Nanking, July 17.
Dealing with China's " finances, in a report submitted to the Second Plenary Session of the CEE, Dr. 4H, H. Kung, Minister of Finance, said "that, " after the adoption of the monetary reform, a dex Gnite turn for the better was export trade, during last December and January, China, for the frst time in sever decades, had a favourable balance of trade. Although the increase of} exports was beneficial to the people's economy, it did not bring in much Customs' revenue, inasmuch as the export duty generally was low, in order to help domestic industries and stimulate commerce. Then there was the smuggling rampant North China, which; above all other causes, was' responsible for a drop in Customs receipts of over $80,000,- (000 "from the original estimates. Also there were decreases in receipts from the consolidated and salt taxes in the flooded and bandit-infested areas and in North China, Fortunately, owing to strict! supervision and reduction of adminis trative expenses, the actual revenue was not too far below the original expectation. All in all, the Government's total receipts during the last seal year were about—$100,000,000 below the budget estimates, Since expenditures were greatly increased, the Ministry of Finance encountered great diMiculties in its efforts to] make both ends meet, Expenses Reduced The total expenses for financial administration, particularly, had been reduced. The ratio to the total tax receipts was 11 per cent, in 1931, per cent, in 1082 and. i033, and in 1934 and 1935 only 92 per cent For upholding the credit of the Chinese Government, concrete mea Sures had been taken for the read-Justment of the Crisp Loan, the Tientsin-Pukow Railway loans, and the Taoching railway lear Regarding local finances, up to°the and of last June altogether over 5,000 miscellaneous and exorbitant taxes had been abolished, representing more than $51,000,000 of revenue, Dealing with monetary conditions, the Finance Minister recalled thai the world-wide economic depression, the disasters of banditry and natural calamities, the general business deterioration and market instabill new monetary polley, the total amount of notes ued by the Con al Banke of Ching, the Bank of Ghins, and the Bonk of Communica fons amounted to. about $427,000,000. but by the beginning of daly the figure had climbed to over $201,000,- Oto. "the increase. mostly. represent td notes issued ly" exchange for Sliver withdrawn from cteulation fud in exchange {or notes of other the three Government. Banks, which have been relied.
Text read from the printed page and cleaned; old type leaves the occasional error.