176
FLOUR MILLING IN THE FAR EAST,
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(Daily Press, Septembar 5th.) We would not expect to find in a Canadian newspaper any support for the idea that flour milling can be profitably carried on in the Orient, but we gather from reports concerning milling operations and the wheat market in Manchuria that the Canadian view that four milling in this part of the world is necessarily bound to be a failure is one which is open to question. The collapse of the Hongkong Milling Company may be one of the most spectac ular episodes in the history of the industry," but the general question cannot be decided by a single incident. "The Orient" is a large territory, and when the Canadian press tells its readers that the assumption of those who think that the Chinese and Japanese will be able to manufacture their own flour is "predicated on the usual sophistry that the most favourable place to manufacture is where the consumption exists," they ignore the fact that this is not necessarily in opposi- tion to the theory that the nearer a plant is to the source of supply of raw material the better chance it has of profitably, working. "The Orient" is not remote from fertile regions containing vast possibilities of wheat production, and milling operations have been developing on a very large scale in Manchuria. Indeed, few people in China have any adequate conception of this development, but they may find in Mr. PUTNAM WEALE's latest book a good deal of illuminating information on the subject. At the time of the Russo-Japanese war there were eighteen respectable steam flour mills in Central and Northern Manchuria. having a maximum output per twenty-four hours of 3,150,000 English pounds, or roughly 1,400 tons a days, and a rough Russian estimate placed the number of big native flour mills, in Kirin alone, at 400. Elsewhere in his book Mr. WEALE mentions the organisation of a Manchurian Flour Trust with an indefinite number of millions
as capital, which was intended to swamp the whole of Eastern Asia with Manchurian flour. But the author endeavours to show in the first place that, owing to Government restrictions on the export of flour as well as rice, Mauchurian flour has but one field-the eigh een provinces of China, and he argues moreover that Manchurian flour cannot compete with American in China. The best quality of American flour according to the figures he quotes, appears to be ma terially cheaper in the Far East than the best quality of Manchurian flour on which no transportation charges have been paid; whilst the poorest grades of Manchurian flour which are delivered by the Harbin mills, although cheaper in Manchuria, would probably be (on the basis of the figures quoted by the author), very little so after having been transported by rail and steamer to other places. Mr. PUTNAM WEALE's prices however, are the prices of a year or two ago, but to-day, with a low dollar, Manchurian flour seems to be deriving the advantage. The Japanese, who have a big flour mill at Tiebling, are confident of capturing the market in South Manchuria. More steam mills are being erected at Yinkow, Mukden and Antung, and it is anticipated when these are working the price can be still further reduced, and that "it will not be difficult to effectually check the importation of foreign flour and to crush the native hand mills which are scattered all over the provinces." There can be no doubt that four milling in Manchuria is destined to become an enormous industry. Russian business methods are poor, and most of the
THE HONGKONG WEEKLY PRESS AND
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When we
[September 14, 1908. Harbin mills are under a heavy burden of | stations-the highest figures for the last 16 debt, and they necessarily have to keep prices years being an increase of 28 over the fairly high. but even Mr. PUTNAM WEALE previous year's figures. Turning, however, confesses that in Japanese hands the Harbin to Lappa, we find Mr. WILZER reporting milla would immediately, become a very that the import of foreign opium fell short considerable source of wealth. In South of the 1906 figures by 214 plouls. Mr. Manchuria, where there is a vast expanse | VON LINDHOLM at Samshuí reports of fine wheat-growing country, the Japanese decrease of 90 piculs. Mr. VAN AALST at have their opportunity. Harbin flour does Wuchow says that during the year 1907 not seriously compete in the South Man- over 5,000 picula of native opium came to churian markets, and preferential railway Wuchow of which only 976 piculs passed rates apparently give the Japanese milling into Kwangtung by junk.
This showed a companies a great advantage over the great decrease on the figures for preceding foreign flour merchants. The Manchurian years, "due, it is said, to the drug being Flour Mill Company, according to a state- now carried towards Pakhoi." ment reported to have been made by turn to the report of the Commissioner at Mr. Goto, who is prominently connected Pakhoi (Mr. ACHESON) we find the statement with the company, has the benefit of a loan that the quantity of foreign opium imported of 100,000 yen from the Yokohama Specie Bank without any security, while the Eastern Chinese Railway is carrying the company's goods at half the regular freight, and the South Manchuria Railway Company is also giving assistance to the company in various directions." This is an interesting admission which we imagine has not passed unnoticed by some of Japan's competitors in the markets of Manchuria. There can no longer be any doubt after this that Japanese traders are receiving preferential treatment on the Manchurian railways; and if it is by this means that foreign flour is excluded from the markets we may expect to hear of diplomatic remonstrances. But the point we wish to emphasise is that the competition of flour mills in the Orient is becoming a factor that the Canadian and American mills cannot afford to desregard.
