The Attempted Boycott Overcome, but No Resumption of Auction:
New Features and Influences in the Business B wise the piece goods trade ranks reason of tradition and other-
as perhaps the most important of all between Great Britain and China, The factories of Lancashire produce those wonderful fabrics sold under the title of Venetians, Italians and other cloths woven chiefly from fine Egyptian cloths which are so popular articles of Chinese clothing. In addition the grey and white cloths from Lancashire have a marketable medium all of their own, but to-day only the customers in China who wish to buy the finest and most expensive varieties of these cloths look to England, for the mills in Asia now produce varieties of such cloths which meet the common demand, and moreover at prices which do not admit of competition from the mills at Home. In considering the year 1925 we have accordingly to take into account the increasing competition of this cheap cloth in the first place and thereafter it is seen that other important materials come in strongly under the category of piece goods. One of these which calls for a very considerable mention is artificial silk, while as was pointed out in the "North-China Daily News" some three years ago, the popularity of woollen cloths is steadily on the increase, Three Important Influences Before, however, proceeding to deal with such matters as these, it is necessary to refer to the three most important influences under which the piece goods market carried on its work throughout the year. One was, of course, the strike cum boycott, and a second the assembling of the Customs Tariff Commission. The strike meant that from the beginning of June the usual piece goods auctions could not be held, and in spite of attempts to resume them, not only on the part of foreign merchants but of Chinese dealers as well, it was finally decided not to essay their renewal until the beginning of 1926. While this is probably the only place in the world in which piece goods other than damaged or bankruptey cargo are auctioned, it has become an institution here and the free market which these auctions afford has the effect of fixing a standard of values for the rest of the trade. Owing to the efforts towards an effective boycott in the interior it was impossible to obtain an early resumption of the auctions, and when later on there was such a possibility it was found desirable to put them back until just prior to China New Year for fear that the market would find itself in the hands of speculators.
The third matter of outstanding importance was the price of cotton. From the time when it was seen that a considerable American crop would be harvested the market was bound to weaken, and the result was that in the latter half of the year local prices were generally on a lower level than previously.
To return to the Customs Conference in Peking. The fact that China is now able to export quantities of grey shirtings and sheetings in addition to T-cloths has had an important influence on the minds of the Chinese delegates, and hence there have been suggestions for a greater or less protective duty against the import of all foreign piece goods. It is perfectly easy to understand the protection of the Home article ayainst competitive goods such as are manufactured in Japan, but so far as high-grade goods shipped from Manchester are concerned, and which are not produced elsewhere, it is obvious that this is simply a tax on the consumer for while the Home market also stood at a high level. From the point of view of the indentor the position was not especially Promising, as on balance Manchester was about 5 per cent. over the market in China. Business, however, continued on this footing, and profits were made possible by securing favourable rates of exchange. It was realized, however, that nothing more than an armed truce obtained in the eountry, and the utmost uncertainty prevailed as to what would happen in the second half of the year. Accordingly the Chinese dealers did little more than continue to meet immediate requirements.
Italians were almost the only auction goods which showed wide fluctuations in these early months. Just before China New Year they reached their peak, and then for weeks on end a heavy drop was seen. The market for these goods was largely in the hands of speculators who forced the fall until March to allow them to come in again as buyers for the trade in the late summer. In the month mentioned there was some improvement, but 'a3 now the influence of a large American cotton crop began to be felt the normal tendency towards a rise was checked. The tendency for all classes of goods would certainly have been in a downward direction had not the whole market been disrupted by the outbreak of May 30, and the subsequent events, The Attempted Boycott For a fortnight or so after May 30, all business was at a standstill, and by declaring a boycott of British and Japanese goods the students brought the auctions automatically to a close. It is one thing, however, for an organization of student-politicians to declare a boycott, and another thing to enforce it when a community demands a particular class of goods and is determined to have it. For this reason the boycott was only partially effective.
It is true that goods could not be shipped in bulk from Shanghai, but the Chinese dealers conceived the idea of evading the inquisition of the boycotters by the use of the Post Office, and the result was that cases were broken up in Shanghai and pieces of cloth despatched to their destination by parcel post. This was, of course,' expensive and a method suited only an emergency, and - the moment the situation became easier the shipment of cases of goods to the interior was resumed. The student body apparently realized the necessity of making concessions to popular feeling, and permits were issued for the shipment of these goods, although on payment of a fee, But for the strike there is no doubt that prices would have fluctuated considerably during the ensuing months, but by reason of the cutting off of supplies as well as the uncertainty of the political situation local values hardened. While it was inadvisable to resume the auctions, the classes of goods usually disposed of at these sales were disposed of privately, and for some time a brisk business was carried on.
Text read from the printed page and cleaned; old type leaves the occasional error.