The Truth about China and Japan/Document M
APPENDIX
(M)
CHINESE GOVERNMENT TABLES AND RETURNS FOR THE YEAR ENDING JUNE 30, 1919
Explanatory Note.—The valuable tables and returns annexed hereto are from an official (unpublished) annuaire of the Peking Cabinet. Nothing like them has ever been issued.
They include:
(1) A return of the Chinese Debt Service—the most elaborate statement yet published;
(2) The administrative expenses of the Central Government, giving a calendar year's estimate (excluding provincial expenditure);
(3) A complete return of the number of troops under arms in China to-day—total, 1,290,657 men, costing the country $208,971,080 per annum.
The available income of China to-day is about $370,000,000. National Debt Service requires $120,000,000, and Administrative Expenses (central and provincial governments) at least $130,000,000 Thus only $120,000,000 a year can be spared for Army and Navy. But the known army expenditure is upwards of 208 million dollars: when Navy and Extraordinary Field expenses of the army (due to the internal struggle) are added, the annual deficit is about $130,000,000.
This has been the explanation of the borrowings from Japan. If the list of Japanese loans in 1918 is carefully checked it will be found to amount to the deficit in the Chinese Budget.
The main conclusions, however, to be drawn from all these figures and returns are (1) that China can be governed more cheaply than any country in the world, bearing in mind her four million square miles of territory and her population of upwards of four hundred millions; (2) that in spite of the bucket-shop methods of finance encouraged by foreign concessionaires China, in comparison with Europe, is to-day practically debt-free, her total unproductive debt (less the suspended Boxer indemnities), Internal and External, calling for only $120,000,000 (say £20,000,000) per annum in interest and sinking-fund, and amounting in capital-value to considerably less than one pound sterling per head of population.
Extract from Government Statement
1. Payment of National Debts.
On account of the payment of the Boxer indemnities being postponed, and the low rate of exchange of gold, the expenditure under this head for 1918 was less than usual, only amounting to $112,750,000. Out of this sum, $68,820,000 were paid for foreign loans and $43,930,000 for domestic loans. Judging from previous records, it is felt that the annual provision for this purpose will have to be increased, as the price of sterling at present is extraordinarily low, and its probable rise must be guarded against. The annual amount that will be required for meeting national indebtedness will therefore have to be increased to $120,000,000. The following tables give the list of domestic and foreign loans, including the payment of principal and interest and also the long-term foreign loans.
Domestic and Foreign Loans, Including Payment of Principal and Interest
(From July 1, 1918, to June 30, 1919)
| (1) Foreign Loans | $ | 71,001,606 |
| Anglo-German Loan contracted by the late Ching Government | 7,735,616 | |
| Supplementary Anglo-German Loan contracted by the late Ching Government | 6,681,856 | |
| Russo-French Loan contracted by the late Ching Government | $ | 6,346,426 |
| The Crisp Loan contracted by the Central Government | 2,005,000 | |
| The Reorganization Loan contracted by the Central Govenrment | 10,025,000 | |
| The Banque Industrielle Loan by the Central Government | 1,503,750 | |
| The British and Chinese Corporation Loan by the Central Government | 180,450 | |
| Advances by Banque Industrielle de Chine to Central Government on account of Ching-pu Railway | 2,023,276 | |
| The Shinya Corporation Loan by the Central Government | 240,000 | |
| The Chicago Bank Loan by the Central Government | 482,400 | |
| The Telegraph Loan | 960,000 | |
| Advances on account of Kirin-Weining Railway | 560,000 | |
| The Forest Loan | 1,800,000 | |
