To the Caller of the *Nonrit-Cinxa Dany News Sm—In none of the views expressed in your columns have the writers touched upon the real basis of our financial troubles, Economics. effected by paring down the salaries of the municipal staff, by abolishing. the orchestra, providing as it does; most wonderful musie (a form relaxation and uplift which it is realized is no longer a luxury but a necessity), and by cutting dows what is quite reasonably normal expenditure in other directions. will achieve little in the long run. They are merely palliatives pandering tothe surface a boll instead of attacking the root cause, 'Chinese and foreign trade is paying for the cost of aggression in China. Shanghai is being milked dry "by Nogitimate taxes—squeeze in short—and no amount of economy in other' Aireetions will relieve. the situation.
It is now no secret that enormous. sums are being collected dally by' the Japanese from every available: source, Agricultural produce pays tribute at every ingress to the Settle ment, as is apparent by the difference in prices within and without our boundaries; launches and sampans pay, often' both In cash and kin" nowly dull houses in the Western District and elsewhere cannot occupied until thousands of dollars are pald for the mere right to live in. them; barriers are erected In. extra-Seltlement roads, and Chinese who pass them pay toll to the jambling dens pay enormous permission to carry their illegal trade; and how many factories, shops and even residences. ay dues is incalculable. Rumour has it that upwards of 80 million della month are mulcted from the purse of Shanghai, So much for outgoings, what of income? The Customs. the salt gabelle, the railways and other Government enterprises collect their millions also, a large proportion of which in past years has been repaid to Shanghai in the form of interest on investments, but which now. one nathers {rom correspondence in your columns, is lying in Shanghai banks, unused and idle, What of these huge. accumulations in the hands both the Chinese and Japanese? Were they distributed. and there seems to be no valid reason why they should not. be, the present situation would undoubtedly be relieved to a great extent if not liquidated, These very considerable sums, now frozen, mean that money hitherto usable is out of circulation, "As they go on piling up, less and Yess money will be available for legitimate business. enterprise, which after all is the foundation on which Shanghai is built. and the distribution of which would be to the advantage of Chinese. Japanese and Occidental alike, Tt may not be invidious to mention that, according. fo your columns. similar' Japanese cans pay their interest with commendable regularity.
'The writer himself is not concerned with Government loans and the interest payable on them. except that he, In common with every one else in' Shanghai. and this" Includes Japanese. is contributing to them whenever he buys a dutiable article—fa hat, a ton of coal, or a loaf of dread, These loans and the interest on them have to be paid off. It is 10 be admitted, but to keep the money indefinitely out of circulation Is. indefensible, Paymenis such as those outlined and no doubt others unmentioned fare not, however, the cure for the present state of affairs in Shanghai. Until the elimination of the existing 'iMegal system of taxation Is attained the high cost of living will follow the present vicious spiral of inflation.
It-is a sad story and merits more chivalrous treatment at the hands of those who do know what the word means, Prayer Wine, Shanghai. Jan. 2%
Plain Truth Wanted To the Editor of the "Nowni-Cina Dany News"
Sin was distinctly impressed by the straight-forward" candour of your correspondent Prssimist in today's issue of your journal.
The gravamen of his charges is that the Japanese army and local Japanese monopolies are responsible for a least half of the high cost of living Shanghai and in that way are to lane for the measures which the Couneit brought before the recent Ratepayers' Meeting.
It is for the Counelt to inform us! whether this is correct rumour to this effect, which has been prevalent for some time. is not enough. We have a right to demand the plain truth understand why the Council did not proffer so complete an. answer to the 'Japanese ratepayers' demands, and ell them plainly that only the removal of this predatory horde could alleviate the situation, Let the Council tell us the truth, and we shall know where we stand. This appeasement polley will lead us further into the quagmire of in= solvency.
Shanghai, Jan, 27.
Bold Remedy Wanted To the Editor of the "Nomnt-Curwa Day News"
Sim—To anybody who cares to give the matter suMlelent consideration more than obvious that the finanelat position of the SMC. is ina pretty. serious condition and will, continue.to remain so even if the new proposals for raising the wind are passed at the Ratepayers' Mecting. These measures will only'be.of a stop-gap nature as, with. the Increasing cost "of living, further advances in wages will be expected, and doubtless given, to its employees and there is no inference intended. in this letter thatthe majority council employees are over pal Over and above this there Is the very' serious problem of the com: mitments of the Council in foreign jeurrencies, If exchange takes a fur~ ther fall or even stays where it is now a deficit is certain and stil, more extra meetings will have to be called to authorize Increased taxation, and additional strains will thus be placed upon a community which is already struggling for a commercial existence, Increased rates mean increased costs of production, higher cost of} living and consequently additions to wages and salaries, all round, in other words we are upon the circumference of 2 vicious' circle, 'The position as it slands at present is not arnly unsound' but desperately unsound and the sooner thig fact is Fealized and adequate steps taken to good the sooner there wi be a chance of the SIC.
ming some financial stability and confidence being restored. Man, criticize how the money is spent, a. subject which has had ample airing! In. the past, but to put forward a tangible suggestion as to how income can be increased, on a painless extraction basis, without.crippling a already harassed community. That} the suggestion will meet with considerable opposition from certain quariers is to be expected but these people have the option of watching. their ety go "broke" oF sinking their scruples, This suggestion is that the Council should not only legalize gambling but monopolize it in the Settlement as, is, done by other municipalities Drineipalities in the world, Nobody can deny that Shanghai is overburdened with money, recent fetations of local companies—aro ample proof of thie statement, but these over-guberiptions only" represent a fraction of the wealth in Jthe city, which wealth "is. being frittered nway just over its boundaries, in fact on its boundaries in whichever direction one cares investigate.
The following queries and states ments might give food for thought:—What is the amount of money earned daily and nightly by the two gaming houses in Avenue Haig and Great Western Road (The statements which I om now] going to make are furnished by a very reliable informant whose Identity, obviously, cannot The barricades in the Great Western Road were removed atter the recent shooting only when $4,500,000 had been paid to the: authorities there by gambling interests who were thereby affected. Quite apart from the question of the cash which was turned over,, this sum will give a faint indication.of what the places in question are collecting from™ their clients. (Incidentally, we are about due for} another kitting)
'The amount of "cumshaw collected by the cloak-room boys and amahs alone in another well-known gamble ing house reached, over three days! during the foreign New Year holidays, the fantastic figure of $175,000. 'The amount given to me' as being the: money spent during the same period by. that house in providing, free of charge, the necessary drinks, food, smokes and. transport, during: the Same period, reached a total huge as to be incredible and 1 would. not care-to give it as, in this ind stance, my information is second hand.' and possibly not reliable, although T am inclined to believe it myself.
The income of these two places alone would run the Settlement without any increase in the rates or, possibly, without any rates at all!
Text read from the printed page and cleaned; old type leaves the occasional error.