With the arrival of supplies of rice' from Hongkong in Shanghai the attempts of the Municipal Authorities to prevent undue profiteering in the staple food of the Chin enters. what may prove to be a decisive phase. It is necessary to point out, however, that it is by no means a sudden improvisation, but the result of careful investigations which have been proceeding for some time and planning based on the result of those inquiries. The Hongkong Government, through its appointment of the Shanghai Municipal Council as its sole exporting agent for the Shanghai market of the class of rice most "Suitable for the consumption of the majority, has virtually created a monopoly of that particular grade, but no intention has been expressed of controlling the others. Dealers can import other grades and in principle they should be encouraged to do so, for the greater the amount of rice laid down in Shanghai the better. The whole scheme which has now been arranged provides for the handling of the rice situation upon a purely business basis. That particular point has to be emphasized. This endeavour to control the price of rice is based throughout on business principles designed to give consumers of the cereal opportunities of purchasing it at prices conforming more closely to the realities of the situation than possibly the profiteers would like.
Already the news that rice had been ordered from Hongkong and was actually en route for this port has had a very considerable effect in modifying the ideas of those who were hoarding the grain for even greater rises in price than had up to that time occurred. It has resulted in the fact that many millions of dollars which would otherwise be reaching the pockets of the hoarders remain in the hands of the ultimate consumers. In speaking of the scheme as a purely business one, it needs to be pointed out that as at present developed dealers are allorded every opportunity of ce-operating. There is no intention of depriving them of their legitimate profits. Ca-operation will be welcomed, but should it not be forthcoming, should opposition result instead, there is every reason to believe that in all normal circumstances it will nevertheless be possible to carry on.
It would not be fitting at this juncture to go into all the details of the scheme which has been prepared, but it may be stated that full provision is made for accepting the assistance of wholesale and retail dealers in a manner which should provide for the easy distribution of rice. What is more there is ample provision for securing that those handling the grain will be assured of their reasonable profits, and any possibility of there being. any hardship upon that score may be discounted beforehand. It has to be understood that the price of rice in Shanghai and other ports in China has repercussions in the countries of production, and that inflated prices here must inevitably result in increases elsewhere. It is in order to prevent the continuance of a vicious circle, without any benefit whatever to the ultimate consumer, that this scheme has been devised for Shanghai and it is expected that in the long run it will assist the control of prices in the producing countries, in which event its beneficial effects may be wider spread than would appear on first inspection. It is for such a reason that the cooperation of the Hongkong authorities has been secured, for they are as interested as is Shanghai in the stabilization of consumers' prices, just as much as anyone else.
But what has to be emphasized locally is that every opportunity is given for the more reputable members of the rice trade to assist in stabilizing conditions in this city. Nothing is being done, or is contemplated which is likely to interfere with the rights of the legitimate trader. That the hoarder and the profiteer will be affected, the events of the past few days have clearly demonstrated.
With them there can be no sympathy. They have already been deprived of large potential profits, but there is nothing to indicate that those who have not been speculating above the real limits of the actual market need suffer by falling into line. The scheme provides for their protection and opens the way for them to continue carrying on a business which must be conducted along lines in the best interest of the community as a whole. It is to be hoped that they will understand the full significance of what taking place.
Text read from the printed page and cleaned; old type leaves the occasional error.