Chairman's Comprehensive Description of Con jons Affecting Trade in China: Unregulated Taxation The 15th annual general meeting, of the British Chamber of Commerce was held on April 15 at the Shanghai Club. Mr. R. Calder-Marshall presided and extended a cordial welcome to Mr. J.
Brenan, H. M, Consul-General. Aiter the Chairman had reviewed the principal events of the year in 4 Jengthy speech, Mr. Brenan de-Jivered an address on present conditions and future prospects in China. Mr. E.G. Jamieson, Acting Commercial Secretary to the Legation at Peking, was also present.
The Chairman was supported by Messrs, A. W. Burkill, C, H. arnhold, N. S. Brown, N. Leslie, A. B. Lowson, H. V. Wilkinson, and Brig-Geneval E, B, Macnaghten, The Chairman's address was as 1920, trade, commerce and industry throughout the "country were seriously affected by the practically continuous warfare between the. Central Government and various groupings of military Jeuders, in the North, South and West, who have not hesitated to evelt against the only recognized governmental authority in China. They have thereby wasted the national revenues, prevented recon~ struction, damaged commerce and industry and generally impoverished the country, tion—is of even greater importance jin relation to the general trade stagnation and absence of confidence which prevents the development of! industry. "Both commerce and industry demand capital and capital demands security, and not only that} tut a reasonable possibility of profit. able employment-conditions which at the moment are not and cannot be: satisfied, As the Minister of Finance points out financial report, the responsibility for the many new and and irksome imposts which impede ind restrict trade, commerce and industry rests not with the National Government but with the provincial, municipal, and local. authorities. Though this makes but little dif. ference to the payer of the taxes, it predicates that when the National Government is able to secure effective control of the Provincial ies, which it now @ frankly is lacking, it will have the will o, control taxation which at present impedes trade, It is satisfactory to note that the. Central Executive has set October 10, 1930, as the date on which likin and all similar taxes will be de-
It is hoped that to carry out their intentions, for, if successful in so doing, it will prove that the Government has a certain strength and stability which hitherto has not been That the Nanking Government has been unable to carry out its plans for improvements is not through lack of effort, In pursuance of its policy of reconstruction, it convened A Disbandment Conference in February, 1029, at which resolutions were passed considerably reducing the numerical strength of the military establishments, The plans for re-Guetion were frustrated by the revolt in March of the Kuangsi group of generals at Hankow. Though this revolt, ay far as the Wuhan istrict, was concerned, was quelled in April, fighting continued farther mith for two or three months No sooner had the Wuhan revolt been settled than Feng Yuchsiang revolted against.the authority of Nenking; but by the middle of June he was either "obliged or induced to discontinue hostilities and when, in July, Marshal Chiang Kai-shek. called a confer Peking, Feng.
sang once more pledged. his Joyalty to the Central Executive, In August the Second Disbandment Conference was convened at Nanking and again it was decided to reduce the military estab ment. No sooner had the conference dispersed than fighting broke out, the Kuominchun taking the field against Nanking. After some weeks of fighting, and negotiation this re-yelt was also quelled, only to be followed in quick succession by the mutinies of Shih Vu-san at Pukow, Tang Song-chi at Chengchow and finally of Yen Hsi-san who is at the "present "time waging war ayainst the National Government.
'The foregoing is' very bring account of the results of the Central Government's. attempt at obvious that compromises and con-
Serenees can achieve no more than temporary respite from active hostilities. The use of the silver bullet, $0. customary in China, merely encourages others to emulate the successful bargainers.
This brief account also emphasis that the country is still very far from being united under one Centrat Government. As was pointed out in the last annual report the actual control of Nanking Is effective over but three or four provinees. Though it claims to exercise control over the whole of China, the control is aretely nominal, a point which Mr. 'T. V. Soong, Minister of Finance, awakes amply clear in his able and rank report on, the finances of China, Everyone interested in China should make a point of reading this report. It was published, iw the Journal of March, 1930.
Though unsettled conditions are partly responsible for the depres tion of business; indiscriminate and Aunregulited taxation of all kinds—irregular as to amount and imposi apparent, It_is also understood abolition of coast trade duty Both these taxes have been serious impediments to the free flow trade, Their removal, when they are removed and if other taxes of similar character are not imposed in their stead, will do a great deal towards assisting commerce which suffers not only from the amount lof the taxes but from the hindrance they impose on the free flow of trade. We filly appreciate the dif culties that must be experienced by the Minister of Finance in consolidating and regulating taxes, and ftrusy. that he may soon be able to surfiount these difficulties and so facilitate the movement of " goods and produce.
To the unsettled conditions in the interior and to the restrictions on trade must be attributed in no small degree the depressed state of the silver market and the low exchange. Were trade normally prosperous China could absorb a very consider. able quantity of the white metal which now clogs the market; and fas the price of silver depends' upon supply and demand it seems obvi that were there greater absorptive power in China than exists at yresent the silver position would show an improvement, At the request of the Minister of Commerce and Industry the Cham-liber submitted its views on the silver question. While definitely against fany attempt to increase the price of the white metal in China by artificial means, such ax duty or embargo imports, the Chamber strongly advocated' the concentration of the energies of the National Government fon the few provinces under its con-{rol with a view to the removal of restrictions to trade and the stimulation of commerce and industry. Such measures should have the effect of securing prosperity in these provinces and relieving. the local silver situation, and the logical result of such concentrated effort should be the spread of prosperity [which should be a strong unifying factor, a more powerful factor producing a more lasting. unification than could be secured by force, 5 applied in C}
The fall in the value of silver has accentuated the unsoundness of the system on which the usual trade is carried on at present. It has demonstrated the need of arranging some means whereby merchants will be able to secure reliable information not only regarding the finances and standing of the whom they are doing! business but with reg commitments also, A knowledge of the value of these lager is essenti {to the formation of a correct estimfate, of business which can be done
Text read from the printed page and cleaned; old type leaves the occasional error.