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1

“...interior. Practically the only time when small silver business is done is when the countrymen come in to buy kerosene, sugar, flour, &c., and wish sometimes to pay for these in small coins. The value of these fluctuates considerably, but the average for last year may be taken at about 8 per cent, below the silver yen. The silver yen circulates pretty freely now all through Southern Manchuria, and this may be taken as evidence of the com- manding position to which the Yokohama Specie Bank has attained with its branches here and at Port Arthur, Newchwang, Liaoyang, Mukden, Tiehling, Changchun and Antung. Further to complicate the currency, the business with the local government, the South Manchuria Railway Company and most of the Japanese shops in the town has to be done on the gold yen basis. The average value of the principal currency during the past two years was as follows :— 1907. 1908. s. d. s. d. Haikwan tael ... ... ... ... 3 3 2 8 Gold yen ........................2 0| 2 Silver yen...”
2

“...itself, and 40 per cent, more spirits can be obtained. II. Wild silk.—Wild silk is produced in the districts of Kaiping, Siuyen, Kwantien, Fenghwangcheng and Antung. Hitherto it has been sent chiefly to the Chefoo district, where it is made up as pongee, but efforts are being made to encourage the industry in the leased territory itself. The total annual production of wild silk in Manchuria is esti- mated at from 120,000 to 130,000 baskets, each basket containing 30,000 to 35,000 cocoons, and its value at 500,000Z. The drawbacks to the silk as at present produced are said to be as follows :— (1) It contains large quantities of lime and glue, which make it hard and tough. (2) It contains too much water and is liable to shrink. (3) When rubbed together there is not the well known silky sound. (4) It has a peculiar smell. (5) It possesses a brownish colour. (6) There is difficulty in spinning fine reels from it, and when the reels are twisted together they do not combine properly. (7) When...”
3

“...decreases in flour, metal manufactures and machinery. Flour.—The decrease in the import of flour is due both to the high cost of the American article and to the competition of the Tiehling and Harbin flour mills. The product of these latter now comes as far south as Liaoyang, and it is not at all improbable that in a few years the imports of this article will cease entirely, and that Manchuria will become an exporting country. Cement.—While building materials generally showed large increases, the value of the imports of cement decreased from over 97.000L in 1907...”
4

“... ... Casks 30,099 Miso ......... 3.752 Sugar ... ... Bags 10,673 Beer ... ... Cases 9,264 Cigarettes 7,752 Medicines 1,694 Paints......... ... Casks 6,674 on ......... ... ,, 5,873 Cotton— Yarn ... Bales 1,402 Cloth 4,178 Gunny bags ... ... ,, 10,285 Exports.—A glance at the return of exports will show that the trade in the staple products of Manchuria was eminently satisfactory. The amount of beans and bean cake respectively sent away during 1908 was well over 200,000 tons, while the value of the beans was more than half as much again as in 1907, and that of bean cakes nearly twice as much. Beans.—Soya beans have been shipped to Europe from Hankow for some years past, and attempts have been made to open up a trade from Newclrwang, but these do not appear to have been successful. It is said that the reason for this is that beans brought down by river absorb moisture while on the water, so that in passing through the heat of the Indian Ocean they are apt to ferment. Beans shipped...”
5

“...sustained, though possibly not in the same proportion. A better price can be obtained for bean cakes made here than for those brought down from the interior, as the latter are apt to get damaged in the course of trans- portation, and the demand for bean cake as manure in other countries is steadily increasing. Wild silk.—The enormous increase in the value of wild silk exported during 1908, six times as great as in 1907, is due firstly to a rise in price, and secondly to a strong demand for it in Japan, where it is used for mixing with the silk made in that country. Kaoliang.—Though no special mention is made of kaoliang in the ex- port returns, the value mentioned for " Other grains and seeds " probably refers almost entirely to this staple. More than half the total cultivated area of South Manchuria is planted with this product, and the supply seems almost inexhaustible. In this country it takes the place of the...”
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“...Other ......... 6,762 2,230 18,415 21,175 Total 8,992 39,590 Spirits......... ...... 2,383 9,884 Silk and silk materials... Wild cocoons ...... „ silk......... Other ......... 2,457 60,638 10,500 362,890 3,071 Total 63,095 376,461 Bean cake » oil......... Animals bones ... Miscellaneous ... Re-exports ............ 488,997 4,645 81,854 104,251 865,480 27,284 2,554 42,352 1,112,317 Grand total 1,487,296 3,544,974 Note.—In the re-exports for 1908 is included the sum of 623,2201, for the value of the old narrow gauge railway stock sent back to Japan. Annex 3.—Return of Shipping Entered at the Port of Dairen during the Years 1907-08. Nationality. 1907. 1908. Vessels. Tonnage. Vessels. Tonnage. Steam— Japanese 1,096 1,151,784 1,278 1,503,167 British 99 237,723 117 300,614 Chinese 32 17,945 81 31,429 Norwegian ... 16 24,534 25 36,223 German 8 20,820 21 50,080 United States 2 7,506 Russian 1 4,846 1 3,763 French 1 4,720 Belgian 1 4,644 Korean ... 1 1,027 Total ......”