New-York tribune., 1921-12-01
China Pleads
go Retain Last
FewTaxRights
Principal Aims of Censor
tium Defined by Orien-
tai Editor as Efforts TO
Take Remaining Incomes
Foreign Control Assailed
Loan on Wine and Tobacco
Levies, With Pooling of
Rail Traffic, Denounced
By K. P. Wang
Associate Editor Of the "Shun Pao.n O;
Shanghai

o.
Shanghai
WASHINGTON. Nov. So.-One of Tho
principal aims of the Chinese con-
sortlum. as indicated by recent de-
velopment, is to control the only few
revenue sources Of China still in Tho
hands OF the Chinese. The last at
tempt to advance loans TO China WINS
virtually to this effect: A sum of some
sl5.oo0,o 900 or $50. .0oo. 900 would be len+
to China on the condition that China
would offer the wine and tobacco tsxa-
ton as security, and that foreign in
spection OF the wine ana tobacco taxa
ton administration would be estab
lished.
Again, the current talk Of an inter
national pooling of China's railways
means nothing more than to take hold
OF the railway purse of China All
the railways in China are operated and
controlled by the government, and the
proceeds realized through the opera
tion of different lines form the largest
item OF revenue in China's treasury
that is, the largest revenue source
over which the foreigners have not
yet got control
Although the receipts from the wine
and tobacco administration are smaller
than from other sources, they are
handled by the Chinese themselves. and
hence China still has freedom in their
collection and disposal Should these
revenue sources some day go into the
hands Of foreign bankers and super
visors China would have nothing to
maintain the machinery OF her govern
menr, because once these sources are
gone she could depend upon no other
big revenue item except the land tax.
which mainly supports the province al
governments.
Foreign Control of Taxes
The customs revenue and the salt
tax are among the largest revenue
sources Of China. yet they are ali in
the hands Of foreigners.
There is no doubt that the foreigners
are conducting very efficient and pro-
orctlve administrative systems for
these two revenue sources, but all the
money thus collected is deposited in
forelgn banks and China ALWAYS has
spector generals OF customs ard salt
administrations the so-called surplus
1unds. funds left over after the in
demnlty funds and loan dues secured
on these revenues. By treaty agree
ments, these surplus funds should be
handed to China in periodical INSTALL
ments bat very often the foreign in
spector generals withhold these sur
pluses from the Chinese government on
some petty excuse.
On the other hand, foreign banks in
China especially seml-officiai banks of
foreign powers where the receipts of
these two revenues are deposited, can
utilize these big sums OF such collec
tIons as operating capital and a. loan
ing resources. while the money market
among the Chinese financial circles be-
comes more and more tight and de-
pendent upon foreign banking institU-
tions. As the foreign banks make easy
money on these governmental funds of
China both the Chinese government
and the Chinese bankers have bowed to
these foreigners from time 10 time.
Such experiences are very bitter and
fatal to China, and she is now deter
mined not to repeat them any more.
We want no foreign inspectorate gem
eral TO- the wine and tobacco taxa
ton administration.
China Depends On Railways
At present China's national expendi-
ture largely depends upon the railway
revenue, for the different lines of gov
ernment railroads are yielding big re-
turns evety year. 1t is true that the
railway administration in China is not
as perfect as an ideal system should
be, but the very fact that all the lines
are making money, with one or TWO eX-
ceptlons of short lines, shows that IN
China we have at least one public serv-
ice that is really efficiently managed.
The foreign powers should find no rea-
son for demanding the international
pooling of such service, especially IN
view Of the fact that all obligations
arising out of railway loans have al
ways been met promptly.
Aside from financial considerations,
the object of the author who invents
the idea OF international control of
China's railways is very sinister in
and discussed by different powers that
the operation of these railways should
also be managed by foreign experts.
Perhaps there has been nothing that
has hurt China's sense of national
honor and dignity more than such a
proposal. Railroads are life blood
veins of nation; so it is true with the
Chinese railroads to China. If foreign
powers, without any justihable excuses.
should try to cut blood vessels of
China, will reasonable and thinking
people of the world consider that
China will consent to that? If an in
ternational board should be formed to
control Americas railways, would the
Americans stand for it,
The Chinese, after all, belong to the
same species as people of other ma
tionalities, and we have the same sense
OF feelings as others have. 1t is ad-
visable for the powers not to give to
the Chinese people any more humila-
tions, because they are on the verge
~