| Advances for Manchurian and Mongolian Railway | 640,000 | |
| Advances for Tsi-Shun-Kao-Hsu Railway | 640,000 | |
| Advances on Second Reorganization Loan | 1,280,000 | |
| The payment of indemnity to Spain | 8,283 | |
| The payment of indemnity to Holland | 53,497 | |
| The payment of indemnity to Sweden | 34,176 | |
| The payment of indemnity to Russia | $ | 5,546,395 |
| Miscellaneous expenses in connection with payment of indemnities | 9,772 | |
| Debts of Ministry of Navy to Sir Armstrong Whitworth & Co. for supply of guns, secured by Government Treasury Bill | 712,000 | |
| Debt of Ministry of Navy to Kawaski Shipyard for supply of guns, secured by Government Treasury Bill | 206,337 | |
| Debt of Ministry of War to Mitsui Bussan Kaisha for supply of guns, secured by Government Treasury Bill | 668,962 | |
| Debt of Ministry of War to Taihei Komi Co. for supply of guns and munitions, secured by Government Treasury Bill | 468,732 | |
| Debt of the Ministry of War to Russo-Asiatic Bank for payment of Lung-hua Tannery, secured by Government Treasury Bill | 528,941 | |
| Debt of the Ministry of Foreign Affairs to Syndicate de Yunnan secured by Government Treasury Bill | 478,894 | |
| Debt of Ministry of Education to Russo-Asiatic Bank secured by Government Treasury Bill | 135,759 | |
| Debt of Ministry of Education to Banque Industrielle de Chine | 87,600 | |
| Debt of Ministry of Education to Banque Sino-Belge for advances in sterling | $ | 165,405 |
| Debt of Ministry of Education to Yokohama Specie Bank | 82,800 | |
| Debt of Ministry of Agriculture and Commerce to Banque Industrielle de Chine | 137,323 | |
| Debt of Ministry of Education to Mitsui Bishi Kaisha | 82,800 | |
| Debt of Ministry of Finance to Mitsui Bussan Kaisha for loan contracted by the Nanking Provisional Government | 933,035 | |
| Debt of Ministry of Finance to Standard Oil Co. secured by Government Treasury Bill | 282,726 | |
| Debt of Ministry of Finance to Banque Sino-Belge secured by Government Treasury Bill | 592,651 | |
| Debt of Ministry of Finance to Sino-Japanese Industrial Company | 1,667,000 | |
| Debt of Ministry of Finance to Lee, Higginson & Co | 995,676 | |
| Debt of Ministry of Agriculture and Commerce to Samuel & Co | 34,708 | |
| Debt of Ministry of Finance to Russo-Asiatic Bank | 298,700 | |
| Debt of Ministry of Finance to the Industrial Bank of Japan and Hsien Nien Bank | 4,140,000 | |
| Debt of Ministry of Finance to Mitsui Bussan Kaisha & Co. | $ | 64,000 |
| Debt of Ministry of Finance to the Exchange Bank | 414,000 | |
| Debt of Ministry of Finance to the Septuple Banking Group | 386,600 | |
| Debt of Ministry of Finance to the Quadruple Banking Group | 849,400 | |
| Debt of Ministry of Finance to Banque Industrielle de Chine on account of Ching-Yu Railway | 3,304,995 | |
| Debt of Ministry of Finance to Banque Industrielle de Chine for interest on Pukow Loan secured by Government Treasury Bill | 309,602 | |
| Debt of Ministry of Finance to Banque Industrielle de Chine for advance against promissory notes issued by the Commercial Guarantee Bank of Chihli | 743,909 | |
| Debt of Ministry of Finance to Okura Co. for advance against promissory notes issued by the Commercial Guarantee Bank of Chihli | 643,765 | |
| Debt of Ministry of Finance to the Russo-Asiatic Bank for advances against promissory notes issued by the Commercial Guarantee Bank of Chihli | 412,189 | |
| Debt of Ministry of Finance to Exchange Bank | 960,000 | |
| Debt of Ministry of Education to the Russo-Asiatic Bank | $ | 290,000 |
| Debt of Ministry of Navy to Ansaldo Works | 240,000 | |
| (2) Domestic Loans | 43,939,159 | |
| Debt of Ministry of Finance to the Banks of Communications for handling the Lunghai Railway Loan | 225,000 | |
| Commercial deposits and shares of the former Ta-Ching Bank | 92,424 | |
| Government Treasury Bill issued to former Resident-General at Altai | 37,970 | |
