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 than 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 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.