A SALIENT FACTS ABOUT CHINA. By Commercial Attaclie Julean Arnold. 1. The area of China (4,376,000 square miles) is greater than that of Europe or the United States. In latitude Harbin corresponds with Minneapolis, Peking with Philadelphia, Shanghai with Mobile, and Canton \\'ith Habana. 2. The population of China (estimated at 400,- 000,000) is almost equivalent to that of all Europe, nearly four times that of the United States, and seven times that of South America. Asia possesses 51 per cent of the world’s population. Six-sevenths of China’s population lives in one-third of its area, while vast regions rich in natural resources await railways to open them to settlement and devel- opment. 3. Railways are the greatest need of China, which has only 6,500 miles compared with our 265,000 miles. Most of China’s big problems will be solved with the development of needed rail- ways under conditions favorable to the Chinese people. 4. Agriculture occupies 85 per cent of the people. No modem implements are used. Farms average about 1 acre. In the south the principal crops are rice, sweet potatoes, sugar, cotton, mulberrj’, and vegetables; in the no.rth, wheat, sorg’num, millet, com, cotton, sweet potatoes, and vegetables. Tens of millions of people in China eat no rice, but sub- sist on other cereals. 5. As regards natural resources, China is rich in coal and basic metals, in vegetable and animal products. Another great asset is the vast, in- dustrious, homogeneous population. 6. The Chinese character resembles the American in certain essential aspects. There is no caste; the people are democratic, peaceful, industrious, possess a sense of humor and a strong sense of justice, are reasonable, and inherit a culture based on 4,000 years of civilization. 7. The conservatism of the Chinese in the past was due to their naturally secluded position and to an educational system recognizing only teachings of ancient sages and taking no cognizance of mod- ern science. 160042°— 29 ( 3 ) 4 8. The new China looks to the future and away from the past, is instituting modem schools and a native i)ress, is developing an effective national spirit, and asks the constmctive sympathy of the outside world. 9. Modern industrialism is rapidly developing in China. The people are now receptive to all that the West has to teach. They have no old ma- chinery or plants to scrap, \’irtually beginning to- day on the same basis as the West. 10. Cities of China under the new order will need to be rebuilt to meet demands of the new industrial era. Already millions of dollars are being spent on modem business and residence buildings in trade centers of China. 11. There are no roads or wheeled vehicles, ex- cept wheelbarrows, in South China, with a popu- lation of about 200,000,000. The people now recognize the need for tens of thousands of miles of good roads. 12. The present purchasing power of the natives is generally low, though there are many wealthy families and much money that, with proper en- couragement, would go a long way toward financing the needs of the new China. Chinese capital is now earning 25 per cent dividends in modem cotton mills in Shanghai, Hankow, and Tientsin. 13. An increased purchasing power of the masses will result from development of railways, mines, modem industrialism, and modem commerce, in- creasing the people’s wants and raising their standard of living. 14. China’s national debt is about one billion dollars gold, an inconsiderable amount when viewed in the light of the country’s natural re- sources and population. China has never re- pudiated any of its foreign obligations, and foreign interests have always been indemnified for losses due to rebellions, riots, or other disturbances. 15. Chinese securities must find a market in America. Trade follows the loan. We should make loans to those who can give us trade, and none offer greater possibilities than the Chinese. 16. International cooperation in financing China should be encouraged, as there is room for all and all will profit through harmonious, coordinated elfort. 5 17. China suffers from no inflated curventy oT credits. The Chinese silver dollar to-day ex- changes for $1.10 United States gold, whereas four years ago it exchanged for $0.43. 18. China’s foreign trade has increased five-fold in 30 years. l\Tien the per capita foreign trade is equivalent to that of Australasia, the total will be $65,000,000,000 as compared with the present $ 1 , 000 , 000 , 000 . 19. The -principal exports are silk, beans, tea, vegetable oils, hides and skins, wool, tallow, minerals, eggs and egg products, wood oil, short- staple cotton,, and bristles. The United States is the principal buyer. 20. The principal imports are cotton goods and cotton, metal and metal products (including de- fectives and scrap), machinery, electrical equip- ment, railway materials, kerosene, lumber, sugar, marine products, dyes, tobacco, matches, leather, hardware and building materials, motors, and notions. The United States ranks second in supplying China’s imports. 21. China’s import tariff is a uniform 5 per cent, with 2^ per cent added for admission to non- treaty ports. Shanghai market values form the basis for assessment of duties. The tariff can not be altered except by international agreement. 22. There are about 6,500 American residents in China, about one-half comprising the missionary population, spending about $12,000,000 annually in educational, medical, and evangelistic work helpful to American interests generally. There are about 2,000 Americans, with 150 American firms, at Shanghai, through which port 60 per cent of China’s foreign trade passes. 23. Americans in China are under the jurisdic- tion and protection of American courts. More American business organizations are needed in China. 24. The American Chamber of Commerce of China at Shanghai, with a paid secretary, aims to aid Americans seeking to extend business relations with China. 