Up To Date Business Part 9

At present the foreign trade of China is largely in the hands of the English. In the year 1896 the foreign export trade of China amounted to $167,000,000. Of this amount $132,500,000 was with Great Britain and her dependencies; $10,000,000 with the United States; something over $8,000,000 with the continent of Europe exclusive of Russia, and less than $2,000,000 with Russia. In the same year the foreign import trade of China was $102,500,000, of which $56,000,000 was with Great Britain and her dependencies; a little over $9,000,000 with the United States; $15,000,000 with the continent of Europe exclusive of Russia, and $12,500,000 with Russia. (The rest of her trade was princ.i.p.ally with j.a.pan.) The policy of the government of China has always been to prevent or restrict foreign trade; and even to-day foreign trade can be carried on in only twenty-six Chinese ports--the so-called "TREATY PORTS." The policy of Great Britain has been to secure by treaty as large a privilege of trading with China as possible; then to throw open the privilege to the world, but to follow it up with such commercial activity on her own part as would secure to her the lion's share of the resulting trade. Of the twenty-six ports now by treaty open to the world for trade, twenty-three have been secured by Great Britain and three by j.a.pan.

CHINA'S EXPORTS, IMPORTS, AND RESOURCES

China's princ.i.p.al exports are TEA and SILK, tea const.i.tuting about one third and silk (princ.i.p.ally raw silk) fully one half of her total export trade. Other princ.i.p.al exports are sugar, STRAW BRAID (one twentieth of her total exportation), hides, paper, chinaware, and pottery. Her princ.i.p.al imports are OPIUM and COTTON GOODS, opium const.i.tuting a fifth, and cotton goods considerably more than a half, of her total import trade. Other princ.i.p.al imports are woollen goods, metal goods and machinery, coal, and kerosene oil. A considerable importation is also made of raw cotton. But if China only had the blessing of an enlightened and progressive government this disposition of exports and imports would not long continue. China's resources of COAL are among the finest and certainly among the largest in the whole world. Her coal-fields, indeed, are estimated to be twenty times as great as those of all Europe combined. Much of this coal, too, is of the purest quality, and much of it very accessible to the miner. And near her coal-fields are vast deposits of some of the richest IRON ORES in the world. Again, a great portion of the soil of China is extremely fertile. There are indeed two regions, one of "RED SOIL" and another, much vaster, of "YELLOW SOIL," that are among the most fertile in the world. It is because of the extent and fertility of the yellow soil of China that "yellow" is the imperial colour, and the emperor called the "yellow lord." The climate, too, of China permits almost the whole range of useful vegetable products to be raised. The growth of COTTON is already very great, because for seven centuries cotton has been the staple cloth for the clothing of the people. And already it is being manufactured by modern machinery. But both the growth of cotton and its manufacture by modern methods would be enormously increased if only facilities for internal transportation existed, and freedom from unjust taxation could be secured. If, in short, China only had railways and a good and enlightened system of government her progress and prosperity would soon make the Western world envious. But her government is not only stupidly unprogressive, it is also disastrously wasteful. About seventy per cent. of the whole revenue of the country is lost to the public use through the malfeasance of officials. And only about 85 miles of railway have as yet been opened, although it must be said that 200 or 250 miles more are under construction.

POSSIBILITIES OF INCREASED FOREIGN TRADE WITH CHINA

There are, however, even now several ways in which foreign trade with China may be increased. Two of these are the supplying her people with WOOLLEN GOODS, and the supplying them with WHEAT and FLOUR. The winters of a great part of China are so cool that warm garments are necessary. At present these are made princ.i.p.ally of padded cotton.

Owing to the density of the population pasturage is scarce, and sheep are almost unknown. For an indefinite time, therefore, there will be a demand for woollen goods in China, a demand that will constantly increase as the superior convenience of woollen garments over garments of padded cotton becomes more and more known to the people. And though rice is now the staple food of the people even of all cla.s.ses, the wealthy cla.s.ses are fond of wheat bread and obtain it when possible.

But the agriculture of the country does not permit of the profitable growth of wheat and flour, and wheat if used must be imported.

