|
Our
party then broke up, some going to Europe via the Suez, while others
went to Manila and Shanghai, where we were to meet later. Mrs. Dollar
and I went directly to Shanghai where we visited for ten days, and were
tendered dinners and luncheons daily, the most notable being at the
residence of Choa Chu Kuan, at which were present not only the ladies of
his family, but other ladies, which was contrary to custom but which we
thoroughly enjoyed. Among the men present, were the President of Kiangsu
Provincial Assembly, the Governor of Mukden, Manchuria, and other
Chinese notables. We had met the President of the Assembly at Nanking,
and although our conversation was carried on through an interpreter. we
had an interesting discussion on constitutional government—the all
important subject before them at the present time They are all very
anxious to learn from us all we know about the various branches of the
legislature. To some extent they are in the dark as to exactly what they
will ultimately do. They are working out the rules for both the Assembly
and the Senate, but the exact relationship between them has not been
determined.
But a
much more important subject, on which there are various opinions, is the
exact relationship between the Emperor and the Senate and the Grand
Councilors. A great many holding high positions will have to step down
and out, to make room for the constitutional government, as when it is
in complete working order, the day of officialdom is over. That is, the
official as he is at present and only understood by the Chinese
themselves. And I am free to say I cannot understand why so many are
employed and what many of them do to earn their money. In most cases.
the
salaries they get are inadequate, and the balance that they require they
have to make up on the outside. The feeling between officials and
merchants is not very friendly, and I can see the breach has been
widened very much of late.
I
ENTERTAIN MERCHANTS OF SHANGHAI
Two
days before leaving Shanghai I gave a banquet at the Palace Hotel to
twenty-four of the principal merchants of Shanghai and other cities. One
of the guests in a speech said there had never been such a party in
China before. The Presidents of the following Chinese Chambers of
Commerce were present: Shangha- Canton, Hankow and Tientsin, the four
largest commercial cities, and three others were represented by their
Vice-Presidents. The distance between the cities farthest apart, that
were represented, was two thousand miles, and they had never been united
thus before. At this banquet they decided to form a Consolidated or
United Chamber of Commerce, so that all of them could act through a
central organization in Shanghai. So, if our visit has done no more than
to accomplish this, we are well repaid. This is the first and most
significant move towards a United China. I made a short address, to
which H. E. Chou replied and which was interpreted by Mr. Chu A Chi. He
said, words failed him to tell me how much they appreciated my visit at
this time, knowing that I had not long returned home. This visit
necessitated Mrs. Dollar and myself coming to China twice in one year,
traveling twenty-eight thousand miles to do it, and that I had consented
to leave my business and home comforts at their written and cabled
requests. He assured me of their high appreciation for what I had done
to promote friendly relations between
America and China. All of which they would not forget.
My
address is below.
On
behalf of the Commercial Commission, it gives me great pleasure to
welcome here tonight such a representative body of merchants from so
many different provinces—from Chili in the north to Kwang Tung in the
south. It is a great satisfaction to me and it must be to you, to know
of
A TYPICAL VILLAGE STREET
SCENE IN NORTHERN SHANTUNG
the
great success of our visit. I see, that in the Japanese papers, it is
now admitted that our visit has greatly increased the friendship between
the two nations. But what we will discuss at the meeting next Friday
will be the final means to increase the trade between our countries. 1
wish to call your special attention to the reciprocal aspect of the
case; for our trade relations to be lasting we must have free exchange
of commodities. We must buy your products and you must buy ours. From a
shipping or transportation point of view, it comes more forcibly home to
us that, if we come to this country and load our ships with your freight
and you do not buy sufficient from us and we, have to bring our ships
from America empty, then we must charge you almost double freight, so
you will see that you are as much interested as ourselves in furnishing
cargoes both ways. The following will help our commercial relations:
1.
The loaning of American money to your government.
2. The formation of a bank as proposed.
3. The establishment of exhibits in both countries with a competent man
in charge.
4. The establishment of your merchant marine in foreign trade.
All
those things will help, but the most essential is for your merchants and
ours to visit each other's country and get acquainted and study each
other's wants, and in no way can this trade be developed as by the
individual efforts and energy which is essential to the development of
commercial relations.
Immigration. I did not intend to mention this subject, but as my friend,
the President of the Canton Chamber of Commerce. His Excellency Chang
Pat Sze, Assistant Minister of Commerce, has brought it up, I must
reply. Rut I cannot say more than I said in my address, which was
published in all the Chinese papers. I can assure you, however, that no
bona fide merchant will have trouble in
landing in America.
I ask
you to drink a toast, which at this time I consider appropriate, as I am
addressing gentlemen from all parts of China—"A
United China."
On
November nth, as arranged, our party arrived from Manila. 1 called our
meeting together and asked Mr Moore to preside, with His Excellency
Chang of Canton to act as joint Chairman with him. This was a fortunate
stroke as Mr Chang is a very distinguished man, comes from Kwang Tung
Province in the extreme south, and is very popular with the Chinesej
also on account of the immigration troubles. This made the meeting a
success as it created enthusiasm 1 outlined the various subjects that
during the past week 1 had discussed from time to time at various
meetings, at which His Excellency Shen Tun Ho was the moving spirit, He
has been most energetic.
