The Bears have the best of it, for the time, in the share market. The rumour of anew Bank hada very passing effect.
It took the spring out of " Hongkongs" for the moment; but they very soon recovered, because a new local Bank need not affect the value of the scrip as an investment, one iota, Banks don't run in opposition to each other, and offer to lend money at impossible rates, in order to see whose capital will hotd out longest. This seems to be a luxury reserved for railway and steamer companies. Rather than newcomer shall live, they will die. And when both—old carriers and new—are at their last gasp, is the opportunity for a third man to come in and swamp both. Impossible to demonstrate more practically the advantage of the Foreign system of competition over the Chinese one of combination.
So the reports about opposition on the Yangtze have done more damage, and must have made speculative holders feel rather uncomfortable. Let us see how these rumours ran, A. received a telegram that Holt's were "preparing to oppose the 8. SRI. on the Yangtzse. In a very few days, B. declared that fifteen light draught steamers were building on the Clyde, for the River trade. These were incontinently reduced by C. to one, destined to run between Kobe and Yokohama.
But D. had it on the authority of at least two letters and one eyewitness, that the real -fact was there were six building, really destined for the Yangtze, and that a tug, steamer destined to hurry them through the Canal, was also on the stocks, E., however, was confident there would be no opposition this year. One steamer or s0 might find its way out, and bring down tea from Hankow to the big ocean steamers but what was really designed was thi Holt's had arranged to- absorb the U. S. N., buying up their wharfage and interests at the rate of 50 per cent premium to present shareholders. The S.
8. N., recognising the powerful interests at their back, and that fighting would result in nothing but enormous loss to both, had agreed to admit them to the river, both sides slightly lowering the rates from their present standard. was perfectly certain the S. 8. N. would dono such thing. Was there any opposition coming at all? Well he thought there might be; there was generally some fire wherever there was smoke; but whoever came here must be prepared to lose a million and a half of taels, and when the 8. 8. N. had succeeded in disbursing their reserve fund, probably a compromise would be come to, 'That was the general routine in such cases. G. was perfectly sure of one thing. If Holts do start, they will do it with their eyes wide open,' and will be prepared to put down dollar for dollar and the result will quite as certainly be two companies on the Yangtze, as though there were no fight at all. The only difference will be—two poor companies instead of two rich ones. What a lark it will be for the Chinese shippers; they will get the pull; wont they rush to ship @3a ton, $2 a ton, Slaton; free freight; $1 a ton if you'll come with us. General sensation of exhaustion on both sides; intermediation of friends, mutual agreement to run at $5. Grand result, £100,000 sterling spent in giving cheap freights to the Chinese.
That's about the gist of what people are saying. What they know, is quite another matter, and hasn't transpired, yet, in any very reliable form. All they have seen as yet, is the Hanyang—a very nice little steamer no doubt, and pretty sure always have a good freight; but hardly large enough to make it worth while to oppose her.
opposition did no other harm than reducing the rates of freight, it would not be regrettable. To have to pay half as much for a four day voyage to Hankow, and nearly altogether as much for a four day: voyage to Tientsin, as for a two month voyage to England, is rather stiff.
Wonder whether there is any truth in the rumour that Ichang is going to be opened. If it is, there may be a chance to work off some of the surplus stock of piece goods, But no one seems to have any definite idea of where the rumour comes from—any more than they have of the verity of the "opposition" rumour. Queer how reports originate, from no one knows where.
Talking of Companies, the Hongkew Wharf is a fine property, now that it has amalgamated with "Olyphant's;" but what on earth was the use of changing its name to "Shanghai and Hongkew?" Among objectionable things, a long title is one of the worst; and there are so many institutions called "Shanghai," that another one only tends still further to confuse the list. Every one knew the Wharf as the " Hongkew and not one ship the more will go toit because it has doubled the length of its
Text read from the printed page and cleaned; old type leaves the occasional error.