The Savannah morning news., 1901-02-17

charges on this account against the likin
taxes amount to 100000 per year, leav-
ing less than 100000 per annum avail
able as security for this great indemnity.
In addition to this, the nkin, or transit
taxes, are the greatest existing hindrance
to the growth of foreign trade in China.
They are burdensome now that il is rare
~ that foreign goods penetrate more than
thirty or forty miles inland, and instead
of accepting them as security for any
part of the indemnity they should be
entirely abolished. ANY attempt to in
crease the tax would result in absolutely
prohibiting the import of foreign goods be-
You'd the limit OF the treaty ports.
But China has other means whereby
to pay. The present national debt of the
Empire is only about 100000, being al
most entirely created for the purpose of
paying the indemnity imposed at the end
of the japanese war. The first $175,000,
900 of this debt is secured by the customs
and revenues OF the Empire, which are
now administered by foreign force IN
der the direction of Sir Robert Hart. The
customs duties collected by China amount
TO %, 100000 taels 16,5000OO per annum,
and the cost of administration is about
ten per cent. When the Chinese Customs
Service was in the hands of the native
officials it did not yield to the govern
ment much more than one-tenth the reve
nue. that it yields now. The customs rev.
enues of China are derived from a tax
of five per cent. levied upon all exports
and imports of the Empire This per-
centage is insignificant compared to the
customs duties of other nations. and can
easily be raised to fifteen per cent. with
out seriously affecting the volume of Chi
mas trade. Such an increase would raise
the revenue from this source to about
$55, Geo per year. The other revenues
of the Chinese government ere derived
from the salt taxes; yielding IA. 000, 600 taels
per annum; the opium and miscellaneous
taxes, yielding about 100000 taels per
annum, and the land tax.
The land tax of China is the greatest
source of imperial revenue, yielding more
than one-thrd of the total revenues of the
throne, which aggregate only about 10000
600 taels year. This land tax is a di-
rect tax of from % cents to 81 per acre,
according to the quality, levied on all the
arabic land in the empire. yet last year
1t yielded the central government only
a little over 33.00O,O00 taels. The colec-
ton of this tax is still in the hands of
the Chinese officials, and with the known
corruption of such control ii will not he
surprising to learn that the amount as
sessed and collected from the people ag-
gregates more than five times the amount
which reaches the imperial government.
From the area of land taxed and the
known rate of taxation. it is estimated
that the amount collected from the peo-
pie on account of this land tax, aggre-
gates about 10000 90 taels ($117 100000
per annum. The difference between this
sum and the S25.0OO0J0 received by the
Pekin government represents the
squeeze" of the army of officials
through whose hands the money must
pass before reaching the imperial treas
TRY. II this great land tax of China
were honestly and efficiently admins
tered by a foreign commissioner. as Is
the customs service. it alone would offer
an ample security for the great indem-
nifty now demanded. After paying for
its administration and paying to the Chi
nese government a sum equal to that
now received by IL FIR m the tax, it would
still leave balance of over 100000 taels
per annum Such sum would pay per
cent. interest per annum on a debt of
1000 10000 taels (s730 0G0 900 and leave a
sum sufficiently large to repay the entire
principal of the debt In about fifteen
years. When it is understood that such
results can be secured, from the taxes
already levied without increasing the
burden upon the people, one gets some
idea of Chira's resources.
1t is, of course, true that China is I'M
able to pay in cash any such sum as
that demanded by the Powers. but she
can easily pay a sum Of 500 100000 which
Will be ample to cover all actual damage
or loss sustained by the Powers. and
their nationals in China. however, the
very purpose of exacting punitive dam
ages would be lost If China were able to
ray them at once in cash. The purp Sc of
eXactirg such an enormous indemnity
from China is to place her under bonds to
secure her future good behav or 1t can be
done only by imposing a BIT of such pro-
portions upon her that it will exhaust
her surplus revenues for years to come
and so prevent the enormous purchase
and manufacture of war materials and
supplies which has been going on since
the disastrous collapse Of the imperial
arms in the war with Japan.
The Powers should, therefore. accept
from China the payment in cash of such
a sum 9s will cover the actual pecuniary
loss incurred by the uprising. and insist
upon the assignment of the land tax and
its administration by fore gn commits
sioner as the security for the great bur-
den Of punitive damages that shall be
lid upon her, each of the Powers re-
ceiving its proport on of the total dam
ages In bonds Of a uniform issue so Sc
cured. Such an issue of bon6S would also
be a guarantee OF the territorial integri-
ty Of China, for It would crate Joint
ana several interest among the Powers
for preserving the empires integrity. II
the Powers attempted to divide the en-
p're they would destroy the security for
their debt.
Guy Morrison Walker.
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AN effort is being made In some places