CAMPHOR MONOPOLY IN FORMOSA.

I inclose a clipping from the Japan Mail of this date, descriptive of the new camphor monopoly established by the Japanese Government in the Island of Formosa.

Regulations were issued by the Formosan Government on the 22d of June. The scale of prices to be paid by the Government for camphor purchased is shown below.

Kelung and Tamsui have been designated ports for the shipment

of camphor.

YOKOHAMA, July 13, 1899.

JOHN F. GOWEY,

Consul-General.

CAMPHOR MONOPOLY OF FORMOSA.

The Government's scheme for a camphor monopoly in Formosa has now been reduced to working form and embodied in a series of regulations. The Government is to receive from manufacturers all the crude camphor and crude-camphor oil produced in the island, the possession, hypothecation, transfer, or export of all other camphor or camphor oil being interdicted, and the ports of export strictly limited. As to the price paid by the authorities to the manufacturers, it is to be fixed by the governor-general. Manufacturers are required to render to the Government every year a report of the anticipated amount of production, and for failure to do so, or for furnishing a false report, the penalty is a fine of from 10 to 100 yen.* Officials connected with the monopoly are to have the right of visiting and inspecting stills and stores, and of enforcing suitable measures of control. The penalty for selling or exporting camphor independently of the Government is heavy, namely, confiscation of the camphor and a fine of from 50 to 500 yen. Adulteration is punishable by a fine of from 10 to 100 yen, and so is the making of a false declaration or neglecting to make the required declaration.

Simultaneously with the issue of the regulations embodying the monopoly

*The value of the yen is 49.8 cents.

416 system, another set of rules relating to the manufacture of camphor were promulgated. They provide that anyone desirous of manufacturing camphor or camphor oil must obtain official permission; that failure to commence the manufacture within the period prescribed in the permit may involve cancellation of the license; that the governor-general shall have competence to suspend a manufacturing business or revoke a license, should such a course seem necessary in the public interest; that a manufacturer forfeiting his license or discontinuing his business shall return to the Government any camphor wood remaining on his hands, suitable compensation being paid to him in the latter case; and that penalties of from 10 to 500 yen shall be imposable for violations of these rules. It is satisfactory to observe, however, that vested interests are respected. The last article of a set of supplementary regulations provides that persons who have received a license to manufacture camphor under the regulations issued in 1895 and 1896 shall be regarded as already possessing the permission indicated in the regulations.

FREIGHT FACILITIES FROM ATLANTIC PORTS TO CHINA.

FREIGHT FACILITIES

FROM ATLANTIC PORTS TO CHINA.

Consul-General Gocdnow, of Shanghai, on July 22, 1899, transmits a letter from a Shanghai firm, taking issue with the statement in an American trade journal that trade is hindered by the lack of transportation facilities between the Atlantic seaboard and China, and that freights are frequently forced to go via Europe, in spite of higher rates, through the action of a combination of steamship companies and shipping brokers. The letter claims that ample facilities now exist for the shipment of cargo from New York to China and Japan via Suez, and quotes rates of freight as varying from 22s. 6d. to 27s. 6d. ($5.46 to $6.68) per ton of 40 cubic feet, against 45s. to 50s. ($10.93 to $12.15), charged by steamship owners from London and Liverpool to same destination. Daily customs returns, it says, show that nine steamers from New York have discharged at Shanghai 21,500 tons measurement of cargo during the six months ended June 30, 1899. Although a considerable portion of the more valuable cargo destined for the Eastern States is shipped via the Pacific coast and railroads, no fancy rates are charged by the Pacific lines, and tea can be shipped to-day via San Francisco and reach New York in about thirty-five days for the equivalent of 40s. ($9.72) per ton of 40 cubic feet; while the rate charged by Suez steamers, occupying sixty to seventy days on the voyage, is 27s. 6d. ($6.68). letter concludes:

We venture to say that during the past three years, no shipments to New York of any importance have been made via Europe. In former years, shippers of tea sometimes used that route in order to have the option of offering their produce in both markets; but as at present the rate to New York via London or Hamburg is 55s. ($13.36) against 26s. 6d. ($6.43) direct, no merchant in his right mind would ship by the indirect route.

MOTOR VEHICLES IN SHANGHAI.

In reply to inquiries from a Chicago firm,* Consul-General Goodnow writes from Shanghai, July 10, 1899:

I would advise that catalogues and dealers' net prices be sent to the following American firms in Shanghai: American Trading Company, Mustard & Co., Dunning & Co., China and Japan Trading Company; Fearon, Daniel & Co.; Wisner & Co., Frazar & Co., and A. W. Danforth. It will probably be found feasible, after correspondence, to make one of these firms an exclusive agent.

This is an ideal place for motor vehicles. The town, built on alluvial deposit in the mouth of the Yangtze River, is level. The roads are macadamized, and the climate is such, especially in the summer, that everybody drives. The horses are small, about the size and character of our Indian ponies. The foreigners are comparatively few (say 5,000 men, women, and children); but there are nearly 500,000 Chinese in the settlements, and these take very kindly to our mechanical inventions as soon as they see them. Shanghai, also, is the distributing point for central and northern China. The merchants from the other treaty ports come here to buy their goods. Arrangements should be made to show vehicles, and to make practical everyday demonstration of their ease of management and durability.

