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Hokitika Guardian, 30 September 1921, Page 2

An illuminating account To the main causes underlying the unsatisfactory position of Chinese merchants is contain' I in a recent number of the “Bulletin” of the Chinese Government Bureau *..*f 'Economic Information. China exports chiefly agricultural products and imports manufactured goods. In such •**- change between one country possessing raw materials and another manufactured articles, tile inevitable loss would naturally lie on the former. (In an average the republic imported during the last few years *3.70,000,000 taels aril exported 470,090,000 taels worth of goods annually. The difference was therefore 80.900,000 taels in favour of imports. Resides, such fancy articles as Chinese embroidery, carved wood, laequerware, porcelain, gems, and jade can no longer find large foreign markets on account of the stringent post-war etieiielmient in expenditure. After tin* war the trade with Europe lias gradually revived, while commerce with .lapan and America is bound to grow even greater ill amount. The Chinese merchant, is not. however, favourably situated. [sicking both up-to-date knowledge and incentive, he is apt to ignore excellent opportunities. He is also seriously handicapped by insufficient <•apit.nl. lack of adequate transportation and communication facilities, uncertainty of commercial laws, till* existence of the cumbrous likin system, an unfair tariff schedule, want of up-to-date commercial information, disorganised state of internal currency and lack of an international credit system, lienee he follows where others lead ; he does not venture beyond the coast. Foreign" goods arc imported by foreign traders and Chinese goods are exported by foreigners. Thus it will easily lie seen that more and more raw material will bo exported and more and more nianiifiicliircd products imported with perhaps a greater and greater difference ill favour of the latter. If so, the continual drain on the country’s natural resources as well as specie supply will be tremendous, aiul this in addition to the annual payment of (10,000,009 taels as interest and part principal due on the Boxer Tudejnnity. The outlook tor China, is therefore uninviting, and the •‘Riilletin" points out that it behoves the commercial and financial classes of th,, country speedily Ub devise ways find means to amv'lioiritt* the situation. On Ulfl other iiidid, the iithrt' UtUi'ilis lire nIM ili (iutjr tjiWliil to iDFists i&V S'ifii

unsatisfactory conditions are sure to react oil the world at large?