To the Editor of the "Norru-CiitNa Dairy News."
Sik,—The suggestion put forward by "A Chinese Dealer" (2) in his letter of January 20, with regard to a register of names, ete. is no new thing. Proposals on these lines were made and dealt with fully' by the piece goods sub-committee of the Britis Chamber of Commerce, early in 1924; as part of their scheme connected with the "Standard Contract." They had to be abandoned fon azeount of luck of support from the Chinese Piece Goods Guild, and the absence "f ea-operation amongst Foreign importing, firms.
'A register was actually compiled, iving the names of the partners in the hong, and the home address dresses of the men. but details of the capital and liabilities of each partner of each firm, which, 1 be-se, were promised' ae one ti were never forthcoming, If "A Chinese Deuler will be good Jaz well if not better be carried on without capital?
Your correspondent "Salesman for over 30 years" hits the nail on its head by stating that too many foreign firms, in their anxiety to obtain orders, are not as particular az they should be in satisfying themselves of their clients' standing. If this hint were followed and if the importers concerned were to draw the logical conclusions from the lessons taught by overtrading the re-sultan restriction of trade could rot fail to have a most beneficial effect on the market, What can be accomplished by organized restriction is just at this very time being demonstrated to the whole worlll by the wonderful results of rubbervestristion, Is there any valid renson why revtrietion of piecegocds Dusiness in China should be less successful?
The question then is, how could restriction be achieved? The proposals 20 far advanced the press strike me as clumsy, difficalt or ineffective. There is a much simpler ough to take the matter up again cue the ate UP ET an enter way: et all importers of and use his influence to persuade the piece-goods sign a bond binding Guild to furnish this financial into themselves not to book any orders motion, he will earn the gratitude of unless a marginal security of say many of the importing firms.
10 per cent. be deposited by the in 'The next atep—also by no' me IE he cannot or will not do new suggestion—would be the it this should be reason enough to keeping of a record of the approxi-refuse the business. This would at mate commitments of the dealers, 30 once cheek the evil of overtrading, that an importing firm may be in a, put the foreign importer on safe position to ascertain, at any given' ground and protest the indentor. time, what, business' a man has! against illegitimate competition from already undertaken, parties who have everything to gai The original proposal was that!
Dut nothing to lose under the pre-the British Chamber of Commerce sent system. If the importers can should undertake to compile these agree on this principle it will not gatistics from information to be be difficult for them through the furnished by importing merchants existing channels to enlist the coto the Chamber, giving, operation of the Banks who should 1, The name and registered number iso undertake not to open any of the dealer and of the firm. credits for piece-goods unless a 2 The amount of the contract in posit of say 10 per cent. be put up sterling, or other currency by the applicant.
The date of delivery.
Thave made this very same.pro-No details other than the above! posal during the plecexoods crisis would be given f'1906,7 when it was turned down "Ohjections have been raised to s/s chiefly on the ticular national Chamber hand: big Chinese hones: ling: the matter, as there are so many would recent the idea of seeing their different nationalities interested, Jeredit questioned while, as a mat-Could arrangements be made then with the Shanghai General Chambe ter of fact, had they greed, they: would have saved their own' bu: of Commerce or for the setting up of nies from the effects of illegitimate verne responsible Body or Assoeia~ competition. tion (call it what you will) who woul Tf, as ie to be expected, keep these records for the mutual posal is too good to be adopted, protection of the "good" dealers and afraid the trade will be left to foreign importing firms alike? work out it's own salvation pra tent, Tt is realized, of course, that such Juntil the next crisis when the same a scheme aims at a high ideal, and fold rotten questions will again be Would be useless unless supported by diseased with the same old rotten large majority of the firms who are doing the business, and this—up to w—-has been always a difficulty: in shanghai, Until ther some muck ce-operation, there will be trouble, Joss and all the attendant evils con' nected with absconding dealers, To-day 1
[result ad dutch infinitum and there-{fore Lam, ete, Oxce Birtes, Twice Suv.
Text read from the printed page and cleaned; old type leaves the occasional error.