25. The American post office at Shanghai receives and sends mail, parcels, and money orders at United States domestic rates. 26. Four American banks, including a Chinese* American bank, have organizations in China. 27. The one cable between the United States and China is inadequate to our needs. Wireless facilities for commercial and news service are urgently needed. 28. Ships are the water extensions of railways. American trade with China during the past five years suffered greatly becau.se of inadequate ship- ping facilities under the American flag. Fast pas- senger and freight services under the American flag must be maintained to meet our trade needs in China. 29. Pictorial trade-marks are preferable. It is necessary to safeguard trade-marks against imita- tion on the part of cheap, inferior products. Regis- tration in both China and Japan is advisable. 30. Catalogues in English are useful only to a limited degree. The man behind the catalogue sells the goods. 31. Advertising is necessary to the introduction of goods. It should preferably be in Chinese. Money should be allotted but should not go toward support of publications unfriendly to American interests. 32. Quality in goods is understood by the Chinese, and American goods are generally reputed of high quality. 33. The Chinese business man is a heavy buyer, respects his obligations, is guided by dictates of equity rather than law, is not accustomed to pro- vide letter of credit with order, does his business over the teacup rather than over the telephone, and is particularly friendly toward Americans and things American. 34. The Chinese language is becoming increas- ingly important to the foreign business man in China. Three-fifths of the people of China speak the Mandarin dialect. 35. Chinese students should be encomaged to take practical cmnses in engineering and commerce in the United States. American manufacturers should equip Chinese technical and engineering schools with machinery, etc., to help to establidi American standards and materials. 36. Chinese and American merchants should be encouraged, respectively, to visit the country of the other. 7 S7. Americans visiting China should see Canton, Shanghai, Hankow, Peking, and Tientsin and should meet prominent Cninese business men in tiiose centers. 38. Federal incorporation, with home tax exemp- tiop, is essential to the success of American firms in China in their competition against firms of other nationalities enjojdng similar aovantages. Com- bination under the Wcbh-Pomerene Act is advanta- geous lor American manufacturers in China. 39. Americans possess a great asset in the good will of the Chinese people; hence joint Chinese- American enterprises can advantageously be or- ganized. 40. In forming China connections, American man- ufacturers should limit agency rights to territory effectively coverea by agent. For trade purposes China may be divided into North, Central, and South China, witn centers at Tientsin, Shanghai, and Canton, respectively. Manufacturers should send their own representatives for periodic visits to the coimtry to inspect the work of agents; if possible, they should nave tneir own expert always in the field. 41. Agents of American manufacturers should not be permitted to exact prices netting excessive profits, as future trade is imperiled thereby. 42. The personnel of American firms in China is important. Men of good character, education, and training shoulu be selected and encouraged to remain in China and study the Chinese language. 43. American merchandizing and salesmanship methods will be signally successful in China if adjusted to meet conaitions there. 44. China is a market of great potentialiiies, the new world of opportunity in trade; hence it pays to “get in on the grouna floor” and build on a solid foundation , liberally supporting an organiza- tion doing the pioneering work. 45. Because of geographical position, the United States would natiually seem concerned with Asia more than with Europe. Alaska is within 50 miles of Siberia, and Manila, in an American insular possession, is closer to China than is Tokyo. Manila can advantageously be made an American distributing center for our Far Eastern trade. FAR EASTERN DIVISION OF BUREAU. F. R. Eldriage, Jr., Ciller. The Bureau of Foreign and Domestic Commerce has recently given increased attention to the devel- opment of American trade in the Far East by the establishment of a Far Eastern Di\ision. Besides maintaining permanent commercial attaches in Peking and Tokyo, who interpret general commer- cial and economic conditions in the Far East as they affect American interests, the Bureau has had a number of trade commissioners investigating special subjects in China, Japan, India, the Philip- pine Islands, the Dutch East Indies, and else- where. The investigations of the latter include general trade conditions, ports and transportation facilities, investment opportunities, mineral re- sources and their development, and the markets for motor vehicles, hardware, electrical goods, rail- road equipment, cotton goods, etc. Inquiries from any American manufacturer or exporter desiring to increase his trade with the Far East or to establish new connections there are answered without charge. Several of the mem- bers of the Bureau’s staff in Washington have spent considerable time in the Far East and have made a careful study of the field. Requests for informa- tion regarding commercial opportunities in that part of the world are thus receiving specialized attention. This service has grown to meet the demands made upon it. Current information regarding the Far East re- ceived through the Diplomatic and Consular Ser- vice of the State Department and from the commer- cial attaches and trade commissioners of the Bureau is published in the daily “Commerce Reports.” Most of the detailed information obtained by the trade commissioners, however, is embodied in monographs reporting the results of their investiga- tions in a particular country. ( 8 ) O