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COTTON MILLS IN CHINA.
(Daily Press, 25th February.) The fairly numerous foreign-owned cotton mills in China were all erected within the last decade, permission being given after the Chino-Japanese war. The increasing demand for yarn, and the plentiful supply of cotton offering at low rates, was the temptation, investors having every reason, in view of such circumstances, to put faith in the glowing prospectuses that were issued. At that time, according to Mr. F. ANDERSON, the chairman of a Shanghai spinning and weaving company, raw colton was obtainable at about ten or eleven taels
per picul. Unfortunately, the same war which had hastened the admission of foreigners into one of China's most promising businesses was the cause of something else that killed the egg-promising goose. Japan immediately increased its import duty on yarn, and its home market, being thus pro- tected against India and China, was placed in a position to support many more mills. These very soon killed the Indian yarn trade with Japan. Notwithstanding this development, the world's demand for yarn was strengthening so much that at the time foreigners in China were setting up three hundred thousand spindles, India was also enlarging its manufacturing plant. The automatic law of supply and demand thus neutralised the advantages naturally expect- ed by those who were thus bastening to profit by the demand. This competition in itself was bad enough, but worse was to follow. The supplies of cotton fell away just when they ought to have increased. The natural and immediate result was a rise in price, and with the value of yarn drop ping fast, it was inevitable that disappoint-
THE HONGKONG WEEKLY PRESS AND its head with the best of the big dividend paying concerns.
CHINA GETTING (ESTIVE.
(Daily Press, 27th February.)
The line of action, indicated in the cele- brated letter attributed to LI HUNG-CHANG seems likely to be carried out, if we may judge by the trend of recent events. There can indeed be little doubt in which direc tion the policy of China is drifting at the present time. She sees clearly that it is no longer necessary for her to be as subservient to Russia as heretofore. That China should have been able to preserve something like neutrality as long as she has, must have been a matter of surprise to all who are acquainted with the numerous difficulties that stand in the way of such a course. Her own want of centralisation is among the chief of these. What may be accepted at Peking as the right attitude in a given case may not be in accordance with the views of provincial viceroys, who are often powerful enough to do what seems right in their own eyes in defiance of higher autho- rity. This in itself constitutes an element by no means easy to deal with in stirring times. The high officials at Peking might be convinced that a policy of strict neutra- lity should be pursued, and might earnestly endeavour to carry it out, but it would not follow as of course that their views in this respect would be honestly and fully enforced by the provincial authorities. Then also there is the standing trouble with respect to the masses, who in times of excitement are often difficult to hold in hand, and who might do some act which would in- volve China at any given moment. similar difficulty had to be faced whenever it was necessary to definitely assert the territorial sovereignty of China in the direc- tion of preserving neutrality, as for instance when Russian men-of-war took refuge in China ports. At any one of these points there was a manifest danger of China be coming at a given time, involved, and, over and above all this there was the undoubted fact that at the opening of the war Russia was absolutely desirous of involving China, if possible, in the hostilities, and one of her Cotton from Hankow or Ningpo going leading statesmen even jocularly said "pull to Shanghai must yield to the Maritime their tails sufficiently and they will fight." Customs one and a half times the export The progress of events, however, must have duty, in addition to the levies imposed soon changed the ideas of Russia upon this during its journey to the coast. On top of
score. She early discovered that she had that, it always landed in a scandalously quite enough to do to deal with Japan adulterated condition. The weight added alone, and a volle face was speedily made. by water paid the Chinese growers well at
She no longer found it convenient to pull the prices they were getting; and the the Chinamon's tails but began complain- damage to the otherwise excellent rawing on all possible occasions that the material was no concern of theirs, while the foreign buyer was helpless in face of the scarcity elsewhere.
