Unpovsrepty the introduction of Bonded Warehouses here would be a benefit to the foreign trade of the port, because, for one thing, it would enable merchants to carry on their business with less capital than at present. It would there fore tend to increase commerce by setting free money which is from time to time, or it may be almost alw used in the payment of customs' duties; and the trade of the place might possibly be increased to some extent by people shipping "on trial" when it was no longer necessary to pay duty on the goods on arrival. Opinions may differ as to the extent of the increase of trade likely to follow the establishment of Bonded Warehouses, but it is universally conceded that there would be some extension of it. Besides, the permission to boud imports until they are required for coustmption or re-export is in conformity with the spirit of modern trade, and we welcome the advance towards the practice of other nations which the Chinese after years of consideration now appear to be about to make. But unfortunately we learn that, the T'sung-li Yamen intends to do what it can to create a monopoly of the Bonded Warehouses in the hands of the China Merchants' Steam Navigation Company. Phis is not only a retrograde step but one which will inflict greater injury on our general trade than will be compensated by the benefits we are likely to receive from the establishment of Bonded Warehouses, The community of traders and others here are the proprietors of the different public wharves in the port; a considerable amount of capital has been invested in these, and if they are placed at a great disadvantage by a monopoly being granted to the China Merchants' Steam Navigation Ca, a serious injury will be inflicted on the shareholders. We are not questioning the right of the Chinese Govern ment to establish Bonded Warehouses in their own country and in the way in which other governments do so, but there are local conditions in Shanghai which do not exist elsewhere, and which should receive from the Chinese Government special cousideration. Shanghai has been built up exclusively by European and American enterprise and capital, and its Wharf property, in which persons of all nationa-jities are shareholders, is a result of {ual adaptation to the growing wants place. The What Companies are largely owned by the merchants who carry on the foreign trade of the port, and may with propriety be said to form a part of their business. But besides the Wharf Companies many firms possess godowns in which they store their goods, and this kind of property will be seriously injured by the creation of a monopoly of Bonded Warehouses in the hands of any one company. But another inconvenience, which means loss, will be inflicted on merchants if the intentions of the 'I'sung-li Yamen are carried out. The wharves of the China Merchants' Ca. capable of being utilised as Bouded Warehouses are totally inadequate to the wants of the trade. Vessels which were obliged to go elsewhere would be ataserious disadvantage. The number of vessels using other wharves would always be as few as possible, and thus a most serious diminution of their value would be brought about. More people than the shareholders are therefore deeply interested in preventing this state of offal 'There is a conviction in quarters that are usually remarkably well informed, that the Chinese Government have been' prompted to give this monopoly to the China Merchants' Ca. by the hope being held out to it that the value of the other Wharf Companies will be so seriously depressed that it will easily and soon acquire them. If this were done, the charges on wharfage and storage rates might be greatly raised, and the monopolists might discriminate between one line of steamers and another.
If the wharves of the China i Merchants' Company which it is proposed to bond become the sole accommodation of their kind here, that Company could by discriminating between the companies and steamers with which they were on friendly or unfriendly terms do a great deal of mischief to trade.
The Wharves at which it is proposed to make Bonded Warehouses are the Kin-Joe-yuen and the Lower Wharves. The latter hasbeen leased since the beginning of last year to a German firm, but it is understood that they are willing to retire temporarily from the lease. The effect of this arrangement will be that all the Bonded Warehouses in Shanghai being in native hands it will not be competent to any foreigners to press for the privilege being extended to their Warehouses, as they would be able todo if the Lower Wharf were worked by a foreign firm. It is understood that Herr von Brandt is highly favourable to the proposed arrangement, seeing in it the fulfilment of a scrap of his abortive Trade Convention. But to us, and we think to every non-diplomatic mind, it seems that the proposed monopoly' is opposed to the spirit of Herr von Brandt's Convention. In that document the formation of Bonded Warehouses was provided for, but not such Bonded Warehouses as those worked by the China Merchants' Company will be. What Herr von Brandt arranged for and what the Tsung-li Yamen considered when his Convention was made, and wheat the Regulations under which the Bonded Warehouses were to be carried on were considered some few years afterwards, were Bonded Warehouses which would comprise the properties of Messrs. But= ter field and Swire, the Associated probably the Pootng Wharf it was then in existence—and the Merchants' Company. A comprehensive measure of this kind represented what Herr von Brandt negotiated for, but this new monopoly, being opposed to the original intentions of his Convention, should meet with his disapproval. Tt seems to us that the Foreign Ministers at Peking should use all their influence with the 'I'sung-li Yamen to get them to abandon this scheme. At resent we understand that nothing has been definitively fixed; the 'I'sung-li Yamen is favourable to the monopoly, and the China Merchants' Company being exultant over the probable success of their schemes, have prepared their godowns to be bonded by the Customs, If the monopoly is granted, China will gain no advantage, and some foreigners may be injured, a matter about which the officials of Peking are no doubt profoundly indi But in snuction= ing it the sung-li Yamen will act in opposition to the advice of their best ailvisers, who know thoroughly the circumstances of this port, and) who know also the injury which the adoption of this scheme will do to the best: Chinese interests.
Minist generally, under proper restrictions, or to leave matters as they are.
Text read from the printed page and cleaned; old type leaves the occasional error.