The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-29
~ CHARLES DENLY,
Wy uNDCS UITN
Former 4. =. C0nsul.(seueral a
SHANGHAI.

ho'sS
IL OF greater Importance than the re.
organization Of her finances. the de.
velopinent Of her export trade and the
placing Of her Government upon "A basis
to enable II 70 meet rs foreign cbliEa.
lions.
According TO the official Chinese re-
turns China In 1913 had All export trade
Of $685. OO. 900 and an import trade Of
s3s5.0o0,oo showing All unfavorablo
trade balance. which IN not a new develop
ut this time "A Chinese national debt In
excess of $500. GOO. 900. necessitating the
annual payments oil account Of interest
Of not less than $25. 900. 900. These pay.
incnts are made to foreign bankers. be-
cause the Chinese Government has not
yet been able to command such CONT
dcnce from It's people as 10 he abio TO
loaf It's loans at home. This adverse
trade balance. which is not IA new devcl-
opment but which has been eoiis on for
many years. places he nation ~ a dis
advantage In meeting the demands Of Its
foreign loans. which show no chance OF
dimunition.
IL is to be noted that China is a silver
currency country. much hampered IN the
commercial development by the constant
f%iuctuation ~ the ratio between silver
and gold. TIL price OF silver. as coin-
pared with gold. has been steadily de-
creasing for a number Of decades.
Need Of Gold standard.
In general u low price Of silver would
encourage exports from "A silver stand
ard country. and therefore might be AN
influence in maintaining a stable trade
balance. When, however. interest ay-
ments on IA considerable debt are to be
mad. in gold the loss through cheap
silver offsets any stimulus II may AFFORD
to the export trade.
China must plan for the time when
she will be able to readjust her currency
upon "A gold basis. only by this method
can she enter into stable relations with
the Western world. To accomplish this.
however. she must accumulate IA gold re-
serve. and the only way to make this
&C umulation would b, by the develop
ment of her export trade, SO AS TO secure
not only higher rates for silver but to
realize a fund which could be converted
into gold and be kept within her borders.
The problem is: How are the Chinese
people to be impressed with the impor-
lance Of such development OF their indus
tries AZ will enable them TO increase
their exportsc 1t IL evident that the
mere Offering Of advice has no effect.
china employs "a number OF ealar'ed
foreign advisers for trade for
tur.. for legislation. for foreign affairs.
and for a variety Of other lines. n she
Is overwhelmed by the voluntary advice
which is constantly being offered to her
by interested aud sometimes disinter-
ested foreigners.
They complain tina she has shown
w to the presen, time 40 inclination 4"
rcsnond 10 the appeal that she has no
real recuenition Of her obligation to for
eign Powers. They sllege that China
fails to realize that the world Is be-
coming too narrow for one nation 10
occupy unproftably "A vast. unde'el-
vped area, shutting up its mineral de-
poslts md the wealth which might arise
from It's agricultural products and from
the industrial activity OF it's u~Ncounted
mass OF laborers.
There is IN fact reason 20 fear that tho
capitalistic and manufacturing countries
Of Europe and America are beginning TO
examine sonew hat uneasily the Chinese
market and to inquire whether the time
liz not at hand to do for China th-se
things which she seems Incapable OF
doing for herself and for throwing her
resources open TO the OF the
world.
Japan May Awaken Chiaa.
II is this consideration which gives
particular import to tho attitude or
Japan toward her sluggish neishbor.
We may not approve Of lapan's demands
nor Of the way III which they are pre-
scented, hut one Canuot suppress the
thought that when ondl.ss friendly suE-
yss,ious to PUT the house N order nave
proyed unavaNing tho impatient de-
mands Of AN aggressive neisnfor may
have a wholesome effect.
In "a certain way China Is not 10 blame
for her apparent apathy. Tho truth ~
thaA she has neither the ready capital
to embark OH plans OF alton deve'-
cpment nor experience sufficient To real
lie how such capital can he raised. Tho
wealth Of China is material. She has
great resources but small credit and her
~.nanriers know little OF paper securi-
ties based on such resources. This rs
the aspect Of China which presents the
greatest attraction 10 the foreign a
cier aware OF the money To he made
DV lltellttfl' - " u.s.
wealth. TIE introduction of modern IA
c~ilit.es, water works, electric lights.
TRANSFORMATION, town sites. &C., PROMISES
great returns 10 the Informed eNploiter.
To the importer also China seems q
land OF promise. Her population. as
sumed to be about t5O.oo0,o0o "on't!-
tutes a vague but powerful lure for The
foreign merchant. whether Jap,nes" or
American. The thought naturally arises,
What aould not be accomplished In "A
market with that many buyers" The
observer is Influenced tn form n ros"a'c
dream Of China's commercial possible
ties by his ideas Of the buying powe- OF
people IN Western countries.
In all other countries the import trade
IL measured as 70 much per capita. For
instance, Canada takes from the United
States goods to the extent ot $50 .Irr
caplta OF her population South America,
SIG: China's purchases from the United
States constitute less tina 90 cents per
anita II this rad could be inrrc lEcd
TO the per capita rate OF even the poorest
country in Europe. We should have "A
staggering increase OF our export ira IL.
Thus does the uniformed reason about
the East.
TIL fact is that mere numbers do not
constitute "A market. The Chinese are
almost inconceivably poor, The vast
majority ~ them work for sue "A pit
lance that n they gave their entire earn-
ings for foreign purchases no gr'a at
market could be created.
Ru.crs Less Than = Per Cent.
In a. review of Japan's financial con-
dition, published IN an American poi
cdicuI In the summer of 1919. the state