May 5, 1902.]
FRANCE AND MACAO.
THE FALL IN EXCHANGE.
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337
CHINA OVERLAND TRADE REPORT. the attempted acquisition of land at Macao, importer of silver. A century previously We cannot believe, however, that Portugal the currencies of Europe had been intends to allow any diminution of her largely silver, but under the in- (Daily Press, 28th April.)
sovereignty over her ancient settlement on creased demand for export to China, and The statement of the Vienna correspondent the Kwangtung coast.
the increased production of gold in other of the Standard, as conveyed in our London
countries, it eventually came to pass that telegram appearing in to-day's issue, tends
Europe by degrees introduced gold uni- to substantiate what we wrote last year.
versally as its monetary medium. China, about French aims in this portion of South
(Daily Press, 3rd May.)
as usual, not knowing when she was well China. The report which drew this state- The recent very persistent fall in the price off, began herself to put obstacles in the ment from the Standard's representative of silver, which has been going on for the way of her own exports, and so reduced her appeared in our issue of the 18th instant, last two years, is again beginning to in- own capacity to absorb the silver of the when we announced that the French troduce an element of disturbance into the rest of the world; and the natural result Government was again attempting to
China trade, from which we had hoped it was that silver, which in the sixties had purchase property in Macao, the land in- had finally emerged. After the Shanghai become enormously enhanced in value, volved being an area of 20,000 feet, for which tael, which is of course the medium in became in the nineties a positive drug on the French were prepared to give $37,000. which the larger part of the foreign com- the market. This position might have Last summer, it will be remembered, an merce of the Empire is conducted, had rectified itself in a reasonably short time attempt was made to acquire the well remained for several years constant in but for another series of events; while on known Boa Vista Hotel in the Portuguese the neighbourhood of 28. 8d., we have the one hand the area of accessible silver- Colony, in order that it might be converted now to face a continualbut constantly bearing ground largely increased, on the into a French military and naval sanitarium, accelerating drop, so ti at hy past advices other the cost of extracting the metal from 'We were able then to be the first to make the tael is worth no more than 2s. 2. its ores largely diminished; and the result this projected move public, and we urged at Those who remember former conditions was that while the demand grew less, the the time that so significant a sign of French when, deal ho never so wisely, the mer-supply became greater. It was at such a activity in South China should not be neg-chant had frequently to stand by help-period that China with her silver currency lected. Whether but for this premature less while perhaps the result of a whole took upon herself to make war with the disclosure of the transaction the acquisition | year's transactions was suddenly imperilled whole of the rest of the world. As she did of the property by France would have by the outturn of a single exchange opera- not confine herself to civilised war, but become an accomplished fact it is impossible tion, will recall the very serious impediments attempted no less than the extirpation of to say. Possibly Portuguese pride would in thrown in the way of business by the con- every human being within her frontiers not any case have prevented the transfer. Our tinual fluctuations of the currencies of of Chinese nationality, she came to condign publication of the news, however, made it China and the rest of the world, and are grief, and in punishment for her crimes impossible for the question to remain in already beginning to stand aghast at the against humanity was mulcted in a sum abeyance, and we have good reason
to revival of the old sore. By apparently a which to her in the state of disorganisation believe that the British Government was curious coincidence the recent change has and financial blunders was killing. Then actually prompted to diplomatic action. As come about contemporaneously with a re-followed one of the most curious complica- the result of the whole affair, the Macao arrangement of the Tariff, which perhaps tions ever recorded in history. China, authorities intervened. and in November last fortunately has not yet been completed; defeated on all sides and driven to des- themselves purchased from the owner of and it may possibly be worth considering peration, came to her enemies of but two the Boa Vista Hotel the site and buildings, whether, before the new tariff is made short years ago and begged them to find the thus frustrating M. DOUMER'S scheme. finally specific, it may not happen that the money to pay back her indebtedness to It will be seen that the Standard's corres- coincidence is not so entirely accidental as themselves by raising the duties on them- pondent asserts that France last year might be at first sight suspected. As a fact selves and their trade. The absurdity of offered to buy the whole Colony of Macao, a China is now practically the only remaining the situation, it is curious to notice, is only proposal which was not locked upon with nation with a silver currency, all the rest of by slow degress beginning to dawn on our favour by the Portuguese. Presumably this the world having taken alarm before the newest financial experts. There is, however, correspondent has some evidence to ad·luce last serious fall, and one by one conformed another element in this most curious and in support of his statement, which claims with the gold standard in use in the great incredible story which does not seem, even to reveal a far murae ibitions design on
