f a part of duty collected
by the native Customs houses: $7,300,000.

"(c) Annual proceeds from different kinds of principal and miscellaneous
taxes which shall be done away with the abolition of likin $11,800,000.

"The above figures are determined by comparing the actual amount of
proceeds collected by the Government in the 3rd and 4th years of the
Republic with the estimated amount in the Budget of the fifth year. The
total amount of loss caused by the abolition of likin will be
$58,000,000.

INCREASE OF CUSTOMS TARIFF

"The amount of increase in the Customs tariff which the Government
expects to collect is as follows:--(a) The increase in import duties
$29,000,000. (b) The increase in export duties Tls. 6,560,000.

"The above figures are determined according to the Customs returns of
the 2nd, 3rd, and 4th years of the Republic. By deducting Tls. 2,200,000
of transit duty, the net increase will be Tls. 33,600,000, which is
equal to $48,500,000. For the sake of prudence, allowance of five per
cent. of the total amount is made against any incidental shortage. The
net revenue thus increased would amount to $46,100,000. Against the loss
of $58,000,000, there will be a shortage of some $11,900,000. This,
however, will not be difficult to make good by new sources of revenue as
the result of a tariff revision:--(a) Tax on goods at the time of
manufacture $800,000. (b) Tax on goods at the time of sale $8,000,000.
(c) Tax on cattle and slaughtering houses $2,000,000. (d) Tax on
foodstuffs $4,000,000.

"Under (a) and (b) are the taxes to be collected on native made foreign
imitation goods and various kinds of luxurious articles. Under (c) and
(d) are taxes which are already enforced in the provinces but which can
be increased to that much by reorganizing the method of collection. The
total sum of the proceeds set forth under above items will amount to
$14,800,000. These will be quite sufficient to cover the loss caused by
the abolition of likin.

A VITAL INTEREST

"As the abolition of likin concerns the vital interest of the merchants
and manufacturers, it should be carried out without delay. The
commercial and industrial enterprises of the country can only thrive
after likin is abolished and only then can new sources of revenue be
obtained. This measure will form the fundamental factor of our
industrial and economical development. But one thing to which we should
like to call the special attention of the Government