Directory_and_Chronicle_1926 — Page 595

CHINA

539.

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 1924 aniounted in round numbers to Hk. Tls. 69,595,131, as compared with Hk. Tls. 63,504,251 for 1923,. and Hk. Tls. 59,359,194 for 1922, the highest on record up to that time. It had been estimated, at the end of 1922, that the introduction of the Revised Import Tariff, based on an effective 5 per cent. ad valorem rate of duties, would have benefited the revenue to the extent of some eight million Haikwan taels, and when at the end of 1923 the increase in the amount collected was only Hk. Tls. 4,870,001 the result was considered disappointing. The year 1924, however, represents an increase of nearly 11 million taels over 1922 and no less than eight millions of this increase were contributed by the import duties collected at the Revised Tariff rates. Export duties, on the other hand,. o contributed much less to the increase in the revenue collection, the total receipts from exports being Hk. Tls. 23,137,455, which exceed the 1923 collection by only Hk. Tls. 467,480. The total Maritime and Native Customs gross revenue for 1924 was Hk. Tls. 73,846,460, equivalent, at the average sterling rate of exchange for the year—3s. 7d., -to £13,519,287.

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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 authority 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. 34d.), with a further Tls. 20,000,000 for the retro- cession 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 $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

is

(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. 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:-

Date

Title or Source

1895

1895

General Loans

Rate of Date of Re. Principal Outstanding Security Interest demption

January, 1920

...

Orignal Amount

F400,000,000

4

7-1931

£16,000,000

5

3-1932

Russian-French Loan Anglo-German Loan

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[a] Customs revenues,

F198,538,90+

£8,655,797

[a]

[a]