FINANCE

721

taels. This was however, ruthlessl)^ cut down by the of 80,000,000 taels was converted into a surplus of

Taels

49,000,000 47,000,000 47,000,000 44,000,000 42,000,000

Chief Items of Expenditure Taels

Repayment of loans, &c. , 56,500,000

Army and navy . . . 88,000.000

Communications . . . '^7,000,000

deficit of 54,000,000 Senate till a deficit 3,500,000 taels.

Chief Sources of Revenue

Land tax estimated to produce

Tea and salt taxes ,, ,,

Government lands ,, ,,

Likin ,, „

Customs ,, ,,

The land tax varies in different provinces from lOd. or Is. to 6«. 6d. or more per acre. The rate of incidence is theoretically fixed, but under other names additional taxes are imposed on land. Salt is a Government monopoly, all producers being required to sell to Government agents, who, at a price which covers the duty, re-sell to merchants provided with 'salt warrants.'

Budget for 1912 :— Revenue 268,000,000 taels; expenditure 268,311,000 taels.

The collection of tlie revenue on the Chinese foreign trade and the administration of the lights on the coast of China are under the management of the Imperial Customs Service, which has a large staff of European, Ameri- can, Japanese, and Chinese subordinates, the department being organised somewhat similarly to the English Civil Service. By Imperial Decree of May 9, 1906, the customs service, hitherto supervised by the Board of Foreign Affairs, was placed under the control of two Chinese high officials, forming a new department known as the Sliui Wu Ch'u, or Revenue Council. Since November, 1901, the Native Customs at the Treaty Ports hypothecated for the service of the indemnity, have been under the Imperial Maritime Customs.

On November 22, 1912, an Audit Bureau was established, charged with auditing the expenditures and revenues of the Central and Provincial Governments. On Jan. 15, 1913, an inspectorate-general was established for the Salt Gabelle.

The receipts from maritime customs and from opium likin in the last 5 years were (in Haikwan taels) : —

Year

Customs

Opium liliin

Total

Taels 32,901,895 35,539,917 35,571.879 36,179,825 39,950,612

Total

Exchange

1908 1909 1910 1911 1912

Taels 28,030,473 31,633,951 32,732,856 32,615,669

Taels 3,871,422 ' 3,905,966 2,839,023 3,564,156

£

4,386,919 4,627,593 4,789,234 4,871,085 6,096,629

Pence 32 31i 32A

32A 36|

The foreign debt secured on Imperial revenue outstanding December 31, 1911 is shown in the following table : —

No.

Nature ef Loan

Rate of Interest

7%

6% 6%

Original Ameunt

Principal outstanding Dec. 1, 1911

1 o

3

4

Silver Loan of 1894. (Hong-Kong and

Shanghai Bank) .... Gold Loan of 1895. (Hong-Kong and

Shanjihai Bank) .... "Cassell Loan" of April, 1895. (Chartered

Bank)

"Arnhold Karberg Nanking Loan," 1895.

(Three German Banks)

10,900,000 Tls. 3,000,0007. 1,000,000/. 1 000,000/.

2,180,000 Tls. 800,000/. 266,700/. 266,700/.

3 A