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WWI
and it's affect on trade
Extracts from A History of Rangoon
by
​B.R. Pearn, published in 1939

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... Trade was, however, affected seriously by the War of 1914-19.  Markets and prices were dis-organised and shipping suffered considerably from the constriction of trade.  The closing of the German and Austrian markets, the restrictions placed on trade with neutrals, the requisitioning of shipping by Government and the complete cessation of all sea-borne trade for a time owing to the depredations of the German cruiser “Emden” showed their effect in the facts that whereas in 1913-1914 the number of ships engaged in the foreign trade.....

...The rice trade suffered particularly from  the closing of the German market and the shutting down of the many German and Austrian commercial houses in Rangoon, the trade in teak, of which Germany had been the second largest purchaser, likewise suffered and in general the dislocation of  trade and the shortage of tonnage produced a marked decline in the import and export of all commodities.  The German and Austrian firms were not the only sufferers, foreign mercantile ventures generally were in a difficult position and found it necessary to restrict their activities.  Thus the Dutch firm, The Trading Company (formerly Hegt & Co.) closed their large rice-mill since foreign ownership of such concerns in war-time was not viewed by favour by the authorities.  The war was also responsible for the compulsory closing of the German Club.

The demand for timber and other materials such as wolfram needed by the Munitions Board did have, after a time, a slight stimulating effect on commerce and the rice-trade began to recover when the Liquidator of Hostile Firms disposed of the German rice-mills to English companies.  Thus the Anglo-Burma Rice Company was formed in 1917 to take over the properties of long established firm of Mohr Brothers, while Messrs. Steel formed the Burma Company to work mills formerly owned by the Burma Rice and Trading Company which had been formed in 1907 out of the old firm of Kruger & Co.  So in the year 1917-18 exports to foreign ports had risen again...

One interesting effect was that sailing craft were again in demand, in 1913-1914 no sailing craft from foreign ports entered but in 1917-18 there entered 19 such vessels of total tonnage.....  In consequence there was a temporary revival of the ship-building industry in Rangoon where, as also at Moulmein, Burmese carpenters were once more employed in constructing wooden ships.
The war also produced a certain amount of political disturbance.  Enemy agents working through Siam had some success in weakening the allegiance of the Indian unit stationed in Rangoon and there was some fear of open mutiny which fortunately was averted.  In 1915 a number of inhabitants of Rangoon were deported to Kyaukpyu and for a time thereafter conditions were quiet, but again in 1918 the strain of the war and in particular the economic distress arising from the continued rise of prices of foodstuffs, produced a good deal of unrest, which expressed itself in a serious increase in the incidence of crime and also in a strike of shipping coolies in August of that year, but the strike was terminated by a grant of 25% increase in wages and by a threat to deport some of the coolie maistris. 

Another effect of the war was the serious outbreak of influenza which marked the years 1918 and 1919.  This disease first became severe October 1918 and the outbreak assumed such dimensions that the Hospital was unable to accommodate the patients who sought admission.  Two hospitals were opened, in Park Road and in Sparks Street but in 1918 alone the epidemic caused the death of 3,799 people although free medicine was distributed at all the public vaccination centres.  Schools were closed and business was for a time dislocated.  In 1919 3,336 deaths from influenza were reported.

The termination of the war enabled trade to revive and in 1920-21 foreign shipping had risen to 318 ships of total tonnage....  The re-establishment of comparatively normal conditions had its effect in the appearance of new commercial establishments in the city. Thus in 1922 Messrs, Cox & Co. opened a branch of their bank, which was taken over by Lloyds Bank in 1924 and in 1930 the East Asiatic Company of Denmark, which had been established over thirty years in Siam, opened a branch in Rangoon.

Rangoon, however, in common with the rest of the world, felt the economic depression which commenced towards the end of the third decade of the century and its effect can be seen in the failure of a number of old-established firms such as that of Bulloch Brothers and more dramatically in the riots of 1930. 

Indian labour, according to the Census of 1931, constituted fifty-six per cent of the craftsmen and no less than eighty-eight per cent of the unskilled and semi-skilled labourers of Rangoon and the effect of this position was that when employment became limited the Burmese worker felt severely the competition with which he was faced and racial antagonism developed.  This was seen clearly enough in 1930.  For many years the stevedore labour of the port had been monopolised by the immigrant coolies, of whom some 2,000 were in employ, but in May 1930 a combination of circumstances led to the employment of a large number of Burmans.  The political situation was at the time uneasy and feelings ran high when on the 5th May news was revealed of the arrest in India of Mr M.K. Gandhi.  

Excitement was intensified by a severe earthquake which affected the city shortly before 8.30 p.m. on the same day.  The earthquake, though much less serious in its effects in Rangoon than it was in other parts of the country, was nevertheless sufficiently alarming, over one hundred and fifty persons were badly injured and forty-six were killed in the collapsing buildings, thirteen being buried by the debris in one house alone.  On the following day there was a general stoppage of work on the loading and unloading of ships due partly to the political circumstance and partly to the excitement caused by the earthquake.  The striking coolies refused to return to work unless an increased rate of pay were granted and for several days the port was idle.  On the 14th of the month a stevedore called in Burmese labour, as had been done in not dissimilar circumstances in 1924 and this example was generally followed, so that by the 22nd of the month there were about 2,000 Burmans employed in work previously carried out by Indians.  The precise course of events following this is not easy to determine, but it is certain that on the 26th May fighting began between Burman and Indian coolies and grew into a serious communal riot which did not cease until the troops were called out four days later.  Many deaths occurred during the rioting, the official report placed the number of fatalities at 120 but in some quarters this was regarded as an under-estimate.  During this period of four days the life of the city was held up and public health was endangered because the conservancy work was suspended, the Indian conservancy coolies having gone into hiding.  Scandalous to relate, although at least 120 deaths occurred, not a man was convicted, not a man was even brought to trial for his part in this affair, such was the complete breakdown of the system of law and order.

A further communal riot occurred in the following January, when rioting began between Burmans and Chinese, between the 2nd and the 5th of the month, twelve people were killed and eighty-eight injured.  This affair apparently originated in the tense atmosphere arising from the rebellion in Tharrawaddy which had recently begun.

Despite riots and despite the more serious set-backs of the war of 1914-1919 and the economic difficulties pursuant on it, the trade of Rangoon has on the whole continued to flourish.  In 1931-32 at the depth of the depression, the number of ships from foreign ports which entered the harbour was 368 of total tonnage.....