The fact that a- considerable amount of speculative buying is in evidence in-the piece goods market may be taken as one of the evidences that Chinese merchants are beginning to realize the shortage of goods with which at no distant date they will be faced. Furthermore at the auctions there was again a In connection with this the import situation is of the highest, importance, In the first place imports of Japanese cotton goods are coming down at a very high rate, May imports of Japanese piece goods this year amount only to 35 per cent. of the total imported in May, 1929, while it is equally instructive to note that this year's May figures were actually only half of the total for April.
As regards British imports of piece goods into China March was the lowest month recorded for years, while Britain's cotton goods exports to China for April were only half the amount in March.
'AIL this moans that it will long time before increased supplies tare seen in this market. Already it has been noted that some attempt has been shown to adjust local values to the drop in exchange, but. the point is how far this will be allowed to go before the consumer decides that goods are too expen~ sive. Tt seems reasonable to suppos> that prices will strengthen up to 2 considerable point, in view of the (Continued on Page 4642,
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