No. 219.
Mr. Denby
to Mr. Bayard.
Peking, July 14, 1888. (Received August 29.)
Sir: I have the honor to make the following report on the foreign trade of China for the year 1887:
The value of the foreign trade.—The total value of the foreign trade was 188,123,877 Haikwan taels, as against 164,685,891 for 1886. These figures do not include the value of goods carried coastwise nor goods carried in Chinese junks which are not under the control of the maritime customs.
Customs revenue.—The customs revenue for 1887 was 20,541,399 Haikwan taels, being an increase of 5,396,711 taels. Of this increase, opium lekin accounts for 4,645,842 taels.
Exports.—The total value of the exports for 1887 was 85,860,208 taels, as against 77,206,568 taels in 1886, an increase of 8,653,640 taels.
In spite of the universal wail that went up over the depreciation of tea, the total quantity exported was 2,096,097 piculs in 1887, against 2,217,295 piculs in 1886. In quantity 5 per cent. (120,000 piculs) less left China in 1887 than in 1886. But the assessed value of the export in 1886 was 33,504,820 taels and in 1887, 29,379,838 taels. “It is, there-fore,” says the statistical secretary of the customs “to the depreciation in value, with its likely effect in bringing about a diminished production in years to come, that we must attribute the apprehension entertained for the prosperity of this vast industry.”
The total quantity of white raw-silk exported was 59,589 piculs. In this a quantity, 2,780 piculs, is included, which was exported in junks through the Kowloon and Lappa customs. Deducting this there remains 56,809 piculs, valued at 17,461,367 taels, a quantity almost identical with the export of 1886, but the value is 5 per cent, higher. The same remark applies to other classes of unmanufactured silks. Of brown sugar there was exported 458,268.85 piculs in 1886, against 634,179.12 piculs in 1887, an increase of 175,910.27 piculs.
Of white sugar there was exported in 1886, 128,828.14 piculs, against 113,475.42 in 1887. Of sugar candy there was exported 25,392.97 piculs in 1886, against 19,288,96 piculs in 1887.
[Page 323]Sugar has, therefore, in the main, recovered from the decline of last year.
Next to tea and silk comes straw braid as an article of export. The growth of this trade has been rapid. The exports were as follows: 1883, 58,627 piculs; 1884, 78,168 piculs; 1885, 76,494 piculs; 1886, 82,413 piculs; .1887, 150,952 piculs. The value in 1887 was 3,738,310 taels.
The principal original places of export are Tientsin and Chefoo, the largest exportation being from Tien-tsin. Great complaints have been made by foreign merchants of the bad condition in which this article has been brought to market, but the trade has nevertheless steadily in creased.
Imports.—The total value of the imports of foreign goods was 102,263,669 taels against 87,479,323 taels in 1886, an increase of 14,784,346 taels.
Last year imports show an increase of 6,562.25 piculs in opium, an increase of 7,933,309 pieces, dozens, and piculs of cotton goods. They show also increase in miscellaneous piece goods, in metals, and in sundries. At the nineteen treaty ports the imports of English and American drills fell off from 416,699 pieces and 620,803 pieces, respectively, in 1886, to 288,511 pieces and 464,731 pieces, respectively, in 1887. Cotton lastings rose. Cotton yarn increased from 382,984 piculs in 1886 to 523,114 piculs in 1887.
The import of kerosene was, in 1886, 23,038,101 gallons; in 1887, 12,015,135 gallons, an enormous decrease. The statistical writer says: “As qualifying the vast discrepancy in the figures of the two years I am told that whereas the stock in Shanghai at the end of 1887 was only 5,500,000 gallons, that of 1886 was 10,500,000 gallons.”
We find that the value of the imports from the United States in 1886 was 4,647,333 taels, and in 1887, 3,398,390 taels, a decrease of over 1,000,000. It is probably accounted for by the decrease in petroleum. The exports to the United States were, in 1886, 11,928,404 taels, and in 1887, 11,545,406 taels. The total trade with the United States was 14,677,487 taels in 1886, and 12,314,310 taels in 1887.
