November 28, 1898
CHINA OVERLAND TRADE REPORT.
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Relief from illegal or excessive taxation is one of the results that may be expected from the direct participation of foreigners in the industry. Mr. CARLES, the Consul at Foochow, in his
last report
re-
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491
* factor in our trade. Twenty-five years "ago 65,800 piouls were exported; this year "the total is 12,127 piculs, and even at pre- sent writing there are 1,200 piculs remain 'ing unsold in the hands of the native tea- men, with a very remote chance of their ever finding a purchaser." Mr. MORE HOUSE adds that the export and lekin duty are factors which militate against the hopes of the most sanguine, and that it is now too late to propose remedial measures which would resuscitate the already moribund leaf, formerly the leading article of export; but goes on to say that "The native growers
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or less useless for all practical purposes and | " portant trade a large measure of its former that in such cases resumption by the Crown" prosperity." It is possible that this" would become necessary; but they recom
opinion may be justified by the result, mended that the Ordinance enabling the provided that with improved methods of Government to resume insanitary properties growth and preparation there also goes some should be amended sons to allow of considerable measure of relief from the deductions being made on account of illegal present scale of taxation, for the industry rents, insanitary conditions,
etc., etc.,
when could not possibly flourish, however well assessing compensation. The Hon. C. P. conducted as regards cultivation and pre- CHATER said in the Legislative Council on paration, so long as the State continued to lay Tuesday he was of opinion that the Bill excessive burdens upon it. would mean almost confiscation of property from the smaller holders. It was presum ably to avoid confiscation that the Insanitary Properties Commission confined their re- commendation as to open areas within such small limits. No one, of course, would advocate confiscation pure and simple, and the only alternative, in cases where the available area left after the provision of the open space is so small as to be practically useless, is resumption by the Crown; but in such cases the amount to be paid as com- pensation should be subject to deductions on the grounds recommended by the Commis- sioners. Another important point for cou- sideration arises from the fact that landlords have in a considerable number of cases voluntarily complied with the suggestions of the Sanitary Board and sacrificed a portion of the kitchen to make an air shaft for back to back houses. Will these same landlords be required to go to the expense of again making structural altera- tions in their property in order to increase the area of the open space? That would seem on the face of it to be rather a hard
case.
:
The sacrifice of building space is per- haps the most important point in the Bill affecting the pecuniary interests of landlords, but the restrictions placed on the use of cubicles and cocklofts will also in all probability lessen the letting value of their properties. The restrictions are, however, very necessary, and presumably the land- lords have made up their minds to submit to them, as the publication of the report of the Insanitary Properties Commission and the subsequent recommendations of the Sauitary Board called forth no protest. The Bill is undoubtedly a step in the right direction, but we think it will be found to render necessary the resumption by the Government of much more property than was contemplated by the Insanitary Pro- perties Commission.
THE CHINA TEA TRADE,
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fers to the Foochow Tea Improvement Company's plantation at Doon Ling and says:-The local Government regards the Company not unfavourably and itself is making an effort to restore the tea trade by reducing the lekin charges. The re- "duction is intended. also to benefit the provincial Government, which is appre- "hensive that teas may be brought down "under the transit pass, the duties under "which would be paid to the central Go
The intention, as I am assured by the officials, is to underbid "transit dues." Chinese assurances do not count for much in themselves, but where foreigners have a direct interest in the business it may be possible, by means of the transit pass, to keep taxation within moderate limits, though the lekin authori- ties may be expected to make a stout fight over it.
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In the meantime the industry is steadily declining. Mr. BRENAN, in the Canton Consular report for last year, incorporates some remarks by "gentlemen of experience "in the trade" on various staples of export. The authority on tea, after noting the decrease in the export, goes on to say:- "Scented capers are used solely for blend- ing. Formerly this blending was done by numerous retailers throughout England; now it is in the hands of two or three large blenders, and should they decide to "exclude scented teas from their blends the export from Canton would entirely cease. The decrease is not due to a deterioration "in quality; in fact, during the past three
years these
have been rather purer, but they are being pushed out by the Indian and Ceylon growths. These "latter pay no export duty, whereas the "Canton duties and taxes amount to as "much as 35 per cent. of the cost price." It may be remembered that in the Amoy Consular report for 1896 some remarks ou the tea trade of the port, supplied by Mr. FRANK CASS, were incorporated. Mr. CASS, after remarking that the crop of Amoy Oolongs in 1896 amounted to 1,200,000 lbs., a shortage of 55 per cent. on the previous year, went ou to say:-"An equally marked decline is expected in 1897, after "which the article will probably cease to appear as an item in our trade returns, as "the tea districts are being rapidly thrown 'out of cultivation, and most of them are "irrevocably ruined." The reason, he said, was not far to seek: the entire crops realised $136,000, while the lekin paid amounted to $20,000 and the export duty to $35,000, or a total of $55,00, considerably | more than one-third of the value of the tea.
