March 27.
Mr. N. L. Sparke took a courageons line of quiet optimism in addressing himself on Monday to the current economic situation Shanghai. At this time, when conditions invite the feverish pes~ simism of men who are confronted Juve active support to the aerton of facies ends to lace 8 process of sagnation mon reaatanco to' the premium on improvisation of which
tines of prosperity there may' advantage not aways to the bene-Gindlods are bound to. take"
encase Mo iferenlate At of te community.. Therelore, Srarnly "ootween the. property: white this Journal would. counsel Sue andthe feet of the com=|sguint- any. measures which, were cents No doubt the diflerentia-|ceeulated. to" give an. artificial Tom i of comparatively Ile im- pulse to rent Fedueion, It 1s in-tee oe carte simple rosen Unt clined to wonder whether sunlit Mes eemmnity in Tot Goposed10 note has een inde of We posse so"enucal ta when the pressure ility of easing the rental. position 8 Sconomie stringency whet its by dehnliely setting out to meet see ae Hiertnce ads the new needs brought. abou! by versity, the property owner, if only|the rapid growth of this urban SETS pebtet round' of self population. "Phi problem requires preservation, is bound to be alert|to be handled with the utmost presuming lis policy te the com ecution just now. Land values, on Fase reant Ssu deary which so much depends are tale emerges from the general tenor of ing. Any unconsidered movement Sere Are aeedche Note it; which could exaggerate that ten-irrelevant to note that the organiz- dency might get out of control and, ation which he represents is faced with more than economic problems in sharing responsibility for the progress of Shanghai. His restrained references to the discussions proceeding in regard to the question of luxation outside the limits of the Settlement plainly show that he and his colleagues are, in effect, engaged in the diplomatic preserva-on of the rights of the community as a whole. The amicable tone [characterizing the discussions sui gests that the parties concerned a1 both displaying a commendable readir.ess to keep their relations on nonce in solving some of the peculiar problems especially obstructing Shanghai's development can hardly be overestimated. Its importance being so manifestly present to the mind of the property owners gives a potent guarantee of their good faith in tackling those other economic complexities so heavily oppressing the commun-{ty at this moment, In particular all too short a time, bring serious consequences to all. A gradual mitigation of the rental burden is far preferable to a sudden drop. So much is bound up here with the interests of property that, especially in these times, the community ought to proceed warily lin canvassing expedients which, however, plausible in themselves, may accentuate rather than relieve the prevalent depression. For this reason it is far better to observe the general note of confidence in jShanghat's future, as adopted by Mr, Sparke and' to rely on the natural operation of economic forees to adjust the acerbities of the situation, Indeed it may be regarded as axiomatic that the process of smoothing out the present difficulties will, in itself, supply the necessary correctives t0 many ills which essentially have their root in an over-developed robustness of commercial growth. Nevertheless it is necessary to warn the community against excessive complacence. Of Shanghai's ability to weather this storm and wit dieltes beyond thes Dower S, Sect of un rental charges 0 with difficulties beyond their power resume a natural progress to even greater prosperity than before there comprehension, it is satisfactory to come across a public pronouncement which preserves an even balance and, while obviously im~ pressed by a sense of the critical nature of Shanghai's present malady, is not disposed to lose grip of essentials. The organization to which Mr. Sparke was speaking re~ presents those to whom Shanghai's prosperity means everything. Whatever views may be held regarding the basis of that prosperity in the future, it is impossible to deny that in many respects Shanghai is on.
"land" standard. The inflation of land values may have been a. contributory cause to the acuteness of the troubles now besetting this ety. Tt has also been a source of stimulation to those enterprises which have assisted to build up a by no means unworthy fabric of economic and commercial activity. Critics may concentrate the fire of academic wrath on certain aspects lof the development of landed prop-jetty and its association with the jeredit of Shanghai's business. Yet when all is said and done, the service which land values. have rendered in creating a definite element of credit stability here must transcend the abuses in-
[separable from the normal fuctua~ tions of commodity values anywhere. Moreover, at a time of. crisis, the general welfare of the: community is so intimately bound with the particular interests of Jandowners that they are bound to the cost of living comes under review. And on that point Mr. Sparke's speech offers useful material for reflection. It certainly might be studied by those who do not always realise the cxxact relation fof rent to the economic condition of the community generally.
Mr. Sparke pointedly agreed that Shanghai was overbuilt. Beyond that he did not develop a direct argument regarding the possible fall of rental charges. It is obvious, however, that the mere operation of the competitive factor should and, indeed, is already in train to, bring down rents. Just. as the property owners repudiate any plan for assisting the raising of rents, so is it logical to deprecate support of organized efforts to is no reason to be doubtful. The travail! of extrication may be severe and will bring startling changes to ass. It will teach lessons which will have to be thoroughly learnt and digested if the next advance is Yo be guided with full regard to the real interests of the community. And that will imply a fearless assessment of the social and economic conditions under which Shanghai elects to present itself in renewed vigour.
Text read from the printed page and cleaned; old type leaves the occasional error.