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[statistics CHINA 26 of which is defrayed by the provinces. The imperial Government land transfers is B per cent., and it could be shown, from a calcu- has also at its disposal the revenue of the Foreign Customs. Prior lation based on the extent and value of the arable land and the to the Japanese war this revenue, which, after allowing for the costs probable number of sales, that this item alone ought to yield of collection, amounted to about 20,000,000 taels (£3,000,000), v as an annual return of between one and two millions sterling. nominally shared the provinces in the proportion of lour-tenths Practically the whole of this is absorbed in office expenses. Under and six-tenths. with was from this fund mainly that means were this heading should also be included certain items which, thoug found to equip andItmaintain the northern fleet (almost extinguished not deemed part of the regular revenue, have been so often re- by the Japanese war), to build forts of Port Arthur and Weisorted to that they cannot be left out of account. These are the hai-wei (now also lost to thethe nation), and to keep going the sums derived from sale of office or of brevet rank, and the sub- several arsenals recently established. But the whole of the customs scriptions and benevolences which under one plea or another the revenue being now pledged to foreign bondholders “External Government succeeds in levying from the wealthy. Raising money Debt”), and absorbed by the service of the several {vide funds lor by sale of title or official rank has Long been and still is a favour- these and the like purposes must now be procured,loans, if at all, elseable device for special emergencies, such as the great famine m where. An entire readjustment of revenue and expenditure is Shansi, the inundation of the Yellow river, and so forth, the sale necessary, but what form it will take remains to be be inf' stopped when the emergency has passed. But excluding manifestly But besides supplying its own wants the imperial Governthese, the Government is always ready to receive subscriptions, seen. has to provide for outlying portions of the empire which are rewarding the donor with a grant of official rank entitling him to ment to maintain themselves—(1) Manchuria ; (2) Ransuh and wear the appropriate “button.” The right is much sought aftei, unable central Asian dominion ; (3) the south-western provinces ol and indeed there are very few Chinamen of any standing that are the and Kwaichow. Manchuria, or, as it is termed, the nortfinot thus decorated, for not only does the button confer social Yunnan east frontier defence, costs about 2,000,000 taels over and above standing, but it gives the wearer certain very substantial advan- its resources. The central Asian territories have from time to tages in case he should come into contact with the law courts. timeown absorbed enormous sums, and even yet constitute a dram on The minimum price for the lowest grade is taels 120 (£18), and the imperial Government of about 4,000,000 taels a year. This is more of course for higher grades. The proceeds of these sales go met by subsidies from Szechuen, Shansi, Honan, and other wealthy directly to the Peking Government, and do not as a rule figure m provinces. Yunnan, and Kwangsi require aids aggrethe provincial returns. The total of the _ miscellaneous items gating 2,000,000 taelsKweichow, to keep things going. . accruing for the benefit of the Government is estimated at tae s 6 A rough analysis of the expenditure of the Chinese empire, as it at the commencement of the Japanese war, would show the ^’^Expenditure.—In regard to expenditure, a distinction has to be stood drawn between that portion of the revenue which is controlled by following division:— Expenditure 1894. the central Government, and that controlled by the several pro* Taels. vincial authorities. In theory, no doubt, the imperial Govern1,500,000 Imperial household ... ment is supreme, and can spend the revenue of the nation m any Central administration, pay of banner troops 1 1^500,000 way it chooses, but in practice it is not so. As the provinces and foreign drilled forces . • • ' 5,000,000 collect the revenue, and as the authorities there are held responsBoard of Admiralty (Peiyang squadron) ible for the peace, order, and good government of their respective 5,000,000 Southern naval squadron . territories, it follows that the necessary expenses of the provinces 8,000,000 Forts, guns, and coast defence . form a sort of first charge on the revenue. If the Peking Govern2,000,000 Defence of Manchuria ... ment asks for more than the province can afford, they simply 4,000,000 Kansuh and Central Asia cannot get it. The order is not, in so many words, refused, it is 1,600,000 Aids to Yunnan and Kweichow . simply disregarded, and the Peking Government have no means 2,500,000 Interest and repayment of foreign loans of enforcing it. The method of working is as follows The Board 500,000 Railway construction. . . • of Revenue°at Peking, which is charged with a general supervision 1,500,000 Public works, river