The 5 per cent, revenue is a sessed by the Chinese Maritime Customs under foreign control, but duty is paid to the Bank of China and primarily earmarked for services fon foreign loans guaranteed by this revenue, "Any balance goes to the Peking Government. The Naning Government, though in contro! of Shanghai area where pra ly all the duty is collected, gets not ing of thiseand cannot interfer But they collect a 23 per cent. surtax sitnply by instructing the Bank of China not to stamp any delivery orders for release until this additional 25 per cent, has been paid. This all goes to Nanking. Of the proposed increase in valuation Pe-King would benefit to the extent of 2/3" per cent. and Nanking & per cent. But it seems that the two Governments cannot agree on the division of this additional revenue, soon as they do come to an agreement the new val will be promulgated.
Valuation Commission in Peking has been folly informed and fs aware of the disastrous, result the proponed change but the convietion is abroad that nevertheless they would not hesitate to go hea For the past several years im: ports of foreign cotton "averaged 500,000 bales annually, at 33 piculs per bale=1,125,000 picul Increase in duty Therense fin sua We. The, Ta x 1,115 000° increased revenue of 13 million Hk. Taels represents only a fractional part of the monthly oxpenses of the warring factions. Yet they are willing: to proceed with the wanton destruction of an industry. with @ capital investment estimat-fed at Mex. $400,000,000, employing. 230,000 Chinese inpourers. Directly and indirectly and including the families, probably several milieu people would be affected ax the ma-Chinery Involved to move the pro-Guets Ix enormous, to mention only transportation, hanking, insurance.
The net result would most eer tainly he a reduction of imports raw cotton by 80 per cent. to 75 per cent., or an actual decrease, instead fof increase of the present revenue.
Text read from the printed page and cleaned; old type leaves the occasional error.