Root Resembling Human Body.
American Ginseng, of which large quantities are annually exported to China, is classed, as a rule, with hsiyang, that is, west ocean, foreign or western country Ginseng. The imports of this article at Niuchwang for 1905 amounted in value to $4,612 gold. The exports of Manchurian Ginseng thru Niuchwang to Chinese ports for 1905 aggregated in value $180,199 gold and for 1904, $205,431 gold. Wild Manchuria Ginseng is rare, even in Manchuria, and its estimated valuation ranges at present from $450 to $600 gold a pound.
The total imports of Ginseng into China for 1904 aggregated 277 tons, valued at $932,173.44 and for 1905 to 1,905 tons, valued at $1,460,206.59. The increased valuation of the imports of last year emphasizes the increased price of Ginseng in the Chinese market.
Hsiyang, or American Ginseng, is marketed in China largely thru Hongkong and Shanghai foreign commission houses. Importations of the American product are increasing in bulk with each succeeding year, and the business gives every indication of becoming a very large one in a short time.
In most of the booklets and articles we have seen on Ginseng, the writers quote exorbitant figures as to what the root sells for in China. A good many of them quote from reports received from U. S. Consuls, who, when they give prices, reckon on Mexican dollars which are only about half the value of ours and some of them go so far as to quote retail prices for very small quantities of extra quality root.
Some of the growers and dealers in this country, therefore, imagine that they are not paid what they should be for their stock and that there is an enormous profit for the men who ship to China. Such is an entirely wrong idea and can be best proven by the fact that during the past couple of years three of the leading export houses have gone out of business, owing to there being no money in it. We do not know of any business conducted on as small a percentage profit as Ginseng. Frequently prices paid in this country are in excess of the market in China.
This not only means a direct loss to the exporter on his goods but also the cost of making clean (removing fibres, siftings and stems) shrinkage, insurance and freight. Business is also conducted on different lines from years ago. Then the buyers in China bought readily, prices were lower and more people could afford to use it.
Today, prices are tripled and while the supply is smaller, the demand is very much less and Chinese buyers make the exporters carry it until they really need it, in a good many cases buying root and not taking it for three or four months, and consequently keeping the exporters without their money. The expense of carrying Ginseng is also heavy owing to the high rate of interest, which is 8% and over.
The folly of depending upon U. S. Consul reports is shown in the great difference in the figures which they send. Many of these men have but very little knowledge of business, most of them knowing more about politics. It is not likely that this class of men will spend very much time in investigating a subject of this character.