82 PRESENT STATUS OF THE INDUSTRY. 



and unnatural and the continued depression in silver 

 during the same period, you will realize somewhat the 

 steep advance in price the Chinese consumers had to 

 submit to. A reaction is bound to occur, and it looks 

 as though it has already set in. At any rate, if export- 

 ers are to make any profit on their purchases this 

 season, they will have to be far more conservative than 

 during the past two or three years. Many publications 

 are going the rounds in which the idea is conveyed 

 that there is no limit" to the price which the Chinese 

 will pay for ginseng, but this is all nonsense, and only 

 deceives the farmer into buying a lot of seeds, etc., for 

 the doubtful cultivating venture." 



A similar set of ideas is held by Messrs. Wells & 

 Co., who on July 17, 1902, had the following to say: 

 "Of recent y^ars the prices of ginseng have been 

 advanced by gamblers and speculators through the 

 country very materially, at the same time the crop has 

 been practically the same annually and the consump- 

 tion diminishing owing to the advancing prices and 

 the growing troubles in the consuming market in 

 China. This has culminated in the conditions existing 

 to-day : viz., at the beginning of this season, practically 

 one-half of last season's crop was still unsold in the 

 hands of exporters and some large dealers who have a 

 speculative trend; heavy losses that have been sus- 

 tained on all goods sold ; a very much reduced con- 

 suming market, because of the poverty of the consumer 

 and inability to pay the high prices demanded ; serious 

 military and mercantile disturbances in China, which 

 have resulted in almost a total closing of the market; 

 and the complete disregard of the financial side of the 

 business; viz., the couise of bullion silver by all large 

 dealers this season. In the face of all this, handlers 

 through the country are paying and demanding 

 approximately last season's prices; this will result in 

 loss to someone. 



