The-Hong-Kong-Weekly-Press-1907-08-10 — Page 5

Hongkong Weekly Press AND China Overland Trade Report All

August 10, 1907.}

his learning as the Japanese historian tells us, we can but be surprised and gratified that the Japanese commercial graduate is -no worse than he is said to be. The importers and exporters of the early days in Japan were certainly not extre ne altruists; they did not suffer exile for the benefit of the Japanese, and even the tactful Captain BRINKLEY admits that there were some abuses. In an interesting article in the commercial supplement of the Times of July 8th, he discusses the past and future of the foreign merchant in Japan. After fifty years, it has become " topic of coa. siderable anxiety and conjecture." The foreign middlemen, in the days when the Japanese were incapable of acting the part, took all the risks and conceded to the Japanese "an equitable share of

the profits.' Naturally, the Japanese and Joreign definition of what was equitable in that connection varies. There are Japanese accounts extant which give fuller explana- tions of the native desire to dispense with the foreign middleman than Captain BRINKLEY gives. He says:

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CHINA OVERLAND TRADE REPORT.

man.

exported under the name of a foreign middle- individual effort on the p rt of the producer, Such a system not only discouraged all but also added largely to the cost of the staple. incentive to take the business out of foreign Here again, then, the Japanese found a strong hands. The same story, though in less striking terms, might be told of almost every branch of the country's over-ses commerce, so that, on the one side, the Japanese struggled perpetually to organize a system of direct export," on the other, the foreign middleman olung with tenacity to the business he had developed.

In 1893, the Japanese had managed to get into their own hands seventeen per cent. of a total trade of £18,000,000; to-day they have forty per cent. of a total of middlemin's grumbles are not altoge her £81,000,000. It is obvious that the foreign warranted;

are still considerable pickings left to him, though it is admitted

there

that in time these must be further reduced. securing the confidence of American bayers Not only have the Japanese suceeded in for raw silk undergone foreign expert examination, but which has not previously also they obtain from their Own banks more liberal accommodation than the aver- age foreign exporter can get hama or Kobe banks. Thus the Japanese are from Yoko able to command a longer interval of time for seeking a market in the United States, an advantage by no means inconsiderable. There is also a further weight in their side of the scale. They are in a position to lend money to the sericulturists against the security of the latter's crop, which thus comes into their hands at rates considerably lower than those charged to the foreign exporter. In fact, the day does not seem to be far distant when the Japanese exporter will control the whole supply of silk, so far at any rate, as the American market is concerned, and will set what limits he pleases to the portion obtainable by his foreign com. petitors. The case of tea promises to be some. what similar. It no longer requires to be carried ing. The Japanese themselves are not quite to a foreign settlement for re-firing and pack.

competent to carry out these operations, and they are forming organizations to export the leaf direct from the chief producing districts so that the foreign middleman will be entirely eliminated. They have not yet achieved much success in the matter of exporting the products of their spinning and weaving factories. These manufacture some 20 milions sterling of yarns and stuffs annually, and export about one. fourth of that amount. Thus far export business has

the remained chiefly in foreign hands, but there are evidences of a strong resolve to alter that state of affairs.

The foreign community lived almost wholly isolated. They did not of deliberate choice segregate themselves from the people among whom they had cast their lot, but all the condi- tions of their existence combined to differentiate them, and that, too, in a manner eminently calculated to estrange Japanese senti nent. In the first place, they acknowledged no respon. sibility towards the laws of the land, this exemption being based on an assumption of superiority necessarily galling to a proud and patriotic nation like the Japanese. In the Fecond, the imposing dimensions of their houses, the comparatively costly and ostentatious fashion of their lives, and the fact that they had virtually no social intercourse with the people of the country, all tended to create an impression, on the one band, of deriving large profit from the trade they controlled, and, on the other, of despising and looking down on the nation whose hospitality they enjoyed. Then into the manner of conducting the trade practices gradually obtruded themselves, which belped to accentuate the situation. Silk and tea were the two chief staples of export, and in the handling of both of these a system (ery irksome to the Japanese had to be adopted.

As to silk, none but hand-reeled being originally procur- able, and neither Japanese sericulturists nor Japanese middlemen having a due appreciation of uniformity of quality or faithfulness to sample, the foreign exporter found it necessary to take the various parcels of silk into his own warehouse, and hold them for inspection, pead- ing the completion of which process no bargain was concluded. On the whole this system was honestly pursued by foreign local merchants, but some abuses undoubtedly disfigured it—as when silk was held not solely for inspection, but to suit the market-and these abuses, combin- ed with the obviously objectionable character of such a method from the producer's point of view, gradually exited among the Japanese a strong ambition to get the export business into their own hands. First, however, an attempt was made to modify the system itself by establishing a Japanese conditioning house at Yokoham1, and claiming for its seals the same validity as that possessed by the marks of the foreign inspectors. This project, vehemently resisted by the foreign middlemen, led to a some what bitter contest, which ended in establish- ing the old system on a firmer basis than ever, and in strengthening the determinati a of the Japanese to establish themselves independ- ently as silk exporters. In the case of tea, the conditions were even more striking. The Japanese producer's sun-fired leaf being unfit for export in that condition, had to be re-fired in Yokohama, and this in the re-firing ware- houses of the foreign middlemen. They took the various parcels of tea, practically without discrimination, and damped them into pans, where they were manipulated by a particularly dirty tribe of the commonest labourers of both sexes. A certain proportion of sulphate of copper having been added to impart the colour which alone appealed to American taste, the re-fired staple was made up into parcels and

