October 13, 1897.)

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After some explanations in this line, Her Majesty gave him a line to His Majesty Kuang Hsü, which Li duly presented the next time he met the Emperor. At first His Majesty was a little disposed to resent the interference of a Committee of unknown Europeans in his domestic affairs, but Li explained that in other lands this is quite customary, and if China is to be on a level with other countries, she must do as others do. His Majesty finally gave his full assent to the plan, and provided Li with an autograph order to the presidents of the Six Boards, to see that the wishes of the Swiss Com- mittee were carried out. The next step was for the Six Boards as a body to transmit the Im- perial orders to the several Governors-General, and Governors of the eighteen provinces-be the same more or less. The Governors sent the dicet out to the district magistrates, and each of them summoned all the local constables on the next official day, and explained that this time there is to be a full and a fair count. Upon receipt of these orders, the local con- atables called a meeting of the headmen of each village, ward, etc., and had the ten-family-tablets got out in preparation. These tablets are, as a rule, stored in the basement of the town-hall of each municipality ready for instant use when- ever orders for a Census arrive.

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It is customary on such occasions for the headmen to gather in an opium shop, a tea-shop or some other convenient place, and arrange the rate of reduction which shall be made. Thus in a recent instance these selectmen agreed to report a family consisting of five brothers and twenty-seven mouths,' as composed of three brothers and fifteen months." The precautionary motives which lead to this action, we need not dwell upon in detail. The proceeding is quite in line with that of the highest officials in the Empire. Of this we quoted a striking example about a year ago, in reviewing Dr. Martin's Cycle of Cathay, in which it is incidentally remarked that the Board of Revenue a few years ago connived at the alteration of the figures for the whole Chinese Empire, to a number smaller by just 'one third than the previous figures. This was what the shipping people term "a Discount to Missionaries." in order to discourage missionary effort by making it seem that a mere matter of two hundred and fifteen millions were scarcely worth evangelising. As this did not appear to work, the figures were restored the next year,

But we learn that on the present occasion all prersons concerned have promised cordially to cooperate in getting at the exact facts. In all Western lands a census costs hundreds of thousands of dollars, but in China owing to their complete system of enumeration," always ready to be turned on like a hot water stop, the census literally costs nothing. And in our opinion it is worth all it costs.

We may add that since the population of the earth, as nearly as the Swiss Committee can get at it, is 1,700,000,000, when the census is done there will not be less than 425,900,000 for China. Less than this would not be worth the trouble, and would be sides make the grand total much too small.-N. C. Daily News.

ANOTHER RIOT IN CHANGTE.

A ROMAN CATHOLIC CHURCH BURNT. A Roman Catholic Church in Changte, in

Hunan, is reported to have been burnt to the ground by some rioters, fortunately with no loss of life. It appears that a native lad pelted a stone at the church gate, and a native convert of that church on "police" duty severely chas- tised him. This caused the neighbours to take umbrage, which resulted in a general uproar, followed by riot throughout the distrier. Several rioters are reported to have been at- rested by the local officials:-China Gazette.

..

The Secretary of the Punjom Mining Co., Limited, advises us that he has received the following telegram from the mines giving the result of the September clean up :- The mill rau 28 days crushing 389 tons yielding 58 ozs. of smelted gold. 1,850 tons of headings crushed yielding 106 ozs. of gold. Thirty tous conceu- trates calcined yielding 25 ozs. of gold. The cyanide plant ran 21 days, treating 505 tous of tailings yielding 200 ozs. of bullion of an average value of £1 0s. 9d., per oz. Shall discon tinue almost all stoping."

CHINA OVERLAND TRADE REPORT.

RESTRICTIONS ON TRADE IN KWANGTUNG.

We make the following extracts from the Consular Report on the trade of Canton for 1896, written by Mr Fraser:-

Considering the thickly populated region which Canton should supply in addition to its own 2.000.000, one cannot but be struck by the absurdly small amounts of foreign imports. The superior endurance of native fabrics may have something to do with the restricted import of our textiles; but the real general explanation is, undoubtedly; to be found in the heavy taxation specially imposed upon goods imported from abroad. The intention of the framers of our treaties was that imports in British ships should pay only 5 per cent. ad valorem so long as they were consumed in the port-that is the city and suburbs-of Canton,

additional and that an

half-duty should clear them of all duties on their way to any place in the interior. The actual state of things is far different. Relying on the theory that China as an independent power is free to tax her own subjects as she pleases, and, assum. ing that the Concession is the area of exemption from lekin, the provincial government has narrowed the treaty right by confining its operation to British-imported goods while they are in the hands of British subjects. Once they are sold to Chinese, a tax, euphemistically styled terminal lekin or octroi, is levied specially on such goods, and it is gravely argued that, as this tax is levied on all foreign goods, no matter whether they pass through the foreign or the native custombouse, there is no differential treatment. In this way the treaty stipulations are nullified. For, while 5 per cent. is un- doubtedly a light tariff. 5 per cent. plus an extra percentage limited only by the risk of destroying a lucrative revenue means un- restricted taxation. And the practical outcome is that the duty authorised by treaty represents simply the share of the Central Government in the taxation of imports.