The Chinese will not buy goods without having seen them. The average Chinese has seen so few new things that it is not easy for him to exert his imagination. Foreigners here are also slow to buy motor vehicles. The prices are considered high, and many think of the vehicles as experimental playthings. Neither the foreigners nor the Chinese can be induced to buy by descriptions or catalogues. There have been one or two auto motors shown here, but they were of an inferior type and manifestly unfit for either use or pleasure.

This is the best time to push this trade in Shanghai, as there are no street railways here and the city is growing so rapidly that need is felt for more rapid transit.

One is to

There are two ways to advertise these new vehicles. send a machine to some person well known here, who will use it constantly, demonstrating the fact that it can be used by an amateur for pleasure at a cheap running cost. I am inclined to think myself that this would be the better plan. It must be remembered that the cost of transportation in Shanghai differs from that in Chicago. Here, a carriage with two horses, driver, and footman can be hired for $75

*Advance Sheets have been sent the firm.

Mexican (say, $36 gold) per month. Or if one owns ponies they can be fed for $6 Mexican each per month, and the driver and footman can be hired for $17 Mexican (for the two) per month. It would be necessary, under this plan, to practically give the use of a vehicle to some well-known person who would use the same constantly and keep it in repair. It may be possible that a like result would be reached by placing the vehicles on exhibition with one of the above-named firms; but if it is desired to get a part of the Chinese trade-which is immense and is thoroughly interested in American mechanical inventions—I would strongly urge that one or more machines be shown on the streets here, in such a manner that the Chinese will know that they are used by Americans of a position that will guarantee their desirability as vehicles of use, pleasure, and fashion.

AMERICAN TRADE INTERESTS

IN HONGKONG.

Since the opening of Manila to the markets of the world, the competition for the control of its prospective trade has been growing keener from month to month. As a result of the war, the eyes of the world have been turned towards the Philippine Islands and China. The British chambers of commerce in England early realized that their trade supremacy in the Far East was soon to be contested by the United States. They sent to China Lord Charles Beresford as their representative, who appeared before all the chambers of commerce on this coast and told them plainly that if England wished to maintain her commercial prestige in the Far East her resident merchants must cooperate actively with the English manufactories at home, and the English steamship companies must be prepared to make some little sacrifices for a time, in order to meet the changed conditions brought about by the new competitor in the field. During the tour of this celebrated Englishman, there was a great deal said on political topics, and the "open door" and "sphere of influence" were exhaustively discussed; but I believe that the great benefit to be derived from Lord Charles Beresford's visit will be commercial rather than political, and that the energetic stirring he gave to the lethargic waters of British trade will have a lasting effect. America has also had a commission on this coast, sent out by the Philadelphia Museums, which, while it worked in a quieter way, will be of immense advantage to our exporters. Its representatives made themselves as well acquainted as possible with the complex conditions of Asiatic trade, and returned to America with their minds filled with the needs of this coast and with the general principles which govern trade relations here. If I may

be permitted to make a comparison between the trade operations of the English, Germans, and Americans, I would say that the Americans are less daring and less confident than the other two. The idea of even our largest manufacturers seems to be that they can commence on this coast in a small way and build up with the expectation that their ventures ought to pay from the start. There is only one way for American manufacturers to win their way here, and that is to thoroughly study the market, decide whether their goods are suitable, and then establish a house or agency large enough to command the respect of the great Chinese hongs and the consideration of the English and German firms that have been established here for years.

While I am not a merchant, I have been a student of trade conditions here for nearly nine years, and if I were asked to outline a plan of campaign for an American firm or an association of firms who are willing to spend a little money to test this market, it would be as follows: The firm should send a thoroughly competent business man, a gentleman who could meet gentlemen on an equal footing at clubs and at dinners. He should bring letters that would be received with respect by the heads of the big banks and the firms. A salaried commercial man or an employee would be of little value, as he would not be kindly received by the class of men that it would be to his interest to meet. There are certain requirements of the trade that are peculiar to this coast and to this climate that would require his serious study and attention. I dwelt upon this fact at some length in my annual trade report to the Department, dated October 20, 1898, which should be read in connection with these remarks.* In addition, I will here call attention to a phase of the Chinese trade that does not seem to be thoroughly understood or appreciated. For example, we will admit that the American manufacturer has a class of goods that would be acceptable to the consumer on this coast-possibly it may be piece goods. He persists in shipping it here in lengths and with chops, or trade-marks, that are suitable to American markets. The Chinese merchant refuses to accept such parcels, as they would "cut to waste" in the manufacture of Chinese clothes. The wide-awake American, who should be sent out to study the trade conditions, can adopt a trade-mark, or chop, which would be satisfactory, and further meet local views as to sizes and quantities. I do not mean that the Chinese are always fair in their objections. These are sometimes simply tricks. to depress the market; still they must be met.

After the American firms have decided to enter this market, I would earnestly advise them to establish a big wholesale and retail

*See Commercial Relations, 1898, Volume I, p. 1059.