| Government Treasury Bill issued to the Far Eastern News Agency | 84,800 | |
| Government Treasury Bill issued to the Bank of Territorial Development | 120,000 | |
| Government Treasury Bill issued for construction in the President's office | 80,446 | |
| Government Treasury Bill issued for advances made to the former Bureau of Merit Investigation | 8,887 | |
| Debt of Ministry of War to the Transportation Bureau at military headquarters, Hankow, secured by Government Treasury Bill | 20,000 | |
| Debt of Ministry of War to the First Division secured by Government Treasury Bill | 100,000 | |
| Debt of Ministry of War to Chang | ||
| Tsung Chang secured by Government Treasury Bill | $ | 100,000 |
| Debt of Ministry of Navy to Kiangnan Dock secured by Government Treasury Bill | 300,000 | |
| Debt of Ministry of Navy to Kailun Mining & Co. secured by Government Treasury Bill | 106,766 | |
| Debt of Ministry of Navy to Kailun Mining & Co. secured by Government Treasury Bill | 190,430 | |
| Debt of Ministry of Navy to Kiangnan Dock secured by Government Treasury Bill | 127,812 | |
| Debt of Ministry of Finance to Temples in Peking and Jehol, secured by Government Treasury Bill | 34,568 | |
| Debt of Ministry of Finance to Mongolian Princes secured by Government Treasury Bill | 83,787 | |
| Redemption of 8% Military Bonds | 1,969,692 | |
| Redemption of Patriotic Bonds | 379,308 | |
| Redemption of 1st year 6% Bonds | 1,563,811 | |
| Redemption of 3rd year Domestic Bonds | 4,026,637 | |
| Redemption of 4th year Domestic Bonds | 9,196,783 | |
| Redemption of 5th year Domestic Bonds | 5,543,838 | |
| Redemption of 7th year Domestic Bonds | $ | 16,848,000 |
| Redemption of 7th year 6% Bonds | 2,700,000 | |
| Total | $ | 114,040,765 |
2. Administrative Expenses.
The amount expended by the Central Government in 1918 was $79,000,000 and that by the Provinces $68,000,000. The total was $147,000,000. Based on previous records, the annual amount required, roughly, is about $140,000,000. Granting that retrenchment can be made, the minimum amount required cannot be less than $130,000,000. The following table gives the estimated administrative expenses of the Central Government (less the Provinces, which expend $68,000,000):
The Latest Estimate of Administrative Expenses of the Central Government
(From July 1, 1918, to June 30, 1919)
| I. The President's Office | $ | 3,385,336 | |
| II. The Cabinet | 1,341,818 | ||
| III. The Manchu Imperial Household | 13,585,239 | | |
| IV. The Ministry of Foreign Affairs | $ | 3,755,509 | |
| 1. The Ministry | 671,076 | ||
| 2. Legations and Consulates | 1,863,210 | ||
| 3. All offices under its direct control | 1,221,223 | ||
| V. The Ministry of Interior | 8,287,567 | ||
| 1. The Ministry | 773,943 | ||
| 2. Parliament | 3,638,800 | ||
| 3. The Metropolitan Gendarmerie | 1,156,044 | ||
| 4. The Office of Manchu Imperial Body-Guard | 118,952 | ||
| 5. All offices under the direct control of the Ministry | 2,595,154 | ||
| 6. Public Sacrifices | 4,674 | ||
| VI. The Ministry of Finance | 31,503,064 | ||
| 1. The Ministry | 711,936 | ||
| 2. All offices under its direct control | 287,548 | ||
| 3. All other offices attached to the Ministry | 769,508 | ||
| 4. Direct Revenue Collection Expenses | 4,270,734 | ||
| 5. Salt Administration | 10,976,662 | ||
| 6. Customs Administration | 14,486,676 | ||
| VII. The Ministry of Justice | 1,620,835 | ||
| 1. The Ministry | 324,000 | | |
| 2. The Supreme Court | $ | 221,911 | |
| 3. All offices under the direct control of the Ministry | 1,074,924 | ||
| VIII. The Ministry of Education | 2,761,960 | ||
| 1. The Ministry | 480,000 | ||
| 2. All schools under its direct control | 1,547,364 | ||
| 3. All Branch Offices | 176,195 | ||
| 4. Government Scholarships in foreign lands | 179,200 | ||
| 5. Subsidies | 376,200 | ||
| IX. The Ministry of Agriculture and Commerce | 1,463,964 | ||
| 1. The Ministry | 703,340 | ||
