The following important letter has been handed to us for publication The China Associatic Shanghai, 10th February.
Sim,—A general meeting of the members of the China Association in Shanghai was held on the 23rd of January; and among other subjects for consideration was the probable effect upon foreign trade in the Far Exst of the adoption by India of a gold standard, and the close of the Indian Min to farther rupee coinage. In the result, the newly-elected Committee was deputed to frame a resolution to be forwarded to you, with a short statement of the principal grounds upon which the resolution is boxed. The Committee, realising the urgency of the matter have given te it the ounsideraimited time at their disposal per-have agreed upon the following "That the Local Committee of the Thina Association in Shanghai request the China Aeocintion in London to watch all proposed legislation in connection with gold and pecially measures excl relating to India for the establishment of a of the opinion of the Lncal Committee, must be highly prejudicial to commerce in the Far East,"
In support of this resolution the Local Committee beg to Iny before the Assuciation the reasons on which they rely. and generally all coun-Indin are silver munosilver retaining its value standard for all commodities except thos imported from gold monometallic nations.
=With the opening of Chia tot commerce British subjects acquired which appeal for protection to the Imperial ut equally with the int extra of subjects resident in the Empire, The settlement of British in Treaty Ports an necessitated largo expenditure in buildings, and the establishment pensable adjuncts of trade i Banks, Insurance, Shipping, Duck, Wharf, Warehouse, Land, Building and Industrial Companies' of various kinds, emp! ug vast amount of capital; alt of which la imperiled by the threatened de India, virtually be the outcome of ey legislation for that Empire; legislation which must inevitably injure that portion of British enterprise and commerce, founded and fostered under the treaties of trade and commerce made by Her B Majesty's Government with the nations of the Far East, which dependent. upon silver a" curren Whatever may be the eventual rei that trade, which has years to build up, must be seriously disturbed without compensating advantages; whereas if the ratio of the curreucies in use in India be established by geveral international consent, intend of cing confined to India, trade between China und India will not be 3 the quantity of silver will be always the same, while exchange will be governed by the usual conditions.
TV.—The apprecia Britain has tended aurely and steadily to divert the supply of certain cotton manufactures for Chinese consumption from Great Britain to British India: the variations in exchange between the Inter country and China, both silver using countries, being confined within a known range 'V.—The preceding paragraphs point more especially to the injury which the isolated action referred to will entail upon British interests in China: other results, affecting identical interests in India and China, must fullow.
'VL—An illustration of the growth of Chinese consumption of an article which impo tant and valuable ex-ritish India, the manufacture of which has stimulated the production of eutton, and led to the establishment of industries there in which considerable capital has been invested, is cotton garn, This trade has developed within the last ten years on a silver basis, the currency common to producer and consumer all and if this common currency be diaturbe this important trade will, for reasons shown in paragraph X, be lost to Indix, probably without benefit to Great Britsin, VIL.—The statistics following are taken from the Chinese Imperix! Maritime Customs Returns, the separation of Indian and English imported yarn not being shown prior to 1889, Total Imports, 1882 to 1888 Value. Picwls. Vs.
1882 184.939 4,505,000 1883 228,005 5,212,000 1884 261.457. 5°584,000 1885 387, n20 7,871,000 1886 384,582 7,868 000 1887 592,087.........12.547 000 1888 683,468 6.....,.018,427,000 From Great Britian 1889 50,144 1,077,000 1890 88,349 1,797,000 1891 73,058 1,507,000 From India—1889 628,413 1890 993,145 1891 1,138,083 These statistics show that the import of Indian yarn alone in 1891 exceeded the total import of all cotton yarn in 1882 by 515 per cent. in quantity und 331 per cent.
value, value of the 67,000 tons weight of yarn imported from India into China in 1891, at the low rate ut exchange of 220 rupees per 100 dollars, is 653 lakhs ut rupees; and there are indica ions of further incense yenr by year, Japan 1s also a large consumer of Indian made yarn.
VIUIL—Although the consequence of closing the Indinu Mints and establishment of 4 gold standard may be to raise in Indin the sterling equivalent of " rupee to 1s. 6d., 1s, 94., or 1s. 10}d., the purchasing pow of the rupee within the Indian territory will not be increased: as. bol of native ita quality will be unchanged.
X.—While the rupee will remain asa coin in India with the same purchasing power as before, beyond Indin it will have an artificial value ranging from 20 tu 60 per j cent. to be made good in exchange, effect will be the same as if an export duty of 20 t 50 per cent, were levied un yarn, to be borne by. the producer.
Ezxample,—The Indivn spinner can now sell 10,000 dollars' worth, 22,000 rupees; aul the Chinese consumer is prepared to pay 10,000 dollars, plus charges, bec-use he eannoc manufacture for himself on equal terms. If the exchange value of the rupee be artificially raised to 1s, 6d, and the spinner still receives 22,000 rupees, as before, the Chinese consumer must provide 12,000 dollars, plus charges, to meet ti fall in exchange between China and India, difference of 20 per cent. enable to supply his own wants by home manufac. ture; and if the Indian producer cannot for the difference in exchange thy price of his vara he must forego the ile tu El already a large producer of the cultivation of which can be jorably extended should the demand increase, A gold standard in India. will most probably operate to close the China market to Indian made yarn, by stimuiaring prod of the raw material and establishment of manufacto: Ciina for, the supply of domestic requirements.
XL—The creation of " gold standard for the silver rupee currency is equivalent to the establishment by the Imperial Government of a bimetallic ratio within the
Text read from the printed page and cleaned; old type leaves the occasional error.