Evening journal., 1901-04-08
cH1NA,s SMART MONEY

Having been Whlppeu W q eVohu9e't'
and inundated before the entire world
China Is preparing to pay the many
millions of dollars OF smart money
which will be demanded by the Pow
ers as a penalty for her impotency IN
dealing with the anti-forelgn rioters
within her borders.
Sir Robert Hart, the imperial com
missioner OF Chinese Maritime Gus
toms. has submitted TO the ministers a
complete program for the payment of
the indemnities, the money which Is to-
come from the stamp duty, the tax on
native opium and the house tax is in
tended merely as additional taxation for
the purpose of reiinbursing China for
the deficiencies caused by the increase
OF her indebtedness 10 the foreign
Powers.
Sir Robert Hart proposed as security
for the payment OF the indemnities,
first, the salt tax, or salt gahelle, which
is capable OF producing from l5,0O0,OOO
to 2O0O0.0oO taels annually; second,
the customs duty paid by Chinese
iunks. which ranges from 100000 to
5000. 600 taels annually; third, II need
ed. the Pelyln octrol, which brings IN
100000 taels annually; fourth. the Man
chu stipends, which yield 10000
taels year; and, firth, the abolishing
OF grain tributes by substituting pay
ments by check OF in cash, which
would bring in two millions additional.
Sir Robert Hart also suggested that
the Maritime Customs Department
supervise tho collection of the salt ga
belle and the duties ON native junlSs.
He also recommended the gradual
abolition OF the lilzin and favored an
increase in the tariff OF from to 10
per cent. which. n done, would make
other measures for raising the neces-
saly revenue needless. He showed that
a per cent tax imposed forty years
ago. payable in taels, would be equal
now to 10 per cent. tax. as at the
time referred to three taels were equal
IN value to a pound sterling, while now
Il requires about seven taels TO make
a pound. Hence. arguing from this
standpoint, Sir Robert thinks that by
reckoning on the basis OF pounds ster-
ling the increase he suggests in tho
tariff is just and would furnish am
easy mode OF meeting a portion OF the
indemnity.
The other proposition made by Sir
Robert Hart. that China pay the in
IDENTITIES by annual instalments, the
several countries accepting Chinese
Government bonds in proportion to the
indebtedness OF China 20 each Power.
Is opposed by several Of the ministers
for three reasons; first, because a SER
ious complication MAY arise before the
final payment; second. because OF the
probable failure OF an the Powers to
harmonize on the question as to main
tanning a method Of similar yearly
payments. especially II the Chinese
revenue in some one year should fan
10 meet the amount due to all; and.
third. because several of the Powers
"N~'t~ AANhAIAlAN' NtN1InANA VI luE Iu~
IDENTITIES and say they see no reason
why foreign countries should meet
China's losses which were incurred
through China's crimes.
According to Sir Robert Hart's state
ment AS TO the present rate OF Chinese
taxation. including the cost OF co.lec-
tion and extortion. each Chinaman is
taxed only about 35 cents gold per an
mum. or about one-seventh OF the Jap
anese per capita taxation. Hence. as
three Of the ministers remarked at the
meeting when the scheme was pre-
sentcd. China is abundantly able. under
lust administration. to pay the fun
indemnites
As is usual in nearly all such cases.
the bulk OF the burden Of the tax will
fall upon those who had absolutely
nothing to do with the Boxer uprising
or the unwillingness or inability OF
the Imperial Government to cope with
It ] s4AlA