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This is not very cheerful for the British merchant in Japan, certainly, but it does the Jeremiahs of the British press. So long not after all contain ample provocation for as Japan's trade with England continues to expand, it does not seem of national mo- ment whether the gc-betweens be Japanese or foreign, other things, as credit and sol- vency, being equal. Beyond that, however, Captain BRINKLEY sees room for hope ought to set about exploiting the industrial even for the foreign merchant, who, he says, field, by entering into partnership with Japanese manufacturers. "It must be coalition, not competition." The foreign capitalist cannot succeed alone as a mauu- facturer in Japan, and, the Japanese, although progressing, slowly without him.

can proceed but

Associated with Japanese of the better classes, a foreign ospitalist could not only count with prise, bat might also exercise whatever mea2are confidence on the smooth working of his eater- of control seemed wholesome. This is the field expert. He mant cease to make the distribution which now invites the foreign capitalist sod of Japanese products his chief business and mast himself be a co-proincer. In 1911 Japan will recover her tariff autɔnomy, and we may imposing protective duties, so far as such a assume that she will exercise it in the sense of policy can be made to consist with the collection of revenue. Already she has manipulated her statutory tariff in such a manner that it affords

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a considerable measure of protection to her own similarly when it becomes accessible. producers, and the conventional tariff will fare present therefore, is the time for foreign The

industrial development now in progress as a capitalists and experts to bid for a share in the natural sequel of the late war.

HONGKONG SANITARY

BOARD.

A meeting of the Sanitary Board was held on Aug ust rth at the Board Room. The Hon. Dr. J. M. Atkinson (President) presided, and (Vice-President), Dr. F. Clark (Medical Officer there were also present Hon. Mr. W. Chatham of Health), Mr. E. D. C. Wolfe (Registrar. General), Mr. A. Shelton Hooper, Lient. Badeley, Mr. H. Humphreys, Mr. Lau Chu- Col. J. M. Reid, R.A.M.C., Hoo. Mr. F. J. pak, Mr. Fung Wa Chun, and Mr. G. A. Woodcock (secretary).

CUBICLE ACCOMMODATION,

cations in connection with a large number of The repy from the Government relative to the Board's recommendation suggesting modifi-

the recommendation. These papers, it will be houses was read, the Government consenting to remembered, were in connection with a minute from the Secret ry who asked for a ruling from the Board as to whether owners or tenants should be informed that the Board had granted these modifications. He suggested that the owners should be informed and that they be requested to line out the floors showing the positions where these cubicles could be erected, because if the tenants were left to themselves to erect these cubicles they would probably erect them in a very insanitary way.

Hon. Mr. HEWITT-I presume, Sir, these They were only rent out of the Secretary's papers are of some considerable moment. office Monday were holidays, and they only reached on Friday. Saturday, Sunday

me

and

in my office to-day. When they were brought to me three or four members had not seen them, and I think, as they are 80

should be considered now. important, they should be held over.

The PRESIDENT This is В matter that It was considered

the

We

the Board in Mr. Hewett's absence, and certain recommendations submitted to in certain blooks Government to improve the accommodation of houses. The question shall proceed to inform the owners of these How before the Board · is whether various blocks. There are a great many bouses to be dealt with, and it might be advisable to iasert a notice in one of the papers.

Mr. LA

better to appoint a sub-committee to deal with CaU-PAK thought it would be

Officer of Health, Mr. Lau Chu-pak and the the question, and accordingly the Medical Registrar-Gene ral were appointed.

to recommendations in connection with six modation was also submitted. This referred Correspond once relative to cubicle accom.

blocks of buildings. The recommendations were practically to allow as many cubicles mit and the other floors to be dealt with on to the top floors 88 the area their merits from the point of view of lighting and ventilation.

would ad-

forwarded to the Government.

It was agreed that the correspondence be

CEMETE Y BYE LAW8. The committee, which had reconsidered the report referred back to them at the last Board deleting section E. and by increasing the fee meeting, recommended altering bye law 19 by

for section D. to $29.

Mr. LAC CHU-PAK stated that the increase of 100 per cent for Chinese graves was too much. A fee of $15 would meet the case.

Hoo. Mr. CHTHAM, said the fee of 820 was reasonable considering the large area .her occupied.

The recommendations were approved. PROPOSED STANDING ORDERS. proposed additional Standing Orders of the Farther correspondence relative to the two Beard was read. the letter from the Board suggesting amend- The Government's reply t› meat was to the effect that the suggested Standing Orders should be amended by deleting word "beneficially" and by omitting the latter the word "pecuniarily" and substituting the portion stating that members should leave the room when voting takes place.

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