10—The problem of taxation is one of the most serious facing: China at the present time. A huge volume of taxes is being collected. Likin alone, it ig estimateely brings something like $65,000,000. annually The province of Kuangtung collects about $80,000,000 annually. The Customs revenue is about Tls. 70,000,000. The.whole amount of taxes, national and provincial, if. scientifically: ' collected more! than. adequate to cover: our! expenditures, without borrowing or without further increases. At present most of this money is privately sipated. Taxes are collected in advance and sometimes twice. The ional and provincial governments ave overlapping taxes. Military Jcomimsnders devise their own tax schemes to raise more revenue to pay their soldiers and to enrich themselves. The foreigners have objected to this procedure for a long time, but the real sufferers are again the Chinese people, for they bear the brunt of this confusion of {taxes which they have to pay and which increase their cost of living.
A wientifie survey of the tax situation should be made and the whole problem dealt with in manner best devised to help the people and te assure the government of an adequate revenue.
Customs Revision or Control?
In this class comes the problem of the Customs which I do not overemphasize but simply note example. If the Customs treaties are to be revised, it should be done part of a national tax scheme and with a view toward benefiting the Chinese people. We must protect certain Chinese inds tries and at the same time not i crease through indirect taxation the retail cost of foreign articles which, by the process of time, have become essentials to the people. We are not prepared to do this adequately yet and therefore should not do it at all, Furthermore, revision of taxation' direct or indirect, should not be by foreign dictation but after a full consideration of national requirements. If we have not yet reached that position of inter-
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