To the Editor of the Siz,—Mercator" in your issue of 18th (N.-G. Herald) says that your Qorrespondent at Newchwang attributes the present stagnation of trade to want of confidence in southern houses. On looking at your Correspondent's letter of Sth May, (issue of Auth May N.-C. Herald) T notice the concluding lines are:—' Arrivals of shipping fall short of last season, and business generally is not very brisk, owing partly to the want of confidence in consequence of failures in the south." I think the word underlined should hare been taken into consideration by Mercator " before giving his opinion that your Correspondent is not quite correct in stating what he does not state. The reasons assigned by ' Morcafor" may or may not affect the trade. they do, please include them in partly"—but that they are not the main, or as "Mercator" almost assumes the only, cause of decline in trade is proved by the fact that, as confidence in southern houses returned, business: got better, No doubl the circulation per annum of the payment for 21,000 soldiers say about one million taels is of importance; but I hardly think it matters much whether General Sung who still resides with his family in the native quarters about two miles from the British Settlement gets it direct or through the bankers at Newchwang. Ibis bound to be spent wherever the necessary purchases are made for maintaining the 21,000 soldiers, wherever these may be located. This immediate nighbour-4,000 to 5,000 of them, the sycee for hood has been troubled with {vappily) only whose payment has up to the present moment come through this port, as far as Lean learn. If they could all be induced to follow the General and remain with him in his headquarters at Port Arthur, the merchants and inhabitants of this District would not for a moment begrudge the traders at Lu-song-kou such profits as may be derived from supplying the wants of the braves. In fact, we shall be glad to return to the "old times" when we were not infested by such gentry, and when the prosperity of the port, a8 far as foreigners are concerned, was enough to make one's mouth water at the very re-Still, if there be anything to our advantage we do not yet understand, we shall be very glad if Mercator" will kindly point it out tous, that we may avert the serious consequences alluded to by him.
Yours, Newchwang, 25th May.
Text read from the printed page and cleaned; old type leaves the occasional error.