Under exports, nankeen, or "patriotic cloth," as it is sometimes called, shows an advance of 9,000 piculs. The prevailing high price for foreign piece goods has been the main cause of the much-improved prospects of this trade.
On the withdrawal of the Yunnanese troops from the North River districts in April, the special war tax imposed by them on wol-from was abolished and the ore came down freely again; although prices fell to about $20 per picul, dealers were still able to make a small profit. Exports accordingly increased by 31,000 piculs, mostly for the American market, on which the demand for steel rails, ete., is far greater than the output.
The next item of importance in the trade of Canton is cassia lignea, under which heading there is a regrettable decrease of 55,000 piculs. Production was abundant, but the export market was almost lifeless, so that dealers have suffered considerably through over-ports have increased about 38,000 piculs.
The export of hides fell some 5,000 piculs, but this is no doubt explained by the increase of 15,000 piculs under leather. An increase of 45,000 rolls under matting is very appreciable, considering the very unsettled conditions prevailing in Kuangtung. At the close of 19t9 prices had reached a very high basis, due to the heavy demand from both the United States and Europe, so that considerable quantities had been contracted for. The American demand held firm until the end of May, when the new straw was coming in. A slackening of the market then became apparent, and, during Sept-curber, owing to vil war, tie mat: ting districts were cut off. When the market reopened, about six weeks later, there was little or no demand. A falling exchange may improve matters, but the general economic depression abroad makes any extensive demand unlikely.
Silk being Canton's staple export, it is unfortunate to have to record an unsatisfactory year. Exports fell by 13,170 piculs, accounting for all the decrease in export revenue.
Other articles of export that show a satisfactory advance are Canton silverware, 11,000 catties;. brown sugar, 45,000 piculs and black tea, 2,000 piculs. Prepared leaf tobacco and tobacco stalk show a total decrease of 33,000 piculs.
Treasurs AND BaNnxiNnG, The steady fall in foreign—exchange and heavy importations of bar silver are the outstanding features affecting the local money market. A perusal of the treasure table shows that imports exceeded exports, in the aggregate, by Hk. Tls. 35,128,282. Closer investigation further shows that the net import of gold coins was Hk. Tls. 4,279,908, and of bar silver Hk. Tls. 36,968,374. This resulted in a surplus of small coinage from the army after mintage, so that the export of silver coin exceeded the import by Hk. Tls. 6,395,661, which accounts also for the Hongkong bank-note rising from 95 per cent. in January to as high as 116 per cent. by the end of December.
Over 10 new Chinese banks were opened during the first of the year, but mostly of so speculative a character that eight at least had closed again before the autumn was over.
The conclusion of the Great War was a hard blow to mining enterprise in Kuangtung province. A few mines have therefore closed down, and antimony ore, which gave 3,500 piculs in 1918, has fallen to 683 piculs only for 1920. The production of native coal also shows a marked shrinkage. The moderate cost of Japan coal and transport difficulties in the interior causing disproportionate expenditure, together with an advance of 100 per cent. in the importationsof Kaiping coal, are the reasons assigned.
Canton has now five large factor-
Text read from the printed page and cleaned; old type leaves the occasional error.