New Tariff

China's tariff has been for centuries not a national but an international affair. Most of the loans by foreign states to China have been secured by mortgages on her tariffs. Until recently these mortgages were further secured by placing the collection of Chinese tariffs in the hands of foreign officials. Last week, however, the new Nationalist Government moved to alter this situation and announced a new tariff schedule, effective Feb. , 1929.

Some months ago the Nationalists served notice that they would no longer tolerate foreign control of China's tariff machinery (TIME, June 25); and last week it appeared that no Great Power except Japan would challenge China's present determination to fix her tariffs without foreign interference. The new schedules provide an average tariff of 18%, as opposed to the former 5% plus 2.5% surtax. In defending this sharp increase Finance Minister T. V. Soong declared, probably quite truthfully, that the new Nationalist Government is "in imperative need of funds" to liquidate their Civil War Debt and carry out their impressive programs of peaceful development and reform.

Significant is the fact that last week Occidental businessmen in China who had feared that the Nationalists might clap on a 50% average tariff, were relieved when the figure announced proved to be only 18%.

The highest tariff levied will be 59% on "luxury cigarets," and the lowest 7.5 on needles. Other outstanding classifications:

Goods Per Cent

cotton piece goods 10

groceries 17.5

fresh fruits 10

cigarets (according to quality)

leaf tobacco 6 to 14

silk piece goods 22.

artificial silk 35.

silk manufactures 22.

men's clothing and haberdashery 17.

carpets 17.

woolen piece goods 15

iron and steel 10

fish and sea products 7.5

cereals, flour (unpackaged)

and free chemicals 7.5 to 15.5

gasoline 7-c- (gold) a gallon

lumber 10

leather shoes 22.5

motor trucks 12.5

pleasure cars, tires and

accessories 22.5