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(Daily Press, 20th November). The Indian and Ceylon tea planters use as one of their arguments against a high exchange value of the rupee the bounty that cheap silver is supposed to confer upon Chinn ten, thereby favouring the competition of the latter. So far the bounty, if there is aby bounty in the matter, has done little good" to China tea, the trade in which is steadily declining, the advantages of cheap silver weighing but as a feather in the scale against the heavy disadvantages of excessive taxation and primitive methods of cultiva- tion and preparation. Mr. F. E. TAYLOR, the Statistical Secretary of the Imperial Maritime Customs, in his report on the foreign trade of China for 1897, expresses a belief in the possibility of reviving the ten trade.... “I believe," he says, "that the experiment commenced at Foochow, and shortly to be initiated at Hankow, will, "if sufficient leaf can be procured close to the factory, eventually result in a success which will encourage the adoption of similar methods in other centres of the tea industry and will regain for this im-
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the
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are not entirely free from blame ; of late years they have been content to produce 'any article which would sell, but the new United States law establishing stand- "ards has practically shut out the article as now produced' The deterioration of the quality, however, may be set down as more or less due to the excessive taxation, for, notwithstanding the experience to the contrary given in the Canton Consular report, it may be assumed as a general rule that when any trade is being taxed out of existence the producers will be driven to pinch the quality until, as at Amoy, the inevitable collapse comes. Prohibitive import duties imposed for the protection of home industries may admit of some defence on economic grounds, but what shall be said of a Government that taxes its export trade out of existence by prohibitive duties ? While that policy continues in respect of China's tea trade the Indian and Ceylon planters need have little fear of any formidable competition being nursed by variations in the gold value of the dollar and rupee.
MR. GWYTHER ON THE CHINA QUESTION.
(Daily Press, 23rd November.) The report of the meeting of the Chartered Bank held on the 19th October, containing as it does references to the political position in China and the prospects for railways in that country, will be found of exceptional interest.
Mr. GWYTHER, the Chairman, is not a member of the Jingo party, and his remarks on Anglo-Russian relations in China may therefore not command accept- ance with many in the Far East, though no doubt they reflect the views of an in- fluential section. "I think," said] Mr. GwYTHER, "we owe a deep debt of grati- "tude to Lord SALISBURY, who, in a time "of great difficulty and amidst constant
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new developments, wisely turned a deaf ear to the sneers and gibes of irrespon- "sible members of Parliament and press writers, which most assuredly, if they had been listened to, would have precipitated England into a war with Russia. Pre sumably Mr. GWYTHER would not flinch from war if there was any necessity or justification for it, but in these days the fashionable political creed is, as the Spectator put it the other day, that Lord SALISBURY must "put his foot down." Lord SALISBURY must "stiffen his back." Lord SALISBURY must "speak plainly.” In short, Lord SALIBURY must everywhere and on each occasion, adequate or inade- quate, threaten war, and if resisted, make his threatenings good. Mr. GWYTHER apparently endorses the Spectator's opinion that that is not diplomacy, or statesmanship-
Turning now to the report of Mr. MOREither. HOUSE, the Commissioner of Customs at Amoy, for last year, we find Mr. Cass's prognostication amply fulfilled. Mr. MORE HOUSE says: -“In all probability this trade "report will be the last in which reference "report will be the last in which reference
Turning from the political to the com- mercial side of the China question, we And Mr. GWYTHER uttering a not un- needed note of warning on the pros pects of railway and mining develop- pasis.
“We read,” he said, of various
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