Further, as buyers from any shop opened by a foreigner beyond the limits of the Concession would bo called upon to pay the extra-treaty taxes, the right to trade freely in the city and suburbs of Canton has likewise been ex- tinguished. Indeed, made confident by the long apathy of the British people, the local authorities would throw obstacles in the way of any enterprising person who should attempt to rent or hire such a shop.

For this apathy the system under which the import trade is conducted is no doubt largely responsible. Thirty years ago Her Majesty's Consul noted that the Chinese, owing to their lighter expeuses and their knowledge of local conditions, were fast monopolising the import trade, and for many years past all the trifling import business done by foreign firms has been managed entirely by their native compradores. But the great bulk of the local supply is ob tained direct from foreign firms in Hongkong by the Chinese dealers who uaturally deal like wise with their fellow-countrymen, the com- pradores, who may be interested in the syn- dicates or farms mentioned below.

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Kwangtung is at least twice that number, and a very handsome profit is thus left the farmers even after payment of expenses and douceurs.

The farm is nominally only for three pre- fectures; but the syndicate, in which officials are said to be interested, and which at any rate is always sure of strenuous official support, successfully claims to tax all oils passing Canton or going up the East or West Rivers, on the plea that it may be consumed within their dis- trict, thus affording proof positive that the designation, terminal lekin, is, as an official once confessed of loti shui, or destination duty," a mere blind to render unauthorised taxation easy,

Nor does the mischief of these syndicates end here. By means of their large revenue and the inquisitorial powers conferred on them by their semi-official standing they are in a position to exercise alisolute control over the trade, and to raise the price of foreign imports to the price which will most benefit themselves. They are, in fact, mouopolies working in defiance or treaty, and, as such, the most eager opponents of transit passes, which not only imperil their high prices, but tend to publish abroad the extremely profitable nature of their bargains with the authorities.

The existence of these monopolies has been commented upon not seldom by Consular offi- cials, and is presumably known to the bodies representing the merchants here and in Hong- kong, yet, as remarked above, the system under which the import trade is conducted has pre- vented even so much as a protest being made against an arrangement as harmful to the British manufacturer as it is to the Cantonese people.

TRANSIT TRADE.

After a long struggle the Canton authorities have been forced to admit that goods sent in- land under transit pass are, on reaching the destination mentioned in that pass, in precisely the same position as regards liability to taxation as similar goods that come up paying lekin on their way to that destination. And this recog- nition of the treaty right has been publicly notified in both Kwangtung and Kwangsi. This result, together with the exaction in August of compensation for the losses cansed by official obstruction at Wuchow mentioned in last year's report, has caused a partial revival of the trade under transit pass, the total value being £8,638, of which three-fourths falls under the quarter of the year.

It follows

But it is doubtful whether this revival will be extensive or lasting. As soon as certificated goods reach their destination and the pass is surrendered, such goods have to pay all duties and taxes, however high, provided that lekin paid goeds are similarly treated. that the cost at which foreign goods can be delivered to the up-country consumer remains as uncertain as ever, even if by the strictest watchfuluess differential levies could be pre- vented. Terminal charges were till very lately either unknown, or exceedingly light at all inland centres of trade, but already a change is taking place, and a scheme to levy one inclusive duty at the threshold of each province is sus pected. Such an inclusive duty, of course, whatever its name, would be wholly or partially a transit charge, and, as such, open to protest. Farms and Syndicates.-The Provincial Go- The result of such protest would, however, vernment, having to forward annual fixed sub-simply be that certificated goods would be, by sidies to Peking, has yielded to the apparent simplicity and certainty of farming out the import and export to syndicates of dealers in the commodities concerned. Where actual farms for a fixed sum do not exist, these syndicates are entrusted with the collection of the duties on behalf of the authorities; and, as there is no certain check on the amounts

collection of taxes on the chief articles both of

they report, this results in the annual pay. ment of as small a sum as will satisfy the Government.

One example out of many may show the re- sult of this fiscal arrangement. Kerosene oil having of late years become as popular in Kwangtung as in the other provinces of China, a terminal lenin of c.30 a case (the import duty about c.10) was imposed, leviable nominally from the retailers, but actually collected from the wholesale importers. A farm of this tax in three of the thirteen prefectures of this province is let to a syndicate of undeclared persons at an annual payment of $180,000. This represents 600,000 cases; but the annual import into

special order to the local anthorities at their destination, taxed whatever amount was admitted to be a fair share of the total charge, and the native consignees would soon learn the incon- venience of being marked men in this country of officialdom..

The peculiar and persistent hostility of the Canton Government to the use of transit passes may be partially explained. The province has a reputation for wealth, and so has to bear an extra share of the burdens laid on the provinces by the Central Government. To it is allotted, moreover, a special porportion of the yearly-. increasing horde of expectants-that is, of officers qualified for but unprovided with posts under Government-for whom a livelihood has to be found. This livelihood the lekin adminis- tration with its crowd of stations and barriers affords to very many. Should transit passes come into general use (and Chinese may take them out as well as foreigners), not only would the revenne from lekin, which is on an average thrice the half-duty, suffer less, a loss which the Central Government, while receiving the tran-

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