The
subjects for discussion were:
1.
Bank: one-half Chinese capital and one-half American.
2.
Exhibits in China and America.
3.
Exposition
4.
Reciprocity.
5.
Merchants of both countries to visit each other.
6.
Building a steamer: one half capital from each country.
7.
Uniting the Chambers of Commerce of China.
The
Shanghai Secretary, Chu Li Chi, read the report of the committee,
composed of different Chambers, which is below. As to the first
paragraph, half of the capital of three million taels was subscribed by
the Chinese and our committee on banks agreed to submit, a report to the
bankers on our side. The second paragraph was approved, and w ill be
submitted to our Associated Chambers of Commerce at the January meeting.
Questions to be brought up for discussion at the conference :
1. Banking Corporation
Scheme. To start an American-Chinese Banking
Corporation with a capita) of say ten million Shanghai taels or Mexican
dollars, one-half to be subscribed by Americans, and the balance by
Chinese, and to be registered at Washington and Peking under American
ordinances, with its head office in the most desirable port on the
Pacific Coast. This said bank, besides doing its regular business in
ordinary mercantile loans against delivery orders, can also be the
agency of the Chinese Government loans for the construction of railways,
organization of industrial enterprises, and the development of
resources. It may also extend its business m the nature of a loan and
trust company if the circumstances warrant. As China at
present needs capital for developing her resources, and the rate of
interest is higher in the Orient than in the Occident, and also owing to
our system of government and the uncertainty of their banking laws, the
wealthy Chinese and high officials would rather entrust their deposits
with the foreign registered bank than with one purely Chinese. In view
of these points there are enormous possibilities of profit to start such
a bank, with no possibility of loss ;n the hands of honest
experts. The matter, however, will be more fully discussed at the
meeting.
2.
Establishment of
Exhibition Halls. With a view to promoting
trade between America and China, it is desirable that the American
Chambers of Commerce provide halls (at such ports along the Pacific
Coast convenient for import from China) for the exhibition of Chinese
products, to be sent from time to time by the Chinese Chambers of
Commerce if they think it expedient. The said halls,
under the supervision and assistance of the
American Chamber, to be managed by an English-speaking Chinese whose
duty is to give information and answer any questions regarding the
products. He is also to correspond and report about the business
conditions and markets, from time to time, between America and China, so
as to keep the Chambers of Commerce of the two nations in close touch
and well advised. On the other hand, the Chinese Chambers of Commerce
will also provide a similar hall, say at Shanghai, to be governed and
managed exactly in the same manner, for the disposal of the goods sent
by the American Chambers of Commerce.
3.
Appointment of
Commercial Delegates and Canvassing Agencies.
For the furtherance of trade between America and China, it is advisable
to mutually send commercial delegates as canvassing agencies for the two
countries. The American delegate will stay in China with headquarters,
say at Shanghai, and the Chinese Chamber of Commerce will undertake to
provide him an English-speaking assistant, an office and also letters of
introduction. His business is to travel with samples of American
products from port to port, for advertising ami securing orders from
industrial merchants. The Chinese delegate will stay in America with his
headquarters at the most desirable port along the Pacific Coast, and he
will do in the same way and be treated in like manner by the American
Chambers of Commerce.
These
are practical suggestions which can be carried out economically with
great success. We hope that the American Commissioners wil1
give them their favorable consideration and take prompt action.
Reciprocity was discussed, and it was made very plain to all that each
country must buy from the other. To prosper, trade cannot be one sided.
With the above object in view, merchants must visit each other's country
and get acquainted so that trade may be increased.
The
building of a freight steamer to fly the Chinese flag, for which
one-half the capital should come from China and half from America, will
be taken up by the Chambers of Commerce with the Minister of Commerce,
to see what the laws are, and with the Minister of Communication to see
if the grand
''chop" would be rebated.
Mr.
K. P. ('hew, on behalf of the Exposition, spoke as follows:
When
the Commissioners were in Nanking last month, this subject was roughly
discussed and met with genera! approval among the merchants as well as
the representatives of the Exhibitors' Association. Later on, the
subject was again brought before the public by His Excellency Sheng Tang
Ho. His articles ;n the local press at Shanghai and other
ports have not only drawn the people's attention, but created interest
throughout the Empire. It is now universally recognized that an
institution of this kind properly managed would go a long way to promote
the commercial relations of the two countries.
The
visit of the members of the Associated Chambers of Commerce of the
Pacific Coast to China is an epoch-making event n the history of
commerce. Through their visits to our cities, they have gathered
whatever facts that are necessary for their purposes. ()n the other
hand, our merchants have, through their personal contact, acquired also
valuable information from them. It is a mutual proposition, but it lacks
a permanent character The International Commercial Museum would maintain
not only what has been accomplished, but it would gather further
information about the market and serve as a medium to promote commerce.
