July 24.
Last Thursday night's arrests men suspected by the Customs authorities to have been engaged! in what may be described as a form of smuggling draw attention to the special measures Jwhich have been instituted to protect the public - revenues against smuggling and fraud in the handling of dutiable goods. It may be recalled in hi last Annual Report, the Stati tical Secretary of the Customs referred to the various develop ments arising out of auguration of the special 'y Customs Preventive Secretariat jand he went on to say that the Preventive side of Customs activities had become a matter lof considerable importance since the enforcement of high tariff rates. He added:
"Much remains to be done, but the building up "of "an efficient Preventive 'Service for such a vast country. as China necessity a matter' of time, Hitherto the tack of suitable craft and equipment has retarded pro: at this Service which will go far towards ensuring the fulfilment of duty requirement impression of whole sling.
The Report's outline of the prevention programme was interesting. It showed that in 1932 two additional preventive steamers—148-ft. in length for the construction of three 170-ft, ers and 14 126-ft, launches, all to be ready by the beginning of next year. Thus the preventive fleet will then consist of eight steamers and 21 Inunches, in addition to coastal motor boats and near-shel patrol craft of 50-ft. length and under. It is believed that further steamers are to be laid down and that, in all, about 35 vessels are under construction, Wireless services have been instituted to strengthen the Government's information facili. ties. The plan is to erect main stations at Chefoo, Shanghai, Amoy and Shumehun with sub sidiary stations at Swatow and HHoihow. In fact, the coast-line been mapped out and by means of wireless and, possibly, with the further aid' of an auxiliary aeroplane service, the work of the preventive fleet will be ce-ordinated and directed to the best possible purpose, The importance of this ventive work has increased. This is due, as Mr. MacEwan pointed out,' to the rise in tariff rates. There was little orgunisled smuggling in China befor tariff autonomy prevailed. The [small duties of & per cent. or less put no special premium on smuggling. It was much better to pay the duties: than to risk delay or confiscation. So the Customs Service in those days had an easy time. The most ordinary preventive measures were adequate, There was little need for elaborate organisation. This, of course, is a latitude, "The halcyon days. of smuggling in Great Britain—when the Rector of the seaside lage was not ashamed to entertain the smuggler as a benefactor if not a hero—were those when duties ruled high land consequently the pressure of economic necessity blunted principles. In 1852, a committee presided over by Sir John Cope sued a report on revenue frauds. It amazingly disclosed the prevalence and accepted respectability of the smuggler's trade. Even Adam Smith wrote tenderly of the smuggler a3 highly blamable for violating the erton who, though no doubt laws of his country, is frequently incapable of violating those of natural justice, and would have been in every respect an excellent citizen had not the laws of his country made that a crime which nature never meant to be 50."
That goes to show that not all the words of a distinguished economist can stand the strain time. The fallacies of this argument are clear. While, of course, Adam Smith was right in hinting that the best precaution against smuggling was a low tariff or no tariff at all, the experience of the 20th Century has shown that the smuggler, ithe bootlegger or other profiteer lawbreakitig is not only thoroughly despicable person but frequently develops other
Text read from the printed page and cleaned; old type leaves the occasional error.