To the Baitor of the "Nonrn-Cunxa Dany News"
Sin—With reference to "H. G's" letter dealing with the general high cost of living, pointing particularly to the fact that, in spite of a rise in Exchange, no' great decrease is seen in the prices of food-stufte In the Compradore shops, It is felt that perhaps the average person is quite unaware of the difficulties which Tocat Importers and Retallers have to contend with.
A rise in Exchange ts often 9 detrimental factor to many Importers and Retailers as It at once places their stocks on a disadvantageous hhasls. Tt should be remembered that no concern can operate without hold-ug from three to four months' stock hand to meet emergencies and furthermore, on a rising exchange market. thie stock is bought and paid for at the lower rates ruling at the Hime the seeds reached Shanghai.
The Importer has to finance the purchase of goods, store them if he {is working on a stock basis, and then deliver them where and when required He generally has to. give sixty days credit to the purchaser and also runs the risk of bad debts, which during the past few years have been plentiful.
The Compradore shop, which necessarily has to carry a large stock requiring capital, gives at Toast one month's credit to his customers. With the present cosmopolitan, and perhaps not too rellable atmosphere prevailing in certain sections of the Shanehal community, he Is more than ever likely to contract bad debis and does definitely get_many. Also be has te include in his once a 5 per cent. bonus to all cooks and house-hoys and to cover delivery and colleen tion expenses on most of his goods.
Whilst it is true that the rise. exchange has taken place over a protracted period. {t should be remembered that six months ago the Compradore shops were cutting prices to @ minimum when they were in [very keen competition among them. selves. This was exemplified by the [number of press advertisements which appeared at the time. Further, feertarn shops were selling goods at! {thelr actual cost price in an endea-your to get new business and Ksep, their old accounts.
Due consideration should be given to commodity prices which may, and have, In certain cases risen, to {freight and landing charges, and to the very heavy Customs Duties most food-stulfls consumed by_ the foreigner and retailed by the Compradore shops.
"This letter in defence of the Provision Importer and Retailer may be viewed by many in a somewhat unpopular light but it is hoped that you Will record it a portion of. your valuable space and that it may serve to enlighten certain of your readers fon a subject which has for Jong been a'matter of great controversy.
Shanghai, May 3.
Text read from the printed page and cleaned; old type leaves the occasional error.