embankments, &c. _ of finance matters all over the empire, makes up at the end ol the Customs administration, including mainyear a general estimate of the funds that will bea required for tenance of lighthouses, beacons, revenue J- 2,500,000 imperial purposes during the ensuing year, and PPortions the cruisers . • • • • amount among the several provinces and the several collectorates General administration of eighteen provinces 36,600,000 in each province. The estimate is submitted to the Emperor, and, when sanctioned, instructions are sent to all the viceroys and 90,200,000 governors in that sense, who, in turn, pass them on to their subordinate officers. In ordinary times these demands do not External ZMfi—Prior to the Japanese war the foreign debt of materially vary from year to year, and long practice has created China was almost nil. A few trifling loans had been contracted a sort of equilibrium between imperial and provincial demands. at 7 and 8 per cent., but they had been punctually paid off, and The remittances to the capital are, as a rule, forwardecl with reason- onlv a fraction of one remained. The expenses of the war, howable regularity, mostly in the form of hard cash, and though there ever, and the large indemnity of 230,000,000 taels (£34,500 000) are frequent complaints of the falling-off of revenue, yet, by goo<l which Japan exacted, forced China for the first time into the luck, some other fund is found to have a little to spare, and the European market as a serious borrower. The foreign loans conamount can be made up. It would, indeed, appear to be the cue tracted up to 1900 amounted altogether to £54,455,000, bearing of every governor to minimize the resources of his own province interest mostly at 5 per cent. Some of the earlier and smaller £16 as much as possible, so as to stave off importunate demands fiom STslaSTeLd ■> p- -"p. ’T’00T0hiTst^ Peking, and get them foisted on to some other province. Hence by the Russian Government carries 4 per cent. This last was the frequent references to the Taiping rebellion (a favourite stalk- raised in Paris, the others were all made m London through the ing-horse, though now a generation old), the lamentations over Hongkong and Shanghai Bank. The charges for interest and the falling-off of revenue, and the decaying state of the province sinking fund, which amount to over £3,000,000 are secured on —all for the most part fictions of the imagination. There is thus a the revenue of the Maritime Customs, and on the likin taxes of constant pull going on between Peking and the provinces the certain specified provinces. At present the net income from these former always asking for more, the latter resisting and pleading "o sources amormts to over taels 24 000,000. equivalent at present impecuniosity, yet generally able to find the amounts required, or rate of exchange to £3,400,000, which is amply sufficient Besides at all events a percentage. Whatever the provinces can retain can the foregoing, the Chinese Government recently borrowed £2,300,000 be spent practically as they choose. The Peking control over local for ranway extension, also at 5 per cent the charges on which expenditure is very feeble, though nominal accounts are rendered. are secured on the revenue of the Imperial Northern Railway (mde The expenses which the central Government has to meet are : (1) Imperial household ; (2) Pay of the Manchu garrison m and “ ThereTsno internal debt worth mentioning. The Chinese about Peking ; (3) Costs of the civil administration m the capital ; Government have several times attempted to borrow money in (4) Pay of the foreign drilled troops termed the army of the North their own country, offering Government bonds as security, but as distinct from the provincial troops {vide “Army below) ; (5 uniformly without success. It is felt that no reliance can be placed The admiralty so far as regards the northern squadron , (6) JNaval on the good faith of the Government towards its own subjects, and dockyards, forts, guns, &c. ; (7) Foreign loans—-interest and sink- no machinery exists whereby payment could be enforced in case of ing fund. To meet all these charges the Peking Government has for some years past, drawn on the provinces for about taels ^Eefence—Army. —The Chinese constitution provides for two 20 000 000 (£3,000,000), including the value of the tribute rice, independent sets of military organizations-namely the Manchu which goes to the support of the Manchu bannermen No estimates armv and the several provincial armies. On the establishment are furnished of the sums allowed under each heading The im- of the dvnasty in 1644, the victorious troops, composed mainly of perial household appears to receive m silver about taels 1,500>000 Manchus but including also Mongols and Chinese were permaf£225 000) but it draws besides large supplies in kind from the pro- nently quartered in Peking, and constituted a hereditary national vinces, e.g!, silks and satins from the imperial factories at Soochow I army. ^The force was divided into eight banners, and under one and Hangchow, porcelain from the Kiangsi potteries, &c., the cos