THE PRINc.i.p.aL TRADING CITIES OF CHINA

The cities of China are large and numerous. PEKING (1,500,000?), the capital, is not open to foreign trade. In fact, it has no trade of any sort, and derives its whole importance from being the seat of government. But TIENTSIN (750,000), the port of Peking, and an important "treaty port," has a large trade, both foreign and local.

Tientsin and Peking are connected by rail, and since the Russian government has obtained the right of connecting Peking with the Trans-Siberian Railway, it is more than likely that in time Tientsin will become a terminus of that railway. Of "treaty ports" other than Tientsin the princ.i.p.al are Shanghai, Hankow, Foochow, Hangchow, Amoy, and Canton. SHANGHAI (405,000) exceeds all other ports of China put together in the amount of its foreign trade. Its foreign trade is, indeed, almost three fifths of that of the whole empire. And of the total number of foreigners residing in China (in 1896 said to be 10,855, of whom 4362 were British subjects and 1439 Americans) about one half reside in Shanghai. Shanghai is, indeed, the New York of China, and if railways were only built from it (as has been proposed) to the capital, Peking, and up the Yang-tse-kiang to Hankow, and by way of the coast cities to Canton, China would begin a new era in her career. HANKOW (800,000), on the Yang-tse-kiang, about 700 miles from its mouth, is the chief emporium of the tea-producing area of China. Ocean-going steams.h.i.+ps ascend the river to Hankow for their cargoes. FOOCHOW (650,900) also has a great tea export trade. HANGCHOW (700,000), one of the most beautiful cities in China, is also the chief city for the manufacture of silks, and of gold and silver ware, lacquered ware, and fans. AMOY (100,000) has the best harbour in China and an immense import trade, ranking in that respect next after Shanghai. CANTON (2,000,000?) is the largest city in the Chinese Empire. A considerable portion of its inhabitants live in boats. Of these "house-boats" there are said to be 40,000. The foreign trade of Canton is next to that of Shanghai. Once it was superior, now it is much inferior. Its manufactures, however, are still important and include silk, cotton, gla.s.s, porcelain, paper, sugar, lacquered ware, and ivory goods and metal goods. NANKING (150,000), once the capital of China and once the largest city in the world, is now comparatively a small city. Although a treaty port, its commerce is not important.

It was once famous for its beautiful tower of porcelain, 200 feet high, but that is now destroyed. There are many other large cities in China.

[Ill.u.s.tration: China and its chief trade centres.]

HONGKONG

HONGKONG (245,000) is a small island belonging to Great Britain situated in the mouth of the Canton River, seventy-five miles from the city of Canton. Its population is made up princ.i.p.ally of Chinese, who have been attracted there by its trade privileges. The British population is only 13,000, even including the garrison of 2800. Almost the whole population reside in the capital, VICTORIA, for the island itself is a barren rock. Forty-four per cent. of the total foreign trade of China pa.s.ses through Hongkong. Its harbour is one of the finest in the world. It has magnificent docks. Its port is entirely free, and there is even no custom-house. It is calculated that the foreign trade transacted by its merchants amounts to $100,000,000 a year, exclusive of what pa.s.ses through its port without breaking bulk.

The whole of the vast export trade of China in silk and tea is largely handled by Hongkong firms. Other commodities of which Hongkong is the chief trade centre for China are opium, flour, salt, earthenware, oil, cotton, and cotton goods and woollen goods, which it imports from other countries and exports to China; and sugar, rice, amber, sandal-wood, ivory, and betel, which it imports from China and exports to other countries. Its trade is not confined to Great Britain, but includes France, Germany, the United States, and all other trading nations. But of course Great Britain has the greatest share.

VIII. THE TRADE FEATURES OF j.a.pAN

j.a.pAN THE GREAT BRITAIN OF ASIA

j.a.pan consists of a group of islands situated to the east of the continent of Asia, somewhat as the British Isles are situated to the west of the continent of Europe. But the j.a.pan islands are of volcanic origin and are very numerous. There are said to be 4223 of them.

