Evening star., 1914-10-24
CHINESE DESERT
BRITISH COLONY
Notable Exodus From Hong
kong Reported, Following
Declaration of War.
SENTIMENT OF PEOPLE
SAID TO FAVOR GERMANY
Business at StandstilEPrice Of Silk
Drops-Foreign Banks Idle,
Canton Declares.

CORRESPONDENCE Of the Associated Press.
CANTON. China, September 21.-A
notable exodus of Chinese has taken
place from the British colony of Hong
kong. Since the end of July there
has been a steady influx of people
into Canton. During the first week In
August, when the news of war reache
Hongkong, the thorough preparations
for the defense of the colony that were
made. the proclamation of martial law.
the mobilization of volunteers and the
swearing in of special police, with q
simultaneous rise in the prices OF COM
modities, convinced the Chinese that
trouble was coming and the exodus be-
gan.
Since then a steady and persistent
stream has come almost exclusively
from Hongkong and the Straits Settle
ments until Canton, and particularly
the eastern suburbs, the great residen-
tial section of the city, is overcrowded
and rents have risen 20 and 80 per
cent.
Disturbing Rumors Circulated.
The most extraordinary rumors were
current, during the first part of the
month, of German attacks and pfllag-
ing of Hongkong and Of all sorts Of
impossible victories and reverses. These
have now toned down, though the news
in the native papers is almost without
exception pro-German in character.
and public opinion has thorough belief
in German present and ultimate sue
cess. This may be due to the fact
that probably 80 per cent of the Chi
nese here who know or care anything
about what is going on are hoping
ardently for German success. the idea
as expressed by some being that de-
cided setback to the British and French
would make China's future by that
much more secure.
Business is nearly at standstill. The
river and coast steamers are in many
cases running at a loss. The price of
silk has dropped approximately $50
gold bale, with few buyers, and this
with an unusually fine year for the
silk crop-a bumper fifth crop having
been assured and a record sixth crop
being expected. The other exports, in
faring similarly.
Banks Without Patrons.
The foreign banks are open only half
the day. as they have no business and
the money market is nearly paralyzed.
Local exchange on the Hongkong dol
lar has gradually risen from 5 per
cent. to which 1t dropped from 10 per
cent the day after war was declared,
to IA per cent Although the time ap-
pointed for the redemption Of the pro-
some SPECTATORS buying at 20 and 30
cents on the dollar.
The entrance of Japan upon the
scene seems to be viewed with cynical
distrust by many, and even coolies and
boat people are asking If China will
have to fight Japan eventually.
A rather amusing incident occurred
in connection with the German river
gunboat Tsingtau. which came hurry
ing down the West river to Canton with
decks cleared for action, after the
declaration of war. Upon her arrival
in Canton, instead of the usual process
of internment being proceeded with,
the gunboat was sold to two local Ger
man firms for 81, on the understanding
that she was to be returned after the
war. being considered meanwhile as
merchant vessel
Men Conveyed to Tsingtau.
All the men, with the exception of a
petty officer and four seamen, were
hurried of to Tsingtau- In the dead Of
night q large quantity of powder, sup
posedly of some special manufacture,
was sunk in the river, and late the fol-
lowing evening a boat from the gun
boat was taken by the Chinese customs
officers in the act of transferring the
machine guns to the compound of the
German mission. across the river.
Upon the technical charge of unload
ing freight without the proper papers
the gunboat having suddenly become
a merchant vessel, with no proper pa
pers of entry-the Tsingtau was seized
by the customs officer and now lies at
the Chinese naval station at Whampoa,
awaiting the end of the war. when an
odd little question Of procedure can be
taken up.