On the 15th August, 1912, the deplorable situation was well-epitomised by an extraordinary act in Peking, when General Chang Cheng-wu, one of the "heroes" of the original Wuchang rising, who had been enticed to the capital, was suddenly seized after a banquet in his honour and shot without trial at midnight.
This event, trivial in itself during times when judicial murders were common, would have excited nothing more than passing interest had not the national sentiment been so aroused by the chaotic conditions. As it was it served to focus attention on the general mal-administration over which Yuan Shih-kai ruled as provisional President. "What is my crime?" had shrieked the unhappy revolutionist as he had been shot and then bayonetted to death. That query was most easily answered. His crime was that he was not strong enough or big enough to compete against more sanguinary men, his disappearance being consequently in obedience to an universal law of nature. Yuan Shih-kai was determined to assert his mastery by any and every means; and as this man had flouted him he must die.
The uproar which this crime aroused was, however, not easily appeased; and the Advisory Council, which was sitting in Peking pending the assembling of the first Parliament, denounced the Provisional President so bitterly that to show that these reproaches were ill-deserved he invited Dr. Sun Yat-sen to the capital treating him with unparalleled honours and requesting him to act as intermediary between the rival factions. All such manoeuvres, however, were inspired with one object,—namely to prove how nobody but the master of Peking could regulate the affairs of the country.
Still no Parliament was assembled. Although the Nanking Provisional Constitution had stipulated that one was to meet within ten months i.e. before 1st November, 1912, the elections were purposely delayed, the attention of the Central Government being concentrated on the problem of destroying all rivals, and everything being subordinate to this war on persons. Rascals, getting daily more and more out of hand, worked their will on rich and poor alike, discrediting by their actions the name of republicanism and destroying public confidence—which was precisely what suited Yuan Shih-kai. Dramatic and extraordinary incidents continually inflamed the public mind, nothing being too singular for those remarkable days.
Very slowly the problem developed, with everyone exclaiming that foreign intervention was becoming inevitable. With the beginning of 1913, being unable to delay the matter any longer, Yuan Shih-kai allowed elections to be held in the provinces. He was so badly beaten at the polls that it seemed in spite of his military power that he would be outvoted and outmanoeuvred in the new National Assembly and his authority undermined. To prevent this a fresh assassination was decided upon. The ablest Southern leader, Sung Chiao-jen, just as he was entraining for Peking with a number of Parliamentarians at Shanghai, was coolly shot in a crowded railway station by a desperado who admitted under trial that he had been paid £200 for the job by the highest authority in the land, the evidence produced in court including telegrams from Peking which left no doubt as to who had instigated the murder.
The storm raised by this evil measure made it appear as if no parliament could ever assemble in Peking. But the feeling had become general that the situation was so desperate that action had to be taken. Not only was their reputation at stake, but the Kuomingtang or Revolutionary Party now knew that the future of their country was involved just as much as the safety of their own lives; and so after a rapid consultation they determined that they would beard the lion in his den. Rather unexpectedly on the 7th April (1913) Parliament was opened in Peking with a huge Southern majority and the benediction of all Radicals.[[7]] Hopes rose with mercurial rapidity as a solution at last seemed in sight. But hardly had the first formalities been completed and Speakers been elected to both Houses, than by a single dramatic stroke Yuan Shih-kai reduced to nought these labours by stabbing in the back the whole theory and practice of popular government.
The method he employed was simplicity itself, and it is peculiarly characteristic of the man that he should have been so bluntly cynical. Though the Provisional Nanking Constitution, which was the "law" of China so far as there was any law at all, had laid down specifically in article XIX that all measures affecting the National Treasury must receive the assent of Parliament, Yuan Shih-kai, pretending that the small Advisory Council which had assisted him during the previous year and which had only just been dissolved, had sanctioned a foreign loan, peremptorily ordered the signature of the great Reorganization Loan of £25,000,000 which had been secretly under negotiation all winter with the financial agents of six Powers[[8]], although the rupture which had come in the previous June as a forerunner to the Crisp loan had caused the general public to lose sight of the supreme importance of the financial factor. Parliament, seeing that apart from the possibility of a Foreign Debt Commission being created something after the Turkish and Egyptian models, a direct challenge to its existence had been offered, raged and stormed and did its utmost to delay the question; but the Chief Executive having made up his mind shut himself up in his Palace and absolutely refused to see any Parliamentary representatives. Although the Minister of Finance himself hesitated to complete the transaction in the face of the rising storm and actually fled the capital, he was brought back by special train and forced to complete the agreement. At four o'clock in the morning on the 25th April the last documents were signed in the building of a foreign bank and the Finance Minister, galloping his carriage suddenly out of the compound to avoid possible bombs, reported to his master that at last—in spite of the nominal foreign control which was to govern the disbursement—a vast sum was at his disposal to further his own ends.
