BUILDING

SHANGHAI BUILDING ACTIVITIES RESUMED IN MARCH: From January 28 until almost the middle of March building operations in Shanghai were at a complete standstill in most instances, due to the military operations in Chapei. Buildings in course of construction were boarded up and practically deserted except for watchmen or guards. In a meeting held by the Shanghai Builders' Association on February 10 a resolution was passed to stop all building operations by members, while responsibility for delay in contracts, which had been undertaken for completion within a specified time, was repudiated, with the assurance that work would be resumed and contracts completes at the earliest possible moment. One of the greatest obstacles encountered was the fact that many of the building material factories were located in Chapei and therefore have been inaccessible. Within a week or ten days after the cessation of hostilities on March 3, however, work on the uncompleted structures in Shanghai was being resumed, and building operations are now practically on a normal basis.

ENGINEERING

HONGKONG TO HAVE VEHICULAR FERRY: The island of Hongkong is to be connected with Kowloon by a vehicular ferry service when the new project, for which the Government has just let the contract, is completed. Present expectations are that the service will commence functioning on January 1, 1933.

RAILWAYS

RAILWAYS STILL ENCOUNTERING DIFFICULTIES: The occupation of the North Station in Shanghai by Chinese soldiers in January, its subsequent destruction, and the continuous fighting in this district for over a month, resulted in considerable interruption to the service of the Shanghai-Nanking Railway's train schedules between these two cities. It has not been completely resumed at the time of going to press. An extra daily trip by aeroplane to Nanking and back to Shanghai was inaugurated on March 8, and mail for Soochow, Wusih and other cities along the railway line in the area of military occupation is being transported to Nanking by air and thence by rail to its destination. On the Shanghai-Hangchow line the trains have been running, not only on the regular tirne table, but extra special schedules have been in force. Thousands of refugees have been transported from Shanghai to Hangchow. This was also the case on the Hangchow-Ningpo section of the line. With an occasional exception, such as occurred on March 4, when the railway officials halted all trains from Hangchow to Shanghai at Sungkiang, due to the fear of a bombing attack on the line, these branches of the railway have given excellent service to the public throughout the state of emergency in the Shanghai district.

NANKING-PUKOW TRAIN FERRY CONTRACTED FOR: That the crossing of the Yangtze River at Nanking will accomplished within the next year by the Nanking-Pukow train ferry, for which the contract was let last month to Messrs. Malcolm & Co., Ltd., was officially confirmed by the Ministry of Railways March 23, according to a Reuter message of the same date. The new ferry will be the first of its kind in China and will eliminate delays in crossing the Yangtze River, thus making a much closer connection between North and South China cities than has heretofore been possible. A most careful survey has been made by the engineers to allow for the extreme variation of the water level, in which there is a difference of twenty-four feet during the year, with a daily tide variation of from one to three feet. The building of the piers has been commenced. There will be three 150 foot span bridges with adjustable ends, to be raised or lowered according to the height of the water, and these as well as the 2,400 ton boat will provide three railway tracks of standard gauge for transporting trains and railway stock across the river. The boat will be completely equipped, including living quarters on board for officers and crew, and is expected to reach China about next December. The bridge materials are due in Nanking next October, and, as the work of assembling is estimated to take about four months, it is hoped to have the ferry commence functioning by March of next year. The Shanghai-Nanking and Tientsin-Pukow lines have been instructed by the Ministry of Railways to have the construction of their connecting branch lines to the ferry completed by the end of this year. The entire project will cost $3,000,000, and is to be paid for from Boxer Indemnity Funds, for which all necessary arrangements have been made.

RIVER CONSERVANCY

LEAGUE OF NATIONS' TECHNICAL ADVISERS COMPLETE RIVER STUDY: Having completed their study of the Hwai, Whangpoo and Pei Rivers and tributaries, the three technical experts which the League of Nations sent to China, Mr. L. Perrier (French), Mr. A. T. Coode (British) and Mr. W. Sieveking (German), left for Europe early in March. This commission was sent here at the National Government's request to study ways and means for developing rivers and harbours in China. Particular attention was paid to the inspection of the Hwai River, not only in regard to its development, but also in connection with flood control; to the Pei He and its tributaries; and to the Whangpoo, the last being considered especially in the light of harbour development at Shanghai. Before leaving, a brief summary, was promised by the Commission to be forthcoming shortly, is expected to a detailed report to follow later on.

INDUSTRY IN SHANGHAI SUFFERS SETBACK: Owing to the war operations in Shanghai and the anti-Japanese boycott which commenced last September, industry in the Shanghai area has suffered severely during the past seven months. Many factories in the war zone, which were forced to close down for more than six weeks, have gradually resumed work since the cessation of hostilities early in March. Approximately sixty-seven factories, including some flour mills and the Japanese cotton mills, are still closed. Consequently about 90,000 millworkers and factory hands in Shanghai are unemployed, and, while it is too soon to give anything like accurate figures, the losses sustained by both capital and labour during this period is expected to run into huge figures.

