May 5, 1906.]
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the way they deserved coming from such an important emporium as Shanghai. The repre- sentations of Shanghai would always be received and sofed upon with a due regard to their weight. He trusted that after this expression of regret the parent Association and the Shangbai Branch would work harmoniously together for their mutual advantage and would { do mutually what was possible for the best interests of commerce and the extension of their intercourse with China. He asked them to devote themselves to the promotion of these objects quietly and deliberately, patting their views so before the Government, which would listen to them the more carefully if prudently and cautiously expressed than if violently and somewhat insistently forced upon them (hear, hear, and applause).
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The motion for the adoption of the report was seconded by Sir Alfred Dent, and unani. mously agreed to.
Proceeding to the election of office-bearers and committee, the Chairman expressed the pleasure of the members that Mr. Gundry had consented to take office again as President. For his own part, having been the Chairman of Committee for so many years and intimated his desire from time to time to retire, he felt that the time had now come when it was in- cumbent for him to do so.
ах
The other office-bearers were elected follows:-Chairman of Committee, Mr. J. H. Scott; Vice-Chairman, Sir Alfred Dent; Hon. Secretary and Treasurer, Mr. Joseph Welch.
The following were elected members of committee-Sir T. Sutherland, G.C MG.. Sir E. A. Sassoon, Bart., M.P., Sir Cecil C. Smith, G.C.M G.. Sir Eren Cameron, K.C.M.G., Sir Alfred Dent, K.C.M.G.. SirThos, Hanbury, K.C.V.O., Sir Walter C. Hillier. K.C.M.G., C.B.. Sir Thos. Jackson. Bart., Mesars. Byron Brenan, C.M.G., A. R. Burkill, F. Cornes, Herbert Dent, G. B. Dodwell, R. M, Gray, R. 8. Gundry, C.B., Wm Harwood. R. H. Hill, G. Jamieson, C.M.G., H. H. Joseph, W. Keswick, M.P., D. C. Rutherford. J. B. Scott, H. D. Stewart, W. M. Strachan, W. C. Ward, J. Welch, T. H. Whitehead, R C. Wilcox, W. 8. Young and A. Zimmeru.
Sir Thomas Jackson mored that Rule VII. be amended to read to the effect that the President, Chirman, Vice-Chairman, Treasurer and Hon. Secretary shall be elected by ballot at the annual general meetings: provided always that in no case shall the President, Chairman or Vice-Chairman hold office for more than three years consecutively.
Mr. Gundry seconded, and the alteration was agreed to unanimously.
Sir Thomas Jackson moved that a hearty vote of thanks be accorded to Mr. Keswick for his services as Chairman of Committee for so
many years.
CHINA OVERLAND TRADE REPORT.
320
were any lunatics about, it must be in Shanghai | time increased; the mints of India-have been -- (laughter).
buying, it having been decided to establish a new Mr Keswick-I thank you and Mr. Gundry reserve of uncoined bullion to the amount of for this vote of thanks. I appreciate it very 30,000,000 rupees, in addition to the coin much. You may be sure that as long as I have reserve; and the requirements for the new strength and energy to devote to work I shall coinage (the peso) of the Philippines have called do what I can for the Association (applause). for some silver supplies; and it is stated that The Chairman then reminded the members of Japan and Russia, together, have bought some the presence in London of the Special Mission 50 million ounces for transmission to the soat from China, and said it was the intention of of war. Concurrently, the Mexican mint bas the Association to entertain the Chinese Com- taken advantage of high exchange prices to missioners at dinner, details of which would be dispose of the larger portion of its surplus stock circulated in due course.
of Mexican dollars.
CHINESE CUSTOMS REPORT.
INTERESTING NOTES ON SILVER,
We have received from the Imperial Maritime Customs of China, Department of Statistics, the report on the foreign trade of China which is now annually and eagerly expected from the pen of Mr. H. B. Morse. the Statisticae Secretary. The current report is part I. for 1905. To begin with, we give only some extracts from his very interesting remarks on currency, trade, and other circumstances as affecting silver and exchange. He says:-
Coming to the extreme East, we find one cause tending to keep up the rate of exchange and thereby to enhance the value of silver-the needs of the belligerents in Manchuria. Funds for use in the North have been provided by both the combatant powers in two ways: by drafts on Shanghai (and secondarily on Tientsin) and by the use of Russian rouble notes and Japanese war notes for silver dollars. The drafts coming in have covered merchandise indirectly; they have provided at Shanghai a credit fund on the drawing country, which has served to provide drafts for remitting the proceeds of China's imports, and to that extent has reduced the quantity of importers' bills, which must be covered by exporters bills and while the draft had the immediate effect of draining the market In my report for 1904 I referred to the of silver, it was for uso within the national and great excess in the value of imports over commercial limits of China, and the silver has exports and taking the figures for 19 3, when streamed or will stream back to the money the value of foreign merchandise imported market, as soon as it has served its purpose and exceeded that of Chinese producs exported by as the ways are opened. The rouble notes have 31 per cent., I was able to show that the sum operated in the same way as drafts, being of China's liabilities on the year's working, discounted on the spot, collected by financial including payments for imports, loaus and agents, and returnod promptly to Russis, indemnities, and all other charges, was fully mainly through Shanghai, but after the spring covered by the assets available in the same of 1905 through Harbin as well; they have period, made up of the visible asset of produce thus served to swell the credit fund available exported and other invisible assets for which for providing importers bills, and have so far au estimate wa‹ given. In 1904 the arc'ss of lessened the demand for exporters' bills-they imports had increased to 43 per cent.. and in the have enabled China to substitute Manchurian trade of 1905 imports (Hk. Tls 447,100,791) labour for