During 1901, owing to the Boxer disturbance, large numbers of ships owned by natives were transferred to the British flag. The ostensible decrease in the tonnage of British vessels, which entered and cleared affected ports, was therefore less than that of other nationalities. Similarly, there was a small increase in the duties paid under the British flag during the same period, owing to the valuable character of these cargoes. Under ordinary circumstances, the comparatively small decrease in the British tonnage and the increase of more than fifty thousand taels in the payments made to the Imperial Customs at such a moment of unrest, would suggest the stability of our trading interest, and afford no mean standard by which to judge the capacity of the markets. Unfortunately, the two most important counts in the returns, tonnage and duties, are no criterion. It is necessary to inspect closely the individual values of the different articles comprising the total trade. In this way the general depreciation of our manufactures is at once apparent.
A comparison of the American, Japanese, and German returns shows which are the commercial activities that are threatening our existence as a factor in the markets of the Far East. If, in the returns, we were shown the relations between the duties paid under each flag, and the tonnage of any particular country, besides the source and destination of its cargo, the true condition of British trade would be revealed at a glance. As it is, until a table is added to the Maritime Report, which will supply this valuable and interesting demonstration, the system of a separate examination is alone to be relied upon. By this method we find that between the years 1891 and 1901 there was a consistent falling-off in British exports to the Far East in almost every commodity in which the competition of America, Japan, and Germany was possible. Since 1895, when Japan began to assert herself in the markets of China, those articles which, pre-eminently among the commercial Powers, she can herself supply, have carried everything before them. Ten years ago the British trade in cloths, drills, shirtings, cottons, yarns, and matches had attained magnificent dimensions. In certain particulars, only, our trade was rivalled by the United States of America, whose propinquity gave to them some little advantage in the markets of the Far East. Now, however, the trade has passed altogether into the hands of the Japanese, or is so equally divided between Japan and America, Japan and Germany, that our pristine supremacy has disappeared.
CHAPTER XIII
British, American, Japanese, French, German, and Belgian interests—Railways and mining fictions—Tabled counterfeited Imports
With the exception of Great Britain, the example of the Japanese in Korea has stirred the Western Powers to corresponding activity. Every strange face in Seoul creates a crop of rumours. Until the new-comer proves himself nothing more dangerous than a correspondent, there is quite a flutter in the Ministerial dove-cots. Speculation is rife as to his chance of securing the particular concession after which, of course, it is well known he has come from Europe, Asia, Africa, or America. The first place among the holders of concessions is very evenly divided between Japan and America. If the interests of Japan be placed apart, those of America are certainly the most prominent. Germany and Russia are busily creating opportunities for the development of their relations with the industries of the country; Italy and Belgium have secured a footing; Great Britain is alone in the indifference with which she regards the markets of Korea.
In this chapter I propose to state briefly the exact position occupied in Korea by the manufacturing and industrial interests of foreign countries; adding a specific table, which, I hope, may attract the attention of British manufacturers to the means by which the Japanese houses contrive to meet the demands of the Korean market. The competition of the Japanese has an advantage in the propinquity of their own manufacturing centres; a co-operative movement throughout the Japanese settlements against foreign goods is another factor in their supremacy.
It may, perhaps, afford British manufacturers some small consolation to know that there are still many articles which defy the imitative faculties of the Japanese. These are, mainly, the products of the Manchester market, which have proved themselves superior to anything which can be placed in competition against them. It has been found, for instance, impossible to imitate Manchester dyed goods, nor can Japanese competition affect the popularity of this particular line. Chinese grass-cloths have, however, cut out Victoria lawns fairly on their merits. The Chinese manufacturer, unhampered by any rise in the cost of production and transportation, produces a superior fabric, of more enduring quality, at a lower price. Moreover, in spite of the assumed superiority of American over English locomotives, on the Japanese railways in Korea the rolling stock produced by British manufacturers has maintained its position. It is pleasing to learn that some proportion of the equipment of the old line from Chemulpo to Seoul, and of the new extension to Fusan, have been procured from England. Mr. Bennett, the manager of Messrs. Holme Ringer and Company, the one British house in Korea, with whom the order from the Japanese company was placed, informed me that the steel rails and fish-plates imported would be from Cammel and Company, the wheels and axles from Vickers, and that orders for a number of corrugated iron goods sheds had been placed in Wolverhampton. The locomotives were coming from Sheffield. The Japanese company expressly stipulated that the materials should be of British make; it was only through the extreme dilatoriness of certain British firms in forwarding catalogues and estimates, that an order, covering a large consignment of iron wire, nails, and galvanised steel telegraph wire, was placed in America. This dilatoriness operates with the most fatal effect upon the success of British industries. The Emperor of Korea instructed Mr. Bennett to order forty complete telephones, switch-boards, key-boards, and instruments, all intact. Ericson’s, of Stockholm, despatched triplicate cable quotations, forwarding by express shipment triplicate catalogues and photographs, as well as cases containing models of their different styles, with samples of wet and dry cables. One of the two British firms, to whom the order had been submitted, made no reply. The other, after an interval of two months, dictated a letter of inquiry as to the chemical qualities of the soil, and the character of the climatic influences to which the wires, switch-boards, and instruments would be subjected!
A few years ago a demand arose for cheap needles and fish-hooks. The attention of British manufacturers was drawn to the necessity of supplying a needle which could be bent to the shape of a fish-hook. A German manufacturer got wind of the confidential circular which Mr. Bennett had prepared, and forwarded a large assortment of needles and fish-hooks, the needles meeting the specified requirements. The result of this enterprise was that the German firm skimmed the cream of the market. The English needles were so stiff that they snapped at once; and it is perhaps unnecessary to add that, beyond the few packets opened for the preliminary examination, not one single order for these needles has been taken.
The position which Great Britain fills in Korea is destitute of any great commercial or political significance. Unintelligible inaction characterises British policy there—as elsewhere. Our sole concession is one of very doubtful value, relating to a gold mine at Eun-san. In the latter part of 1900 a company was formed in London, under the style of the British and Korean Corporation, to acquire the Pritchard Morgan Mining Concession from the original syndicate. In the spring of 1901 Mr. E. T. McCarthy took possession of the property on behalf of the new owners. Mr. McCarthy had had considerable experience as a mine manager. The most careful management was necessary to the success of this concern. The expenses of working were extraordinarily heavy, as, owing to the absence of fuel, coal had to be imported from Japan. A coal seam had been located upon the concession, but nothing was then known as to its suitability for steam purposes. It is impossible to consider the undertaking very seriously. All surface work was stopped during my residence in Korea, the operations for the past few months having been confined to underground development and prospecting. There was talk of the instalment of a mill. A vein of pyrrhotine, carrying copper for a width of 13 ft., was regarded with some interest, but in the absence of machinery nothing of much consequence could be done.