Tus present condition of the Hongkong and Shanghai Bank is an instance of the obstacles at present existing in China, to all enterprise. Its difficulties have mainly arisen through its unlucky connection with an attempt to introduce improved methods of manufacture into China. The scheme of the Sugar Company, in which so much money has been sunk, looked: well at first. China is a Inxge sugar producing country, but, notonously, the system of extracting the sugar from the cane is conducted in a rude and inefficient manner, entailing much waste and reducing the quality. of. the article. With all these draw! Chinese sugar has been gradually. but slowly making its way, in: the world, andis at times, when the market. allows, exported to California and the, Australian colonies. To make use of improved machinery to express the juice, and improved' methods to refine it, was an idea. which has ever presented itself as practicable. The originator, however, reckoned without his host; those most to be benefitted, the Chinese producers, withashortsightédness that we have, however, seen displayed in other countries, set themselves against the scheme; the Chinese associated: in it at the beginning played: false; sind sought from their position the opportu: nity of making private pelf instead: advancing the concern, The original company divided into two; machinery was put up in Hongkong, away from the sugar producing districts, and it was intended that unrefined sugar. should be carried there from Canton, Swatow, Manila or other ports. Finally, everything seemed fair and square, and the coripany established itself at' Saigon, where favourable sugar grounds existed, atid where the Government took a sort of paternal interest in its welfare, Such, as far as we can learn, is a brief sketch of the'sugat industry; for notwithstanding numerous enquiries, we have been unable to solve the mystery of the two sugar companies; their origin and development, and; we fare sorry to have to adi; apparent: collapse, At all events, a' sugar company was finally established at' Saigon); and: from this, good hopes of-a favourable outturn were looked for. Floods, markets}. and one thing or another, have! however year after year proved unpropitious,, and, from what wean learn, the affair has never even paid its expenses. The prospect, the sugar company becoming, a financial success, led to the starting, of other branches of industry in Hongkong. We were to have distilleries, "milli, &c., &0., and to help out these a'piér and godown company was started! to' fill an acknowledged want. The Hongkong: and Shanghai Bank, having' gone in heartily for the first scheme; might' naturally be expected to' back it upiby' affording assistance to its'satellites:. "he idea was a grand one, to make- Hongkong, commercial' centre, with: the local bank: the great director of finance: Unfortunately, the collapse of: the sugan companies destroyed the foundation of. the structure; and the bank, which had, as we, believe, honestly endeavoured, to, change the character. of the trade, of Hongkong, finds itself relegated to a posjtiol scarcely better than that' at' which'it started. Doubtless a lesson ik' to be learned from all this, arid" that is; that industrial reforms in the East' must proceed by slow degrees.' It would' be: a mistake to condemn on principle: the action: of the bank, though in: practice its conduct was undoubtedly reprehensible ina high'degree. Unfortunately, serious an error as has-been committed will not be without its deterrent effects. The memory of the sugar. di asters will long remain a stumbling, block to future industrial movements, and in localities where the true cause of the, collapse is entirely unknown, will be quoted. asa instance of the folly of. taking' an; any farther steps towards improving the
Text read from the printed page and cleaned; old type leaves the occasional error.