However, there are only four that are of important size, and it is these that are usually thought of when j.a.pan is spoken of. The area of these four islands is 147,655 miles, which is almost a fourth more than that of Great Britain and Ireland. The population (census of 1895) is 42,270,620, which is 4,000,000 more than that of Great Britain and Ireland. The population per square mile is 286, which, though large, is not quite so large as that of Great Britain. If, however, we do not take into consideration the northern island (Yezo), which is still partly inhabited by uncivilised aborigines, the population per square mile is 375, which is considerably in excess of that of both China and Great Britain and Ireland, though still considerably less than that of England alone. The above statistics do not include the island of Formosa (area 13,500 miles, population almost 2,000,000), which was transferred from China to j.a.pan in 1895, at the close of the late Chino-j.a.panese war.

j.a.pAN'S WONDERFUL TRANSFORMATION

The significant thing about j.a.pan is the rapidity with which it has become transformed from a semi-civilised nation into one of the great nations of the modern world. Until the year 1868 j.a.pan was an unprogressive, unenlightened country of the usual Asiatic type, scarcely differing in any way from an inland province of China of to-day. In that year a revolution took place which put the whole power of the empire into the hands of the present Mikado, or Emperor.

Immediately j.a.pan began to a.s.similate Western ideas of civilisation and to adopt Western methods of trade, commerce, manufacture, government, and education. Until 1889 the government remained an absolute monarchy. In that year the Mikado voluntarily promulgated a const.i.tution by which a legislative Parliament, or "Imperial Diet,"

and an executive Cabinet of State Ministers were inst.i.tuted, so that the government of j.a.pan is now as "const.i.tutional" as that of Germany or Great Britain. The government is in other ways thoroughly modern.

Education, for example, is almost as well looked after as in Germany or New England. There are 220 kindergartens established, 97 technical schools, and 49 normal schools for the training of teachers (one being for the training of high-school teachers), besides elementary schools, middle schools, high schools, special schools (1263 of these), and universities. The University of Tokio is an imperial inst.i.tution, supported entirely by the government, with colleges in law, science, medicine, literature, engineering, and agriculture. Education, between the ages of six and fourteen, is compulsory. The army, too, is wholly a modern affair. It consists of 285,000 men, and an idea of its modernness may be gathered from the fact that an important part of its organisation is its training schools and colleges. Even the non-commissioned officers are specially trained and educated.

Altogether the students in the military schools and colleges of j.a.pan number 2400. The navy, too, as is well known, is both modern and efficient. It consists of 5 battles.h.i.+ps and 15 high-cla.s.s cruisers, besides 46 other vessels,--torpedo craft, gunboats, convoy s.h.i.+ps, etc.,--and it is intended to build an immense fleet of 19 battles.h.i.+ps and cruisers, and 100 torpedo craft in addition.

j.a.pAN'S AGRICULTURE

j.a.pan being of volcanic origin, much of its soil is unfit for cultivation. The total productive area amounts to less than thirty per cent., and even of this only a small portion is capable of being tilled by modern methods. At present only twelve per cent. of the whole surface of the country is devoted to agriculture, even including pasturing. There is, however, but little pasturing, and the princ.i.p.al implement of cultivation is the spade. The modern plough is unknown.

But manure (princ.i.p.ally domestic manure and fish refuse) is very generously used, and by this means the returns are abundant. The princ.i.p.al food crop is RICE. Other food crops are wheat, barley, and the soya bean, but these not numerously so. The princ.i.p.al cultivated products for purposes of commerce are the mulberry tree (for supporting the silkworm), the tea plant, the lacquer tree, and the camphor tree. Rice also is grown for export as well as for home consumption, and COTTON is very largely grown for home manufacture. No milk, b.u.t.ter, or cheese is produced, scarcely any meat, no wood, and scarcely any leather. (For boots and shoes paper is used instead of leather.) Of cattle there are only 1,000,000, as compared with 10,000,000 in the British Isles, although the population of j.a.pan is considerably the greater. Of horses there are 1,500,000, and the raising of horses is much encouraged by the government, but princ.i.p.ally for military purposes. Horses, indeed, are but little employed. In cities, for purposes of carriage and cartage, men are used instead of horses. Even in rural districts horses are unknown for farming purposes, and not even the hand-cart or wheelbarrow is used.

