Page:Stanley Kuhl Hornbeck - The Situation in China (1927).djvu/20

 of the Salt revenues, Peking is receiving nothing from the provinces; taxes everywhere are being collected by the authorities locally in control and are being expended almost entirely upon military activities. The whole of the revenue derived from the operation of the railroads is taken and expended in that way. Nothing is being put back into equipment and no new lines are being constructed, except in Manchuria.

Nevertheless, taking the country as a whole, private business appears to increase. This is unquestionably true with regard to foreign trade. The figures of the Customs revenue show an increase every year. But the amount of this foreign trade which is handled by foreign firms located in China shows relatively a decrease. The Chinese are apparently taking over, bit by bit, the importing and exporting business. Military operations, banditry, issues of paper currency and other irregularities tend to retard the development of trade; but it must be remembered that only a portion of China's area and a part of her people are directly affected by these factors. Opium is being grown in many areas in larger amount probably than in any previous period in China's history,—and the armies take the profits.

Among the adverse effects of the political and military turmoil, probably the most unfortunate in the long run is the fact that educational development is at a standstill. China has today only some