752 CHINA
Finance.
The following budget statements represent official estimates
Tear
Revenue
Expenditure
Deficit
1912
1913 1016 1918
Kuping Taels
297,000,000
Dollars
333,948,482 472,838,584 490,419,786
Kuping Taels 576,520,000
Dollars 642,237,076 472,838,884 495,762,888
Kuping Taels 279,520,000
Dollars 308,288,594
5,343,102
The collection of the revenue on the Chinese foreign trade and the administration of the lights on the coast of China are under the management of the Chinese Maritime Customs, an institution, founded by Sir Robert Hart, which has a large staff of Foreign and Chinese subordinates, the various nationalities of the Foreign employees bearing approximate relation in number to the amount of trade of their respective countries. By agreement, dated February 13, 1898, China undertook that the post of Inspector-General must be held by a British subject so long as British Foreign Trade predominates. By 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 Shut Wu Ch'u, or Revenue Council. Since November, 1901, the Native Customs at the Treaty Ports, hypothecated for the service of the Boxer indemnity, have been under the Maritime Customs.
All Customs Revenue is paid into Foreign Banks designated for the purpose by the Bankers' Commission, who allot therefrom the payments for the service of Foreign loans secured on the Customs Revenue and the Boxer Indemnity, which is also secured on the Customs.
Following China's declaration of war against the Central European Powers, the Treaty States agreed to a revision of the tariff in order to bring it up to an effective five per cent, ad valorem. A commission was appointed hy the Chinese Government to meet with representatives of the Treaty Stales in Shanghai to agree to and fix Customs import duties. A decision was reached in the autumn of 1918, under which duties were lixed at specific rates calcu- lated on a basis of five per cent, of prices ruling during the period from 1912 to 1916 inclusive. In addition, the Entente Powers agreed to postpone pay- ment of " Boxer indemnities " for five years, dating from Dec. 1, 1917.
On November 22, 1912, an Audit Bureau was established, charged with auditing the expenditures and revenues of the Central and Provincial Governments. The Maritime Customs and the Salt Gabelle are the only two sources of revenue for winch exact figures are so far available. By the terms of the Re-organisation Loan Agreement of 1918, the Chinese Govern- ment agreed to take immediate steps for the re-organisation, with the assis- tance of foreigners, of the system of collection of the salt revenues. A Central Salt Administration was established in Peking under the control of the Minister of Finance, with a Chief Inspectorate under a Chinese Chief Inspector and a foreign Associate Chief Inspector, who exercise the chief authority for the superintendence of the issue of licence and the compilation of reports and returns of revenue.
The Salt Revenue for three years was:— 1917, 70,627,249 dollars; 1918, 71,589,603 dollars; and 1919, 80,636,503 dollars.
