The Archive · 1938

SHANGHAI ECONOMICS

Oct, 21.

The report of the S.M.C. Industrial Section, for the quarter ending September 30, published in today's Municipal Gazette is Important testimony to the vitality of [Shanghai, for ft shows that during the period under review there has been a recovery in industry of all types in the Western District of ithe International Settlement and in the Western Outside Roads area. Increases are to [be noted in the silk reeling industry, in which there is a noticeable return of' features, Iwhich for some years past showed a tendency' to leave Shanghai, enamelware and glassware factories, tanneries, paper-mills, briquette factories, while in the textile industry five large spinning and weaving plants are either planned or in operation, Some of these are substituting for those formerly in the Eastern istrict whose operations have ceased. With Jail the adverse conditions under which Shanghai is suffering at present, with a hinfterland much poorer now than it was when the Sino-Japanese hostilities broke out fifteen months ago, it seems amazing at first glance that there should be this anxiety to invest more money and get business going. Yet there must be much idle money in Shanghai such a time as this and the general situa~ lion appears to justify the conclusion that, if Shanghai were permitted to get back to normality, economic rehabilitation would proceed at a wholly satisfactory rate: The report notes that plants in the Eastern District are reopening, and some 581 applications for power connection in that area have been received during the period under review, Jand it is clear that, with the removal of exist= jing restrictions, and the return of that istrict to something approaching the normal, considerable employment would become available for those Chinese who have been thrown out of work. It is regrettable that the existing anomalous state of affairs should [be allowed to continue, in view of the very patent anxiety of the community to get back to work.

The work of the Industrial Section with regard to new plants will be followed with Jconsiderable interest. The task of improving working conditions has been progressing with slowness inevitable when the peculiarities for Shanghai are remembered, but with the Jerection of new plants it has been possible to introduce reforms, which in establishments ready existing would be by no means easy. This is particularly the case with regard to the silk filatures, where the number of chil-Jdren in the workrooms has been reduced, land those still remaining permitted to work lurider better conditions than formerly. It is, perhaps, unforturtate that circumstances necessitate the adoption of the dormitory system or factory workers in these areas, That is undoubtedly due to the shortage of housing accommodation, and may be expected in the Jcourse of time to rectify itself. Whether that proves to be the case of not, the dormitory system needs to be watched with a particular ly jealous eye, for it gives the employer a control over his staff which cannot be regarded with any degree of complacency, Similar systems have proved objectionable in other parts of the world, and if in Shanghai it is likely to reduce the worker to a position takin to helotry as has occurred elsewhere, its extension should be sternly opposed. That the authorities will encounter difficulty in Jdoing so goes almost without saying, but [where new establishments have to be erected the remedy appears to be in their hands by refusing to pass plans for dormie tory buildings. That might to some extent delay the progress of present developments, bhut it is clear that once the dormitory system Is allowed to get a hold it will be difficult to dislodge it. It-is most, certainly undesirfable that a system should develop which tends to deprive the worker of that freedom which should be his during the hours he is not at work.

The appearance of a table showing the cost of living index for Shanghai workers is to

Text read from the printed page and cleaned; old type leaves the occasional error.

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