Explanation of his Protection of Customs Surplus: The Possibility of Dismissal A most interesting and important statement by Sir Francis Aglen, Tnspector-General of the Chinese Maritime Customs, on China's finances has resulted from his stay here on his way to England Home leave. Sir Francis, who sailed by the R.M.C. Empress*of Canada on: Monday, arrived im Shanghai late on Saturday. On Sunday, accompanied by Mr. L. A. Lyall, Commissioner of Customs at Shanghai, he attended a reception at the Chinese Chamber of Commerce, jointly arranged by the Chinese Genera] Chamber of Commerce, the Chinese Bankers' Association and the Native Bankers' Association, and at which most of the leading Chinese bankers and merchants were present.
Mr. Shen Tsu-hsu, President of the Chinese Bankers' Association, welcomed the Inspector-General and complimented him on his strenuous efforts which had resulted in the maintenance of the proper value of the consolidated loans.
Sir Francis replied in Chinese, the following being a rough trauslation of his remarks The old practice was for an annual sum' of $14,000,000 to be set aside. from the Salt Revenue and also a further annual sum of $6,- 000,000 to be handed over by the Ministry of Communications to be set aside for the purpose of consolidating the sinking fund of the internal loans, in order that the interest might be paid. with periodical regularity and the prinjpal repaid upon maturity. Since June last this sals appropriation had eased to be handed over for the' purpose designed. He had therefore to sit tight on the Customs Surplus, which at present was the only available item for the purpose in view, viz., consolidation. The Government would - like to use the Customs Surplus for meeting its administration expenses, but this was a suicidal policy. The foreign nations concerned had agreed to waive their original demand that the Customs Surplus be used for consolidating foreign loans of an unsecured character, but this waiving was made on the understanding that the consolidation of Chinese internal loans would constitute the proper claim on this surplus, and if it was appropriated for any other purpose than this specific one, the original demand of the foreign Powers might easily be renewed.
Text read from the printed page and cleaned; old type leaves the occasional error.