182 THE FOREIGN PRESENCE IN CHINA
Two implications
of
the 1912 agreement, which remained effective
until
the
establishment
of
the Nanking government, should
be
noted.
The treaty powers until 1921 assumed the right
to
determine whether
or not there was
a
'customs revenue surplus', after the foreign debt was
serviced, and
to
give their approval before the release
of
any funds
to
the Peking government. Their estimates
of
the available surplus were
conservative,
to
the ineffective displeasure
of
successive administrations
in Peking. Moreover, large sums
of
Chinese government funds which
formerly were
at
the disposal
of
Chinese banks were now deposited
in
three foreign banks
in
Shanghai
-
the Hongkong and Shanghai Banking
Corporation,
the
Deutsch-Asiatische Bank (until 1917 when China de-
clared war on Germany) and the Russo-Asiatic Bank (until its liquidation
in 1926). While interest was duly paid, large balances were always available
to these banks
for
their other commercial operations, and
in
the service
of the foreign debt they profited substantially from handling the necessary
currency exchange operations.
The first charge
on
the customs revenue was the office allowance
to
cover the salaries and operating expenses
of
the service. This allowance
was negotiated directly between
the
Chinese government
and the in-
spector-general, and in 1893 was set at Hk. Tls. (haikwan taels) 3,168,000
per annum,
a
figure not increased until 1920 when the allowance was
raised
to
Hk. Tls. 5,700,000. In addition, the upkeep of the superintend-
ents'
offices annually consumed approximately Hk. Tls. 400,000. Total
revenue in 1898 was reported at Hk.Tls. 22,503,000 and in 1920 at Hk.Tls.
49,820,000. The cost
of
collection
-
not including bankers' commissions
and possible losses by exchange incurred in collecting and remitting the
net revenue
-
amounted, therefore,
to
15.9 per cent and 12.2 per cent of
the total revenue in these two
years.
In 1898 the office allowance supported
a staff
of
895 foreigners and 4,223 Chinese (including 24 foreigners and
357 Chinese
in
the postal department)
at
an average cost
of
Hk.Tls. 619.
By 1920 the customs staff numbered 1,228 foreigners and 6,246 Chinese
(postal personnel were separated from the customs in 1911), reflecting the
fact that many new ports had been opened
to
trade
in
the intervening
years.
The 1920 increase, which brought the average cost to Hk. Tls. 763,
compensated
for
the strain
on
the finances
of
the service occasioned by
this expansion.
The customs
staff,
Chinese and foreign, were assigned
to
one
of
the
three branches
of the
service:
the
Revenue Department,
the
Marine
Department (established in 1865) and the Works Department (established
in 1912). Surveys
of
the coast and inland water-ways, the operation
of
lighthouses and lightships, the servicing
of
buoys and beacons, and the
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