Trade of leading foreign countries.—The imports and exports of the leading foreign countries were as follows: Hong-Kong, 89,154,228 Haikwan taels; Great Britain, 42,149,286 Haikwan taels; Europe (Russia excepted), 14,132,954 Haikwan taels; United States, 12,314,310 Haikwan taels; Japan, 7,678,442 Haikwan taels; India, 6,334,945 Haikwan taels; Russia and Siberia, 5,704,281 Haikwan taels.
Shipping statistics.—Of vessels entered and cleared in 1887 the representation of the most important countries was as follows: Great Britain, 15,917; Chinese, 6,402; Chinese junks, 1,996; German, 2,749; Japanese, 409; American, 255; Spanish, 132; French, 121.
The snipping statistics show an increase of 137 vessels, aggregating 443,901 tons, over the year 1886.
Exchange.—The average rate of exchange on London during 1887 was the lowest average of any year on record.
The average value of the Haikwan tael during 1887 was 4s. 10½d., against 5s. 0½d. in 1886. To understand exactly this question of exchange, let it be remembered simply that a person lays down at the bank at Shanghai a tael and inquires how much that will bring him in London. When the answer is 4s. 10½d, instead of 5s. 8½d., as in 1882, it will be seen how trade is affected and how grievously those residents of China suffer who are compelled to send money home to their families. The tael in which they receive their salaries or wages is becoming [Page 324] day by day of less value, and their incomes are proportionately diminished. If, however, all the money earned is spent in China, the depreciation of the tael only remotely affects them. Prices of labor and of articles produced in the country are ordinarily not affected by the de preciation of silver. It is only the foreign value that is depreciated.
It must be said also that the high price of exchange or the low price of silver, as compared with gold, tends to stimulate foreign trade. As there is a great loss on silver converted into gold on London, the foreign merchant increases his exportations that he may get products in London which may be bargained for gold. The import trade is likewise stimulated, because the merchant is induced to bring goods to China which may be exchanged for native products. The low rate of exchange is, therefore, not an unmixed evil. The customs reports for 1887 show a considerable increase of business in spite of dearness, or, as they would say here, lowness of exchange, and in spite of the lugubrious complaints of all classes of merchants, particularly of dealers in tea. The tea market opened this year at higher rates than ever before, which fact is a curious commentary on the alleged ruin which attended the trade last year and which was prophesied this year.
Opium.—The statistical secretary thoroughly explains the new opium regulations. February 1, 1887, the system of collecting duty and lekin on opium, which had formerly appertained to the local officials, was transferred to the imperial maritime customs.
Two new offices of the customs were opened on April 2, at Kowloon (opposite to Hong-Kong) and Lappa (near Macao), to have supervision over the revenue accruing to China but of the commerce carried on in junks between Hong-Kong and Macao, respectively, and the main-land of China.
On June 1, Hong-Kong passed a new ordinance placing the opium trade within the colony under special regulations. These regulations prohibited the unauthorized possession of raw opium in smaller quantities than whole chests, and required retailers to record and account for raw opium taken over to be repacked into small-sized packages. As there are no means of getting raw opium into possession for any improper use the business of opium smuggling practically ceased. Alike law was made for Macao. The tariff being the same in the nineteen treaty ports and in the two new ports of Kowloon and Lappa, and there being no difference in the tariff in favor of opium carried in junks as heretofore, opium is now generally carried by steamer.
The Secretary does not think that opium consumption has increased in China, but for the first time there are accurate statistics. Heretofore large quantities entered China lawfully and unlawfully of which no record was kept.
A preference for native opium is said to have been developed.
The Haikwan tael, in which the customs revenue and all values are stated, is equivalent in English money to 4s. 10½d.; American gold, to $1.20; French, 6.18 francs; German, 4.95 marks; Mexican, $1.54.
The picul is equivalent to 100 catties, or 133½ pounds avoirdupois, or 60,453 kilograms.
The catty is equivalent to 16 taels, or 1½ pounds avoirdupois, or 0.60453 kilograms.
The tael is equivalent to 11/3 ounces avoirdupois or 0.037783 kilograms.
I have, etc.,