consuming countries. India, Japan, and at the twelfth hour, to have entered into the part of France than was ever suspected. the Philippines are now to all intents and the misds of our somewhat bemuddled Until such evidence is forthcoming, it is purposes gold countries. The Straits and financiers. China has been condemned to necessary to suspend judgement. But the the Netherlands Indies practically have pay her self-incurred debts in gold, white Portuguese authorities, if we are to credit followed their example and the Chinese, our financiers are plotting to pay her duties the story, considered that France was Empire is the only country of importance in silver of all things the commodity she definitely aiming at the acquisition not where the daily fluctuations of the silver least requires. We are perforce to pump only of Macao but also of Amoy-" by other market have to be taken into account in means if not by purchase." This addition addition to the varying values of the may be dismissed as in the highest degree articles of trade pure and simple. But the improbable, if not a mere product of the conditions of China in the bullion-markets imagination. M. DOUMER and his school of of the world have within the last two years French politicians are not men to ruin their undergone a very serious change. China schemes by arrant absurdities. It may be has been condemned to pay annually, in taken as a fact that the impossibility of addition to former liabilities, to the rest of Great Britain tolerating a militant nation the world some four and a half millions establishing itself within forty miles--or sterling, ard this has to be put up, not in for that matter, within a hundred miles or her own currency of silver, but in gold, and more of Hongkong is recognised by all to make matters worse, owing to the mis- sensible Frenchmen. As to Amoy, the government of the country generally, its French would have many nations to deal producing capacity has been seriously, with there, none of whom are prepared to lessened. At one time China was an ex- welcome an invasion on their rights. At porter of 'the precious metals, being able present the Japanese are making vigorous from her own production of gold and silver, attempts to capture, peacefully, Amoy-ant only to supply her own wants, but to proceeding which has already wen them a export largely in exchange for cominodities considerable degree of unpopularity, follow- imported. Foolishly, under the impression ing as it does on their sudden descent that the country was being thereby im. on Kulangsu and the native city from poverished, a campaign was set on foot Formosa during the time of
against mining enterprise of all kinds. crisis in North China. As for French This finacial blunder was not so much felt
On the appearance of a plague case at Kobe. action at Amoy, of course neither the at the time, as, by a curious coincidence, establishment of a regular consulate nor the Europe began to look to the markets of on the 21st ult., the local authorities isolated 97 setting up of a cable station linking Indo-China for her supplies of silk, while outside houses in the locality of the house where the
patient lived and medical inspection China with the Russian system is to be demands for tea, of which China then enforced. The isolation area was reduced later regarded as a ground for protest. Such possessed the monopoly, largely increased.. on and 28 houses only were included in the signs of energy are to be watched carefully, The consequence was that to restore the order. General cleansing measures were started but do not come in the same category as ' balance
the
China became an
1
in silver at one side of the pond, while at the other we are engaged in extracting gold. How in the face of staggering trade is the transformation of the baser into the nobler metal to be effected? The exchange market, more sensitive to changes in level than our financiers, has taken alarm; and this it is not too much to say is the cause of the concurrence of the serious fall in exchange with the revisiou negotiations. China, as we have said, is the sole country where a silver currency survives, and it is already hastening to extinction. prolong the life of the patient by at least for the nonce putting her on gold diet? We only throw out the suggestión its discussion is not within the possible compass of a single article.
Could we not
The Japanese Match Manufacturers' Guild of Osaka and Kobe is taking steps to petition the United States Government to lower the .te of import duty to be imposed on Japanese matches imported into the Philippine Islands.
enormous in the locality,
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