Feb. 21.
During the last four months the financial difficulties of China in general and of Shanghai in particular have engaged comment and observation here. It might be just to say that from these columns the full volume of public preoccupation has been ascertainable only by dint of that process known colloqui ally as reading between the ines. Indeed, at times, the exercise of restraint has perforce been invoked to serve the purpose of what might have been too explicit an analysis of the issues at stake. Risks have thus been run. For, such is the sensitiveness of this mainly commercial community, verbal indiscretions in conversa. tion often outstrip any which appear in print. When Dr. Kung, a few weeks ago, sought to castigate rumour-mongers he was en= deavouring to grapple with this idiosyncrasy. And his embarrassment was accentuated by the knowledge that the all too active /speculative element here would be ready to treat any announcement, whether faithful or fanciful, as Just another peg on which to hang coup or adventurous deal. Speculators are always with us. some countries they can be kept within bounds in moments of acute crisis. In others, local conditions may give them greater independence and consequently more opportunity for mischief. China has to face the latter possibility. On the whole it is not so terrible as might be imagined, for, fortunately, the very defects of China's financial organization place a narrow limitation, on the speculators' significance in the scheme of things here. Nevertheless their activities should impress on responsible authorities the need for vigilance and avoidance of those errors of commission or commission which tend to perplex the feconomie: depression, enhanced no doubt by ill-judged action over Which China has nothing but remonstrative control, this perplexity in the guise of loss of confidence has greatly contributed. would seem that the time has come for plain speaking. The [Chinese Government, through the Ministry of Finance, has taken a specific step to associate itself with -expert banking Knowledge in investigating means for overcome ing the dangers of what appears to bbe stark stagnation of trade. If the talent thus invoked were formed with the infallibility of all, {the Popes and inspired with the {wisdom of Solomon, it were help~ less to achieve effective benefit un-Jess action taken at its bidding received the common tribute of loyal support and ungrudging assistance. It is too "early, of course, to say whether Dr. Kung's own Advisory Committee will be fable to command from Dr. Kung's Jown Government and government machinery that fearless ce-opera~ ion which is essential to success. The assumption must be that there is every intention so to contrive and, in this respect, the prompt adoption of the tentative but first recommendation of the Committee is surely encouraging. Dr. Kung land his banking colleagues know the weakness and the strength of their position. They may be trusted to do all they can to exploit the latter and to reinforce the former quality. If they have to contend With mistrust, Jealousy or political' obstruction they will, it hoped, be as competent' to lexoreize "those irrelevancies as they are to conduct their own affairs. Obligation in this matter does not rest on them alone. Tt {s for the general public, not exfduding the fore community, stiffen their sinews by displaying appropriate comradeship in this time of stress.
Ever since this crisis took a new tum with the Government's action {in attempting to check'the outflow of silver, the atmosphere has been heavily charged with suspicion, rumour, recrimination and apprehension. The faults have not been fon one side alone, nor confined to fany particular section or community. It has been amazing ocea~ sionally to find men who, it would be thought, should be chiefly concerned at the economic difficulties before them, frittering their ener= gies in sifting some rumour—whether plausible or preposterous circulating some ingenious fan-tosy or seeking to impute motives instead of arriving at clear-cut conclusions by direct contacts. Then, leaving China's general position out of account and devot~ ing attention to Shanghai, it has come as a shock to many to discern the marked lack of ce-ordina~ tion and mutual confidence with which this important commercial centre has confronted one of the most pregnant crises in its career. Three years ago Shanghai faced a political upheaval of the first magnitude. It faced it with digni ity and no little sense of international solidarity. To-day it would seem as if the, in some ways, graver catastrophe has evoked nothing but a pathetic helplessness which does small credit to the undoubted financial and business intelligence at this city's command. Moreover, this ineptitude has been decorated with the dubious local quality known "as passing the buck." This man for this institution has been to blame but never the sapient critic himself. Help would be given but doubt is expressed whether the suggested coadjutor would be sure of a square deal. The only sentiment to acquire the merit of mutuality has been one of complete distrust in the good faith of the other fellow. Shanghai deserves better treatment than this from its leaders. It has the virtue of standing shoulder to shoulder. It has a practical belief in the power of united effort. There is not the slightest reason to be pessimistic over the ultimate ability of Shanghai—or China for that matter—to ride out the pres~ ent storm. But let there be some sign of self-reliance, of faith in ce-operative action. The long pull and. the pull altogether is needed. On that all energies should be concentrated to the exclusion of petty doubts and fears.
Text read from the printed page and cleaned; old type leaves the occasional error.