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INDUSTRIAL SECTION REPORT FOR SEPTEMBER.

23

JC

The possibility of interruption in the supply of raw

materials due to the outbreak of hostilities in Europe resulted in

rapid rise in the prices of many commodities in use in Shanghai

factories during the month, and introduced new difficulties into a

situation already suffering from adverse exchange. Speculation in

'

certain raw materials caused prices to move erratically and rendered

genuine factory purchases difficult. Many who do not customarily

deal in commodities invested in them since currency had lost its

attractiveness. The high price of fuel contributed further to the

embarrassment of some entreprises. Nevertheless there has not as

yet descended any widespread unemployment, though there is some

slackening. The larger textile mills which obtain some supplies

from nearby provinces are active; others have stocks of raw materials

for the present. One group of mills only reduced the number of its

shifts to half. The view was expressed by some textile interests

that the slight improvement registered in the sterling value of the

dollar represented the margin between unprofitable and profitable

management. The dyeing industry suffered sharp increases in prices

of dyestuffs. One enterprise has begun to plan the local manufacture

of a constituent in the dyeing industry now no longer able to be

imported from Europe. Rubber shoe factories are greatly affected by

recent events. There is restriction in the export of rubber from

Malaya which has further advanced in price by another 30 per cent.

Possibly only one-fifth of the rubber shoe factories are working,

and these on a part time basis at a time which is usually considered

the rush season for manufacture. Enamel ware factories, despite a

100 per cent. rise in the cost of raw materials since June, continue

to find an overseas market for their products. Felt hat factories

are busy, with stocks of hoods to last three months; thermos bottle

enterprises are slack. Currency restrictions in British colonies

act against the export of seasoning powder and some other commodities.

In many industries selling prices of finished goods are still lower

than replacement costs of raw materials. of seventeen registered

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