May 20, Mr. Chang Kiangan, general manager of the Bank of Chi whose able report on coaditi in the country was "'m shareholders of that in on Saturday, rendered a signal service in bringing to the notice of his countrymen certain defects in the economic life of China which are capable of rectication. Where he emphasized the need of China to import during the year 1930 no. Tess ire] than Haikuan Tls. 164,000,000 Worth of rice, wheat and flour, he put his finger on one of th Tost vital points accounting for the indifferent state of trade here, Essentially "an "agricul. tural country, for its industrialization is only of recent - birth and growth, China should normal years be practically self-supporting in these commodities, although it has to be pointed out that. in the case of wheat the foreign grain is of so much better milling quality that where Chinese wheat is used the mills almost invariably th the imported article, The fact, however, that so large sum of money as that met tioned has had to leave China in one year for the purchase of food stuffs—and in other years it has likewise been considerable—indieates the extent to which the other import trades ry of China are being curbed. It is not too much to suggest that the whole of this money should have been devoted to such things as the produce of the Lancashire mills, of machinery for' reconstruction the purchase and development purposes and so forth. The handicap to the country's trade, however, there, and remains a most unfortunate element in the situation, in years when weather conditions Were more or less normal, must give the banker and mer-¢hant furiously to think as to the immediate future. In the "North-China Daily News" market report of last Saturday it was pointed out that the unfavourable weather of. the Spring has done some damage to the Chinese wheat crop, but it was at the same time mentioned that if during the succeeding fortnight warm and sunny days were experienced a wood deal of this might be repaired. Unfortunately since that report was written there has been little but cold and rain, and in the circumstances it likely that instend of the condition of the crop improving it will be worse, and the logic of the situation is that China will have to spend more upon importing food and will have less to devote to the other articles which she ought to be buying in exchange for the produce she, sends abroad. The situation has not been happy for the past two or three years in this respect, but, aggravated by bad weather, it tends to become tra-gie. Because there is a surplus. Of wheat in the world and. cause Australian exchange is so much below the parity of other currencies, China has been able to import cheap wheat from Australia during the past few months, to the benefit of. all concerned, but this is not a situation which can be reckoned upon indefinitely.—Mr.
Kia-ngan points out th to banditry and the of the last twenty years, farm ers are unable to remain on the and so long as such a situation continues it is easy to imagine the disaster to the peo-Ple at large when the present, era of cheap wheat comes to an end, It would be very unfair, however, to put the manager of the Bank of China in the category Of pessimists, for he knows his countrymen "'so well that he shows clearly how it has been possible for the volume of China's trade to be maintained. From what he pointed out in his report foreign traders might take a hint, Practically what he says is that when trouble arises in one district, trade to another, so that while in the north, and the Hankow and Canton districts last year conditions were upset as' regards business, there was more tariff changes, Prosperity in ' places such as Shanghai, Nanking, Swatow and may Unpalatable though the: fact the fall-in the price of Harbin. The Chinese merchant silver is not an undiluted di: has a genius for business under aster. It is essentially a com-conditions which would discourponent part. of the whole up-he age other people, and the tejeaval in the economic condi-silence shown following periods, tions of the world To attempt of bad times has ever and ation to find a palliative for the fall saved. a situation which would in silver without regard to other have involved intense depression conditions would be merely other countries. The Chinese creating an artificial enclave for the operations of sil Deasant-farmer "has <qually di shown such courage in contend-lucers and silver, consumers, ing against the forces of nature and that enclave could only be When these have been adverse: maintained if it could be fi it has been no uncommon sight arranged that the ult along the banks of the Yangtze mate adjustment of other econo-to see crops being harvested by mic conditions would correspond coolies well-nigh waist-deep in to the artificial processes thus ater and nevertheless intent ut into effect in advance. In on securing whatever might be some ways the position might saved out of the wreckage of be compared with that of the the harvest, This courage has Austro-German Customs Pact, probably been Dr. Curtius has maintained that the salvation of th China in these recent years of is pact merely attempts to War and banditry. Though for give a first instalment of the the moment it is disheartening bigger economic union of E to hear Mr. Chang Kia-ngan's countries The contention opinion that because ig perfectly sound provided it conditions the farmers are lea can be conceded that the evening the land, the same pertina tual economic understanding ity is likely to bring them back, rived at among the other there whenever conditions ta-groups would conform generally Your their enterprise, but it is to the pro ions of the Aus obvious that a renewal' of, German understanding and could abounding prosperity must de-be united to it so as to form a pend on Nanking's efforts to perfectly harmonious mosaic, ameliorate the present situation, At the risk of repeating uncomfortable truisms it must be stated that the chief cause of 7 resent world conditions is the A SILVER Visit slowness of countries to' adapt themselves to an unpzece-May 22. dentediy rapid increase in pro-The news that a delegation ductivity in agriculture and Congress is coming to industry. This is due of course Shanghai from America in the '0 the remarkable development course of its study of the effect] li of the slump in silver on. the technical processes which has come about within a c markets of the Far East shows that interest in the silver ques: paratively hart space of t ne tion is not abated. In the delega-Moreover there hag een a fierce upset tion is the chairman of the Nructure of the world asthe out. the whole financial Mines Committee of the Senate, Tasker L. Eddie. Mr. come of the Great War. This has confronted one or two nations turally "is concerned with problems for which they with the effect of world were not. prepared conditions on the price of silver t waining or experience, Unt and it is natural that he should hey have fully" grasped the be inclined to regard the subject significance of this catastrophic from that standpoint. The change in the o ation of cre-"North-China Daily News" has dits no consistently expressed the. view position is likely to be. Der~ piecemeal amelioration of that, there is danger in too manent or effective. The Delega-of this issue to the mere ques-SIGH, featrieting consideration t tion of production and use of appointed to en opolated to entire' ints' the rhe League' of Nations
gold position constructively silver. On the Financial Page to-day will be found a specially laboured to produce a really satisfactory method of handling contributed article by a cor-this, subject.
The creation of a respondent who examines the Bank of International subject with considerable know ment at Basle may be said te be ledge both of the silver market a first step in encouraging new and of conditions in China, methods of banking in order to This article bluntly states that there can be no short cut to tackle, properly the specially complicated financial rehabilitation of silver. without which the war has bequeathed problems the expenditure of a very lin the world. It must be recognized sum of money, which that every nation has mot dealt time of economic depress with the economic situation in country in the world would the same way. It would be lightly' face, The reluctance of unappropriate here to differen any one nation to come forward between the methods '48a convener of the proposed employed. tiate International Conference Sinless some attempt is mate at But it would seem, indication at least of the extent co-ordinating principles and p to which this point of view formance: international action vails. It haz recently Leen i essential. The new Bank at hi ited in a fairly definite way
Text read from the printed page and cleaned; old type leaves the occasional error.