ms tariff
remaining, which is a levy on imports at the first port of entry. Its
purpose is to increase the cost of production of imported goods and to
serve as a protection of native products (sic). Raw materials from
abroad are, however, exempt from Customs duty in order to provide cheap
material for home manufactures. An altogether different state of
affairs, however, exists in this country. Likin stations are found
throughout the country, while raw materials are taxed. Take the Hangchow
silk for instance. When transported to the Capital for sale, it has to
pay a tax on raw material of 18 per cent. Foreign imported goods on the
other hand, are only taxed at the rate of five per cent _ad valorem_
Customs duty at the first port of entry with another 2.5 per cent
transit duty at one of the other ports through which the goods pass.
Besides these only landing duty is imposed upon imported goods at the
port of destination. Upon timber being shipped from Fengtien and Antung
to Peking, it has to pay duties at five different places, the total
amount of which aggregates 20 per cent of its market value, while timber
from America is taxed only ten per cent. Timber from Jueichow to Hankow
and Shanghai is taxed at six different places, the total amount of duty
paid aggregating 17.5 per cent., while timber imported from abroad to
these ports is required to pay Customs duty only one-third thereof. The
above-mentioned rates on native goods are the minimum. Not every
merchant can, however, obtain such special 'exemption,' without a long
negotiation and special arrangements with the authorities. Otherwise, a
merchant must pay 25 per cent of the market value of his goods as duty.
For this reason the import of timber into this country has greatly
increased within the last few years, the total amount of which being
valued at $13,000,000 a year. Is this not a great injustice to native
merchants?

THE CHINESE METHOD

"Respecting the improvement of the economic condition of the people, a
country can hardly attain this object without developing its foreign
commerce. The United States of America, Germany and Japan have one by
one abolished their export duty as well as made appropriations for
subsidies to encourage the export of certain kinds of commodities. We,
on the other hand, impose likin all along the line upon native
commodities destined for foreign markets in addition to export duty.
Goods for foreign markets are more heavily taxed tha