A stock exchange with a capital of $10,000,000 is to be established at. Canton shortly, it is reported, and according to the "Canton Times"? it is expected to prove a great boon to the business community. On top. of this comes the news contained in the Chinese press that another exchange capitalized at $1,000,000 is. to be started in Shanghai, and that it will conduct its operations at night. If correct, these two pieces of information are of considerable: importance to the business community, for there are already very divergent opinions current as to the: advantages accruing from.the present exchanges. In ordinary circumstances an exchange, when ther for stocks or produce, is of value in business or trade. A certain amount of speculation always proceeds, and so long as. this is kept within reasonable limits, it provides a free market for shares or commodities, and enables the public as well as dealers to arrive at_a fair idea of market prices. When, however, speculation gives place to gambling the case is very different, and then not only is legitimate commerce hampered' but very often artificial prices are created which may bring disaster in their train. On more than one occasion has this been subject for complaint in Shanghai among business men, and the feeling is that there is a tendency for more excessive gambling on these exchanges than is to be found in other parts of the world. If these views are correct, the exchanges are not fulfilling the useful function for which they were devised, and unless. such tendencies are curbed they will certainly not prove a public: boon.
Text read from the printed page and cleaned; old type leaves the occasional error.