Tas annual settlement of accounts among the Chinese lias this year been attended with unusual difficulties, A large-number of native traders Lave either been obliged to compromise matters with their creditors, or suspend payment. In the great tnjority of oases arrangements have been made and the defaulters will either commence the next yenr altogotler free from their debts, or under obligations as to the balance which they Lave been uuable to discharge, In good number of enses, particularly in the ill trade, Unese carryings forward of balances have been forced upon the Chinese bankers; although sach things are quite contrary to old and universal custom. In former times all accounts wore fully discharged before the cluse of. a year, and in theory, at least, the debtor who was unable to satisfy everyone at that time, was expected to withdraw altogether from this world. In a very few instances unfortunate debtors Lave this year committed suicide, In one case the shroff or mnuager of a suspended bank ntoned in this way for the undischarged liabilities of the part ners; but as a rule the trader or banker who found himself in difficalti has preferred compromise Loself-aunibilation. The unusually large number of those who were only able to offer a composition to rheic creditors, or to propose that time should be given them for the discharge of their full liabilities, may have emboldened many to depart from the course which it was once held to be'a point of honour they should adopt. Wo are not regretting that it should huve been so; bu' we may doubt whether this forgetfulness of the shame which insolvency once brought apou the Chinese, though a great deal of it, and all that referred to debts due to foreiguere, was sham, is a good feature, or likely to improve the future trade relationship between them and foreigners, There was another thing which may have mitigated the seve. rity with which creditors have dealt proves that the engagements of their with defoullers at this season, trade here, in the interior, and at the northern ports in China, had been so bad during the last twelve months that commerce and credit among the natives were honeycombed with losses, the result of log continued bad trading. Thus, there was a widespread doubt of the stability of flems in every trade, and the native bankers were compelled to a more than usually lenient course of dealing with their customers, as severity might easily have ins orensed the pressure for accommodation into a panic. Now, although the demand for loans has been constant and large daring the last four or five weeks, there has never been anything like the panies which have burst upon our little market in former times. Exchange advanced from 1 to 1} per cent during the last month, as the foreign banks found Usemselves called on to lend money for which they could obtain 10 to 12 per cent per annum. Lu previous seasons, and under similar circumstances, the rates of exchange have advanced much more seriously; but at these times there was slot only a demand for money on Joan, but a considerable business in exports going on at the sawe time; whereas the purchasing of silk on fors eign account has for some weeks pnst all but stopped.
Now that the busitiess of a bad year Las been closed, the Chinese may be expected to take a hopeful view of the fature, as soon as the festivities of the season are over, It must have beau pprrent to them for some time that this New Your settlement would be ate tended with great and widespread diffi. ties, They were' losing money right and left in their business, and those of them who had resorted to speculative measures bad no reason to congratu. late themselves, A good deal of capital had beau invested in land la Shanghai, the retacus for which were small. Some joint stook companies had obs sorbed farther sums, and none of thede concerns were paying dividends. A large quantity of silk was held by one speculator, who was a heavy borrower from foreign and native banks, and considerable quantities of imports were in second or third bands and advanced upon by bankers. The Chinese bankers knew these things; anda little more than a mouth ago were supposed to Lave fully provided money for this New-Year. Chat they had done so insufficiently All countrymen were more extensive than
Text read from the printed page and cleaned; old type leaves the occasional error.