Everything is carried. Fruit is much raised,--oranges, apples, walnuts, plums, peaches, and grapes,--but j.a.panese fruits are of very inferior quality. FLOWERS are raised everywhere in great variety and in great abundance, and the chrysanthemum is the emblem of the country and is used on postage stamps.

j.a.pAN'S MANUFACTURES: THEIR FUTURE POSSIBILITIES

The future of j.a.pan depends upon its MANUFACTURES, but these also are not without their difficulties. The mineral wealth of the country is very great, princ.i.p.ally in COAL and IRON. On the northern island alone (Yezo) the coal deposits are two thirds those of all Great Britain.

Unfortunately, however, owing to the mountainous character of the country, railways in j.a.pan are difficult to construct, and the transportation of coal or of ore is difficult and expensive. As the coal deposits and iron deposits are not near together charcoal has been used for smelting purposes. Iron, therefore, so far, has not been produced profitably, and its production has decreased. But silver is mined abundantly, and also KAOLIN, or the raw material used in the manufacture of the beautiful porcelain of the country. Copper and antimony are also large articles of export. The princ.i.p.al manufactures of j.a.pan as yet are the TEXTILES, especially SILK and COTTON. In these modern methods are used, although so far the productions of the native domestic looms are superior to those of the factory looms. The production of textiles by machinery has increased fourfold in ten years, and now amounts to about $40,000,000 annually. This, however, is not a large amount, being less than the textile production of any important state in Europe, even Switzerland, or Sweden and Norway, and is only one twentieth that of the United States. Until recently the factory owner in j.a.pan has had the advantage of cheap labour. But the j.a.panese artisan is also becoming "modernised," and is now demanding higher wages, and enforcing his demand by "strikes." And for all their deftness in domestic manufacture j.a.panese workmen are not yet as skilful in machine labour as British or American workmen. It follows, therefore, that textile manufacturing in j.a.pan, especially the manufacture of cotton and wool, is not yet out of its tentative or probationary stage. But j.a.pan, having the advantage of an extensive home market for cotton goods (like the Chinese, the j.a.panese common people wear cotton garments all the year round, in winter padding them for warmth), and having the raw material at her own door (she already grows a large proportion of all the raw cotton she needs), and having, too, an abundance of coal at hand, must needs become a great cotton-manufacturing country. The same conditions hold with regard to the possibilities of j.a.pan's silk manufactures.

POSSIBILITIES OF INCREASED FOREIGN TRADE WITH j.a.pAN

As in the case of China, the possibilities of increased trade with j.a.pan lie princ.i.p.ally in WOOLLEN MANUFACTURES and in BREADSTUFFS. In addition there is a fair chance of increased trade in metal manufactures. The use of woollen garments in j.a.pan in winter is extending even to the middle and working cla.s.ses. And inasmuch as the country does not raise sheep, and is, indeed, not well able to raise sheep, such woollen clothing, woollen cloth, or raw wool as is used must be imported. Hitherto the woollen manufactures which have been established in the country have not been very successful, and the probability is that j.a.pan's import trade in woollen clothing and woollen cloths will increase year by year. Similarly, from the fact that the agriculture of the country is not adapted to the growth of wheat, nor seems ever likely to be so adapted, and also from the fact that both the higher and the middle cla.s.ses of j.a.pan are rapidly adopting European and American habits of living, it is very probable that the importation of wheat and wheat flour into j.a.pan will also continue to increase year by year. And from the difficulty there is of smelting iron cheaply it is probable that the importation of iron and iron goods (which in raw iron, iron and steel rails, iron small wares and nails, spinning and other machinery, and steel s.h.i.+ps, already amounts to $8,000,000 a year) is likewise likely to increase greatly year by year also.

j.a.pAN'S MODERN TRADE FACILITIES

Owing to the irregular conformation of the surface of the country, good roads in j.a.pan can scarcely be said to exist. But 20,000 miles of roads have been built, of which the state maintains about one fourth.

