Los Angeles herald., 1909-08-28
i'm MODERN CHINA
VTUT-CelestiaI Tariff Reform
By Frederic j. HaSkin

be organized without Il bubSlahtie1i ia
crease of the tariff duties, by the con-
sent and cooperation of the powers.
The greatest hindrance to trade de-
veopment in the interior OF China is
the 'lilxin," or transit tax, tariff duty
| levied upon both native and foreign
goods in transit from or through the
provinces. This tax is the principal
revenue source of the provincial gov
ernments The provinces are charged
with even a greater share of govern
mental administration than are the
state governments in the United states.
To cut off their revenues entirely
would mean the wreck and ruin or
the entire country.
Naturally the foreign nations urge
the abolition of the "lilSin." China re-
plies that the imperial government de-
| sires to abolish the transit tax and
| will do so as soon as 1t can find
substitute revenue producer. And for
that substitute 1t proposes an increase
in the maritime customs. Then would
| follow the reform of the land taxa
ton. The present assessment of land
values for taxing purposes was made
| in 1712, nearly two hundred years ago.
The government is desrous of reform,
but it cannot find funds sufficient to
bear the expense Of a new cadastral
survey of its vast empire.
If il were not for the "likin.' which
all foreigners wish to see abolished.
there would be little or no hope that
the powers would consent to an IN
crease of duties. But many merchants
agree with the broad-minded states
men, who have China's good at heart
| that the increase of trade facilities
brought about by internal free trade
would more than offset the disadvant-
! age of higher import duties. On this
peg hangs the financial hopes of the
! oldest, largest and most populous ma
! tion of the world.
The total receipts for last year or
! the Chinese customs aggregated So
600. 900 gold, as compared with $685.,
600 900 in the protection country of the
United States and S165, 10000 in the
free trade" country of the United
| Kingdom. In view of the disparity of
incomes 1t does seem that the British
and Americans might listen to China's
! representations that it needs the
money" since that same argument has
proved so potent in the legislative halls
on the banks OF the Thames and the
| Potomac.
The United States, the only one OF
the great powers which does not pos
sess special territorial or other con-
cessions in China, is thus far the only
nation giving active support to China's
! request for a conventional revision or
its tariff system. Last December the
Peking government addressed the
powers proposing a revision of the
! Chinese tariff and substantial in
crease in duties. The United states
made known through diplomatic chan
nels its adherence to the proposal.
The Interested powers failed to ap-
preciate the force OF the American
position and replied that China must
first make effective it's promised re-
forms in the internal taxation, the
judiciary and tho currency system.
The American government has IN
timated that it finds some force In the
Chinese contention that these reforms
cannot be carried forward without
! money, and there can be no money ur-
| less the tariff Is raised. This dip
lomatic correspondence will be long,
but there is reason to believe that the
force of circumstances VIII compel the
other nations to follow the American
lead and consent to a general tariff
increase.
The American government is con-
vinced that 25 per cent would be a
fair and reasonable basis for the new
tariff, In view of the high standard
obtaining in nearly all civilized coun-
tries at this time. But not to be too
radical, the proposition advanced for
argument Is to double the tariff duty,
making 1t 10 per cent, and then add
the amount of the present "likin," 2h
per cent, bringing the proposed new
tariff up to 12la per cent ad valorem
If that could be done, China's little six
million dollars year, practically all or
which is pedged, might be little more
than doubled, but still far, far beow the
customs revenues OF western nations,
at whose behest China must endeavor
to introduce western reforms and
western methods.
The Chinese tariff revision campaign
is on. It will be long and bitterly con~
tested but not In the fashion of other
tariff fights we know so well. There
will be no platform demands, no stump
speech promises, no elimination and re-
elimination, no "robber barons" and no
ultimate consumers" no acrobatlc
efforts to square the speech of the
forum with the action of the committee
room. All these things will be lacking
and the campaign will be conducted In
the honeyed language of diplomacy,
quietly and in order. All the anxiety
and all the worry will be thrown upon
the shoulders Of the men who are try
ing to make new nation OF China,
men who will have little or nothing to
saw in the final decision of the fateful
countries, The Chinese tariff revision
campaign is not without Its measure or
pathos.
Tomorrow-In Modern China: IX--Need OF
Currency Reform