Now that cotton is plentiful and cheap, these rascals are begin
ment should come to the investors in these
undertakings. With a sensible business- like administration at Peking, and a clearer recognition on the part of the Chinese pro- ducers of the value of honesty as a policy, the foreign mills in China might have weathered the storm better than they did, by having access to native supplies. Chinese cotton, however, owing to China's inability to see anything beyond immediate gain, has to pay taxes before it can reach the mills that are actually in the country producing
it.
ning to find that the dividends of rascality do not endure for ever. These were some of the reasons why the reasonable hopes of shareholders in the North have not yet been realized. Indeed, it was worse than that. That they have even managed to survive such critical times is something to be thank ful for; and now that the supply of raw
material is assured, and the demand for yarn increasing, hopes may well revive. The Hongkong manufacturers are more favourably situated than those at Shanghai, who are handicapped by an import duty on foreign cotton that has been increased, since they begau, by fifty per cent. There are, we believe, quite trustworthy indications now of a good time coming when the cotton
spinning and weaving industry can hold up
A
Chinese did not observe neutrality. Not withstanding all this, however, China con- trived to keep out of the war and watched the course of events. So long as things weut against Russia, this course was a per- fectly safe one; and on the whole it cannot be denied that China has steered her way through a very troublesome sea with her usual " masterly inactivity.”
Things, however, have now come to a point where it is evident that the tide is beginning to turn and that a change is like ly to occur in China's attitude. It is be coming clear that the chances of success are on the side of Japan and that, whatever the ultimate issue, the war must leave Russia much crippled and far less able to adopt a high band than hitherto. Under such cir- cumstances China has begun to show that there is a limit to the policy of making her a convenient scapegoat, and that she is not
disposed to adopt so entirely a negative
[March 6, 1905.
to
| position as she was content to take when the issue was much more doubtful. The attitude she took up in seizing the ammuni- tion which it was attempted smuggle by rail to Port Arthur waş the first evidence that the tide had begun to turn; and that should events continue in favour of Japan, her influence was likely to be thrown upon the winning side. The concessions which she made to Russia in former days were certainly not the result of any love or admiration for that nation; nor were they dictated alone by fear of or dislike to Japan, though the
latter considerations doubtless had some weight. We may, however, take it as fairly certain that the chief considerations of the Chinese all along have been those of ex- pediency; and that the avoidance of present difficulty weighed more with her than any far sighted views or ultimate policy. Russia was pressing and it might be well to tem- porise with her and wait the course of events. She would at least keep Japan at arm's length and the future might take care of itself. That future, however, has been as unexpected to China as to the rest of the world. Japan has shown herself to be a Power in the East to be respected at least as much as Russia, and the idea of relying upon the protection of the latter in return for concessions, and playing off the one nation against the other must be now clearly seen to be impracticable. China, it may be, taken as certain, will, under existing circum. stances, be inclined to act in such a way that she will stand well with the coming power; and so far as she is able will at least endeavour to prevent further breaches of neutrality by Russia at her ports or through her territory. In doing this she has of course to run the risk of incurring Russian displeasure; but under existing circum- stances she is well aware that this is not likely to go beyond protest. Russia at the present time is not likely to wish to draw China into the affray; and short of this, the Chinese will probably see that her chances of benefit lie largely in keeping upon a friendly footing with Japan. The true policy of the Chinese is beyond ques- tion to endeavour to preserve the neutral attitude which they have hitherto sustained, though it cannot be overlooked that the temptation to deviate from it is increasing in proportion as Japanese success appears to be assured.
BEACHCOMBERS.
(Daily Press, 28th February.). Our present desire to compliment the Americans of Shanghai on their evincement of national spirit, and regard for a correct local public policy, will not, we trust, expose us to the charge of instituting an "odorous comparison " with the correspond-
ing state of things in Hongkong. A census of the beachcombers in Hongkong would disclose, we are informed, an overwhelming preponderance of Americans.
It appears that our nearness to Manila has imposed. upon us this unwelcome horde, for which we have to thank the callous and selfish
policy of the Philippine authorities. Doubt- less soon we shall have to thank the respec- table American community of Hongkong for taking some action to repair the mis- chief their compatriots at Manila have wrought in our Colony. When they are in- formed of the recent action of Mr. J. W. DAVIDSON, the acting American Consul. General at Shanghai, and his constituents, which is aimed to afford help to the deserv-
ing destitute Americans in Shanghai, and
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