There are also 2505 miles of railway, of which the state owns and maintains about one fourth also. There are 11,720 miles of telegraph routes, with 37,000 miles of wire; 520 miles of telephone routes, with 6347 miles of wire; and 387 miles of submarine cable routes, with 1481 miles of wire. The country also has a merchant navy of 827 steam vessels of modern type and 702 sailing-vessels of modern type, besides 668 native craft. Owing to the irregular and rocky nature of the coast-line and the great number of small islands which exist, numerous lighthouses are needed; but j.a.pan's lighthouse system is one of the best in the world.

j.a.pAN'S FOREIGN TRADE

j.a.pan has a foreign trade of $60,000,000 annually in exports and $86,000,000 annually in imports. Of the export trade the princ.i.p.al part, running from a fourth to a third, is with the United States. The next largest part is with France, the next with Hongkong, the next with China, and the next with Great Britain. But Great Britain's direct share is not more than a twelfth. Of the import trade the princ.i.p.al part, almost one third, is with Great Britain. The United States' share is about a twelfth, and that of France about one twenty-fifth. The princ.i.p.al exports are RAW SILK (about one third of the whole), SILK GOODS (about one tenth of the whole), TEA, coal, copper, rice, and matches. The export of matches amounts to $2,500,000 annually. Characteristic exports, though they do not figure largely in the total amount, are floor rugs, lacquered ware, porcelain ware, fans, umbrellas, bronze ware, repousse work, paper ware and papier-mache, fibre carpets, and camphor. There is also a large export of fish, sh.e.l.lfish, cuttlefish, edible seaweed, and mushrooms to China and other Asiatic countries. The chief import is RAW COTTON (almost one fifth of the whole). Other important imports are sugar (although she raises almost 100,000,000 pounds of sugar herself annually), cotton yarn, cotton goods, woollen cloths, flannels and blankets, kerosene oil, watches, and articles of iron and steel as above enumerated. The fis.h.i.+ng industry is a very important one and over 2,500,000 people are engaged in it. The number of fis.h.i.+ng-boats is about 400,000. The fish trade, which includes seaweed, is (when not for home consumption) princ.i.p.ally with China.

[Ill.u.s.tration: j.a.pan's relation to eastern Asia.]

j.a.pAN'S SPECIAL TRADE CENTRES

The foreign commerce of j.a.pan, like that of China, is allowed to be carried on only at certain ports, called "treaty ports," of which there are nineteen, the princ.i.p.al being Yokohama, Osaka, Nagasaki, Hakodate, Niigata, and Kobe. The two princ.i.p.al cities, not treaty ports, are Tokio and Kioto. TOKIO (1,300,000) is the capital and chief centre of the political, commercial, and literary activity of the empire. In many respects Tokio is a "modern" city. Its educational features are excellent. Its sanitation also is good. KIOTO (340,000) was formerly the capital, but after the revolution of 1868 it was superseded in this respect by Tokio. YOKOHAMA (170,000), distant from Tokio eighteen miles, is the chief place of the empire for foreign trade. Its foreign trade, indeed, is more than half that of the whole empire, being about $75,000,000 annually. OSAKA (487,000) is in respect to population the second city of the empire, but its foreign trade is not large and is carried on princ.i.p.ally at HIOGO, a port near it. NIIGATA (50,000) is the only treaty port on the west side of j.a.pan, the surf caused by the winter monsoon making the flat west coast of the country very dangerous for s.h.i.+pping for half the year.

Other important ports are KOBE (161,000) and NAGASAKI (72,000). NAGOYA (215,000) is an important inland town.

