The centre of the Shansi fur trade is in the town of Chiaochéng. A recent visit to that place gave the opportunity to study the market and find out the condition of the trade. Foreign trade has entirely altered the conditions of the native market, and practically controls prices. A trade that languished years ago is in a most flourishing condition to-day. As one dealer put it the tail of a fox fetches the price to-day of a whole skin not long since. Local merchants and factors have been saved from ruin and poverty by the increase of trade and enhanced prices. Eight foreign firms from Tientsin are represented here by their Chinese agents. British, American, German, Russian, French, and 3 have an interest in the trade. The fluctuation in the price of silver auects the trade. Prices of furs have doubled within the last. few that the fall in silver has not been altogether a loss to China. The shepherd gets more for his skins, the factor has* larger profits, and there is much greater volume of trade. The owners of Houses in Chiaochéng command a far higher rent than formerly, and every other trade receives a stimulus. The price of food on the other hand has been. stationary, except when affected by scarcity through drought, so that generally speaking the redation in silver has increased the prosperity. of the place, by greatly increasing prices of furs.' The purchasing power of the tael is steady, the into cash not having fallen very much the' last five With the introduction of the dollar into the province silver in relation to copper has become a little firmer. This appreciation of snyer will tend to increase with the increased circulation of the dollar. Undoubtedly consumers locally have to pay more for'all leather goods and furs. And seeing that there is no appreciable increase in wages, consumers feel the hardship occasioned by the demand of the foreign trade. One feels considerable sympathy with the poorer people, euch as carters and artisans, whose duties make it necessary for them to be warmly clad. The pinch is felt all round, for even the poor coolie who wants to mend his shoes must pay the cobbler double the price for the patch of, leather. Of course when the full force and benefit: of increased trade and exchange of commodities has become general, ce that: wages are increased all found, the poor will then be free from the present inequality. At present they can't possibly indulge in goods that would compensate them for loss in other respects. i Trade is Barter.
Another point to be mentioned in connection with the increased volume in the fur trade and which applies to all other commodities is the important fact that goods pay for goods. Most of the silver used to pay the cost of furs is not sent up from Tientsin, but the accounts are settled by barter at another trading centre, Chihsien. This is an important item, and must mean the margin of profits to most, firms. guarantee of 6 per cent interest on a now loan to be floated by the Company to the extent of Y10,000,000. The alt for the purpose will be submitted t the Diet" next session and should the plan reconimend itself 10 the Legislature, the Japanese trank railway in the neighbour: ing peninsula will be finished duri-g 1906.
Text read from the printed page and cleaned; old type leaves the occasional error.