n for home
consumption. Take the Chekiang silk for instance. Silk for export is
more heavily taxed than that for home use. Different rates of taxation
are imposed upon tea for foreign and home markets. Other kinds of native
products for export are also heavily taxed with the result that, within
the last two decades, the annual exports of this country are exceeded by
imports by over Tls. 640,000,000,000. From the 32nd year of the reign of
Kuang Hsu to the 4th year of the Republic, imports exceed exports on the
average by Tls. 120,000,000. These, figures speak for themselves.

LIKIN

"Likin stations have been established at places where railway
communication is available. This has done a good deal of harm to
transportation and the railway traffic. Lately a proposal has been made
in certain quarters that likin stations along the railways be abolished;
and the measure has been adopted by the Peking-Tientsin and
Tientsin-Pukow Railways at certain places. When the towns and cities
throughout the country are connected by railways, there will be no place
for likin stations. With the increase in the number of treaty ports, the
'likin zone' will be gradually diminished. Thencefrom the proceeds from
likin will be decreased year by year.

"Owing to the collection of likin the development of both home and
foreign trade has been arrested and the people are working under great
disadvantages. Hence in order to develop foreign and home trade the
Government must do away with likin, which will bring back business
prosperity, and in time the same will enable the Government to obtain
new sources of revenues.

"From the above-mentioned considerations, the Government can hardly
develop and encourage trade without the abolition of likin. By treaty
with Great Britain, America and Japan, the Government can increase the
rate of Customs tariff to cover losses due to the abolition of likin.
The question under consideration is not a new one. But the cause which
has prevented the Government from reaching a prompt decision upon this
question is the fear that, after the abolition of likin, the proceeds
from the increased Customs tariff would not be sufficient to cover the
shortage caused by the abolition of likin.

COST OF ABOLITION OF LIKIN

"But such a fear should disappear when the Authorities remember the
following facts:--

"(a) The loss as the result of the abolition of likin: $38,900,000.

"(b) The loss as the result of the abolition o