The Minneapolis journal., 1902-08-01
CHINESE INDEMNITY AND TARIFF

The treaty negotiated by Great Britain
with China, the substance of which haa
been cabled, Is Of the deepest interest
to our government as 1t is practically
the model from which the other nations
will arrange trade relations with China,
as it embodies the most favored nation
clause and has to be accepted by all be-
fore it becomes effective.
One important feature of this treaty is
the abolition of the vexatious likin tax,
the tax levied In the interior on imported
goods passing from province to province,
which makes: the goods cost enormously
by the time they reach destination, as
the officials are habitual1y pecuiative and
line their pockets with excessive exac-
| tious. The treaty reads as II all the in
ternal taxation of the empire is to be
abolished. 1t is not known whether the
original British proposal to substitute
for the abolition of the burdensome and
trade -hindering likin interior tax, an ad-
ditional tax Of ~ per cent to the customs
duty of per cent and 21a per cent added
to free goods from taxation in transit
to an interior port, is included in the
arrangement This would mean Is per
cent taxation on foreign goods. Ameri-
cans in the Chinese trade object to this
arrangement, as 30 per cent of our cotton
goods trade is with northern China where
the likin tax is but slightly enforced and
no advantage would be derived from the
proposed surtax OF ~ per cent. as might
be. the case in the middle or southern
provinces. This matter will be threshed
/ over when the treaty comes before the
! treaty powers. 1t would seem incredible
that the Chinese government would abol-
4 ish it's internal taxation at time when
it depends largely upon such taxation to
meet the terms Of the indemnity agree
ment. :.
= AS to the Indemnity, the Chinese au-
thorities still contend that it was the
understanding that the semi pay
ments Of 100000 taels we're to be made
at the ratio Of value Of the tael then pre-
yailing. The gold value of the silver tael
!, lat the time 9of the agreement was 74.z
!, cents and since then 1t has slipped down
! to- about So cents. Every power, party
to the treaty, knew well that silver has
- no constant value and fuctuates uncer-
tainly and that-it gold payment Is in
sisted on. it will take the greater par
! of the Chinese revenues ~(silver) to mee
! the indemnity payments. Our own gov
ernment, Great Britain and. Japan art
! willing to help China BY accepting in
. demnity payment at the silver taelvalu'
/. at, the time the indemnity terms wer'
t fxed-74..2 cents. Germany is inclined t.
:, take this course, but Russia and Franc
contend for gold payment. To effect this
/ all the import duties at Chinese port
s. would have to be. made payable In gold
: which would disarrange internationa
9 trade to- oblige Russia and France. VIII
# are by no means large traders in China
: Russia's percentage being very small
t comparatively, and our own and that Q
+ Great Britain and Japan being large. Ii
: our own case our government could wei
s afford to remit the indemnity so pc
g cent, in order to keep on friendl.
81 trading basis with China France an.
: Germany have issued loans against thei
g lump indemnity, claims, figuring then
t in gold, and they, with Russia, do no
d feel disposed to consider the silver basi
: proposition. Our government was the ars