Commerce, Industries, and Finance in Tianjin

Official banknotes of the Bank of China, issued in 1931 and 1935, respectively. Note the low nomination, which indicates pre-inflationary and economically almost “stable” circumstances. The notes, though issued in Tianjin, were printed on foreign paper in London by the Thomas De La Rue Company (Chinese: 德納羅印鈔公司 ), the world's largest commercial security printer and paper maker, involved in the production of over 150 national currencies and a wide range of security documents such as stamps and vouchers as well as brand protection. The Chinese government's first orders to de la Rue for banknotes came in 1930. They would remain a vital customer for the next 18 years (until 1948). They continued producing bank notes for the Hong Kong Crown Colony, however, until in 1996 (i.e. shortly before Hong Kong's return to China), the de la Rue Hong Kong banknote factory was sold to the Hong Kong Monetary Authority.

This research study by H.D. Fong is the first in a series issued by the Institute of Economics of Nankai University to study the “extent and effects of China's industrialization” in Tientsin, the largest industrial center in north China. Fong and another Yale graduate, Franklin Ho, were instrumental in developing an economics program at Nankai that introduced western economic ideas and research methodologies.

The University had been founded in 1919 and functioned as a private, rather than missionary or government institution. During its development the Institute received extensive grant support from the Rockefeller Foundation.

The report provides descriptive and statistical material that aims to give a picture of the state of the already then very important rug and carpet industry in Tientsin in 1929. As of that date, there were 303 “carpet establishments”, with 11,568 workers. Only 105 entities were classified as “factories”, based on having thirty or more workers, but they accounted for 74% of the industry labor force. Numerous tables provide statistics on number of hours worked, wages, cost of room and board, working conditions, and apprentices.

Fong sketches a brief history of the development of the Chinese carpet industry, from a craft that made rugs for home use, then rugs and hangings for Buddhist monasteries and temples, and more recently carpets and rugs for western markets. Tientsin, with its better transport and large number of export firms, was able to rival Peking in meeting the growing overseas demand.

Nichols Chinese Rugs, Inc. “ The Story of Nichols Chinese Rugs ”. [undated, but ca. late 1930s] .

Walter Nichols became one of the most famous rug manufacturers in northern China, the historic center of the Chinese carpet industry. Born in New York City in the 1880's he went to Tientsin around 1920 and after working for a wool merchant, started his own business in 1924 in Tientsin. The brochure describes the materials and processes used in manufacturing the “Super Chinese Rug”, a hand-knotted, carved, thick pile rug executed in many colors and traditional as well as contemporary designs. Photographs show the weavers and the Tientsin factory, “the largest in China … contains 200 looms, capacity 20,000 sq. ft. per month.” Nichols also had a factory in Peking located in the former palace of a Manchu Prince, as well as offices, and showrooms in other locations in China and abroad. Note the statements about working conditions at the top of p.14, including, “We employ no child labor or apprentices.”

The Karagheusian Rug Mill and Factory in Tianjin Operating in Tianjin since the 1920s, this important and large competitor to Nichols Rugs occupied a large site in the Tianjin British Concession. Further information will be posted soon. Information and images supplied courtesy Elise Kazanjian, San Francisco.

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