The Hawera Star. FRIDAY, SEPTEMBER 12, 1924. CHINA.

Hawera Star, Volume XLVIII, 12 September 1924, Page 4

The Hawera Star.

FRIDAY, SEPTEMBER 12, 1924. CHINA.

Delivered every evening by & o’clock In Haw ere, Manala. N^rmanby. Okaiawa, Eltbam, Pate*, Waverley, Mokoia, Wbakamant, Obangai, Meremere, Fraaer Road, and Otakeuo Manutabi, Alton, Burleyvillei ' Mangatoki, Kaponga, Awatuna, Opunake,

Information concerning the fighting a few miles from Shanghai is n.eagre, but apparently the trouble is of a more serious nature than indicated in the brief cable messages, and the Powers have taken steps to safeguard their nationals, and their interests. Since . the downfall of the : Manehu Dynasty the situation in China has been very unsettled and the rival factions have from time to time stirred up strife, indicating that the country is far from being in a happy state. The numerous conflicts and the general unsettled conditions have led to the country falling into serious financial difficulties and China, though she has such enormous resources and her people are by nature industrious and thrifty, is bankrupt and her future is very uninviting. The terrible floods of a few weeks ago must have, added to her troubles, but great as that calamity was China would probably make good the material losses in a short time were she not in a shockingly corrupt state. It is known that a great part of the revenue raised by the Peking Government never reaches the Treasury, and it is no wonder that the country is in a sad financial plight. So bad is the position that a commission has been set up in the hope of finding ways and means- for

readjusting tlio finances. Although it has been at, work for eight-months'it has found no solution. From, reports of the commission’s ’ work we learn that the country is able' to find the revenue required, .but though -the taxes are collected the total shrinks, shockingly before it reaches Peking. A writer in an exchange quotes the following from the commission’s findings: The administrative expenses are put at some £20,000,000 a year, arid the tax revenues raised for the purpose more than cover this amount. It finds, however, that of the £20,000,000 raised by taxation, only £700,000 finds its way to Peking. The local and provincial authorities appropriate much of it instead of paying it into the central Government. The Maritime Customs produce some nine million pounds, and this revenue has been specially safe-guarded and maintained intact since the overthrow of the Manehu Empire-. This is absorbed entirely by foreign and domestic loans and Boxer indemnity obligations. Half the native customs revenue is similarly safeguarded and is hypothecated for loans. The half goes to Peking, but at least ®wo-thifds of the amount is pilfered before it reaches the capital. .The salt, revenues , forjn the security for a number of foreign aiid domestic loans, and are, therefore, under a. coihpetent foreign staff, with Sir .Ernest Wiltofi ■ at = its head. Xet. in- spite - oi>.thus ; the. local ? authorh ties appropriate at least one-third Of the salt taxes annually. Where no foreign safeguard exists peculation absorbs nearly the whole of the revenue. Of the wine and tobacco taxes, amounting to over a million and ahalf, the Government last year received less than one-tenth. The same is 'true of the stamp duties. The Peking Government has less than a million to meet administrative charges running into twenty times that amount. The railways, which if honestly run could be made to show a substantial profit, are being ruined by military and political interference, and the whole of the land tax, which the late Sir Robert’ Hart estimated could be made to yield ; £57,000,000 per annum, is squandered by the militarists and politicians. In , view of these statements it is not to be .wondered at that China. is in a state of unrest, being manifested in the fighting which has been reported this week. The widespread corruption and dishonesty make it difficult to : effect improvements, and China needs strong leaders of character and determination to place her upon sound foundations. Has she such men, or will she continue for years to come to drift on in her present bankrupt condition?