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CHINA.

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a refusal at the last moment. Attempts to raise loans in other quarters also failed. Confusion became worse confounded when, in May, 1916, the Govern- ment issued an order forbidding the Bank of China and the Bank of Communi. cations to make specie payment against their own notes. Such an injunction for a day or two paralysed the trade and commerce of the entire country, but, for- tunately, the branches of these banks in the big cities decided to ignore the order and resumed payment. China thus presented the unique spectacle of provincial branches of the two national banks carrying on business in definance JÍ the Government. Truly a Gilbertian situation. It was explained that the chief concern of

of the authorities was to re- tain 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 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 exchange and the paucity of statistical information considerable difficulty is experienced in arriving at an accurate figure of China's national indebted- ness. 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.

The Maritime Customs collection for the year 1931, amounted, in round figures, to Hk. Tls. 247,100,000 compiled as follows: import duties Hk. Tls. 201,981,000: export duties, Hk. Tls. 30,700,000; interport duty Hk. Tls. 10,042,000; tonnage dues, Hk. Tls. 3,363,00 and famine relief surtax $1,025,000.

TRADE IN 1931.

In his review of the trade for 1931, Mr. H. G. MacEwan, the officiating Statistical Secretary of the Chinese Maritime Customs writes:

World conditions were worse rather than better, and world commerce was at a lower ebb than ever during 1931. The original causes of the decline from prosperity have been ascribed to the over-production of raw materials and manufactures, the burden of reparations payments, the restriction of the free movement of commodities by tariff walls, and the shortage and uneven distribution of gold; while in 1930 the fall in the value of silver figured importantly amongst the causes of the deeping depression. It was distinctly unfortunate that, when opposed by such world con- ditions, China's trade with abroad should have been handicapped coincidently during the year by domestic conditions as adverse as any the country has experienced. Politically, instead of the tranquillity that was needed, there was continual tension that ended towards the close of the year in a complete change of government at Nanking. In the rich provinces of Manchuria relations with Japan were strained throughout the whole period, beginning with a controversy over railway rights and ending in military action and a forced occupation of various strategic points by the