July 25.
Wee it possible to obtain a comprehensive account of the effects of the present anti-Japanese boycott in China it would be of no inconsiderable value to the foreign communities throughout the country. The boycott started at a time when trade generally was in a very indifferent condition, and it happens that in the intervening weeks certain devel-lopments have taken place in business which have been the subject of close attention as well as speculative thought, but even yet it is quite certain whether the boycott has had anything to do with them. The developments to which we refer have occurred principally in piece goods, and have been demon-stated largely in higher values for British products. This is exactly what merchants have been hoping and working for during the last few years—a higher rate of value to meet the enhanced price of American cotton and the higher producing costs at Home—but it is impossible for anybody to say at this moment whether price movements in China are the result of a legitimate and normal reaction to the prevailing statistical position or whether they are in some manner connected with the boycott. If the latter the improvement will undoubtedly be short-lived. What, of course, is the first thing: to point out in connexion with this subject is that in the realm of piece goods. Japanese products are seldom found in actual competition with those of Manchester, the latter"being of a quality which in the majority of cases cannot be approached by competitors in other countries, although certain sections of the trade in which: a very high degree of technical excellence is not demanded fell into the hands of the Japanese a number of years ago, thanks to cheaper production costs there. It is true that since the inauguration of the boycott firms which still supply these particular cloths from Lancashire have noted a better demand and better prices, but this is a small class in comparison with the whole, and in view of certain facts to be later mentioned it would be unsafe to deduce any general conclusions therefrom.
For the purpose of considering the boycott effects we may take a common quality cloth, that known to the trade under the name of Greys, in which the Japanese article has long since largely succeeded in replacing on this market the once favoured Manchester manufactures. The statistics issued by firms concerned show that for the first six months of the present year the imports from Japan have been larger than for the corresponding period of 1922. Naturally the orders resulting in this importation were given a considerable time before any re-
Text read from the printed page and cleaned; old type leaves the occasional error.