Abstract: Besides administering the coastal defense，the Naval Yamen was also in charge of northeast troop Training, railway construction, and the building of the Three Sea Summer Palace, and other projects.Due to an increase in interrelated functions, more funds were needed in addition to those which were earmarked for the coastal defense of Nanyang and Beiyang. This internal financial demand contributed to the repeated requests for funds and were the excuse for the Naval Yamen’s request to the Ministry of Revenue. The income of the Naval Yamen was not uniquely from the special funds for coastal defense, and the payment of which was not confined to the coastal defense. There is no basis to say the funds of the Naval Yamen were equivalent to the total expenditures on coastal defense.