September 23, 1897.]
in obtaining capital in those countries, and especially in Belgium, for any really sound enterprise in Russia, but it appears to be as difficult to draw British capital to Russia as it is to induce British manufacturers to do
business in a way to suit the local market. During the last six years 200,000,000 francs of Belgian capital have been invested in Russia, on much of which (for instance, the iron works at Ekaterinoslav, which were offered to and refused by an English syndicate) they are getting 40 per cent. interest. Russin is a country only par- tially developed in every way, and re- quiring foreign help for a long time to come to complete her development. That foreign help she is prepared to pay well for, and it appears a great pity that Great Britain should stand back and let other countries do the work and take the profits.
"Before the expansion and development of British colonies, the overflow from Eng- land of British capital and enterprise was forced to find an outlet in foreign countries, but now that it can find room for itself in the colonies, where business is done in an English way in the English language, it is not so keen about foreign trade with its special local requirements. Moreover, at the period referred to, foreigners had no other country to which to apply, as Great Britain alone had spare capital to help in the development of another coun- try as well as perfected manufactures with which no other country could compete. Foreigners were, therefore, obliged to apply to England and to obtain British capital and goods on whatever terms British mer- chants chose to ask. Now, however, the old order has changed; French, Germans, and Belgians offer capital and goods on terms mere favourable than Englishmen find it worth while to accept, whilst the British appetite for foreign trade is spoilt by the field offered by the colonies. All the same it is a pity to deliberately throw away so fair a field for enterprise as Russia will be for many years to come. It is to be hoped that there is still to be found in England the old spirit of enterprise which founded that English company in Russia some 300 years ago, which, under the names of 'The Russia Company and The English Fac- tory, had for so long a monopoly of foreign trade with Russia.
"The Consul concludes as follows:-We cannot now make sure of getting, as of old, 30 or 40 per cent, on our own terms, but there is plenty of room for capital in business which would give a safe 10 to 20 per cent., and there is room also for im- ported goods if we care to manufacture them to suit our buyers, and to sell them on terms as favourable as those offered by other nations. Many British firms, when told that to do business in Russia 4 or 6 or even 8 months' credit must be given, reply, Oh! we are not money-lenders.' But this is not money-lending, it is the way in which business in this country is
done."
Whether the Consul's explanation of the decline of British trade with Russia be the correct one or not, the fact remains that the trade of a rich field has been allowed to fall into the hands of our commercial rivals, and there seems every prospect, unfor- tunately, of the rapidly expanding trade of Siberia being allowed to go the same way. The task of developing the resources of that magnificent territory is beyond the power of the Russians themselves and there will therefore be abundant room for outside capital and population. Why should not the English merchant step in and take his share of the profits of the trade? The
CHINA OVERLAND TRADE REPORT.
language no doubt presents a difficulty. An Englishman who speaks only his own language is utterly lost and useless at Vladi- vostock and cannot make himself understood even as regards his most ordinary every-day requirements. With a knowledge of French or German something may possibly be done, but for the really successful conduct of
R business enterprise acquaintance with the Russian language is essential. If any aspiring junior in Hongkong or the Coast Ports wishes to discover a ready means to success he would probably find the study of Russian, with a view to the establish- ment of an agency or firm in Siberia, a useful stepping stone. A new country is opening up there to which all interested in the spread of British trade might with ad- vantage direct their attention. One of the first steps to be taken, however, is the appointment of a duly qualified Consul. Formerly the rule was to let the Consul follow the trade, but with our more modern ideas the appointment of Consuls to prepare the way for trade does not seem an inad- visable measure. * The openings for trade in Russia itself, to which the Consul at Warsaw attaches so much value, are hardly more important than those which will soon be available in Siberia, and in the latter country the field is more open. We would again urge the subject on the attention of the local branch of the China Association.
F
THE MANCHURIAN RAILWAYS AND FOREIGN TRADE.
us
*
As a
233
that with the establishment of railways in China laws for their control will be in- troduced, as in all other countries where railways are in existence; and it is incredible that the charging of differential rates would ever be legalised, that being a device which, so far as we are aware, has never yet been resorted to, even by the most rabidly pro- tectionist countries.
