90 ECONOMIC TRENDS, 1912-49
Under both the Peking government until 1927 and the Nanking govern-
ment which followed, agricultural taxation was probably inequitable
in
incidence, but the matter has never been carefully studied. The land tax
was largely
a
provincial
or
local levy. Collusion between the local elite
and the tax collector was common, with the result that a disproportionate
share
of
the burden fell upon the small owner-farmer. Land taxes were
also shifted onto tenants in the form of higher rents. And such additional
abuses
as
forced collections
in
advance, the manipulation
of
exchange
rates,
and multiple surcharges were reported.
88
In the
last decade
of
Kuomintang rule, the tax burden
on
the small owner and the tenant
was increased
by
wartime tax collection
in
kind and compulsory grain
purchases by the Chungking government.
If the incidence were inequitable, the most important economic charac-
teristic of the pre-1949 land tax was its failure to recover a major share of
the agricultural surplus appropriated by the landlord
for
redistribution
to productive investment. The level of taxation in fact was low, reflect-
ing the superficial penetration of the state into local society (see page 99
below). As in the cases of credit and marketing, the system of agricultural
taxation reinforced
a
pattern of income distribution which allowed only
a very modest overall growth of output with no increase at all in individual
income and welfare.
Quantitative treatment of China's agriculture between 1937 and 1949 is
nearly impossible. War and civil war put an end to even the modest col-
lection
of
rural statistical data
of
the Nanking government decade. The
principal scene
of
fighting was North China, and it is certain that physical
damage to agricultural land, transport disruptions, conscription of man-
power and draught animals, requisitions
of
grain
for
the armies, and
mounting political conflict affected farmers
in the
north much more
severely than in South and West China.
89
The pre-war process of increas-
ing commercialization was reversed, agricultural productivity and output
declined,
and
commodity trade between rural
and
urban areas
was
disrupted. Even
by
1950, according
to
rural surveys made
in
the first
two years of the People's Republic, some areas in North China had not
returned
to
their peak pre-war output levels due
to
manpower and
draught animal losses.
90
Both
the
harsh Japanese occupation and
the
88 See
Li
Wen-chih and Chang Yu-i, comps. Agricultural history, 2. 559-80; 3. 9-65. Amano
Motonosuke, Agricultural
ecomomy,
2.
1-158.
89 Myers, The
Chinese
peasant
economy,
278-87, briefly describes the damage and dislocations
suffered by the North China rural economy during 1937-48.
90 Central Ministry of Agriculture, Planning Office, Liang-nien-lai
ti
Chung-kuo
nung-ts'un
ching-
chi tiao-ch'a hui-pien (Collection of surveys
of
the rural economy
of
China during the past
two years), 141-4,
149-51,
160, 162, 226-36.
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