Peking, Oct. 2.
The net Customs returns for the first nine months of the year show an increase that is disappointing as compared with the corresponding period of last year, while with the deduction of the cost of the foreign loan service the surplus shows the alarming decrease of $3,250,000. At the end of May the net-increase of revenue was $3,500,000, but at the end of September the increase was reduced to $3,250,000, while this September there was a decrease of $400,000 as compared with September last.
In view of the fact that the five per cent. duty has been effective since February, these returns are received here with gloomy views. The Customs Administration states that the result is due to the depression in trade abroad, disturbed domestic conditions, and the boycott of Japanese goods.
The cost of the service of foreign loans has increased during the period of nine months by $6,500,000, so that the surplus has been reduced by $3,250,000, and this puts a stop to the hope of the amortization drawings of domestic bonds.
The Administration says that the extra cost of service is due to low exchange as well as the first amortization of the Reorganization Loan, and the renewal of the Boxer Indemnity service. The Ministry of Finance, on the one hand, constantly insists that the Administration must hold domestic bond drawings, which are now impossible, while on the other hand it is always preferring demands on the surplus, which undermines the security of the bonds.
A final demand has just been submitted for $200,000 for the election expenses of Tsao Kun and this hag rightly been refused.
The Diplomatic Body is now in receipt of a demand from Canton for a share of the Customs surplus, as was formerly the case. The Diplomatic Body is inclined to make a flat rejection of this demand, but has referred the matter to the Home Governments in order to obtain authority to reply in a decisive manner. The Consuls at Canton report that if the demand! is rejected, Dr. Wu Chao-chu threatens to make all Kuangtung. ports free ports. The Diplomatic Body is inclined to accept the challenge in order to force an issue, making an example of Canton, because a prece-
Text read from the printed page and cleaned; old type leaves the occasional error.