Jan, The Ministry of Finance releases the annual statement of the collections made by the Customs during the past year with such admirable promptness on December 81, that it may not be unreasonable to suggest that the issue of monthly collection returns would be most receptable to students of Chinese fairs, During the last few years the statistical machinery of the Customs Department has kept pace with modern requirements. The monthly yellow books relative to the value of imparls and exports appear with due regularity and give most valuable information. If they could be accompanied by details of 'Customs revenue, there would be complete satisfaction with the data available for assessing the material progress of the country's finances. For 1935, as was to be expected, the 'Customs' yield shows a decline of $19 million on the previous year. This reflects the depression through which Shanghai in particular has been passing, for the receipts at this port were actually $26 million less than in 1934, Increases at Canton, Tsingtao, Hankow and Amoy helped to mitigate the adverse returns from Shanghai, In 1933 the total col~ lections for China amounted to $340 million on which the figures for 1935 show a decrease of §24 million, Previous to 1933 the figures ins cluded collections in Manchuria. At must be remembered that from July 1934 a revised import tariff came into force, In the immedia~ rely preceding month a generally downward revision of export duty rates was made effective. The decline in collections may there fore be attributed to the general economic depression and, possibly, fo the operation of the law of diminishing returns, Efforts to reduce the adverse balance of trade have not been unsuccessful. From the peak year of 1932 when imports exceeded exports by $866 million, there has been a gradual fall' from $733, million in 1933 to $495 million in 1934. The Agures for 1935 are not complete, but the returns from January to November showed an excess of imports to the value of $348 million as against $405, million in the same period of 1934, Tt is probable therefore that a further decline in the excess of imports over exports was recorded for the whole twelve months of 1935. This does not offer much consolation to those who observe that the figures connote continuance of the general falling off in foreign trade and consequently a definite depression in the economic condition of the people. It may, however, be admitted that the statement which the Ministry' of Finance has issued has its encouraging aspects. If the political and monetary conditions of 1935 are taken into account with all their resultant reactions on the course of trade, the wonder indeed is that the falling off in returns is no greater. The Finance Minister is fortunate in having at his command an instrument of revenue collection which shows a vemark~ able resilience and satisfactory Powers of resistance to economic adversity and political disturbance. It is to be hoped that he and his colleagues in the Government will not be disposed to try this willing servant too greatly. The situation, as Dr. H. H. Kung has expressly recognized, demands more than negative rectitude. It should be met by positive statesmanship which {s prepared to construct and in constructing, to follow sound lines regardless of tne allurement of well-worn traditions. of which about $1,176 million (including the proceeds of deferred land cancelled Indemnities) has been devoted to the service of the Government's internal loan operations. On this point Mr. Stanley Wright observes in the third edition of his book on "China's Customs Revenue since the Revolution of 1911," recently published with the assistance of Mr. John H. Cubbon:
In the early days of the Revolu-
Itries. The same criticism applies|due encouragement and, where also to the work of the Provincial authorities and Mr. Wu Ting-ichang's insistence on ce-ordination fs all the more welcome.
Jdesirable. assistance from the Gov-Jernment, he will give the most effective expression to his admirably-leon ceived policy.
Last March the Minister's present colleague at the head of the way department made some pertinent observations on Chinese industries in addressing the shareholders of the Bank of China for the last time as their General Manager. Mr. Chang Kia-ngan then said:
Text read from the printed page and cleaned; old type leaves the occasional error.