The
scope of the institution must be broad. Several museums must be
established in China and in the Pacific ports. In the museums there
should be a complete exhibition of product, system of manufacture,
method of transportation, etc. There should be a Bureau of Information
where general information and specific information can be obtained by
the merchants, as well as by the interested parties. There should be in
each country, and in the respective languages, a newspaper as the origin
for the development of American Chinese commerce.
The
organization for administration of the museums should also be
international. There should be a central board, whose members should be
composed half of representatives of American Chambers of Commerce, and
half of Chinese. By such organization, uniformity may be obtained.
Luncheon was served in the same room -n which we w ere having our
meeting, but we were so busy with speeches and business we did not have
time to finish and had to hurry, arriving on board the ship that was
lying at Woosung ready to receive us, at the exact time she was
scheduled to sail The Chinese came in a body to wish us
ban voyage. Every one, Chinese aud American,
was delighted with the great success of our visit from which we hope for
great results
GENERAL REPORT OF COMMITTEE ON TRADE AND COMMERCE
We
find that the imports into China for 1008 were $248,538,000; for 1909,
$263,666,000: an increase of six per cent, or $15,128,000. Of these
amounts, imports from America were, for 1908, $25,984,000; for 1909,
$20,541,000; a decrease of twenty-one per cent, or $5,443,000. Exports
to America for 1908 were $15,009,000; for 1909, $20,440,000; an increase
of thirty-six per cent, or $5,431,000. In other words, our sales to
China have decreased twenty-one per cent, but our purchases from China
have increased thirty-six per cent.
Our
sales to China in 1905 were forty eight and a half million dollars,
while last year they were only twenty and a half million dollars, a
decrease of about one hundred and forty per cent; which illustrates the
old saying, ''that trade follows the dag," as American ships last year
only carried n>ne-tenths of one per cent of the commerce of China.
These
figures bring out very forcibly the fact that we are buying more from
China than they buy from us; and, while the trade is increasing with
other nations, their purchases from us are rapidly decreasing. The
question which has occupied the minds of the Commission is how this
state of affairs can be changed. The conclusion we have come to is: For
our merchants and manufacturers to send their best men to China to work
up trade, or better still, for the print 'pals of the firms to go and
make a personal investigation first, taking plenty of time, to
thoroughly understand the conditions, then, if they decide that a
profitable trade can be carried on. send the best men they have to work
it up We cannot too strongly recommend this, as the possibilities are
unlimited.
Please keep in mind that :ti going to China you are going to
over one-quarter of the inhabitants of the world, and as they are just
changing from the old to the new way of doing things, now is the
opportune time. Other nations appreciate this far more than we do. For
instance: France, Germany and Japan each subsidize a line of steamers
flying their flags to engage in the coastwise trade between the Chinese
cities of Shanghai and Hankow, not to speak of the subsidies they all
pay for a direct mail service from their countries to China. That is how
much they value the trade of China. The United States takes no interest
in this trade, as to get a letter to or from China it has to pass
through three Japanese ports; and the deplorable fact is, that, in the
early days of the navigation of the Yangtsze River, Americans had all
the trade, as all the steamers on the river were under the American
flag; now there is not an American-owned steamer on the river.
To
some of you the name of this river and our former prestige on it may not
appear important, but when we say to you that one-sixth of the human
race lives on this river and its tributaries, we hope you will see its
importance as we have by personal examination. As to whether the trade
is of sufficient importance to go after, we would call to your attention
that no country in the past ten years has progressed as China has, and
it is difficult to keep informed of the rapid changes that are taking
place. Fifteen years ago they had ten miles of railroad, now they have
six thousand miles; in 1908, the postoffice handled twenty-two and a
half million pieces of mail, while in 19x4 it handled five hundred and
forty-nine million pieces; China has adopted a constitutional form of
government, our style of education, and reforms too numerous to specify
here. The postoffice and the railroads are about the best barometers of
trade, so the above figures are significant. Another example of the
rapid development: Three years ago soya beans had never been exported to
Europe; this year they expect to export one and a quarter million tons,
valued at thirty-seven millions of dollars. Sessimum seed was unknown
five years ago; this year Hankow will export over two hundred thousand
tons of this valuable grain, bringing into the country over twelve
million dollars. None of these products went to the United States.
From
our observations on tins trip, we cannot overlook the important part
missions have played in the development of trade in China. Unless they
had pioneered and opened the way, the foreign trade would be a very
negligible quantity. In this connection the thousands of Chinese young
men who received their education in mission schools—many of them that we
met occupying high places in Government and commercial positions—bear
testimony to the great amount of trade and commerce.
In
view of the foregoing we make the following recommendations:
First—It will only be by the individual, personal efforts of our
merchants that we will get our fair share of the commerce of the
Pacific.
Second—We respectfully demand of our Government a change in our
navigation laws and inspection regulations, so as to permit us to use
American ships in the development of this great trade, as. without
ships, our commercial development is hopeless. If the Government will
not assist, then the least it can do is not to hinder nor prevent us
front getting our fair share of the trade, but, encourage rather than
discourage us.
Third—Further, we would endorse and recommend our Government's policy of
the Open Door and the integrity of China, as essential to our best
interests and the development of our commercial relations. |
