suk Tu reviewing the course of this market during the past year, we have to notice violent and irregular fluctustions in prices, the opening and closing rates being nearly identical, while in the interim we have seen a gradual rise of about 5 per cent, then a sudden fall of 20 per cent, and again an almost sudden recovery. This year also the opening of daily telegraphic communication with. London has introduced, or at least made general, the entirel new custom of selling early Season's Silk "to arrive." The facility of doing this, and of quickly closing and as quickly repeating transactions, lias increased the already severe competition here, and has also had the effect of hurrying forward the greater part of the season's supplies in the first two or three months, and of so strengthening the bands of Chinese holders during the remainder of the season that prices have since ruled even more considerably over London rates than in previous years, On the other hand, whi rapidity of communication has dimi ed the chance of large profits, it has also lessened the risk of heavy losses, and tended to reduce the trade to a system of regular shipments for fall or partial commissions.
The year opened with a quiet but very firm market here. Prices of all classes ranged about 5 per cent over the latest advices from London, although there then appeared no immediate prospect of an end to the war between Germany and France; and even with peace it was generally believed that the latter country would be so crippled in her consumption and embarrassed by financial disorganization that no permanent recovery could be looked for. On the other hand, the apprehension of farther complications between Englund and Russia had been averted by the appointment of a Congress. The position of native holders was very strong, 85 per cent of their crop having been sent forward in seven months, while the low exchange raling caused a steady demand for produce as returns for imports.
In January, settlements were 2,200 3 bales, costing Tls. 590 a 600 for best chop' No. 3 Tsatlee, and Tls. 510 a 515 for Red Peacocks. Arrivals were almost nil, and stock was reduced from came evident that the export for the Season would be barely 35,000 bales, The month closed with a firm market, the Chinese generally holding their remaining stock for higher prices.
Tu Febraary, settlements were 1,400 bales, and stock was farther reduced to 1,500 bales. Prices for Chop Silk remained unchanged, while on Red Peacock and lower Tsatlees there was further advance of about Tls. 10 a 15, caused by a slightly better market in London, consequent on the capitalation of Paris, and the hope that peace must soon follow.
Early in March, we had a en-wiry, and prices were forced up Tls. 0 farther, Peacocks touching Tls. 540, and best chop 3rd Tls. 605; but this excitement was followed by a reno tion, when it was found that the proclamation of peace in Europe had no good effect on the Silk markets, and during the last half of the month business was almost entirely suspended. Settlements this month were 1,000 bales, and total since Ist June 32,300 bales. Stock was 1,000 bales, und prices 10 per cent over the nominal rates rating in London.
April was virtually the closing month bal ising the total to 38,500 bales, of the Season, settlements being 1,200
while hardly any Silk remained in stock. Prices showed a decline of about Tls. 30, but were very irregular, and there was, as is usual. w! the last and least de ble pal left, much pressure to sell.
In the beginning of May, 100 bales more were settled, and Season 1870-71 closed with an export of 33,609 bales, the smallest since 1866-67. The results on the whole had been disastrous to shippers, upwards of two-thirds of the Silk having lost on the average £10 a 15 per bale, while the remaining one-third, shipped soon after the outbreak of the European war, had paid perhaps £5 bale.
It was little wonder that, after such an experience, buyers showed unusual caution in entering on operations for the New Season, which opened om the Ist of June. The crop was expected to be larger than any since 1862-63, consumption in Furope seemed to have received a severe check, stocks there of Japan, Canton and European Silk were ye y, and all these classes had declined greatly in price. It seemed inevitable that Chinas, notwithstanding the unusual degree of favour shown to them of late years by manufacturers, must either follow or be driven out of the market. Accordingly, opening prices in Shanghai were lower than have been known for several
Text read from the printed page and cleaned; old type leaves the occasional error.