New Forces in Old China: An Inevitable Awakening

by Arthur Judson Brown

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FOREIGN TRADE AND FOREIGN VICES

THE influences that are thus surging into the Middle Kingdom are tremendous. The beginnings of China's foreign trade date back to the third century, though it was not until comparatively recent years that it grew to large proportions. To-day the leading seaports of China have many great business houses handling vast quantities of European and American goods. The most persistent effort is made to extend commerce with the Chinese. That the effort is successful is shown by the fact that the foreign trade of China increased from 217,183,960 taels in 1888 to 583,547,291 taels in 1904. This shows the enormous gain of 168 per cent., though this is slightly modified by the fact that the report for 1904 includes goods to the value of 402,639 taels carried by Chinese vessels which, though plying between native and foreign ports, were not formerly reported through the customs. According to official reports,[26] the foreign trade of China has been growing rapidly during recent years, the only falling off having been in the Boxer outbreak year 1900. In 1891, the imports into China were, in round numbers, 134,000,000 taels and the exports were 101,000,000, a total of 235,000,000, and an excess of imports of 33 per cent. In 1904 the imports had advanced to 344,060,608 taels and the exports to 239,486,683 taels, a total of 583,547,291 taels, an increase of 148 per cent. and an excess of imports of 44 per cent. In 1899 the total foreign trade of China had reached 460,000,000 taels. The next year it dropped to 370,000,000 taels, but in 1901 it sprang to 438,000,000 taels, and has advanced nearly 150,000,000 taels within the past three years.[27]

[26] ``Returns of Trade for 1904,'' published by the Maritime Customs Department of China.

[27] ``Returns of Trade for 1904,'' published by the Maritime Customs Department of China.

The share of the United States is larger than one might infer from the reports, as no inconsiderable part of our trade goes to China by way of England and Hongkong and is often credited to the British total instead of to ours. American trade has, moreover, rapidly increased since 1900. We now sell more cotton goods to China than to all other countries combined, the exports having increased from $5,195,845 in 1898 to $27,000,000 in 1905.[28] In the year 1904, 63,529,623 gallons of kerosene oil valued at $7,202,110 were shipped from the United States to China. The development of the flour trade has been extraordinary, the sales having risen from $89,305 in 1898 to $5,360,139 in 1904.

[28] Year ending June, 1905.

In Hongkong, I found American flour controlling the market. I learned on inquiry that years before, a firm in Portland, Oregon, had sent an agent to introduce its flour. The rice-eating Chinese did not want it, but the agent stayed, gave away samples, explained its use and pushed his goods so energetically and persistently that after years of labour and the expenditure of tens of thousands of dollars a market was created. Now that firm sells in such enormous quantities that its numerous mills must run day and night to supply the demand, and the annual profits run into six figures. That city of Portland alone exported to Asia, chiefly China, in 1903:— 849,360 barrels flour $2,974,620 522,887 bushels wheat 413,901 46,847,975 feet lumber 647,355 Miscellaneous merchandise 352,879 ———- Total $4,414,651

While cotton goods, kerosene oil and flour are our chief exports to China, there is a growing demand for many other American products. The utility of the American locomotive has become so apparent that in 1899, engines costing $732,212 were sent to China and additional orders are received every few months. With the enormous forests bordering the Pacific Ocean in the states of Oregon and Washington, and with the development of cheap water transportation, there is a rapidly widening market in China for American lumber. Eastern Asia is too densely peopled to have large forests, and those she has are not within easy reach. Native lumber, therefore, is scarce and often small and crooked. That in common use comes from Manchuria and Korea. I was impressed in Tsing-tau to find that the Germans are using Oregon lumber and to be told that it is considered the best, and in the long run, the cheapest. Oregon pine costs more than the Korean and Manchurian, but it is superior in size and quality. The transportation charges to the interior, however, are a heavy addition. Manchurian pine can be delivered at such an interior city as Wei-hsien, via the junk port of Yang-chia-ko and thence by land, for twenty dollars, gold, per thousand square feet, which is considerably less than the Tsing-tau retail price for Asiatic lumber. Oregon lumber costs in Shanghai, thirty-two dollars gold, per thousand, but an importer estimated that it could be delivered at Tsingtau for twenty-five dollars gold per thousand in large quantities.

The exports of the United States to China, according to the reports of Consul-General Goodnow of Shanghai, increased from $11,081,146 in 1900 to $18,175,484 in 1901 and $22,698,282 in 1902, while for 1904 they reached the total of about $24,000,000, a gain of nearly 125 per cent. since 1900 and of several hundred per cent. as compared with 1894.