338
THE HONGKONG WEEKLY PRESS AND
CHINESE ECONOMIC PROBLEMS. | interesting to see that our present authority
(Daily Press, 5th May.) Spring storms and summer floods, together with war effects and the boycott, accounted for the diminished export of China's main staples in 1905; so Mr. H. B. MORSE tells us in his annual report based on Customs returns. The reduced silk output, if our Canton correspondent be not mistaken, is likely to be repeated this year; and it follows that while producing less, the Chinese in the interior will buy less, a reflection that augurs no good for trade generally. As there was at the end of 1904 a general anticipation of brilliant trade prospects for the coming year", however, we may hope for a more agreeable disappointment this year. We do not attach quite so much importance to what is called “the balance of trade" (as measured between recorded mports and exports) as the Customs people
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denies that there has been an over-produc- tion of copper coinage, and denies that it has been of a quality to necessitate depre- ciation.
He says:
Considering the large issue within a short time, their appearance is creditable; and analysis of specimens of various Mints taken at random shows that, while some are of pure copper and others contain up to 5 per cent. alloy, they all contain within a small margin of 7 grammes of copper. There were small issues of brass cents from several Mints, containing between 70 and 80 per cent. of copper. but these were not persisted in. On the question of over-issue, it will be admitted that it is not easy, within a limited time, for a population of 400 millions, and that a per capita oirvulation of 25 cents in the retail ourrency of the people is not excessive, when we see that the circulation in the United States of America (gold 815.00) is 120 times as great; for it must be remembered that copper in China performs most of the fanotions of gold, silver, and copper in the West, the place of silver in Chins being rather filled by cheques
[May 14, 1906.
The report has nothing. particularly now to say of the political situation in China, regarding as uncertain the direction which the latent forces-perhaps "seething forces" were more apt-will take. We agree that the spirit throughout the Empire appears to be Chauvinistic; but without any desire to generalise or make too sweeping asser- tions, we should have thought the grounds for believing in "the increasing intelligence of the native press" were scarcely adequate.
It would have been interesting if the reference to Chinese currency could have been written with a knowledge of the observations by Mr. H. B. MORSE, referred to in our last. The report refers to the alleged excessive coinage of copper, and its alleged debasement, two points which Mt. MORSE considered to have been exaggerated. There is, of course, no disagreement what- ever as to the mischief caused by the coins not being truly imperial; but it is not too
do; the demand in China continues to grow, and bank or government notes in the West; the much to expect that before the next nanual
even when the immediate power to purchase true comparison, however, is to say that in does not, and it is this to which commercial China the per capita circulation of cents (ex- faith may turn. The boycott caused a real cluding the cash from consideration) is 1 days, dislocation of trade, affecting more than and in America 10 days, wages of an unskilled American goods, but we suspect that its workman. Though these objections are not moral effect has not been what its hot-well taken, an evil of great and increasing headed supporters hoped. The whilom dimensions unquestionably exists; an evil re- ustomer may be assumed to share some ofe quiring no special attention twelve months ago,
easy of adjustment six months ago, presenting the feeling of EVE, foreign goods represent difficult problem now, and becoming increasing ing the forbidden fruit.
ly difficult and more costly in its solution with every day that passes without a wise remedy being provided. Even at the present stages satisfactory solution will probably cost the Im. perisi exchequer a sum fully equal to all that has been taken as signiorage profits in the
It is gratifying to read that owing to the erratic fluctuations of exchange, every calculation of the merchant has been upset.
No prescience could have
report has to be issued the Chinese Govern-
ment will have remedied this. With a really imperial currency, accepted in all parts of the Empire, the way would be more open for final reforms. The China Association's advocacy of an imperial silver coinage would not be long, we fancy, in being replaced by a request for the gold basis that was “deemed to be impracticable in China". It is not to be understood that it was the Association as a body which deemed it impracticable, although they may have decided that half a loaf is better than no brand.