IX. THE TRADE FEATURES OF AFRICA

AFRICA FIFTEEN YEARS AGO

Within a period of about fifteen years the continent of Africa has been the scene of a vast part.i.tion. At the beginning of that period the amount of African territory that was subject to European control was comparatively small. The British were firmly established in South Africa, and had possessions along the coasts elsewhere princ.i.p.ally in the west. The French were firmly established in Algeria and in Senegal. The Portuguese had their ancient settlements in Mozambique and Lower Guinea. Morocco on the northwest and Abyssinia in the northeast were more or less well-established governments that were independent. Egypt in the extreme northeast, with tributary possessions extending along the Nile into the far interior of the continent, was also a more or less well-established government that possessed a quasi-independence, though it was nominally dependent upon Turkey. But elsewhere, except in a few other places controlled by European authority, the whole continent may be described as having been in its original state of savagery or semi-savagery. No government existed anywhere that was either beneficent or stable. The slave-traffic abounded everywhere.

EUROPEAN SPHERES OF INFLUENCE IN AFRICA

The European governments that had possessions in Africa were all doing their best to suppress the slave-traffic. But they could not take very salutary steps in this direction without exercising authority beyond the territorial limits they were supposed to occupy. Gradually, for these reasons, and also for the reason that they were all anxious to extend their commercial dealings in Africa, they began to exercise authority beyond their old-time territorial limits. In this way began the establishment on the part of European nations of what are known as "spheres of influence" in Africa. At first England and France were the only nations that were at all active in establis.h.i.+ng these spheres of influence. Later on Germany and Italy and other nations began to establish them also. Beginning, therefore, with the years 1883 and 1884 there has been a general establishment and gradual extension of these spheres until now the whole continent has been practically parcelled out among a few European powers.

THE GREAT PARt.i.tION OF AFRICA

[Ill.u.s.tration: The part.i.tion of Africa.]

The ancient empire of Morocco still exists in an independent state.

Abyssinia, though Italy attempted to subjugate it, is again also independent. The little republic of Liberia is nominally independent.

Some territory in the very heart of the Sahara or Great Desert is yet in its aboriginal independence. But elsewhere, throughout the whole continent, Africa is either British, or French, or German, or Belgian, or Portuguese, or Italian. Spain's holding is not worth mentioning.

Italy's holding also is scarcely worth mentioning. Portugal's holding has not been increased in the recent "scramble"--only made more definite. France's holding, however, has been enormously increased, and is now the largest (3,300,000 square miles), although much of the French area is barren desert, and much of the rest of it uninhabitable by white people. Great Britain's holding also has been greatly increased, but not nearly so much so as it would have been if in the earlier years of the scramble the British government had not been singularly blind to the actions of other governments in the matter. Germany, too, has got a substantial holding (925,000 square miles). The Kongo Free State, which, though nominally independent, is practically under the suzerainty of Belgium, and must look to Belgium for the funds with which to promote its development, is also a substantial possession, being a little less than Germany's holding--900,000 square miles.

GREAT BRITAIN IN AFRICA

Great Britain's holding, however, in the part.i.tioned continent comprises its best portions. Much of Africa is uninhabitable by white men. Wherever, however, white men can live--except in northern Africa--there Great Britain has managed to get control. Excluding the sh.o.r.e of the Mediterranean, the best part of Africa, considered from the view points of colonisation and commerce, is what is now known as "British South Africa." This is an immense area--an area of almost 1,000,000 square miles. It comprises (1) that whole southern portion of the continent known as Cape Colony, and (2) that portion of the great central plateau of the continent which extends from Cape Colony northward to Lakes Nya.s.sa and Tanganyika--all except the two Boer republics, the Orange Free State and the South African Republic.

British East Africa (800,000 square miles) includes the territory of Uganda, north of Lake Victoria, a territory which from the character of its native population and its possibilities of trade has been called the "pearl of Africa." British West Africa (500,000 square miles) includes the basin of the lower Niger, the most densely peopled area in all Africa, the seat of the great Fula-Hausa empire of Sokoto-Gandu, the wealthiest and greatest trading nation in the continent. Furthermore, in the northeast, Great Britain exercises "protectorate control" over Egypt--a control that is likely to be instrumental in reclaiming for Egypt, and thus for civilisation and commerce under British authority, the whole of Egypt's ancient possessions along the Nile as far at least as Uganda. The total area of the British possessions in Africa, exclusive of the two Boer republics and Egypt, is over 2,300,000 square miles.

THE "DOMINION OF SOUTH AFRICA"