Page:Korea (1904).djvu/205

Rh British traders are not unreasonably expected to observe the custom, prevailing among all Chinese merchants, of giving Korean firms an extended credit. Foreign banks in the Far East charge seven or eight per cent. per annum, and the native banks ten to fourteen per cent., which represents a very considerable advance upon home rates. In the opinion of Mr. Bennett, who is, without doubt, one of the most astute business men in the Far East, no little improvement would be shown in the Customs return of British imports, if the manufacturers at home would ship goods to Korea on consignment to firms, whose standing and bank guarantees were above suspicion, charging thereon only home rates of interest. An American company, engaged extensively in business with Korea, never draws against shipments, by that means deriving considerable advantage over its competitors. I commend this suggestion to the attention of the British shipper, particularly as trade in Korea is largely dependent upon the rice crop. In the train of a bad harvest comes a reduction of prices. Importers, then, who have ordered stocks beforehand, find themselves placed in a quandary. Their stocks are left upon their hands—it may be for a year, or even longer—and they are confronted with the necessity of meeting the excessive rates of interest current in the Far East. If the manufacturer could meet the merchant by allowing a rate of interest, similar to that prevailing at home, to be charged, the importer of British goods would be less disinclined to indent ahead. Under existing circumstances the merchant must take the risk of ordering in the spring for autumn delivery, and vice-versâ; on the other hand, China and Japan, being within a few days' distance of Korea, the importer prefers to await the fulfilment of the rice crop, when, as occasion