business generally has made substantial advance. From the recently published pro- gress report a fair idea of the capabilities of the country may be gathered. Tobacco,
grow- ing is an assured success, the cultivation of coffee continues to extend, cocoanut planta- tions are being established, the prospects for cotton cultivation are good, the timber industry is flourishing, and a Company has been formed to develop a trade in Manila hemp. The country is also believed to possess considerable wealth in gold and petroleum, but this remains to be proved. Should the hopes entertained regarding those articles be realised it would prove a splendid thing, but it is on the planting industry that the main reliance must be placed, and there seems no reason why planting enterprise in Borneo should not be as successful as in Ceylon, the Straits, or the Philippines, the soil and climate being alike adapted to it. The growth and de velopment of British North Borneo must contribute to the prosperity of Hongkong, as a large part of its produce will find its way to this market, and it is also probable that in course of time, notwithstanding the disappointments of the past, Hongkong will again become directly and largely interested in the country by the investment of capital. At the annual meeting of the British North Borneo Company, held on the 6th July, the Chairman was able to give a very cheerful account of the prospects of the Company's territory and the shareholderą are at last to receive a small dividend. THE Courrier d'Haiphong in a recent issue reproduces from the Quinzaine Coloniale an article advocating the making of a port a Tien-yen and the construction of a railway thence to Langson. Tien-yen is situated in the north of Tonkin, near Hongay and Kebao, and affords excellent anchorage. From there a railway could with ease be constructed along the Chinese frontier, and it is believed it would command a large traffic. The proposal is not a new one, having been advanced from time to time for years past, but hitherto it has not commanded sufficient support to secure its adoption. Haiphong and Hanoi, we believe, do not regard the project very favourably, as it is feared the establishment of a new deep-water port would divert a portion of the trade from those places. The fear would probably prove unfounded were the proposal adopted, for the general increase in the prosperity of the country to which the new port would give rise might be expected to contribute to
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