Los Angeles herald., 1910-08-19
DISCUSSES CHINA
TRADE FOR FLOUR
Vice. Consul General Stuart J.
Fuller Reports on Hongkong
Market Conditions
APPROPRIATIONS FALLING OFF
Nigh Price Of American Wheat
Enable Shanghai Mills to
Capture Industry
APPROPRIATIONS FALLING OFF


nual report from Hongkong, discusses
the southern China trade in flour, with
special relation to the distributing
market there:
no all appearances the high-Water
mark in the flour trade was attained IN
1907. if the figures for the two follow
inc years can be accepted whereby 70
Judge the ebb and flow of this TRACE
with Hongkong as the distributing cen
ter. With falling off in importatlohs
i'm 1909 amounting to $4,000 bags as
compared with 1903, and 1,227,0OO as
compared with 1907, Hongkong is APP
parently losing much ground in the
floi1r trade. The receipts OF 5O-pound
bags in 1907 amounted to 4,94O,OOO; IN
1908 4,0S6.000, and in 1909, 3,1fO,OOO. II
is probable that the decline was due IN
no small degree to the invasion OF
Chinese territory tributary to Hong
kong bv the products of the Shanghai
mills. It is the territory south OF
Shanghai. namely, Canton, SWaton'
Annoy and Foochow, that is wholly
concerned.
In former years all these ports were
commercially tributary to HongkonS'
drawing their supplies of flour from the
warehouses in the colony. But the low
price of silver and the high price OF
American wheat and flour have enapled
the Shanghai mills to virtually captpre
the market comprised in the zone
within Shanghai in the north and
Hongl5ong in the south. Shipments to
Canton alone from Shanghai for the
wear account for about 100000 Dags.
The absorption by the southern capital
Of Shangnai-milled flour, together with
the new outlets provided by the coast
norts mentioned. practically made up
for the loss in the flour trade between
the United States and Hongkong.
CURRENCY FLUCTUATEs
Whether the future will see the new
condition of things changed back to the
old order depends on the European and
American wheat markets and the low
or high price of silver, always deter
mining factor in guiding the course OF
the import trade wherein Sold-using
countries are concerned. Low silver
and high wheat combined mean dear
flour rendering prohibitive entrance
into countries whose inhabitants reckon
their prices in silver. The same condl-
lions, however, do not affect the flour
business in North China. where its pay
sheet and cost of raw material are cal
culated on the basis of silver ValueS,
since the Chinese operatives are pald
in the local currency of the country
and the wheat growers of SoochoW and
neighboring territory part with their
gram IN COuSlueIdliOlt VI ~ many NSNSA-
and candareens per buShel.
Indirectly, American flour in small
quantity is imported into the Shanghai
and the southern territory from the
necessity which the consumers have to
meet for mixing their flour with the
American staple. Flour made in Shang-
hal is, according to expert> opinion, a
trifie damp and dark in color, and
therefore requires a drier and superior
20 aiy will /
the grade requisite for kneading into
good bread. The southern Cinnamon,
having been once used to breadStu1I
of a superior quality, mill owners have
to consider their idioSyncrasies II they
would retain the valuable clientele pro
vided by the treaty ports of South
China, whose good graces Shanghai has
succeeded in winning during the year.
Much to the credit of the northern
mills, they have to fight against the
odds of climatic conditions which mill
tate against operations and also against
the lack of knowledge on the part of
native harvesters in handling wheat,
which they do in the same way as gar
nering their staple grain-rice. 1t is
the opinion of observers competent to
express Judgment that the Chinese
method of thrashing wheat after cut
ting does not tend to improve the
grain. which does not keep we'll unless
it is put out long in the sun to dry.
Besides, Chinese farmers harvest the
wheat in a damp condition and natur-
ely it remains damp, much to the dis
advantage of the millers. The result
ing -four does not keep so well as that
from America.
AUSTRALIA COMPLETES
The imports of flour into Hongkong
last year have been practically all
such a successful bid for the trade
i'm 1907, following the anti-American
boycott by the Chinese, the past yeaI
did not enter into competition in this
market at all, for the good reason
that on account of the low rate OF
exchange ruling Australia was not
able to do as much as name then
prices, although crops in the Com
monwealth have been reported to be
uniformly good. They have, no doubt
found the European market much
more profitable for their products
while American millers sacrificed theil
profits across the Pacific in order tC
yield to the dictates of business per
spicacity by not losing their hold-1l
even for a time-on the oriental mar
ket
The colony's flour trade for the year
would inevitably have suffered greater
contraction in its small volume but
for the fact that the Straits settle
ments provided the compensating out
let to partially make up for the loss
of the market nearer home in Canton
and the Fukhien province. Singapore
and its hinterland have been large
buyers of the staple commodity and
have absorbed a large percentage OF
the imports from the Pacific coast ar
irving in Hongkong.
During 1909 the price of flour did
not vary much in Hongkong except in
July and August when, owing to the
Patten wheat corner" Chinese deal
ers We're unable to import and had to
be satisfied with the heavy stocks they
held in the warehouses on the island
1t was a fortunate circumstance that
they could fall back upon their earlier
purchases, since by drawing upon local
supplies merchants were able to meet
dealers demands without having to
material extent. Even though Hong
kong is an admittedly big -four mar
ket, il is a curious fact that it is
not always sWayed by or does it fol-
low the ups and downs of the Ameri-
can market. Dealers in the colony
often buy in the United States market
and stock a considerable time ahead,
and by purchasing at the most favor
able times are able to supply the wants
i'm the east without being materially
Influenced by the operations of
"bears" and "bulls' in the great center
of the wheat industry on the Pacific