Kinogau silk as an export to meet exceeded exports (Ilk. Tls 277,888,197)| the demands of her annual liabilities. Japanese by 97 per cent. Other things being normal, war notes, being for silver dollars, could not be the natural result of increased imports and or used in the same way to press an immediate decreased exports would be to kunck exchange demand on the issuing nation; of them, It is in the head, importers competing for bills to roughly estimated that 75 million dollars were cover their indents, while exporte s' hills would | issued, of which about a sixth were redeemed not suffice to supply the demand; exchange has, on the spot, and a sixth were returned to Japan however, been, on the average, 5 per cout. | and there voluntarily redeemed at the rate of higher (3s. 0.1 10d, against 10.4 10d. (0.90 yen for the dollar, leaving about 50 million in 1903 than in 19 4. with even adollars still in circulation in Manchuria. To marked rise toward the end of the year the extent of the 10 million yen redeemed in and a tendency to maintain the rise. This is a Japan, these notes added to the banks' credit result which would naturally follow from fund, while the 12 million dollars redeemed diminished imports or increased exports, instead | locally added so much to the cash reserve of of the actual conditions of the year, and the China, imported through channels not contri- advantage has been to importers, notwith-bating to the statistics of the treasure table. standing the increased supply of imports. To The amount of all these additions to the financial put it in terms of silver, importers would for resources of the Empire cannot be exactly Tis. 10,000 have obtained in 1905 bills for assessed. Accepting the estimate given above, £1,500, while in 1904 the outturn would have we may táko the entire amount of been only £1,425, with which to pay their Japanese war notes. 75 million dollars, invoices, and exporters selling bills for £1,000 since they constitute an actual liability of the would in 1905 obtain Tls, 6,666, and in 1934 Japanese government and must be maintained Tls. 7,00, with which to buy produce. The in circulation without undue depreciation; the exporter was on better terms in 1904 and the Russian expenditure provided in the same way importer in 1935.
cannot be put at a smaller amount; and I am inclined to put the funds provided by bank drafts at fully 50 million and probably 75 million dollars. This gives a possible total of 225 million dollars, or Hk. Tl. 150,000,000 provided by the belligerent Powers to cover invisible reports purveyed for their use; for it must be aemembered that supplies provided from the area of military operations or its vicinity are da export of the country on which that area sepeads. Supplies procured from the country. such as the provisions to feed the armies, th slothing to cover them, the transport to more them, the labour to house or shelter them or to supplement their own work, are all exports of Of external causes of the rise in the value of material or labour, are all assets of the producing silver, two may be mentioned. The world's country, and must all be paid for, one way or output of gold is increasing in the 40 years another, either in money or in an increased 1851-90 the annual average output available dificulty in getting further supplies; and both for coiuage and the arts was under £25,000,00), | belligerente, while undoubtedly causing much while in 1905 the mines of the Transvaal alone suffering, sem to have paid their way, reported an output of £20,802,074, marking a Coming now to the actual balance of trade probable world's total for the year of over (or balance of indebtedness, as it has been better £70,000,000; the result of this increase would│termed), we have the following statement on the be to lower the archaoge value of gold and, with | basis of the trade of 1903 :--- no diminution in the demand for silver, to
Hk. Tla. appreciate relatively the value of silver. The Value of merchandise demand for the white metal has at the same imported in 1905
Mr. Gundry, in support of this proposal, said he hoped this would be agreed to with more heartiness than a mere formality. He had worked along with Mr. Keswick for upwards of sixteen years, and no one was better able than himself to speak of the attention and interest Mr. Keswick had taken in the Association during that long time. He could speak most cordially of Mr. Keswio's whole-hearted efforts in the interests of the Association He took the opportunity of thanking the members for re-electing him as their President, and said there was one matter he wished to refer to before they went away. He quite agreed with what the Chairman had told them about the unfortunate difference with the Shanghai Branch and the futility of continuing the discussion. But he would like to quote one passage in the report of the proceedings at Shanghai: The Chairman of that meeting (Mr. R. W. Little) has said," Our trunk- London-from which we are sprung, remarked the other day, or rather recently, on the principle that lunatics themselves think all other people are lunatics and they are wise, that we are a moribund institution, which we are not, and if we were it would be due to the dissatisfaction at the way in which recently the London office has been conducted". It might be imagined by anyone reading that report that it was London that had said that the Shanghai Branch was moriband, whereas it was exactly the reverse. The word moribund was quoted from Mr. Bland's speeches and they applied it themselves to their own state in Shanghai, and so, if there'
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Exchange can therefore not have been mainly affected by the trade onditions in China, though it is to be noted that the rate for bill, as shown by the accompanying diagram, has not always risen as high as the rate for silver, the exchange rate being in the last three months of the year a full penny, and sometimes nearly 2d., below the parity of exchange based on the price of bar silver; in other words, the importer buying bills has lost from to 5 per cent. of the amount realisable if he could take the silver obtained for his goods and transport it, withou cost, risk, or loss of time, to the place where he has to turn it into gold.
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LIABILITIES.
447,100,701
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