The sun., 1919-07-23
|CHINA'S WEALTH
MUST Be HAULED
Internal Transportation Sys-
tenn Wholly Inadequate to
Coming Demands.
NEEDS AMERICAN AID
Trade on Great Scale Impossi.
BILE Until Railroad Facili-
ties Are Prerided.
By r, n, ELDRIDGE,

Chief Far Eastern DIVISION, Burcuu ol
Foreign and Domestic Commerce.
Recent observation of the trend OF
events in China points to a more de-
veloped conception Of the new obliga-
lions which changing Ideals In the West
have thrust forward for consideration.
The pre-war foreign trade Of China has
been never, to any degree comparable
with the resources or population OF the
great Oriental republic, and the funda-
mental cause of this was lack Of inter-
nal development.
China has practically never had
chance to develop, and whether this cir
cumstance was due to foreign Interior
ence or native reluctance is beside the
point. The issue that must now be
faced Is that a world woefully bereft
of raw materials must turn very soon
to China and that present Chinese pro-
duction must be 80 multiplied and made
50 accessible that world shortage re-
sulting from the ravages Of war can
be met with very little economic read
justment. On the other hand the goods
that China has demanded of the West
will consequently tend to increase In
volume as the wealth of China and the
purchasing power OF the Chinese ts aug
mented.
Viewed from the standpoint Just sug-
| gested the business we have done and
are doing with China is actually in
significant, and the important thing Is
| to look forward to and plan intelligently
for the much greater volume of trade
which such provision will create. There
are several we'll defined lines of pre-
paratory activity which can only tend
Av-Ns
American business man Of broad vision
should be thoroughly familiar with
them. Perhaps the foremost is trans
portation In all its phases.
| We may create a strong merchant
marine. establish regular sailngs to
Chinese ports and still our greatest hope
would be to appropriate from some other
nation only a share of the limited trade
which comes and goes to and from these
ports and the interior. Our interest in
China's inland transportation problem
cannot, therefore, be academic, because
this problem moro than any other d.
lrectly affects our commerce. But in
addition to this our interest will become
more and more necessary when plans
for extending China's transportation IA
lcilities mature. inasmuch as It Is the
United States that China must ulti-
mately look for the necessary finances.
Broad Policy Demanded.
1t Is, therefore, within our power to
develop immense markets for our goods.
| create new sources OF raw material and
automatically reap the benefits which
the war has taught US are bound to &C
crue from financing foreign operations
on a large scale. That these operations
are constructive rather than destructive
only adds to the attractiveness OF the
proposition. In making a dozen blades
of grass grow In China where before
one had difficulty in keeping alive. and
was then eagerly sought for by many,
cooperative action will increase the
share OF China's foreign trade which
each may have UNNECESSARILY and benefit
China to a like degree. The day of the
narrow. grasping policy in China Is
over. and until this is universally realized
nothing of really great moment to the
world can be accomplished.
That such things could not have been
hoped for under the old regime in Europe
Is. of course, readily understood. and
the chaotic conditions in China in the
past have been largely magnified re-
Elections of a state of affairs in the
| West that proved itself finally intoler-
able. When 1t is realized that Rus
sian influence in China Is no longer of
consequence, that German-Austrial
power is gone and tish-French- Amer
lean aims are unified. the Chinese pug
ale becomes much simpler. The trouble
In China In the past has been lack
of unity in adm. Once the aim Is de-
cided upon the accomplishment is COM
paratively simple. but when several sets
Of interests are working at random with
no understanding or common aim. the
results are always likely to be exactly
the same as those We have witnessed
in China.
There is no adequate description OF
the new conditions which unified action
would bring about in China. All that
is possible Is to realize the effects that
adequate transportation. reformed cur
rency, the abolition of ''likin" or inland
barrier taxes. development of mineral
resources. improved methods Of silk and
tea culture, and innumerable other re-
forms quite possible of accomplishment
would produce. The purchasing power
of these four hundred million people
is now at the lowest possible point
The amount of per capita foreign trade
is only $3.50 for China. compared with
Japan's SIS, and the United States $S5
and Australias $3.50. Under such cir
cumstances the effect on the total trade
due to raising the individual purchasing
power by a few dollars would be enor-
nous and would be shared by all In q
position to participate.
Chinn's Enormous Resources.
Not the least promising feature OF
the Chinese outlook Is the fact that
China does possess enormous resources
which need only the application Of capt.
tai either for their development or &c
make them accessible. This means that
once such development is started Chinese
raw materials will be more than suf.
ncient to pay for China's imports OF
manufactured goods and no difficulties
: in immediate payment will be met. II
. this respect the Chinese market offer;
some unique advantages over the Euro
pean market and such artificial bar
riers as protective tariffs and import
! restrictions are unknown.
We have. therefore, come to a poin
! in our relations with China where W,
must decide to act constructively anC
with foresight or step aside and allow
others with clearer vision to gIasI
the opportunities which are now offered
us. The manufacturer who invests II
: Chinese bonds for interior transporta
ton Is merely providing a means o
} getting his goods to the consumer at &
/ lower cost and consequently In greatel
/ abundance. Anticipated methods of trans
portation In China are the most cost.
} IN the world and the effect upon tn,
> ultimate sales Is almost prohibitive. NJ
? merchant would hesitate TO buy a moto
/ truck II II could be proved to him tina
his delivery cost would be SO reduced
that his business would be doubled
| thereby When we buy Chinese railroa,