The Exchange Factor: $2,650 for a Passage to London via Suez and Return: An Impossible Situation The question of Home leave is now seriously occupying the minds of many residents in China as this year—1930—completes. the second five year period since the War. Those who came ack in 1919, went on leave in accordance the usual practice five years later i.e. 1924 and returned to their business in the Far East in early 1925, accordingly again becoming due for leave thi is spring.
Therefore, bookings with the various shipping li are heavier than usual, It is extremely unfortunate that exchange has taken such a drastic turn during the past week or 80, passages to England and America have to be paid for here in sterling trid gold dollars respectively. The continental shipping companies also. require fares to be paid in sterling.
'Accordingly it is doubtful whether any potential passengers who have definitely booked or those who have booked provisional passages' and deposited the percentage called for, have settled exchange for the balance due on their tickets. On the contrary it likely that many have been waiting for-a more favourable rate, Take for example the case of a man employed. in Shanghai at salary in keeping with his po He is, perhaps, due for Home leave this spring. We assume that has a wife and two children. firm, possibly has under firat class passages for himself and but not for the children. One child is 13 years of age and the ether" nine" years. The parent, therefore, has to find one full fare and one' half fare—both retarn— for his children. This, by a firs class passenger line will amount about £280. Caleulate this with the tael at an even 2/-—it is actually lower—and we got the staggering sum of Tls. 2,800 or approximately $3,900. How many salaried men in Shanghai to-day can produce $4,000. cash for chi dren's fares to enable the family to take a well earned holiday after serving five years in China? Not a great many, the writer this To goa utile furth the position of a man in' business for his own account—also with a and two children of the same ages as quoted above. If he wants to take a trip Home with his fami and return, and. desires to travel first class, thus to enjoy the com forts. to' which "he has been tion. Clearly, employers, with trade as it is, cannot be expected to do much more than they are doing.
1913, ge first class fare P.
was abort £80, To the best of the writer's krowiedge it remained at that figure or thereabouts for some years. Then exchange jumped to the phenomenal rate of something near two taels tothe £. Some time before the tael reached thi figure, the shipping companies announced that fares would be increased in some cases up to as mach £150—doubtless on -account of rate of ex-
Now that exchange has dropped, possibly the companies will consid the position of the merchant and other salaried employees in the Far and reduce fares to a level which potential passengers car: reasonably be expected to pay. Sterling fares at Home might be left as they now are but it is suggested that the companies might, even as a temporary measure, fix a passage rate in local currency. This latter might involve all sorts, book-keeping tangles and if such is the case then a reduced sterling rate might be set. The companies would certainly earn the farther li of the "man away from as it is there inthe purchase of foodstuffs wi are in these waters and that factor certainly should be taken into account when assessing fares. the, various shipping' companies during the past few days, it was found that bookings are very heavy in all instances. Most companies are substantially booked up for May/June and even to July in some cases. faceustomed in his own home, he has to produce a little matter of £661.10.0 which at 2/- is Tls. 6,615 or approximately $9,100 for the passages; to say nothing about ex-enses en route and while at Home.
wonder that men who have had leave granted are asking that their holiday period may be. post-
In the above calculations, P. & 0. fares (first class) have been taken, There is very little difference between these and those of the other companies who cater on a large scale for passengers, The question is what is going to be done about this impossible situa-
Text read from the printed page and cleaned; old type leaves the occasional error.