| 2. National Waterways Conservancy Bureau | 110,400 | ||
| 3. All offices under the direct control of the Ministry | 650,224 | ||
| X. The Ministry of Communications | 1,129,495 | ||
| 1. The Ministry | 713,692 | ||
| 2. Educational Expenses | 415,804 | ||
| XI. The Department of Mongolia and Tibet | 1,087,927 | ||
| 1. The Department | 263,824 | ||
| 2. All offices under its direct control | 41,478 | | |
| 3. Sub-offices | $ | 782,625 | |
| XII. All offices and bureaus in Peking | 966,802 | ||
| Total | $70,889,517 | ||
Extraordinary Expenditure
| I. The Cabinet | $ | 93,480 | |
| II. The Ministry of Foreign Affairs | 2,006,016 | ||
| 1. The Ministry | 392,636 | ||
| 2. Legations and Consulates | 484,430 | ||
| 3. All offices under its direct control | 1,128,950 | ||
| III. The Ministry of Interior | 831,727 | ||
| 1. The Ministry | 239,479 | ||
| 2. Parliament | 172,000 | ||
| 3. The Metropolitan Gendarmerie | 12,000 | ||
| 4. All offices under its direct control | 399,476 | ||
| 5. Public sacrifices | 8,772 | ||
| IV. The Ministry of Finance | 4,448,985 | ||
| 1. The Ministry | 191,600 | ||
| 2. Sub-offices | 729,028 | ||
| 3. Direct Revenue Collection Expenses | 2,313,458 | ||
| 4. Salt Administration | 1,163,224 | ||
| 5. Customs Administration | $ | 51,675 | |
| V. The Ministry of Education | 382,853 | ||
| 1. The Ministry | 8,000 | ||
| 2. All schools under its direct control | 314,853 | ||
| 3. All Branch offices | 48,000 | ||
| 4. Subsidies | 12,000 | ||
| VI. The Ministry of Agriculture and Commerce | 336,527 | ||
| 1. The Ministry | 148,000 | ||
| 2. All offices under its direct control | 108,527 | ||
| 3. Sub-offices | 80,000 | ||
| VII. The Ministry of Communications | 103,743 | ||
| 1. The Ministry | 87,382 | ||
| 2. Educational Expenses | 16,361 | ||
| VIII. The Department of Mongolia and Tibet | 50,000 | ||
| IX. All offices and Bureaus in Peking | 4,451 | ||
| Total | $8,257,782 | ||
| Grand total | $79,147,299 | ||
(3) In the preceding paragraphs, it is to be noted that the payment of national debts and administrative expenses annually amounts to some $250,000,000. If this amount is deducted from the annual income of $370,000,000, only a residue of $120,000,000 will be available for the support of the army and the navy. At the present time, not counting the $7,150,000, expended on the navy, the army costs the country the enormous sum of $210,000,000. It must be added that even in this amount, neither the extraordinary and additional expenses required by the army, nor the extraordinary expenditure incurred by the Southwest campaign recently, are included. As it is our object to live within our means, it is essential that we should regulate the expenditure according to the income.
The Present Number of Troops in the Country and Their Cost of Maintenance
(For the 7th Fiscal Year of the Republic)
| Districts | Number of Troops | Cost of Maintenance |
|---|---|---|
| Central Gov't | 540,344 | $90,358,245 |
| Chihli | 24,528 | 4,343,202 |
| Fentien | 58,820 | 11,240,959 |
| Kirin | 45,056 | 7,639,557 |
| Heilungkiang | 17,112 | 2,810,476 |
| Shantung | 76,292 | 1,618,968 |
| Honan | 28,876 | 5,036,722 |
| Kiangsu | 30,876 | 5,297,108 |
| Anhui | 21,528 | 3,747,295 |
| Kiangsi | 19,112 | 3,341,976 |
| Hunan | 20,028 | 3,200,634 |
| Hupen | 21,528 | $3,812,144 |
| Fukien | 35,538 | 4,129,582 |
| Chekiang | 22,508 | 3,978,666 |
| Kwangtung | 49,732 | 8,120,824 |
| Kwangsi | 35,443 | 5,094,399 |
| Shansi | 28,976 | 5,056,533 |
| Shensi | 39,276 | 7,301,291 |
| Szechuen | 35,662 | 6,146,104 |
| Yunnan | 48,488 | 6,683,478 |
| Kweichow | 23,841 | 3,606,815 |
| Kansu | 17,514 | 3,165,976 |
| Sinkiang | 20,220 | 3,497,792 |
| Jehol | 6,196 | 1,000,014 |
| Szechuen Border | 12,777 | 1,200,000 |
| Suiyuan | 5,696 | 905,312 |
| Charhar | 2,150 | 206,871 |
| Altai | 1,674 | 298,951 |
| Talbahartai | 822 | 126,062 |
| Thibet | 40 | 5,124 |
| Total number of troops | 1,290,657 | $208,971,080 |