The review of the situation in Shanghai made by the Industrial Section of the Municipal Council for July does not paint a happy picture. The closure of many of the ordinary routes by which goods from this city reach the interior—the closure of the Indo-China route, of the Burma highway, and the blockade of the Chekiang and Fukien coasts—has caused many factories to slacken production, since there is no way of disposing of their goods, New tariff barriers in North China have also had their effect in diminishing Shanghai's trade, while the difficulties in obtaining raw materials, due partly to demands elsewhere, limited tonnage available for shipping, and restrictions in the countries of origin have had a serious effect. Altogether, Shanghai seems to be facing some difficult months, with few prospects of improvement in sight, To add to the difficulties of the workers, there has been a steady increase in the cost of living. For Chinese the index figures, based on a standard of living in 1936, show some remarkable rises. For figure. for food, 485.80, has increased by 7.54 per, cent. over June, in spite of the importation of a quantity of rice towards the latter part of the month. Rent indices are up from 30483 to 348.19, an increase of 14.22 per cent. While several necessaries have shown slight declines, the general index figure is quoted at 449.18 as against 422.91 for June, an increase of 621 per cent. So far as foreigners are concerned, the situation is little better. The consolidated index of the cost of living shows an increase of 3.74 per cent. Of this increase the rent group contributes the largest share. This group, which is composed of net rentals and municipal rates, shows an increase of 18.18 per cent. over June. The food index is slightly down, as is the clothing index. But the others are up. The report says:—
Local stock, commodity, and foreign exchange market remained dull since May. The depression is the result of (1) the May crash in speculation which influenced commodity markets adversely, (2) overstocking, (3) the effect of Mevelopments among warring nations on local stock, and (4) the closing of the French Indo-China and routes and the blockade... Wholesale prices, therefore, remained low in July. Retafl prices, however, are not in fine with the trend of the market.
This would seem to be a matter which those waging war on exorbitant prices might do well to look into. It is not expected that local retail prices should always immediately re-spend to variations in local wholesale prices, but in many casey they should^not be far behind.
Text read from the printed page and cleaned; old type leaves the occasional error.