Finance in China

Cover Finance in China
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70,000,000 and the exports Tls. 80,000,000 — during the whole period up to date the value of imports has always stood higher than that of exports.
Especially during recent years, the differences have been enormous. In 1905, the imports were Tls. 447,000,000 and the exports Tls.
227,000,000, and in 1906, the imports were Tls. 410,000,000 and the exports Tls. 236,000,000.
Thus every year more gold had to be bought than silver; every year of trade increased the balance against China. By the applic
...ation of the principle that the larger the imports the less the gold value of silver we arrive at the reason why exchange in China has been depreciating throughout the whole of the period of foreign trade. As the balance almost every year since 1865, with the exception of seven or eight years, has always been in favour of imports, it is no wonder that, with slight variations brought about by circumstances over which the trade had no control, the gold value of silver should have depreciated.
If during recent periods exchange has advanced, as for example, in 1906 and 1912, it was due almost purely to adventitious causes — when the supply of silver became slack 264 EXCHANGE AND BANKING or when there were large purchases, as were made recently by India or Germany.


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