New-York tribune., 1908-12-26
HURT BY SILVER BASIS
CHINESE TRADE SUFFERS.
Consuls Say Japan, srith Gold Stand
ard. Doesn't Feel Fluctuations.


washington. Dec 2s-That business conditions IN
rsr7 OF The Orient have seriously embarrassed
tv fuc.ua tons in the price OF silver, and that the
fluctuations rather than the mere depreciation IN
value Of the white metal have caused this COM
-n-ecisi difficulty. IS shown by q large number OF
speci6i consular reports received by the National
Monetary Commission. These reports indicate that
IN japan where the gold standard ia the basis of
exchange there has been no unsettled condition
from that cause. but in China with the silver
standard dealings with gold standard countries
have been injuriously affected by changes in the
price Of silver which make the profit OF transac-
tioa largely dependent upon the trend OF exchange
The prevailing statement OF the reports Is thai
prices are largely regulated by rates OF exchange
These s.eciaI consular reports were called for by
the State Department at the request OF Senator
Lodge Consular officers were requested TO report
whist had been the tendency of prices since 1896.
measured by silver currency. whether firms import
Ing the United States Great Britain and Ger
Insny had found the depreciation OF silver matter
OF serious embarrassment their business during
the last year and whether the depreciation OF silver
had stimulated considerably the export trades
Charles DENLY. consul general at Shanghai Chinsr
saws when silver high imports are increased and
profits are made goods stocked at lower rates
Similarly when silver falls importat!ons become un-
profitable. and heavy losses result from goods in
stock Importing firms he says, have found their
legitimate trade seriously embarrassed during the
last twelve months by depreciation OF silver.
This loss does not usually fall upon the foreign
wholesale importer. as he does not carry large
stocks but orders goods commission for Chinese
buyers. The recenE large huctuation in the value
OF local currency in comparison with gold he adds.
ruined hundreds OF Chinese merchants who had
dealings with foreigners Normally, he declares,
this depreciation wauld have considerably stimu-
lated the export trade, but the markets were so
affected by other considerations that it difficult
TO trace this influence. The foreign trade in
general he says. has been disturbed since 1885 by
fluctuations in the gold value Of silver
Julian II. Arnold. consul st Annoy, China, says
that the foreign importing firms at Annoy all as
sert that the depreciation OF silver during the last
twelve months has seriously affected their bus-
ness.
Thomas E Reenan consul at New Chwang.
China. saws there is doubt that the depTecld-
don OF silver stimulates the exports OF silver using
countries but It is difficult TO show this in any
given article
That since 1896 the tendency OF prices has
been upward; that the depreciation has affected
the local importers TO g serious extent, on
account Of being unable TO obtain higher
7ael prices from the Chinese consumer, and that
this depreciation has not stimulated the export
trade 70 the expected is the view OF Albert
w Pontius vIce-consul general 1t Hankow. China.
In the natural course of events he says. the low
exchange promotes exports and lessons imports.
and vice versa
1t is believed by some Of our merchants" says
Samuel 1. Gracey. consul at Foo Chow, China.
that the depreciation of silver has practically
been the salvation OF the importing firms the
Chiaarnan has been unable to buy cheaply from
foreign countries he from those with stocks
IN the East, they having been bought when ex-
change Ezs high"
Stuart J. Fuller. vice-consul general at Hong
Kong says he learns from importers OF cotton
goods that the fall in silver IN the last twelve
months has not substantially diminished the de-
uand for cotton goods With regard 10 exports.
he adds, while the general tendency OF a low ex-
change is stimulate them. this more than
counteracted during the year by the general inan-
cial depression in Europe and America
That the prices OF commodities at Canton, China,
have generally speaking considerably advanced
since 1896; that the depreciation Of silver during
the last year has offered serious embarrassment
importing firms. and that any depreciation in
silver Goes increase the export trade. the
fall Is generally compensated by a rise in the
local cost, which means that the home buyer pays
the same price IN gold. IS the opinion OF Willard
3. Hull vfce-consul at Canton.
Speaking OF Coree- Consul General Thomas Sam
mons, at Seoul. says that trade conditions there
much affected by the rate for the ex-
change OF silver. the country practically having
gold standard through its Of Japanese cur
rency.
or the principal countries having business rela-
tons with Kobe. Japan says Vice-Consul Walter
Gassett. the United States. Great Britain British
India, Germany and China only one OF these,
China. has been affected by the rise in the rate
of exchange, China having a silver currency while
Japan is on gold basis
Consul General Henry B Miller, at Yokohama
japan. says that as japan is not silver country.
the decline in the rate Of exchange has had prec-
tically no effect on trade conditions there.
Carl F Deichnlan. consul at Mansui, Formosa,
that importing firms have felt serious
barrassnent TO their business from the deprecia-
ton OF silver during the last twelve months.
their buying and selling prices ere both In gold
Referring conditions IN Manchuria, Consul
Roger S Greene, at Dalny, says that the japanese
merchants there have hesitated to attribute
the dUllness of business IL all lines. and particp-
arly in the cotton goods trade to the depreciation
Of silver
Frederick D. Cloud. vice consul general at An
tung, China says the enormous decline IN the rate
ef exchange Of silver for the last year works a
great hardship. not only upon the importer. but
upon the consumer well
Vice Consul General Charles L. L. williams at
Chefoo, China, says that the merchants there
cede that the only relief from distressing 1uctua-
tions IN exchange Will be found IN the adoption by
China OF a gold standard.