In order to be able fully to appreciate the situation in Hankow it must be borne in mind that from the standpoint of the British business man here the ultimate status of the British Concession in Hankow is of relatively minor importance] compared with the question whether in the future it will be possible to trade with any degree of security under the conditions which have been allowed by' the Kuomintang to grow
control. up in the territories under their In Hankow itself haphazard methods of taxation, virtually amounting to a system of capital levies, coupled with the high-handed actions of the Labour organizations had, even prior to the events of the past fortnight, brought things to such a pass that a financial crisis was ready inevitable, and it was well Known that many Chinese _banks, firms and shops were faced with tinction, This condition of affairs has, of course, been greatly accent-nated by the recent suspension of business activities on the part of British banks and firms, and the situation is becoming gradually more acute as the Chinese New Year draws nearer.
The Silver Lining Moreover the present situation is merely the exlminating point of period of depression spread over several years, arising from boycotts, strikes, paralysis of railways and frequent suspension of trade on inland waterways, so that it is searcely surprising that British traders here find it difficult to detect any' kind of silver lining in the dark cloud that obscures the future, The extent of the trade depression recently may be gauged from th thousand Britis and American men veen ordered to Shanghai to protect fact that, notwithstanding that the are being evacuated.
Spanish subjects. activities' of the extremist section Hitherto there has bern mo official of the Kuomintang have been confirmation of this report.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.