Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-11-10
1t May Be a Billion Dollars, but the
Nation Can Pay 1t.
COUNTRY IS ENORMOUSLY RICH
Land Tax Alone Would Pay More
Than is Demanded.
HOW TRIBUTE IS LEVIED

N'fiNTl-il''l. l''' " ANA u Ill F'A'''''
Special Correspondence Of The Evening Star.
SHANGHAI, September 10, 1900.
Can China pay its war debt? This the
powers would like to know. Each will de-
mand satisfaction for the expenses 1t has
incurred, and also good round sum for
the injury to its citizens AS to the war
bill the average will probably be $780,
600 600 apiece This, including Germany
Russia, Japan England, France and the
United States. will foot up about $780,
100000. The damage to the merchants at
various ports, the wrecking of the legations
al Pekin and the destruction of the mission
stations everywhere, including compensa-
ton for the lives of missionaries, will 1e-
mand millions more. In fact, the powers
will probably ask for about 81 900 .O0O. 600
or just much Germany demanded of
France at the close of the Franco-Prussian
Can China pay 1t?
Ii Hung Chang says she cannot and that
she will have to give up territory instead.
Ii Hung Chang. however, is a Chinese Of
fetal, a cog in the most corrupt political
machine of the world. machine that VIII
have to be rebuilt if the empire is to con-
TiHue. He knows that big national debt
means the tearing of himself and his class
from the machinery and the undermining
of the Chinese government.
The Chinese Rich Nation.
The truth is the Chinese could pay the in
terest on a billiOn-dollar debt and not feel
1t The present taxes are enough to pay
all legitimate government expenses and G
per cent on a debt three times that size.
They have now a smaller debt than any of
the great powers. 1t does not equal
dollar per head Of their population, and
amounts to less than $500 OOO. 600. There
are no local debts to speak of. The prov
tnces are unincumbered and the cities and
villages are unbOnded: indeed, there is no
country IN better financial condition
As compared with the great powers Chi
IA IS rich. England has one-tenth the peO-
pie, and carries debt ten times as great;
the debt of France is twenty times that of
China and the debts of the other powers
are proportionately large Here is What
they are in round numbers: England owes
S3,3oo,Oen. 900; France, $3.50 100000: Ger
many. $500 600 600, while Russia has a
debt of 81, 80 900 Austria-Hunglry and
Italy each owe eight times as much as the
present national debt of China, and poor
little Spain is paying interest on loans six
times as great.
What the Chinese Debt Is
The Chinese have horror of debt. They
think it disgrace to go bankrupt They
pay their bills as honestly as any people
of the world, settling all accounts at New
Year. They especially dislike debts to for
eigncrs, and IT is the national policy to
keep out of them Their first foreign loan
was In 1874, when they borrowed 10000
AZ per cent through the Hong Kong and
Shanghai Bank. The loan was secured nv
the customs. Their chief debt was incurred
after 1894, in order TO pay the Japanase
Indemnity. During that year they borrow
cd loorn"O taels of the English on a TWEEN
Ty-year loan. In 1898 they negotiated an
other English loan of about 5000 900 at
6 per cent, to run for twenty years, and at
the same time one of about SSo,0o.0o0 of
the Russians and French. to run thirty-six
years. at per cent. In 1896 and 1895 they
made two other loans of $50 O,u 600 each
OF the AnslO-Germans, one at and the
other at 4l2 per cent. The first loan was to
run thirty-stX years and the second forty
five These and few other very small
loans, some OF which are to pay the guar
anteed interest on railroad undertak kings
comprise the total debt of this nation of
3H.Woop people, owning some of the rich
est agricultural! and mineral lands upon
earth.
What the Revenues Are.
No one knows what the revenues of
China really are. The taxes collected are
enormous. but 20 per cent of them never
get TO Pekin; the balance is either swal-
lowed up in the form of costs or presents
10 official superiors, or remains in the hands
of the tax collectors
There is no country so office ridden There
Is class of men known as yamen runners
connected with all government places who
are paid out of taxes and squeezes. 1t is i'm
possible to tell what is collected. Accounts
are rendered in piecemeal, and nc province
furnishes a balance sheet of its whole ex-
penditure and revenues. There is never A
surplus and there are often deficits.
NO increase Is ever reported. No one OK
poets an Increase, for he knows that if
such condition occurs the surplus will go
into the collectors pockets Indeed If the.
ofnclal hgures of China are correct the gov
eminent revenues have been steadily fall
ing of, although in commerce, business and
wealth the empire has been steadily grow
ing.
The revenues actually paid today are es-
timated at 1000 OpG taels Call Them Gwen
sII,e"HS. Increasing thereby the estimate
one-thlrd as the tael is not worth much
more than 20 cents. In 1853 the revenues
were estimated at S10ns1nbo one hundred
and fifty years later they Appropriated
&No,o~,Uco, and still later Sir George Stan
ton estimated them at $3.50 U0UOOU BY the