Los Angeles herald., 1909-08-28

llM 81 k1l Chinese government Is deal
IW ESfa ing at this time. the most
IN EyNl important Is that of tariff re-
lXILEAS form Reforming the tarlt
is a difficult task in any ma
ton, even the sovereign powers OF the
United States and Great Britain nave
lfound it So But it Is infinitely more
difficult in China, for the Chinese gov
ernment has no power to fix its own
customs duties Tariff tinkering in
China must be done by other nations,
| by the so-called great powers OF the
world. Chinas tariff system is con
ventional" one, that is to say that 1t
is ordained and controlled by conVen-
tions or treaties entered into between
China and other nations China's con-
sent to each previous revision having
been obtained at the mouth of can
mona cannon smoking hot from Its
work of destruction of Chinese defenses
and Chinese sovereignty.
The last time the powers were forced
to deal summarly with China was in
1900, at the time of the Boxer war. AS
! the result. when the troops of the
allies forced their way into the very
throne room in the heart of the For
! hidden City. there was revision OF
the tariff, but a very slight one. Otner
results of the war were the promises
made by China to effect far-reaching
reforms in the internal administration
of the empire, especially the pledges TO
reform the judiciary and to establlsh a
sound financial system. The Chinese
! Government, both under the old ana
/ the new regimes, has manifested an
earnest desire to redeem these promises
! and has even laid down program OF
reform much wider in scope than that
eXacted by the powers But CHINA mas
! found that it is impossible for nation
! to undertake far-reaching govern
mental work without money.
! Therefore China is now in the throes
of a tariff campaign, campaign TO
increase the customs duties for revenue
purposes only. The protection principle
! is not involved in the question at issue
and there is no division of opinion oe-
tween protected interests and con
sumers." In fact the Chinese people
! have nothing to do with the case. 1t Is
the Chinese government, supported py
but one of the great powers, seeking
the permission of all the powers TO IN
crease the duties on commodities pro-
4duced by those foreign nations ana
| imported by their business concerns
into China. The situation in one as
pect may be appreciated by supposlns
! that the congress of the United states
had to ask permission of England Ger
many, France. Italy, Japan and Canada
| TO revise Itle SCllSuhAIS VI eiAS L ~ 49,
| AldriCh bill.
The Chinese tariff is now fixed in
I theory at a "horizontar rate on a
basis of per cent ad Valorem. AS a
matter of fact most of the schedules
are specific duties, based on per cent
of the standard prices of ten years
ago. On account of the changes IN
prices and the fall in the value or Sill
yer, the actual duty now is but trlne
| over per cent.
The maritime customs of China are
of foreign origin, for the simple reason
that China did not permit importation
of foreign wares until forced TO DO so
| After the celebrated opium war Win
Great Britain. the treaty of Nankine
was signed in 1912. establishing the
| Chinese maritime customs. The tarln
was fixed at 5 per cent ad yalorem, eX-
| pressed in specific duties computed or
| that basis. After another war, the
treaty of Tientsin, in 1885, provided fol
tariff revision on the ground that the
existing rate, owing to the fall IN tne
value Of commodities was considerably
more than per cent. Since that time
all revisions of the tariff, made by con
yentions of course, have been strict 1T
their adherence to the per cent .prin-
ciple. although the treaties had not
then fixed that basis as definite maxi
mum.
The protocol of 1901, following
the Boxer war did however, declare
! five per cent to be the maximum tarlft
charge and this limitation was after
ward embodied in the British treaty
of 1902, the American treaty of 1907
and others of the same year. by TINS
action the five per cent principle Is
made a part of sacred treaty law. The
revision of the protocol, afterward car
ried into treaties, fixed specific duties
at five per cent of the prices prevail
ing in the years 1897. 1898 and 1899
Changes since then reduce the return
as has been said, to a trifle more than
four per cent. The fall in the price
of silver has served to increase China's
gold indebtedness twenty-five per cen,
since the Boxer protocol. AS all oi
the customs revenues are pledged tc
nav indemnities and certain gold loans
| owed to foreign countries, and as the
duties are paid in silver, and the debts
must be paid in gold. the situation
viewed from the Chinese standpoint is
distressingly critical 1t means thai
the revenues of the central govern
ment, mostly derived from the mari
time customs, are being cut off at both
ends at the very time when necessary
expenditures are increasing by leaps
and bounds.
Reform of internal taxation is sore
lv needed in China, but 1t is pointed
out that this cannot be accomplished
until some system has been provided
to take it's place. This system cannot