The record-union., 1892-11-22
THE EXCLUSION ACT.
1t May Cause a Crash Among Chinese
Merchants.

MefcnanIS.
SAN Francisco, Nov. 2I.-The Morn
ing C0U has had interviews with a num-
Der of Chinese merchants in this city, in
Guiding the Secretary of the Six Compa-
nies, and they report that financial crash
is imminent in the Chinese quarter here.
They say that the cause, which will re-
suit in the failure or retirement from
business of a large number of Chinese
firms, is the exclusion law, with the eX-
pected deportation Of those Chinese WI
fail TO register The Secretary of the 5i1
Companies says it is likely that who! the
Chinese New Year arrives, IN February
next, the Six Companies will disband
and fully half the Chinese merchants OF
this city go out of business. 1t is pre-
sumed from these statements that LARGE
number of the Weather Chinese here
will soon leave the country and return
home.
The Secretary of the Six Companies
says: There are scores Of Chinese firms
in this city and elsewhere in the state
who are now arranging their affairs so as
to close out their business on or before
February 10th next. The retirement of
these firms will mean the closing up Of
many other houses dependent upon them
for aid in times OF need. There will be
hundreds of thousands of dollars with
drawn from trade in this State by Chinese
firms now doing business here within the
next four or five months.'
Wing Wah. wealthy merchant of this
city, said: ''Hhe passage OF the first Re
strictiOn Act, and later of the registration
law, with prospect Of deportation next
year of majority of the Chinese labor
ing men, has alarmed the firms in China
who are backing tho largest firms here.
They have concluded to withdraw very
large percentage OF the capital invested
here, believing that they can better stand
the loss consequent upon the closing out
OF their business now rather than to risk
failure later on. Any man." continued
Alng, who has paid attention to the
Chinese question must know that in the
past year the Chinese population of Cali
f0rnia has decreased fully one-third.
Not a steamer has sailed from this port
to China in months but what has carried
away from 300 to 500 Chinese, ana there is
not an average Of fifty Chinese coming
here on the steamers from ports of China
to San Francisco. The result of the
heavy deportation upon business men
who deal almost exclusively with Chi
nese is self-evident. If it continues there
will not be enough Chinese III California,
or on this coast, in year from now to
support one-tiftieth part Of the whole
number Of stores that are now dependent
upon them for their trade. Then add to
this the forced deportation which is
threatened next May and the situation is
plain. The work of closing out the
business of Chinese merchants
here has been going on for
months. The stores in the interior have
closed out as nearly as possible, and the
remnants of their stocks are massed in
houses in this city which were and are
being closed out. 1t is the custom among
the Chinese to pay all their creditors and
to collect all debts previous to their New
Years, which this year falls on the 10Th
day of February. Before that time
many of the best known Chinese firms
in this city will have ceased to exist. By
this means large amount of money will
be taken from this country and reinvested
elsewhere. That may cripple general bus
mess somewhat, but it Will Le nothing to
the Chinese failures that are bound to
follow the withdrawal of the big firms.
There are hundreds of little Chinese
firms in existence in the United States
which will cease to do business.
If the Chinese laborers go, and the
big houses quit business, there will no
longer be any necessity for the Six Com
panies, and they will disband and return
their working capital to the societies in
China. There is no doubt that the Six
Companies are looking forward to a time
very close at hand when they will cease
to exist, and are preparing for it. Then
the little houses will go under, and the
losses in the aggregate will amount to
many thousands. The people Of the
United States have long been trying to
rid themselves of the Chinese, and it now
seems likely thew will do so -