August 13, 1898.j
enactment of the farce played under Captain LANG.
that $6
23
ER
Notwithstanding the Premier's remarks at the annual dinner of the United Club some people expected Great Britain to, govern the whole country because we governed India," the nation at large do look for and are prepared to support resistance to any attempt at encroachment on that territory bordering on the Yangtze and West Rivers, or situated between them. Important as a properly drilled and directed Chinese army and navy would be in main- taining the integrity of that vast tract of country, is it to be the only factor on which we are to rely? The Premier further in- forms us of his disbelief of any warlike action between us and the Emperor of "China." We quite agree as to the im- probability of anything of the sort taking place, and we are quite assured that if it did take place, there would only be one ending to it, and that disastrous to the Emperor; but it by no means follows that, although warlike action between "us and "the Empero is unlikely, necessity may not arise for concentrating British troops either in the Yangtsze or West River valleys, or perhaps in both. Railways have yet to be built, but it has always struck us that in the British river steamers being run on the Yangtsze and which without doubt will shortly be placed on the West River the Government have at haud a number of transports which might be made the nucleus of a very efficient fleet for the patrol and control of those two most important waterways. Except on оле occasion, when а vessel was chartered and temporarily turned into a gunboat to go to Ichang for the protection of the residents there, we do not think the
services of these vessels have ever been availed of. In the case of a riot a gunboat is sent, but it frequently happens that either the depth of water is insufficient to allow of her reaching her destination or else if she gets up and it is at all late in the season she is compelled by the falling of the river to remain over the winter until the water rises. Hence it is we see gunboats stationed at Hankow, Ichang, &c., throughout the winter without the possibility of getting them out should they be required elsewhere.
CHINA OVERLAND TRADE REPORT. working order, manned by officers and pilots with an intimate knowledge of every inch of the waterways they navigate, and which could be relied upon to do yeoman service in time of need, leaving our war vessels free to maintain that power at sea without which, as Mr. BALFOUR said, it does not much mat- ter who holds Port Arthur or Weihaiwei, or, we might add, the Yangtsze or West River valleys.
CHINA AND THE GOLD STAN- DARD.
tariff
that
(Daily Press, 9th August.) When the revision of the Chinese takes place China will probably ask the duties may be stated in gold.
She would be guilty of almost incredible folly if she failed to do so, and, if the request be preferred, the Powers could not with much grace refuse to accede to it. China has now a large gold debt, on which the interest has to be and if she is dependent upon a con- paid in gold, tinually depreciating silver revenue she will find herself sooner
or later in the same position as that in which India የገ8 before the closing of the mints. If the Indian Government was threatened with bankruptcy the Chinese Government will be exposed to the same danger, should silver continue to decline, as seems only too probable. While self-interest would dictate to China the expediency of raising her revenue, or some of it, in gold, her creditors may be expected to use their influence in the same direction. And China would be in an exceptionally favourable posi- tion for adopting a gold standard, inasmuch as, unlike India and Japan, she would be put to no expense or trouble in redeeming any existing currency. The precious metals, whether coined or uncoined, circulate in China simply by weight. The people are beginning to appreciate the advantage of coins and several provincial mints are in operation, but the coins they turn out are dollars or fractional parts thereof, while the measure by which the Govern- ment collects its taxes is the tael weight of silver, which is unrepresented by any coin. All that China would have to do therefore would be to notify that after a given date the taxes and duties would have to be paid in gold instead of silver, the cur- rency of commerce being left to adjust it self to the altered conditious according to the convenience of the trade. Probably silver would continue the medium of retail trade for a long time to come, while gold became the usual measure of value in wholesale business and large financial transactions, a position which it virtually occupies at the treaty ports already. Gradually, however, retail trade would come more and more to measure its transactions with reference to gold, so that the latter would in course of time become the universally recognised standard.
