560
CHINA
of which he was chairman. As the result of these disclosures, Mr. Tung was appointed. Minister of Finance, but, there being no money in the exchequer, he was as unsuccessful as his predecessors. Hence, another commission was formed, known as the Commission for the Study of Financial Problems, over which Dr. Wellington Koo presided. The scope of the commission is to be confined to discussion of ways and means whereby, a fundamental re-organisation of China's finances can be effected.
The Maritime Customs and the Salt Gabelle are the only two sources of revenue for which exact figures are so far available. The Customs receipts for 1921 amounted to Hk. Tls. 59,007,129, as compared with Hk. Tls. 49,819,885 for 1920, the highest on record up to that time. The net receipts from the Salt Gabelle for 1921 were $77,987,838,- which was a decrease of $1,076,265 on the net revenue realised in 1920 and a decrease of $2,618,665 on the net revenue realised in 1919. In consequence of the practice of several of the Tuchuns of retaining portions of the salt funds, it is not surprising that decreases are recurrent features of the reports of the Salt Administration.
China had no foreign debt till the end of 1864, when a loan of £1,431,664 was contracted from the Hongkong and Shanghai Bank under Imperial au- thority and secured by the Customs revenue. Up to 1894 the total foreign debt of China was inconsiderable, but subsequently extensive borrowings had to be made to meet the expenses of the war with Japan and the indemnity, which was Taels 200,000,000 (at exchange of 3s. 31d.), with a further Tls. 20,000,000 for the retrocession of the Liaotung Peninsula. The last instalment was paid in 1898, and the total indebtedness of the country up to 1900 was £55,755,000, the principal loans being the Russian of 1895, the Anglo-German of 1896, and the Anglo-German of 1898, each of £16,000,000. The country's obligations in 1901 were increased by a sum of Tls. 450,000,000, the amount of the indemnity paid to the Powers to meet (1) the expenses of the Expeditionary Forces, and (2) claims for compensation for losses to missions, corporations, individuals, etc. Several Loans were subsequently obtained, chiefly for railway construction, and, as a result of the Revolution, China's indebtedness was increased by an international loan of £25,000,000. China's foreign debts are in various currencies and, owing to fluctuation of exchange and the paucity of statistical information in Peking, considerable difficulty is experienced in arriving at an accurate figure of China's national indebtedness. The generally-accepted estimate is- $1,500,000,000, although some authorities put it as high as $2,000,000,000. The Ministry of Finance reckon it on the basis of $4 per capita, which, taking China's population at 400,000,000, would make the National Debt $1,600,000,000. The following statement is as accurate as any, and represents the result of the examination of many returns:-
1. General Foreign Loans
2. Foreign Railway Loans 3. Foreign Indemnities
4. Internal Long Term Loans 5. Internal Short Term Loans 6. Treasury Notes, etc.
$268,978,252
334,802,631
482,841,744
275,226,738
69,101,978
18,640,000
$1,449,592,343
(The last item is only a rough estimate the amounts of some of the issues are not ascertainable).
On this computation China has a smaller per capita national debt than any other State with the exception, perhaps, of Switzerland and the little States in Africa and South America. At the present time there is a monthly deficit on the Central Government Administration of about six million dollars. Yet the Land Tax remains as unpledged security for further foreign loans.
The foreign debt secured on national revenue (Japanese loans excluded) out- standing in January, 1920, is shown in the following table:-
Rate of Date of Re. Principal Outstanding Security Interest demption January,
Date
Title or Source
1895
1895
Russian-French Loan Anglo-German Loan
General Loans
Orignal Amount
F400,000,000 £16,000,000
4
7-1931 3-1932
1920
F198,538,901
£8,655,797
Га
aj
[a] Customs revenues,
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