Throughout the uncertain period anything in'fHe nature of a fame tal panic was prevented chiefly by -the large reserves of silver kept. in Shanghai. These were far greater than in previous years, and in September were estimated to be Shanghai Tls. 30,000,000 more than in 1925. A new factor arose, how. fever, albeit one not altogether unforeseen, to add still forther to the difficulties of trade. The sliver exchange had tended to weaken since the beginning of July. In Septem. ber, rates fell rapidly, and the lowest price of silver was reached oni October 19, after a drop of 44. in less than five weeks The foreign creas-rates followed the price of silver, little improvement being] remainder of the year.
sudden fall in exchange would have proved as advantageous to the export market as it was disastrous to importers had it not been for the great difiedty experienced in obtain-fug supplies. Only a few industries, notably silk spinning, were! able to benefit from the increased prices that the low exchange would allow them to command.
At the close of the year, prospects seemed worse than at any time during the period under review, but] it is hoped that peace and prosper. ity will succeed disappointment and gloom.—Up-country" markets are] Known to hold very small stocks, and, granted that normal conditions return, they will absorb what Shan; hai has to offer.
Text read from the printed page and cleaned; old type leaves the occasional error.