Omaha daily bee., 1908-12-26
PRICE OF SILVER IN ORIENT
United States Consuls Report on
Business Conditions in East.
IMPORTS DEPEND ON EXCHANGE
japan IL Not AHected by FIuctua-
lions of the white Metal
of Its Gold
Standard.

ness conditions In the orient have been
seriously embarrassed by fluctuations In
the price of silver and that the fluctua-
tions. rather than the mere depreciation
in the value OF the white metal. has
caused this commercial difficulty is
shown by a large number of special con-
sular reports received by the National
Monetary commission. These reports in
dictate that in Japan, where the gold
STANDARD is the basis of exchange, there
has been no unsettled condition from that
cause, but in China, with the silver stand
ard, dealings with gold standard ooun-
tries have been injuriously affected by
changes in the price of silver, which make
the profit of a transaction largely de-
pendent on the trend of exchange. The
prevailing statement of the reports Is
that prices are largely regulated by rates
of exchange.
These special consular reports were
called for by the state department at the
request OF Senator Lodge. Consular Off
GERS were requested to report what had
been the tendency of prices since 1896,
measured by silver currency, whether
firms importing from the United States,
Great Britain and Germany had found
the depreciation of silver a matter of
serious embarrassment to their business
during the last year, and whether the de-
probation of silver had stimulated con-
siderably the export trades.
Rise increases Imports.
Charles DENLY. consul general at
Shanghai, China, says when silver Is high
imports are increased and profits are
made on goods stocked at lower rates.
Similarly when silver falls imports be-
come Improbable and heavy losses result
on goods in stock.
Importing firms, he says rave found
their legitimate. trade seriously embar-
raised during the last twelve months by
the depreciation of silver. This loss does
not usually fall on the foreign wholesale
importer, as he does not carry large
stocks. but orders goods on commission
for Chinese buyers. The recent large
fluctuation 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 would have
considerably stimulated the export trade,
but the markets were SO affected by other
considerations that It was difficult to
trace this influence. The foreign trade
in general, he says, has been disturbed
since 1890 by fluctuations in the gold
value of silver.
Julian H. Arnold, consul at Annoy, China,
says that Chinese importing firms at
Annoy all assert that the depreciation of
silver during the past twelve months has
seriously affected their business.
Thomas E.. Heenan, consul at New
Chwang, China, states there is no doubt
that the depreciation of silver stimulates
, the exports of silver-using countries, but
1t is difficult to show this in any given
article.
Higher Prices from
That since 1896 the tendency of prices
has been upward. that the depreciation
has affected the local importers to a seri-
!, Gus extent, on account Of them being
unable to obtain higher tael prices from the
, Chinese consumer, and hat this de-
) probation has not stimulated the export
/ trade 10 the extent expected is the view
> of Albert w. Pontius, vice consul general
at Hankow, China. In the natural course
, of events, he says, the low exchange pro-
a notes exports and precludes imports and
vice versa.
'It is believed by some Of our mer-
, chants" says Samuel l.. Gracey, consul
+. at Foo Chow, China, that the depreciation
? Of silver has practically been the salvation
/, of the importing firms, as the Chinaman
has been unable to buy as cheaply from
foreign countries as he can from those with
stocks in the east, they having been bought
when exchange was high"
; Stuart ]. Fuller, vice consul general al
: Hong Kong, says he learns from importers
? OF cotton goods that the fall in silver In
the last twelve months has not sub
n stantially diminished the demand fol
: cotton goods. With regard to exports, he
= adds that while the general tendency OF
= a low exchange is to stimulate exports thil
was more than counteracted during the
year by the general financial depression
t In Europe and America.
i Prices at Canton.
" That the prices of commodities at Can
ton, China, have, generally speaking. con,
siderabIy advanced since 1896; that the de
probation OF silver during the last yea
I has offered no serious embarrassment t.
I importing firms and that any depreciation
y in silver which does not increase the expor
x trade In the fall is generally compensated BY
a rise in the local cost, which means tina
. the home buyer pays the same price II
gold. is the opinion Of Willard B. Hull, vic,
consul at Canton.
Speaking of corea, Consul General Sam
mons, at Seoul, says that trade condition
there are not much affected by the rat
for the exchange Of silver. the countr,
practically having a gold standard through
= it's use OF Japanese currency.
; 'of the principal countries having bust
ness relations with Kobe. Japan" say
= Vice Consul Walter Gassett. "the Unite
) states, Great Britain, British India. Ger
many and China only one OF these-China-
has been affected by the rise in the rat
OF exchange, China having a silver cur
a rency, while Japan Is on a gold basis"
Il Consul General Henry b. Miller, at Yoke
hama, Japan. says JaLan not being a silve
q country, the decline In the rate of exchang
has had practically no effect on trade con
l. ditions there.
Carl F. Deichman, consul at Mansi, Fol-
n mosa, says that importing firms have fel
no serious embarrassment to their bushes
from the depreciation OF silver during tn
RI last twelve months as their buying and Sc.
e. ing prices are both in gold.
err Referring to conditions in ManchuTii
%. Consul Roger s. Greene. at Dalny, state
that tho japanese merchants there hay
n not hesltated to attribute the dullness {
m business in all lines and particularly In I'll
cotton goods trade to the depreciation
silver.
nroaaricl n Gland Vice consul aener;