COMMERCE

FINANCIAL DIFFICULTIES ENCOUNTERED DURING SHANGHAI STATE OF EMERGENCY: When the native banks in Shanghai simultaneously closed their doors to business on January 30 as an expression of indignation at the bombing of Chapei merchants as well as individuals experienced considerable difficulty in regard to money matters, and the exchange shops reaped a rich harvest on the heavy discounts at which they exchanged paper money for silver, this being the only currency accepted in payment for goods for several days. The Municipal Council of the International Settlement furnished adequate police protection to those native banks which responded to its request to open their doors, and a good many did so, allowing depositors to withdraw a limited sum of money. Foreign soldiers on guard with drawn bayonets at the banks became a usual sight, particularly on the Bund, where thirteen such guards were counted between Avenue Edward VII and Peking Read one morning in February. While some of the foreign style Chinese banks were partially open for business on February 4, the native style banks reopened only on a decidedly restricted basis. Of all the restrictions imposed the one decided upon by these banks in not cashing "native orders" placed the greatest obstacle in the way of business, especially among the importers. The latter are accustomed to releasing goods to Chinese merchants and accepting orders on the native banks payable in about ten days' time, and, with this procedure blocked, the godowns in the city became filled to overflowing with merchandise that had been ordered but could not be paid for unless the importer was willing to pay his bank- seven per cent. interest on native orders. Insurance rates increased with war at Shanghai's very doorstep, and, adding to this the unforeseen storage charges on merchandise, prospective profits quickly changed into certain losses. In the beginning foreign banks, which were operating as usual, gave generous assistance until they became loaded with "frozen" cheques and orders and were forced to can a halt.

Remittances to Shanghai from outports were also hindered, as they could only be made through an actual transfer of cash. On February 6, banks and shops that had been partially open suspended business again for three days on account of the China New Year, now called the "Spring Holiday." The native banks would accept no business which necessitated the withdrawal of cash, and transferred no credits to banks outside their circle. Foreign banks helped to stabilize the financial situation by agreeing not to accept accounts which depositors of native banks might wish to transfer to them.

The Chinese Government bond market was closed, and at a meeting held on February 10 by the China Merchants Stock Exchange, it was decided to suspend operations indefinitely, although the funds for payment on domestic loans were said to be available early in February. Banking conditions in Shanghai have gradually been returning to normal, although at the time of going to press crossed cheques on some native banks are not being accepted for deposit by other banks, as the former will not cash them.

HEAVY BUSINESS LOSSES IN SHANGHAI DURING STATE OF EMERGENCY: Friday, January 29, saw the cessation of practically all business in Shanghai, except that of moving the belongings of residents who were evacuating from Chapei and the Hongkew district. The Chinese post office made no mail deliveries for five days, but commenced on February 3 to deliver registered letters, followed shortly by regular deliveries of all classes of mail matter.

While there was a good supply of food on hand in both the International Settlement and the French Concession all through the emergency, a shortage of certain kinds of meats and vegetables occurred at various times, and prices increased from 40% to 100% on some items. The price of rice rose from $12 to $19 a picul for the best quality. The Municipal Council of the International Settlement as well as that of the French Concession did everything possible to protect the merchants and to assist in the early resumption of business.

However, it was not until the end of March that, with the exception of the Hongkew district, most of the local Chinese shops and commercial institutions in the International Settlement and French Concession took down their iron grins and wooden shutters and opened wide their doors for the resumption of business as formerly. In Nantao (the native City) only about 60% of the shops reopened for business. The first quarterly settlement day of the year for Chinese merchants which fell in March was postponed to the end of May.

Partially completed buildings, such as the Continental Bank building and others, were given over by the owners to the Citizens Emergency Committee and some sixty-five refugee camps housing approximately 10,000 persons were opened in the International Settlement and French Concession. These were supported principally by private donations, with some assistance from the Municipalities. Nearly every office building and godown in the central district had its quota of refugees encamped in corridors, stairs and odd corners.

Getting to the office during the emergency period was a problem in itself, with trams and buses so crowded that there was not an inch of standing room to spare, rickshaw coolies doubling their fares, and hire motor-cars (at the usual rates with placards displayed such as the Taylor Garage put up in its place of business on Rue Cardinal Mercier, requesting customers to report any cases of extortion) in great demand.

The curfew law was put into effect on February 1, from 10.00 p.m. to 4.00 a.m., temporarily putting an end to the night club and cabaret business, except on Saturday nights, when these were open until 4.00 a.m., the doors being locked at 10.00 p.m. to keep everyone indoors in compliance with the law. On March 12 curfew was extended to 11 p.m. and on March 31 it was lifted entirely, having been in effect for over six weeks.

River boats did a tremendous business in transporting refugees of all classes from Shanghai to outports, and in a few instances native boats increased their passage rates as much as 500%, furnishing only deck space to many of the passengers. Ocean liners had all available accommodation to Hongkong and Manila booked.

Recommendations by the Committee of the Shanghai Property Owners' Association for an allowance to be made by its members to tenants in the disturbed areas on rentals during February and March, the amount to depend upon circumstances in each case, were being made at the time of going to press. While it will naturally require several months for business to recover, Shanghai residents are doing their best to carry on as usual. The result must inevitably be a triumphant emergence of business to the point where it can again be conducted with something on the profit side of the ledger.