Although the date of the introduetion of the new duties was a matter of speculation, traders here had a very shrewd idea they would be enforced on January 1, and based their conclusions on the Government proclamation of. the abolition of likin on that date. Their hopes that the date would be February 1, although not realized, were not a cause of much disappointment as they had bought good quantities of stocks at prices based on the old uty of 10 per cent. ad valorem, When, however, the tariff rates were published and it was seen that artificial silk yarn was on the list at gold units 58 per picul, both foreign and Chinese merchants were Staggered at this enormous imposition, This works out at a fraction over Bid. per Ib, weight, and represents roughly a 60 per cent. duty. The authors of a fixed rate on weight, irrespective of quality, deniers or value, must surely have overlooked the fact that China now Duys yarns of 75 to 300 deniers in what is known as "O" anti "D" grades with necessarily varying values. It is obvious that the duty imposes a restriction on the fourth of "D" grade, which, being cheap and not being easily gold in the Home markets, is exported to China at very low prices and eager-consumed here where cheapness 58 more a consideration than quality.
Ib is difficult to gauge the mental Sty of the officials in arriving at this rate of duty. The supposedly basic casson of all the duties is the protection of China's i shore We have a concrete fof the exact reverse, The imports into Shanghai alone for last year swore in the neighbourhood of the Gnormous quantity of 14,000,000 1b. weight, This is not taking into Consideration the direct importations by Tsingtao and Tien No statistics are available as to the number of persons directly employed in the manufacture from artificial silk yarn of ribbons, braids fand all Artificial and mixture piece-goods. However, at least a rough estimate can be arrived at by calculating what one worker can handle in one day in the weaving shed. Provision must be made for the preparation of the warps, for which this yarn is largely used in the manufacture of cloth, also the Jarge number of persons employed to dye the goods, either in the yarn 'There' must be not less,000 persons employed daily in the actual use of artificial silk yarn. When one confiders the involved family life in China and the dependents of the working adult, any steps to restrict the earning power of these wor inexplicable, No consideration thas been allowed in this number of workers for the persons employed {in the original handling of the yarn, the transport of the manufactured goods and the salesmen employed to market the finished product.
In the "North-China Daily News" market report on December 6, it was stated that the real silk dealers were demanding a high duty artificial silk to protect thei industry. It would appear they have been successful, but it is felt that the real facts of the situation have not been presented to the Nanking Government and only one side has been heard or considered. It is most difficult to say to what extent artificial silk hurts China's oldest industry, and even admitting that it'does, if the country has not been Donefited by the creation of a new industry which under reasonable conditions could be further developed to enormous proportions.
The feeling of the dealers and the manufacturing interests is that the duty, although admitted onerous, can be paid without undoly endangering the future of the trade, but current rumours as to the in position of new taxes are very disturbing and affecting the market. It is definitely stated'to name one place of manufacture, Hangchow, that a tax will be imposed of $25 a case on and after January 18. Farther, it is believed that a Consumption Tax of 45 pet cent. will be charged on the manufactured article. The industry cannot possibly pay an import duty of say 50 per cent. and the Consumption Tax. This is so obvious that it 1s dificult to believe the Nanking Government will impose new levies jon an industry which demands protection and not annihilation, A very important aspect of the trade has not been considered.
China with its cheap labour and mechanical genius has developed an export trade of no small dimension to the East Indies, Manila and even India, The original duty of ten per cent. did not materially affect the cost of the manufactured article, Jand China could compete with other producing countries and particularly made inroads to Japan's expanding. export business. Japan, with a high duty. on imported yarn to protect liber own growing industry, has the: nity of crediting the manufacturer of the woven article with the full duty paid if the yarn used has been imported. No such relief is apparently contemplated by the Nanking Government and the Chinese weaver is handicapped by an excess sive, duty, a probable Consumption Tax, to say nothing of new taxes which are already designated under the specious description of Business Provincial Tax, ete, by the imagination dealer. It is dificult to reconcile the attitude of the Government with its expressed desire to promote home industry when the now duties on manufactured articles made in foreign countries are less than the duty on the raw material for making the same goods in China.
Text read from the printed page and cleaned; old type leaves the occasional error.