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|"merely an incident of the transition from a higher to a lower range of prices, and it "being manifestly impossible that this stage "of transition should be indefinitely pro longed." Our Calcutta contemporary goes on to point out also that "the gain "to the country from this cause is attended by a set-off in the shape of the derangement consequent on the redistribution of pur- chasing power between different classes of the population implied in the fall, and a "serious depreciation of the large silver 'savings of which, in the main, the capital "of the country consists." The latter consideration is brought forcibly home to us in Hongkong, for instance, in connection with the accumulated funds of our various public companies, such as insurance com→ panies and others, that hold the whole or part of their funds in silver. Where a com- pany's assets are represented by ships, or docks, or land, they are but little affected by currency fluctuations and that only tom- porarily, but where the assets are repre- sented by silver lent out on mortgage or invested in other silver securities their value steadily depreciates. The depreciation is perhaps even more forcibly realised by those who have been indiscreet enough when insuring their lives to have the policy made out in silver. Naturally no one would think of doing such sa thing now, but it was not very uncommon some years ago when silver still held a posi tion of respectability. The result is that whereas the insurer probably thought that for each thousand dollars of the amount written on the policy the beneficiaries would receive £200 or thereabouts he knows now that they will get considerably less than £100. This is indeed an offset to the stimulus cheap silver is supposed to impart to production and the export trade.
THE UNITED STATES AND THE PHILIPPINES.
(Daily Press, 12th August.)
the United States as the basis of peace nego- Spain's reply to the conditions imposed by
tiations has reached Washington, and, al- though it does not amount to au unqualified acceptance, it is considered, according to Reuter, that it will be held to justify the The China Navigation Co. and Indo-
cessation of hostilities. In that case we may China Co. already possess vessels capable of
expect to hear almost immediately that in- transporting a large body of troops along
structions have been received by Admiral the Yangtsze at all seasons of the year aud,
DEWEY and General MERRITT to abstain as we said before, those companies and the
from any attack upon the city of Manila. Hongkong, Canton and Macao Steamboat
The army already in Luzon will no doubt Co. will doubtless shortly have such vessels
be much disappointed if they have to leave on the West River. With a Government
the country without having been afforded subsidy, similar to that given to some of our
an opportunity of doing anything, and the ocean lines, the structure of these vessels
disappointment of not being allowed to oc- and of any subsequently built could be so
cupy Manila will no doubt be shared by the modified as to admit of their being readily
fleet, though the latter has its victory of the armed without interfering with their utility
1st May to console itself with. Nor will from a commercial point of view; while their
the disappointment be confined to the officers might either be Naval Reserve men
American forces or be caused only by the or at least members of the various volunteer
loss of opportunity of martial distinction. corps now being formed from the British Would a gold standard be to the Spain has been easily worsted in the Mercantile Marine in Chiug. We are by no advantage of China? To the Govern-struggle with her powerful antagonist, and means an advocate of a system of subsidies ment it would be an advantage undoubted- a considerable amount of sympathy either for the purpose of promoting railway ly, as a means of saving it from bankruptcy; the defeated party is no doubt felt, even by enterprise or encouraging the establishment and in its effect on trade also the change those who think she was in the wrong. of steamship lines. This, as a rule, can be would ultimately be beneficial, though during Sentiment, however, cannot alter the plain safely left to the commercial instinct of the the transition stage it might subject various issues of the case, and students of the merchant, but, as the Times remarks, "the interests to loss or inconvenience. No politics of the Far East will, we think, "advance of Russia to a port on the Eastern doubt we would hear a good deal of the generally agree that the occupation
seas has profoundly modified the view effect cheap silver has in stimulating pro- | Manila by the American forces, e
even if it "which the Government of Great Britain
had been only temporary, would have had must take of its Imperial responsibilities."
an excellent effect, not only upon the future By some such scheme as we advocate the
of the Philippines themselves, but also upon Government would have at call a fleet of
the balance of power in this part of Rae light draft gunboats and transports always in
world. A simple withdrawal of the Ameri- commission and consequently in thorough
cau forces, though it might be dictated
duction and of China's folly in throwing away that advantage, but, to quote from a recent note on the Indian currency controversy in the Friend of India, "the effect is essentially temporary in its
· nature, the stimulus to production being
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