THE OPIUM TRADE IN
SOUTH CHINA.
269 piculs was the greatest in any year since 1894, the only reason he had heard for the increase being lower prices in Hongkong and consequent ability of the people to buy more of the drug. The trade in native opium is small, being only 14 piculs against 8 in 1906.
which
Taking now the ports North of Canton, we find that at Swatow there was a falling off, of 77 piculs, in foreign, and 1,410 piculs in native opium. Mr. HARRIS mentions a report that some 25 per cent. of smokers attempted to abandon the habit, but about a third of the number returned to the pipe. The Commissioner, however, says that diminution in the use of the drug and antipathy to the trade are perceptible. Coming to Amoy, we have Mr. BowBa reporting that the total gross importation of foreign opium amounted to 8,870 piculs, "which is actually, with the exception of two years-1897 and 1903 — in arrivals of native opium were small, the largest importation since 1893. This result which, as the Commissioner remarks, is some- (Daily Press, September 7th.) what surprising in view of the closing of It is of interest to note that in 1907, the the opium dens during the year, is, attribut first year after the promulgation of the ed in the report to the high exchange during Anti-Opium Edict, the import of foreign the greater part of the year. As regards opium into China actually showed an in- native opium, the Commissioner reports a erease on the returns for 1906. In that decrease of about 800 piculs in the import, year the import was 54,117 piculs while but he does not attribute it to diminished in 1907 it amounted to 54,584 piculs- consumption. It is due, be saye, no doubt, notwithstanding the fact that the total partly to the larger arrivals of the foreign arrivals and shipments at Hongkong for drug and partly to the large local produc- 1907, as compared with the figures for the tion. Finally we come to Foochow. Here, previous year, showed a falling off of 6,724 Mr. MONTGOMERY reports, a good deal of chests for arrivals and 5,370 chests for energy has been shown by the officials and shipments. What the explanation of the anti opium associations established in increased import into China may be, while Foochow and the neighbourhood to reduce the arrivals and shipments at Hongkong the consumption of opium, and he believes show such a material reduction we do not they have had some success with the younger know. Some few weeks ago we reviewed men. The import of foreign opium for the the reports made by the Customs Com-year shows a decline of 168 picula while the missioners at the Yangtse ports in regard import of native opium fell off by 372 piculs. to the opium traffic in that region last year, and the general interest evinced in that review, which was reproduced by several of our contemporaries in other ports, sug- gests to 13 that a similar review of the trade in the Southern ports would be no less acceptable.
As to
Taking first, then, the port of Canton we find the Commissioner reporting that in spite of local anti-opium efforts, there has been no very striking diminution in the importation of the foreign drug; the quantity for 1906-11,146 picula- —was the bigbest for many years, but it only exceeled the 1907 import by 742 piculs. Native opium the import showed an excess of 539 piculs on that for 1906. Therefore, says Mr. KING, taken in con- nexion with the foreign figures, the trade may be said to have remained very much in statu quo. Passing to Mr. W. B. M'D. PAER's report on the Kowloon trade we find the statement that some 1,040 piculs of foreign opium passed the Kowloon |
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Though some of the Southern ports are in proximity to opiam-growing districts we note only one reference to diminishing cultivation. That is in the report of Mr. TON STRAUCH, the Commissioner at Nan- ning, on the West River. Formerly, he says, about 3,000 chests of Yunnan and 5,000 chests of Kweichow opium are sait to have been sold in this city; but during the last few years a gradual decrease has taken place, and during 1907 it is said to have fallen about 40 per cent below its original amount. "How seriously this decrease in native opium must affect Nanning trade can easily judged from the fact that it formed a medium of barter and generally exchanged here for various kinds of foreign goods, mostly cotton yarn. Two reasons, the Commissioner adds, are given for the decrease; first, the introduc tion, three years ago, of an increased tax on native opiam in the Two Kwang provinces which is said to have brought about an alteration of its old trade routes, and, next,
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