Estimates of the importation of to London the floating balances of European central and other Banks silver into India during the past year place the figure' at about which now run into very large Standard ozs. 100 millions, in addi-figures. Sterling in terms of United tion to which the silver sold by the States dollars advanced during the Indian Government, via: 028. 9,200,- year from 4.85 to 4,883 and in 000 was delivered in India, "Allow.
December there arrived in London ing for shipments from Bombay to the first shipment of gold from the China of about ors. 13 millions, we United States since 1920, get the Indian consumption for the The state of China's trade in 1927 year ozs, 106 millions, as against is reflected in the Customs revenue ozs. 113 millions in 1926, Importa-returns which show a fall of 12 per tions into China wore about ors. 98 cent—from 78 to 68} millions of millions, as compared with 82 miltacls—the first serious decline since Yions in' 1926, 1914. This setback is the natural Discount Market result of civil disorders, party war, Labour and agrarian unrest, military 'The discount market in London oppression and the absence of public ruled very steady throughout the security having combined to plac year and, with the exception of a every sort of obstruction in' ithe few weeks in April and May, when way of foreign and domestic com-the quotation for 3 m/s Bills dropmerce, It is a depressing picture ed a little below 4 per cent. the rate which T have to give and T regret was more or less stabilized at that I can perceive little sign as 4.5/16 per cent. The only altera-yet of that clearing of our horizon tion in the Bank of England rate which we are all so anxious to see. was a reduction on April 21, Better Hongkong Outlook to 43 per cent. from the 5 per cent. level at which it had Here in the South, we have stood since the 3rd December 1925. suffered from the depredation Day to day money did not pursue pirates, and a series of political quite the same even cou ye and changes at Canton has also had a while the average rate over the hampering effect on mercantile whole year was a little under 4 per enterprise. In spite of this, the ent. there were frequent variatrade of this Colony has shown a tions in the daily rate be-steady and healthy recovery from thet tween 34 per cent. and 5 por low point reached in the previous cent, owing to the constant changes year, though by no means equal in from a plethora to a stringency in volume with that of three or four the floating supply of credit. yenrs ago. A distinct improvement outstanding highest in The total amount to Treasury Bills has occurred in piece goods, though the trade in now feeling the effect January at £675 million. The figure fof increased manufacturing costs, Yel! to 2568 million in April but at and there has been a noticeable acti-the end of the year had increased to vity in the export of wood oil which, £651 million. With a diminished locked on the Yangtze, is finding supply of mercantile paper Treasury fan exit in the South. Taking all Dills play a very important part into account, Hongkong's record gor the London discount market but it the year is not unsatisfactory and the mercantile bills, representing: there are fair indications that the they do actual trade, which make improvement is likely to continue. Hes the 'London market the clearing In the Yangtze Valley, the anti-house for the finance of internation-British boycott has died' down ex-al trade and it is to be regretted cept at isolated points, but the bene-that financing by means of loans {it of this has been counter-balanced and overdrafts, without any definite by the hindrance to transportation maturity date, is to some extent re-Jarising from war and brigandage, placing the oid-established and ad-and by the crippling effect of de-mirable system of bills being draw preciated currency. To illustrate under banker's credits. the extent of the former of these The control exercised by the Bank evils, I may instance the rise in the of England over the London discount cost of freight between Shanghai market during 1927 is mo doubt and the province of Honan which Justified by the necessity of placing has reached as much as nine times guard against any weak the normal figure, while in regard Bank's gold position in to the latter I need only refer to cially, of the possibility of the embargo on silver and comsury note issue being taken over pulsory use of currency notes the Bank in the near future. It is heavy market discount. probably a temporary expedient and there is, certainly, yood reason to China Exports Good hope so for it is unquestionable that In the North, the situation has retain its premier position as the [been less acture, military interfer-entre for international trade, the ence, though severe, having been London discount market must be 9 within relatively narrower bounds; free one so as to attract an ample but there too merchants have been supply of mercantile bills. Such heavily handicapped by irregular bills ave the true index of trade he-taxation and the disorganization of sides affording the simplest possible transport. instrument for regulating the Business throughout the country: volume of credit. The measures has thus necessarily been of a hand-adopted have met with success, a8 to-mouth nature, but an enenurnginstanced by the upward movement in the London-New York exchange, ing the rapid improvement which everywhere takes place bat it will be a relief when the soon as local conditions become situation permits of the withdrawal in the least tolerable. With the ex-Jof any control and the money ception of silk, which has had market regains its former freedom contend with a very depressed mar-of action. ket, exports have been surprisingly The Cotton Trade good, thanks largely to the dogged Dertinacity of the native merchants It is a matter of grave concern [who have found ways and means of that the Lancashire textile trade is getting cargo down to the treaty suffering s0 severely from the con-Ports in the face of the greatest traction of their China market. The obstacles and have, one is glad to inevitable damage to the trade readd, found remunerative prices sulting from the troubles in China the whole to compensate them for is accentuated by Japanese competi-tthe risk and expense. A good har tion, the st of which show a west in Central China and a steady [steady improvement at Great Bi level of exchange have been helpful tain's expense and by the increasing factors.
Text read from the printed page and cleaned; old type leaves the occasional error.