enabled merchants to insure against these \ provinces, and delay will ouly add to the cost by very new, either; the present position of
fluctuations". We regard it as gratifying because a certain pride of financial pres- cience is presumed to be at the back of the aversion to currency reform; and such surprises may awaken interest in the pro- posals for stabilisation of exchange. With reference to the alleged excessive mintage of copper cash, the STATISTICAL SECRETARY Bounds a note that appears new at the moment, when the sudden depreciation of this subsidiary currency has prompted so many protests and reflections upon the economic folly of provincial governments. He holds that there is no economic reason why all the output, enormous as it has been, should not be absorbed into circulation, meeting a genuine need. The depreciation is said to have been due to a kind of official: squeeze, in which an important govern. mental establishment, having a large staff of workmen, and drawing large accounts in copper coin from the treasury, refused to receive the cents except at a ten-per-cent. discount. In his previous report, MORSE prophesied that if the workers of China were obliged to use ten-cash pieces, instead of the smaller currency, their "little comforts will be cut off, and the men who now support a family in comfort on sixpence a day will find themselves reduced to the level of a bare subsistence", He now reminds us that the silver price of rice is rising; that a depreciated currency ousts all others, fixing the price of commodities; and that wages do not rise, in sympathy. Therefore, the argument runs, the Chinese peasantry are now com- "mitted to a depth of poverty to which even they have been unaccustomed. There are few speculations more puzzling than these intricacies of money, food, and labour. Equally plausible would seem the argument that the circumstances thus outlined should
Mr.
i
the necessity of appeasing an angry and dis. contented popalace. One step has been taken in the right direction, by an Imperial rescript directing that from the 24th April, 1906, all Mints shall be placed under the Imperial Board of Revenue. This is a very necessary step, and to be adopted, assuming that the Imperial now there remains but one measure of regulation government accepts as its own the previous which, by one of its branches, issues these coins issues of the provincial Mints; the government at a certain face value must, in all its branches, accept the coins in payment of all dues and at the same value."
The reasonableness and justice of this obligation appears so apparent that we expect it to be instantly admitted-in any other quarter than Peking It is to be hoped that the report from which we have been quoting will receive serious attention even there.
THE CHINA ASSOCIATION
REPORT.
(Daily Press, 7th May.)
|
The
The subject of railways evokes nothing the railway movement generally is not quite so clear as might be thought; the influence of the Chauvinistic spirit previously mentioned cannot be accurately weighed. The remark in the report, that "it is doubted whether the capital will be forthcoming from sidered in the light of that factor. native sources", is one that must be con.
perhaps he gauged by the popularity of intensity of the Chauvinistic feeling may these railway investments, which agniu (as we have just seen in Kwangtung) depends largely on the extent to which official inter. fererce is restricted. We certainly have doubts about the speedy and adequate development of a railway system by Chinese alone; but time will show. The suggestion from Hongkong, to import something of the new Alliance into this matter, viz., Japanese engineers and British capital, is described as hardly feasible", with which we need not quarrel, although the reason given'is insufficient. No account is taken of the third party to the transaction; that the Chinese may be unsympathetic toward hotb.
C
to
The observations ou Trade Mark, Regu- The annual report of the China Associa- latons, Mining Regulations (“no progress tion reaches us rather late, after we have made") and River Conservancy are well in published our report of the meeting, and line with public opinion on the spot, and our London correspondent's commenta need not be quoted. The Shanghai" Mixed thereon. There are, however, the numerous Court affair occupies the most space, and features of interest usual in this conscien- while the spirit of the comments tious review of matters Oriental ; and we condemn the flagrant diplomatic attach- will follow our custom of quoting salientment to “ Red Tape", the terminology is passages only. It is gratifying to us to diplomatically miller. The situ ition note that the report ignores the critics of generally at the Northera Port is so naom. the Anglo-Japanese Alliance, those who alous that if we are to stick always to the believe that the day is not past when a letter of the law, ignoring its spirit, national isolation may be called “splendid". | there is bound to be more trouble. Although the Alliance may not "assure Fulmerstonian methods are the only ones to permanent peace in the Far Fast", it must do any real good there now. For diplomats to go a long way in that direction. That wars say at one time it is not a foreign conces are nowadays les lightly entered upon is to │sion, and ut others to intervene and arbi- Me au incentive to increased production be attributed, not to a universal conversion trarily upset the actions of the municipal
in China, of which, we have beea told, the country is capable. But nothing is so easy as to make these deductions, and nothing less satisfying than these abstract conclusions. As a practical issue, it is
to the anti-war ideal, but to the existence of these national combinations, in which one party, less excited by the pinpricks of the moment, may be assumed to act as a brake upon the bellicosity of the other.
government, is too confusing and helps the native obstructionists to "undermine an edifice which was raised and upheld by strenuous effort and constant watchfulness in the past".
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