(Continued from page 449.)
Jwould be difficult to get against Bankruptey of she Chinese farmers coupled with, or rather aggravated by the world depression, has brought about an extremely panicky state of condition to the Chinese industry.
Balance of fofelgn trade has been consistently becoming more and more unfavourable, with the worst reached 1993 when the unfavourable balance reached the tottering figure of $700,000,000. Even in 1994 the unfavourable' balance was still $500,000- 000. Then came the silver policy of the United States which caused a steady outflow of the white metal from China to the extent of $250,- 000,000 in the latter part of 1984 alone. The financial crisis that necessarily follows is not relieved even by such drastic measure as the creation of equalization charge by the Govern ment, In the face of unfavourable trade balance, no artificial measure such as the imposition of equalization charge, could stop the outflow of metallic silver, The artificial aifference only tended to encourage smuggling. Thus steadily and con-stently the nation's stock of the white metal has been dwindling every day. This in turn causes contraction of credit, which again causes an ultra~ rapid deflation of the real estate value and which leads to successive failures of the banks all of which have the most unfavourable effect on the nation's industry which depends fon the financial assistance of the Danks.
The intellectuals of China unanimously recognize the fact that reduetion of the unfavourable balance is the only way open toward a healthy rehabilitation of the nation's economic well-being, and to effect such reduction the people must be encouraged to use the maxinium of the native products. "Chinese for Chinese" has been a popular slogan, advocated in the press and spersored by Jeaders of all classes, but the ultimate result has remained still in grave doubt,
Text read from the printed page and cleaned; old type leaves the occasional error.