Salt is a necessity in daily life. The tax of salt is a very important financial resource to Chinese government. Therefore, each dynasty always claimed to have a monopoly on salt and set heavy tax on salt. For the purpose of securing tax income on salt, it is necessary to control the production and distribution of salt. In Ming dynasty salt became an expensive necessity because of the corruption of salt affair. In modern China, there were many suggestion of reform on salt affair. In 1913, based on the agreement of Reorganization Loan, Chinese government had to hire foreign expertise in helping tax reform on salt. In June of 1913, Sir Richard Dane was designated to inspector of the Sino-foreign inspectorate and he took charge of collecting tax on salt. Sir Richard Dane had been administer of salt affair in India for sever year before he came to China. During his term of inspector (1913-1918), Dane took advantage of his knowledge of salt affair and support from the banking consortium; he did a great successful on the reform of Chinese salt affair. His achievement were: institutionalization of salt affair, setting up regulations, regulating salt field, unionization of tax rate and etc.. Consequently, the income of tax on salt increased evidently because the local government could not keep tax on salt any more.