Directory_and_Chronicle_1931 — Page 581

CHINA

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was to retain a silver reserve with which to pay the troops and so prevent mutinies and looting, but whatever the motive which prompted the so-called moratorium, there can be no question as to its harmful effect upon the national credit. The Government, however, managed to carry on the administration, and, in October, 1916, sanctioned the payment of silver by the Bank of China, with the result that the value of the Bank of Communications notes rose in one day from 79 to 91, but declined again to 87 in consequence of the run on the Bank of China for silver payments. To finance the futile war against the South the Government borrowed money from Japanese sources with a recklessness that scandalised all people interested in this country, especially as the proceeds were dissipated among the selfish Tuchuns and their followers. National assets were pledged with the prodigality of those who give away what is not their's. During 1918 alone over 150,000,000 yen was borrowed.

China's foreign debts are in various currencies and, owing to fluctuation of ex- change and the paucity of statistical information considerable difficulty is experienced in arriving at an accurate figure of China's national indebtedness. Budget Statements in China have yet to become the precise documents that they are in other countries. The most complete statement of China's financial position of recent years is contained in the report by Dr. Lo Wen-kan prepared at the end of 1922. According to that report, which accompanied the Twelfth year Budget, the domestic loans as they stood in September, 1922, were $208,400,000 with security, and $249,000,000 without security; while the foreign loans amounted to $1,029,000,000 secured and $240,000,000 unsecured, making a total of $1,726,400,000.

CUSTOMS REVENUE

The new National Import Tariff of the Republic of China, based on the principle of tariff autonomy, came into effect on the 1st February, 1929, and its range in specific and ad valorem duties varies from 7 to 27 per cent. in the case of the different tariff items, in contradistinction to the previous import tariff, which was uniformly based on a flat rate of a 5 per cent. duty. As a natural corollary, China's revenue receipts under the heading of import duty have risen considerably, and it follows that an analytical comparison between the import_revenue for the year 1929 and previous years is not warranted. In respect of domestic trade the Government decided similarly to increase the existing tariff rates by a 2 per cent. surtax on export and coast trade duties, resulting equally in a large increase under these two headings. The annual Maritime Customs collection for the year 1929 amounted, in round figures, to Hk. Tls, 152,830,000, compiled as follows: import duties, Hk. Tls. 107,250,000; export duties, Hk. Tls. 36,290,000; coast trade duties, Hk. Tls. 3,640,000; transit dues, Hk. Tls. 2,470,000; and tonnage dues, Hk. Tls. 3,180,000. The ports contributing the largest collections were: Shanghai, Hk. Tls. 69,440,000; Tientsin, Hk. Tls. 15,280,000; Dairen, Hk. Tls. 12,830,000; Hankow, Hk. Tls. 8,260,000; Kiaochow, Hk. Tls. 6,670,000; and Canton, Hk. Tls. 6,120,000. All foreign loan and indemnity obligations secured on the Customs revenue, including the service of the Reorganisation Loan, were met in full. The cost in silver of the service of the above gold obligations was Shanghai Tls. 65,336,113.41, as compared with Shanghai Tls. 57,388,724.87 for 1928, which added an extra charge on the Chinese Customs revenue of Shanghai Tls. 7,947,388.54, due to unfavourable rates of exchange. The service, both interest and redemption, of all domestic loans secured on cancelled indemnities and on additional duties was met or provided for in full, as was also the interest on those domestic loans which are secured on the old 5 per cent. Customs revenue surplus.

In his review of the trade for 1929, Mr. H. D. Hilliard, the Statistical Secretary of the Chinese Maritime Customs writes:

"Historians will probably refer to the past twelve months as being amongst the most eventful in the modern history of China. The implementing of the Washington Conference and the restoration to China of tariff autonomy ushered in a new era, the development of which will be watched with the utmost interest, while the con- clusion of numerous commerical agreements and treaties-too many to be enumerated in this report-has opened up a new vista in the political life of the country. In May Japanese troops were withdrawn from Tsinanfu, and with their withdrawal the boycott against Japanese goods was lifted and trade with Japan began once more to resume its normal course. In July the dispute between China and the Union of Socialist Soviet Republics concerning the control and management of the Chinese