Raw cotton is the principal export from Honan, the greater part coming from Shensi and the country to the west of Chengchow, where it is press-packed for export, very largely, to Shanghai vid. the LungHai Railway and Haichow. At the time of writing, this buslness is almost at a standstill because the amount of taxation payable en route makes it almost. possible for Honan cotton to compete with the same product grown in other parts of the country.
Chengchow possesses a cotton mill, producing yarn, chiefly for export to Shensi and' Kansu, Incidentally, the mill at one time produced cloth as well but as this was taken over by the military and, of course, never paid for, it was decided to concentrate on yarn. Recently, the officials at Kaifeng, in their never-ending search for further ways and means of raising more and more money, notified the mill at Chengchow that they would henceforth have to pay a tax of 24 per cent. on all yarn leaving thei Premises, the tax being levied on sales value. Discussions between the mill and the provincial officials are now proceeding at Kaifeng; the Position apparently is that paying the tax entails the mill selling at 'a loss, if they are to compete with yarn from elsewhere, or else closing Gown. The latter alternative means ultimate bankruptey because, owing to the strength of the local Labour Union, the 5,000 hands employed by the mill_will have to be paid whether it Ro working or not.
Text read from the printed page and cleaned; old type leaves the occasional error.