To the Editor of the "Nomrt-Cinxa Day News"
Sm—Your leading article entitled "Evasion" on the Income Tex Law covered some of the ground, but T should ike to remind you and your readers of your leading article (Clogged Wheels") about a month ago on the subject of the devastating effect of the new mortgage law. As you pointed onl, the Government, faced with a situation which has brought on their heads strong protests from leading Chinese merchants and bankers, have virtually done nothing to restore an important instrument of credit to its full effactiveness at a time when dire finan-lal stringency is depressing both the Government, the country" and, incidentally, Shanghai, It Is tre, of course, that as a result of the protests the ruling of the Legislative Yuan was modified in February last, but as you note this ruling has not really altered the situation and at. the present moment the latitude given to mortgagors to evade their Proper responsibilities Is a real blot Jon the administrative perspicacity of the Government.
It seems to me that it is impos-Jeible to. accept comfortable /gurances regarding the collection of the Income Tax when In this matter Jof the mortgages the authorities give Jsuch clear proof of their complete Inability to grasp the fundamentals lof the situation.
Again, you are right In pointing Jout that the Chinese resident of the British Isles in return for his income-tax has privileges which the foreign-jer does not get here. You mention [arid-ownership but T would suggest that you might effectively add various Jamentties of life such as security of life and properly, good roads and sanitation, many municipal benefits and above all—virtually no discrimination against the foreigner as such (except in the matter of registration under the Allens AcO.
Text read from the printed page and cleaned; old type leaves the occasional error.