E
THE COTTON TRADE IN LANCA- SHIRE AND CHINA.
That there should be depression in the Lancashire cotton trade at the present time can surprise no one, and the announcement made by Reuter that two of the largest firms in Preston are working short time, and that five thousand looms are affected, will excite no astonishment with exchange at its present level. That "the outlook is gloomy" goes without saying, for not only is there the exchange difficulty to face, but there are very patent indications of, in the not distant future, the transference, in great part, of this manufacture to the silver using countries of Eastern Asia. The factories in course of construction in China and those projected in Hongkong will inevitably sub- tract considerably from the market for Lancashire goods. Exchange has for years been restricting demand in Asia by driving the natives to again have resort to the rough produce of their own hand-looms, but the erection of great cotton spinning and weaving mills fitted with the latest English machinery will of course result in closing the Chinese market to certain makes of Lancashire goods, which will be unable to compete with locally made cottons.
The Japanese are already beginning to suspect that their trade with China is going to be injuriously affected by the change of their standard. Although so short a time has elapsed since the change was decided upon and before it has been actually effected-there is a feel- ing in some directions in Japan that a mis- take has
been made, The follow- ing, from the Chungai Shojyo, gives utterance to this impression:-" Since
"
In a recent article in the Times the sugges tion is thrown out that as the management of the railway throughout Manchuria is to be entirely in Russian hands, and as the Company, as a private association, will be in a position to fix and levy any tariff that suits the policy of its patrons, British trade, or that of any other Power, may, in spite of the most favoured nation clause, be effec- tively excluded by differential treatment from the future markets of Manchuria. It is not the first time that this view has been put forward, but the fear expressed appears to unfounded. It would be 2 novelty to find a railway company dis-
March last the free coinage of silver has criminating against goods according to their "been suspended as a preliminary to the country of origin, and it may be taken for operation of the gold standard and the granted that the Manchurian railways, like
"value of silver yen has gradually risen. railways in every other part of the world, "The result has been a considerable rise in will be anxious to get all the traffic they
"the rate of exchange at Shanghai and that can, without considering the origin of the "has brought about a decline upon the goods carried. If a railway company had "China trade. This is what we previously to maintain a Customs establishment of its mentioned and it has now been realised. own and tried to enforce a protective Indeed the realization has been far policy the prospect of its success greater than the expectation. The export commercial undertaking would be very "of cotton yarn is now found to be unpro- remote. Even if political considerations "fitable, and the Japanese yarn which had were placed before commercial ones the
"become able to compete with the Bombay result would be much the same, for Russia "is about to be driven out of the Shanghai would
not only get little credit for
"market altogether. Matches also are no establishing railways that were commer-
longer found profitable to export, and the cial failures but her prestige and in-Guild in Hyogo have now decided to fluence would be seriously impaired by | " suspend exporting them from 1st Sept. her want of success in the role she has
Porobably all the other articles of export adopted. Russia has little trade of her own "would have met with the some fute. And with which to feed the railways and would "should the appreciation of gold and the make but a poor showing even with the aid depreciation of silver further continue, all of France. So much for the inherent impossibility of recommencing the export probability of the Russian company adopting "trade with the Central Kingdom will be the policy attributed to it. But assuming "lost in the future. The worst sufferers by the existence of a desire to adopt such a "the collapse of the trade with China will suicidal course, it is by no means clear that "be the dealers in marine products. The it would be tolerated by the Powers. There "loss and inconvenience they sustain at are provisions in the treaties against the "this moment are much greater than they establishment of monopolies, and a railway "expericul when Japan was at war with that charged differential rates according to "China in 1894-95." Possibly the writer's the origin or destination of the goods carried views have slightly coloured his vaticina- would be a monopoly of the most objection- tions, but there can be little doubt that the able description." It is also to be supposed Japanese export trade will for a time be
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