The strike and boycotts which continued in many parts of the country for prolonged periods have probably done far greater proportionate damage to British trade than to that of any other country, and other countries, notably Germany' and America, have benefited thereby. Apart from this aspect of the question, Japan has continued to increase her trade and exploitation of China.
There are two other important changes. First Germany has done a great deal to recapture her pre-war trade. Secondly, Russia has become very active.—Mongolia is almost entirely under Russian influence and Russian laws, while an economic invasion of Northern Manchuria has boon started with considerable success. The increased interest of Russia in the Chinese Eastern Railway is but one indication of these activities. In some circles it is thought that the situation existent before the Russo-Japanese War is gradually being reproduced. There are others. who think an alliance for the exploitation of China may be formed between Russia and Japan. Either of these alternatives must be looked forward to with the utmost apprehension, Exchange and Currency The gold price of silver has remained steady throughout the year. The sterling tael rate has also remained fairly steady; steadier than was probably anti cipated generally. There is a great deal of loose thinking in connexion with the sterling equivalent of the tael. It is governed by three principal considerations, rst, the gold price of silver (which depends upon the supply and demand in London); secondly, on the variation of sterling from gold' parity; thirdly, upon the local supply and demand in the silver arker. The rates of exchange for 1925 low clearly the effects of the fluctuations in the second of these, which is the most frequently overlooked.
Occasionally it is remarked that "the present rate of the tael is above normal," by which is meant that it is above the rate that prevailed for some time before the outbreak of war in 1914. There is absolutely no reason, however, to consider this as a more normal rate than the present one, and there is no particular reason to anticipate a fall in the value of the tael to that level at any future time. One of the chief influences on the silver exchange is the Indian demand. At the present time a commission is inquiring into the currency of India, and it is quite possible that its findings will have a profound influence upon the demand for silver, and also upon future recommendations for the reorganization of Chinese currency.
During the carly part of the year Japanese were anxious as to the future of the yen, and banks were anxious to convert their holdings into taels and other currencies. The yen is nominally on the gold exchange standard, and has fluctuated freely.
An important point in Chinese currency has been the continued fall in the value of copper coins. This has been much more important than the further debasement
Text read from the printed page and cleaned; old type leaves the occasional error.