Evening star., 1932-01-24
Japan's Occupation of Shang-
hal Might Halt Encourage
ing Trade Boom.
STATISTICS SHOW CITY
HAS BEEN PROGRESSING
Building Has Increased and I'm
ports Have Gained Considerably
During Past Year.


Chinese military posts in Shanghai
unless China accedes to its demands
to abolish all anti-Japanese societies
there, may have serious effect on
that city's economic progress, accord
ing to views expressed here yesterday.
Shanghai is about the brightest
business star on the entire Far East
map and for months has maintained
the leading position in China's trade,
according to a cabled report received
by the Commerce Department.
1t pointed out that last years build
ing program was the most extensive in
Shanghai's history. The decline in
silver exchange, according to the re-
port, has proved encouraging to build
ing activities and real estate transac-
tionS and domestic manufacturing were
most active during 1881.
Increase in Imports.
Import trade through the port Of
Shanghai was larger than in previous
years, especially raw cotton, tobacco,
wheat and -four, according to the gov
eminent report. The bulk of these
commodities, a recent survey showed,
was exported from the United States.
The reason for this increase was
chiefly due to price declines that were
lower, compared to declines in silver,
the department explained. Greater
activity in domestic manufacturing also
discouraged imports of goods capable
Of manufacturing in China, and en-
couraged imports of raw materials,
iron and steel and certain industrial
and building equipment.
According to Commercial Attache
Julean Arnold, China, despite its un-
successful military activity in Man
churia and its many upheavals in gov
ernment, has enjoyed an industrial
boom. Considerable expansion was
noted. especially in spinning, weaving
and knitting mills. Many small fac
tories were set up for the manufac-
turing of material in substitution Of
imported articles.
This expansion, however, unfortu-
nately is accompanied by the wholesale
imitation of well known foreign trade
marks, necessitating yigilant protective
action to conserve the trade Of many
established trademarked goods, Arnold
declared.
The commercial attache said that
despite abnormal factors adversely af-
fecting trade, Hankow experienced a
better year in duty paying imports,
while exports showed a small decline.
ports of kerosene oil and cotton goods
from the United States.
Effect Of Boycott.
North China enjoyed a prosperous
agricultural year, with living costs
maintained at normal levels.
Boycott activities became increasingly
effective toward the close of the year,
resulting in the congestion of immense
stocks of unsold Japanese merchandise
in Tientsin warehouses and the diver
sion of trade and shipping to other
channels, Arnold reported.
He said that Hongkong and other
South China centers are experiencing
some noteworthy development in small
manufacturing industries, encouraged
by q low silver exchange and effective
boycott activities. The United States
increased its relative share in Hong
kong trade during 1881.
Meanwhile, the generally optimistic
feeling that conditions would be i'm
proved materially following the impo-
sition of the gold embargo on Decem-
Der 13, has become somewhat tempered
and Japan has started 1882 with indus
trialists and financiers fearing period
of initiation with little permanent bene-
fit, according to a report received by
the department from Commercial At
tache H. A. Butts at Toxic.
Butts added that there exists a feel
ing of uncertainty over the future trend
in exchange.
Foreign trade Of Japan was depressed
throughout 1881, losses becoming quite
severe in the last quarter of the year
as result of the Chinese boycott of
japanese goods, due to the Manchurian
trouble and the cancellation of orders
by countries of deprecated currencies
following the decline Of the pound ster-
ling Butts reported.
Trade Value Lower.
The value of trade, consequently, was
lower than in 1880, but trade volume
increased due almost entirely to larger
exports of raw silk to the United States
and heavier purchases Of cotton by ia
pan.
Butts said the loss in trade with
China and other Far Eastern countries
brought considerable distress to the
shipping industry, losses for 1881 being
estimated at s50,000,000.