Apr. 28.
Some concern is being felt in circles connected with the import of rayon at the frequent reports that the Nanking Government Jcontemplates increasing the import duty on this commodity. The position at the present moment appears to be that the Executive Yuan has referred the whole matter to a sub-committee for the purpose of fixing a date for the enforcement of and the rate of increase. This action seems to have resulted from the urgent appeals of real silk dealers who Jcontend that the great importation of rayon and the manufactures thereof have been the cause the decline in the demand for real silk goods. Experience in other countries leads to the belief that this very natural contention is not entirely well found: fed and that the use of artificial silk has not lessened the demand for the real article but filled an hiatus between silk and cotton.
Tt seems obvious that rayon will never replace the real article in the minds of those who are able to afford the latter. What appears to be the real trouble with regard to the Chinese silk trade is that the improvements in the Jculture of the silk-worm have not been so extensive nor 80 well carried out as they have been in Japan for example, with the re~ sult that China has definitely lost her once proud position of the plier of the finest silk and, in consequence, her export trade has remained stationary.
There is a suggestion made by the Chinese press that the tea-son for this action on the part of the Nanking Government is the large importation of rayon from Japan. The total import lof this commodity into Shanghai from all countries last year amounted to 123,275 piculs, with declared value of LIK Tls. 17,- 615,978, and the quantities imported from the principal ex-nations were as follows:
Esporte from—piculs Japan It is contended importers of artifi the present duty. is exceptionally high; 58 gold units per picul plus 10 per cent, surtax for Flood Relief in effect works out at spproximately 75 per cent. of the edit. value of the goods, and it is a little difficult to believe that Jany good effect would come from further increasing a burden [which already appears more than reasonably high. If artificial silk is doing any damage to the real silk trade, and experience in other countries seems to suggest this is not true, the imposition of a larger burden of taxation upon the business will not only fail to give the necessary fillip to the domestic production of real silk, but may have the effect of spoiling sales of rayon in China, reducing the total import, and bringing about a reduction of re-[venue instead of an increase. Chinese merchants actually engaged in the distribution of rayon yarn and its manufacture into cloth fare generally of the opinion that the industry cannot possibly bear Jany further taxation or increase in duty. But a falling off in the import of these goods would have a Very widespread effect. The allied dye industry would be severely hit if this trade became annihilated by increased taxation. It would also involve the throw ing out of work of Chinese engaged in weaving the yarn, would reduce the demand for cotton, with which it is so frequently mixed, and would involve the ultimate" unemployment of large numbers of assistants in retail shops.
There appears to be another weakness in the proposal to tax rayon only. Customs Returns for 1981 for artificial silk piece goods and mixtures totalled 1,260,086 yards, with Japan supplying nearly half of thi total. The duty on foreign manufactured piece goods is less than the duty on the actual rayon imported to be manufactured by the Chinese themselves. It is, therefore, not unreasonable to assume that' an increase of the tax on the yarn without a corresponding increase in the duty on the for-feign manufactured cloth would operate in favour of the latter along the disastrous lines area ted and would fail to give the relief to China's sericulturists which it is claimed is the motive behind the proposed taxation, The whole situation of China's silk trade seems not unlike that of other former flourish it dustries in China keep pace with modern demands has robbed this country of the pre-eminence it held in certain definite lines. Examples supporting this _conten* tion may very well be found in the tea and soya bean industries and it would seem that a more useful result would be obtained by diverting attention to the perfection of—domestic methods in the production of real silk tending to improve quality, reducing the cost of production and lating demand. It is to be hoped that the Chinese Gor jemment will consider very carefully any steps proposed in connection with the importation of rayon which may have a disastrous: effect upon a young and growing industry.
Text read from the printed page and cleaned; old type leaves the occasional error.