Itis apparent from a despatch sent. in by the Hongkong correspondent of the "North-China Daily News" and published in these columns yesterday, that the Commission which has been appointed to study trade conditions in the southern colony will have a substantial number of very important questions to answer. Upon the correctness of their findings the future of the port undoubtedly depends. The trouble which has led to the appointment of the commission is not solely attributable to the Japa~ nese dumping, which has aroused 80 much anxiety; there is also the general trade depression im South China the prosperity of which in the past has been.o a large extent due to the money remitted there from Chinese in the United States, Canada, Java, the Straits Settlements, Malaya and Australis which by reason of the depression existent in those countries has been reduced almost to vanishing point. Millions of dollars were received through the banks in the course of each year, but now, as the overgoos Chinese can barely make a living, they cannot remit the money home which they were in the habit of doing. There ts also the decline in the silk trade, due, to a large extent, to the poos quality of the product, though were world conditions better it 1s pos~ sible that even now some sill could be sold. It is contended that asa result of these factors the economic condition of South China is just as important an influence on the fortunes of Hongkong as is the dumping of Japanese goods of which, already, a great deal has been heard. 'Taking both as the causes of the distress, it is interesting to see what the effect has been on the trade of He and how it has suffered in its most important aspeets. Cement, produced by a British concern' in the colony, is being undercut by the Japanese product fo such an extent that there has been some anxiety expressed as to whether the company can carry on unless the Government can be persuaded to do something to protect it. Chinese cheap class goods, strich as socks, singlets, flashlights are similarly undercut by Japanese manufactures, and the small industries, which' it was hoped but a few years ago would grow and develop in importance, run a grave risk of ultimately being wiped out.
To the operation of such factors to be traced the fact that the price of real estate is decreasing. This is due to a general slackness in business combined with the supply of housing exceeding the demand owing to the building on reclaimed land, and the outskirts of the city. Suggestions for improving conditions have from the to time been put forward. The Chinese Chamber of Commerce 8 proposed various solutions, though they have chiefly concerned themselves in asking for reductions in rates, Crown rents, and water charges all of which might be expected to have some beneftelal. effect, though there is very little doubt that they do not go to the root of the matter, and may be Sepended upon only to bring about a slight alleviation of the symptoms, The Colony is a free port, and the goods from any country ' can be dumped there. The Hongkong Government adhering to that tradition refused to follow the example set by the British Government in connection with the trade quotas. Latterly the wisdom of that refusal has been seriously questioned, and may very well be that, when the economic commission has concluded. its labours, it will, amongst its other recommendations, suggest following. the Imperial example and endea: your to secure control of the Japanese trade into the Colony by Some such means. One of the chief obstacles to the earlier imposition of the quota system was the remnant sentimental feeling of friendship with Japan, a legacy from the days of the Anglo-Japanese Al~ Vance. That opinion, considerably stronger years ago, has weakened great deal in view of the stiff competition which the merchants of the Colony are now feeling, and there is more than a chance that, if the commission recommended the adoption of a practice which was originally declined, public opinion. would endorse the abandonment of, the old policy.
Text read from the printed page and cleaned; old type leaves the occasional error.