Safe in the knowledge that possession is nine points of the law, Yuan Shih-kai now treated with derision the resolutions which Parliament passed that the transaction was illegal and the loan agreement null and void. Being openly backed by the agents of the Foreign Powers, he immediately received large cash advances which enabled him to extend his power in so many directions that further argument with him seemed useless. It is necessary to record that the Parliamentary leaders had almost gone down on their knees to certain of the foreign Ministers in Peking in a vain attempt to persuade them to delay—as they could very well have done—the signature of this vital Agreement for forty-eight hours so that it could be formally passed by the National Assembly, and thus save the vital portion of the sovereignty of the country from passing under the heel of one man. But Peking diplomacy is a perverse and disagreeable thing; and the Foreign Ministers of those days, although accredited to a government which while it had not then been formally recognized as a Republic by any Power save the United States, was bound to be so very shortly, were determined to be reactionary and were at heart delighted to find things running back normally to absolutism[[9]]. High finance had at last got hold of everything it required from China and was in no mood to relax the monopoly of the salt administration which the Loan Agreement conferred. Nor must the fact be lost sight of that of the nominal amount of £25,000,000 which had been borrowed, fully half consisted of repayments to foreign Banks and never left Europe. According to the schedules attached to the Agreement, Annex A, comprising the Boxer arrears and bank advances, absorbed £4,317,778: Annex B, being so-called provincial loans, absorbed a further £2,870,000: Annex C, being liabilities shortly maturing, amounted to £3,592,263: Annex D, for disbandment of troops, amounted to £3,000,000: Annex C, to cover current administrative expenses totalled £5,500,000: whilst Annex E which covered the reorganization of the Salt Administration, absorbed the last £2,000,000; The bank profits on this loan alone amounted to 1-1/4 million pounds; whilst Yuan Shih-kai himself was placed in possession by a system of weekly disbursements of a sum roughly amounting to ten million sterling, which was amply sufficient to allow him to wreak his will on his fellow-countrymen. Exasperated to the pitch of despair by this new development, the Central and Southern provinces, after a couple of months' vain argument, began openly to arm. On the 10th July in Kiangse province on the river Yangtsze the Northern garrisons were fired upon from the Hukow forts by the provincial troops under General Li Lieh-chun and the so-called Second Revolution commenced.
The campaign was short and inglorious. The South, ill-furnished with munitions and practically penniless, and always confronted by the same well-trained Northern Divisions who had proved themselves invincible only eighteen months before fought hard for a while, but never became a serious menace to the Central Government owing to the lack of co-operation between the various Rebel forces in the field. The Kiangse troops under General Li Lieh-chun, who numbered at most 20,000 men, fought stiffly, it is true, for a while but were unable to strike with any success and were gradually driven far back from the river into the mountains of Kiangse where their numbers rapidly melted away. The redoubtable revolutionary Huang Hsin, who had proved useful as a propagandist and a bomb-thrower in earlier days, but who was useless in serious warfare, although he assumed command of the Nanking garrison which had revolted to a man, and attempted a march up the Pukow railway in the direction of Tientsin, found his effort break down almost immediately from lack of organization and fled to Japan. The Nanking troops, although deserted by their leader, offered a strenuous resistance to the capture of the southern capital which was finally effected by the old reactionary General Chang Hsun operating in conjunction with General Feng Kuo-chang who had been dispatched from Peking with a picked force. The attack on the Shanghai arsenal which had been quietly occupied by a small Northern Garrison during the months succeeding the great loan transaction, although pushed with vigour by the South, likewise ultimately collapsed through lack of artillery and proper leadership. The navy, which was wholly Southern in its sympathies and which had been counted upon as a valuable weapon in cutting off the whole Yangtsze Valley, was at the last moment purchased to neutrality by a liberal use of money obtained from the foreign banks, under, it is said, the heading of administrative expenses! The turbulent city of Canton, although it also rose against the authority of Peking, had been well provided for by Yuan Shih-kai. A border General, named Lung Chi-kwang, with 20,000 semi-savage Kwangsi troops had been moved near the city and at once attacked and overawed the garrison. Appointed Military Governor of the province in return for his services, this Lung Chi-kwang, who was an infamous brute, for three years ruled the South with heartless barbarity, until he was finally ejected by the great rising of 1916. Thoroughly disappointed in this and many other directions the Southern Party was now emasculated; for the moneyed classes had withheld their support to the end, and without money nothing is possible in China. The 1913 outbreak, after lasting a bare two months, ignominiously collapsed with the flight of every one of the leaders on whose heads prices were put. The road was now left open for the last step Yuan Shih-kai had in mind, the coup against Parliament itself, which although unassociated in any direct way with the rising, had undoubtedly maintained secret relations with the rebellious generals in the field.
Parliament had further sinned by appointing a Special Constitutional Drafting Committee which had held its sittings behind closed doors at the Temple of Heaven. During this drafting of the Permanent Constitution, admittance had been absolutely refused to Yuan Shih-kai's delegates who had been sent to urge a modification of the decentralization which had been such a characteristic of the Nanking Instrument. Such details as transpired showed that the principle of absolute money-control was not only to be the dominant note in the Permanent Constitution, but that a new and startling innovation was being included to secure that a de facto Dictatorship should be rendered impossible. Briefly, it was proposed that when Parliament was not actually in session there should be left in Peking a special Parliamentary Committee, charged with supervising and controlling the Executive, and checking any usurpation of power.