The second week of th duti was the beginning of the finan ial eri which has been detailed in th It opened with the demand for silver in the shape of Mexican dollars, of which there was no adequate supply—the result of the issue of native bank 1 without sufficient reserves, The native hanks paid oat so far as they could and when the supply of silver gave out closed their "doors, By this time almost all the banks ha ethan load round their neck was getting heavier day by day, while the prospects of their being relieved of their goods through the regular channels of profitable commerce seemed altogether remote.
Given demand for goods, 2 good in the country, and a return of ons in the affairs of the native h though not altogether sat does not prevent the resumption business to a limited extent at least, there should, in normal circumstances, be a return to a much better trade situation, But, the change half of their working had in the shape of bank to be practically valueless in the market TThe indebtedness of these banks regulated by their working capital and not on the actual paid-up which constitute ness. When bank after bank found itself unable to honour its own orders the position was alarming,—Investiga: tions showed that the banks had situation has been s0 oper consi The position to-day a virtu through the land. Although the tary crisis is over and dealers up-cou "try are willing to buy goods and pay forthe in nycee, there is an unparall led *Jinsecurity in the country, which makes transport goods extremely risky, The virtual abandonment of law and order has securities to cover their debts in most The position to-day is that one native merchant does not trust another even in Shanghai, and the outport merchants consider it a folly to part with whatever funds they may have in these insecure times. The Yangtze Valley is practi-ally shut to trade owing to conditions in Nanking, Hankow and Szechuan, in all of which places some sort of military operations are going on. Brigandage has been very langoly in evidence during the past fortnight in the Valley, and it, is no wonder that the buyer and seller are unwilling to take risks. Similar conditions exist both in the South and the North, and as for Newchwang the ancial crisis has brought about such 2 disparity in the exchange as to make It will thus be seen that the entire responsibility for the existence of the abnormal trade conditions rests upon the situation. What is [urgently wanted is peace and government in the country, without which un merce cannot be resumed, The foreign interests in Shanghai and all the treaty ports are being heavily
1 situation, brought about. by 4 speedy improvement in the us is essential if a catastrophe unprecedented to the history. of Chinn trade should not overtake thems cases, but of course, their ability to Generated for 1 (Dartmouth College) on 2014-02-12 23:28 GMT http://hdl.handle.net/2027/mdp.39015084570525 meet their i od great= ly on the lity of their realizing on these securities. On October 18 the day of the loginning of the finan: digitized http://www.hathitrust.org/access_use#pd-us-google cial crisis, the banks altogether owed is, 8,815,000 in chop loans to the As safe as the foreign banks and an amount not exceeding Tls, 2,000,000 in the shape of native orders given to the foreign
Text read from the printed page and cleaned; old type leaves the occasional error.