The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-06-04
IL.

great deal OF misconception exists in for
eiRn quarters with regard to the finance and
currency OF China, Lord Charles Beresford
does not profess to be an expert on these sub
jects. and he is indebted to the bank managers
at the various treaty ports for the facts and
opinions which are published In this book. 1t
needed. however. no expert knowledge OF
finance to recognize that the whole system OF
Chinese fiscal administration is rotten II
China, however is in a state Of great financial
embarrassment, this is not because her as
sets are small. but because her resources are
undeveloped. and because her revenue is
wasted. China is not so much overtaxed as
badly taxed. and all that she requires is advice
and assistance in recognizing her finances,
which reorganization, provided her military
and police administration were also improved.
would place her in the front rank Of national
credit in the Western money markets. The
present revenue Of China Is estimated to
amount to SI.OOOOOO tauls; we repeat that
the actual value Of the Haikwan tael Is II
cents in gold. This revenue represents,
however. only about onc-ifth Of what is ac-
tually collected. In other words the ma
chinery Of collection is so bad that it alb
serbs 10 per cent. of the amount abstracted
from the taxpayers. Under proper supervision
and admin istration the revenue Of China would
u
taxation might be reduced. The Chinese En-
pire at present owes between $3.50. UUO, 900 a nd
$500 900 900. for which the revenue OF the i'm :
rerial maritime customs is pledged For the
last Ang German loan. that issued in 1898
for SSO.OOO.GOO. the customs guarantee is sup
p'cmented by the income derived in seven dis
tricts from the Likin. or inland transport tax
In addition to the money borrowed for Gov
eminent uses. China has. in 1888. guaranteed
the interest Oh foreign loans negotiated for
railway purposes to the amount Of $50, 900 =
900 tor the Lu-Hun hallway from Pekin to
Hankow and Sll.5UO,OOO for the Newchwang
railroad. Under tho most favored-natio
clause such financial assist ance will have to DO
given to all railways employing foreign capital.
The author OF this book explains why the
present method of collecting taxes is fatal to
honest finance. 1t appears that the provincial
officers o! all grades receive only nominal
salaries. They often have. nevertheless. to
pay large sums before they take office. borrow
ing the amount OF the preparatory "squeezr'
from Chinese banks or among their personal
friends. The consequence is that the officials
make as much as they can during their term
OF employment. If only in order to repay them
selves for the amount il cost them TO obtain
office. In addition to this. however they must
meet the cXpcrs"s OF keeping up the Ecces-
StTy stare OF lhelT IlbSltlDn ana they must
put aside "A sum to serve rs Il sort of
retiring allowance when their term of
office Is completed As matter Of fact
unless they fall into disgrace. they usually
succeed in doing these three things, and It is.
therefore, easy II understand the enormous
leakage which takes place IN the revenue col,
lertcd before ii is RENTED to Pckin One Of
theindisper sail" conditions Of financial reform
In China Is the combination Of proper salaries
with a system ot rigid accountable litv on the
part o. AL officials. China has ample funds for
all purl oscs, including thc maintenance Of an
"'Hr:,rt police and military force. but she
H.dNt he assisted from without, rs Egyu,
was. II the Present corruption il to he Replaced
~ honest and capable financial adminstra.
tioa. 1t is pointed out by Lord Charles Bares.
ford that the question Of Chin, So finance will
he materially affected by spheres of in.
lucnce " policy, To split UP tn" Chtnose en-.
Iro Will mean loss to hpndhulcrs and the
diSapI "arancc Of the security mOrtGagrd &c
them. For example, the first Anglo German
loan was partly secured on Tormosa This
island II no logger a part Of the Chinese
Empir'.
The currency " China is as confusing md
40 hupeess.y involved as are her finances. The
general standard OF value TIN o bout the en-.
pire Is the tael which il not a coin but a
weight Of silver. averaging about ii ounces