At Canton may still be seen, but not often, I was told, the magnificent old house-boats, the very acme of perfection in artistic decoration. There are numbers of house-boats still which are used as places of entertainment; which certainly seems strange to a Westerner.

We visited other workshops to see fine carving of ivory and jade, and everywhere were impressed by the infinite patience and endurance of the workmen. They certainly rank higher as a class than in any other country. One-fourth of the population of China are labourers and they are sober, laborious, reliable and contented, living on the meanest wages and asking for no holidays, except the rare national ones. Naturally no white people can compete with them, so they are rigorously excluded from most countries. The problem is a difficult one to solve, but the main thing that should be done is to safeguard their own country and to preserve the northern part of Asia from being invaded by non-Asiatic colonists. If Japan and China became friends and had a just settlement of their mutual claims, granting room for expansion for their rapidly increasing population, there would be an unexampled area of prosperity before both countries. Railway communication is confined to seven thousand miles in China: it has been more remunerative than in any other country, and what was started by British enterprise should be carried forward by British tenacity. There is scope enough for all countries in this matter, but we are singularly slow to seize our opportunities; perhaps it is owing to the discouragement of our own railway system. There is a railway line connecting Canton with Hong Kong, and we enjoyed the three hours’ journey back by it through lovely scenery. When Canton is linked up with Hankow by rail, it will be a great help to the unifaction of the empire, as well as to the expansion of commerce.

One of the last duties before leaving China was of course to visit the Bank, and this brings me to the last problem I should mention of all China’s changes—the question of currency. It seems extraordinary that every province and almost every city of importance still has its own coinage. Long ago, I was told, this would have been altered, had it not been for the native banker, who profited amazingly on the system. The Chinese bankers, however, have had much to endure of late years, and were heavily looted by Yuan Shi Kai and other Government officials. They are always in danger of being pounced on, so at last they have decided to initiate a wholly new policy. The new spirit of initiative and organization has entered into them with startling results.

They believe that China is able to support herself and that her financial distress is entirely owing to maladministration. Therefore they have come forward as a body, offering to undertake a financial scheme of their own to solve the problem. “They believe that they can place and maintain China’s finances on so sound a basis that the unavoidable political unrest of the new era, which they realize is still far from concluded, will not greatly impair the Treasury’s credit. They are idealists, but pragmatic idealists.” When the Government was in terrible straits at the New Year (the financial settling day of China), the new union of bankers, through the Shanghai Association, served an ultimatum on the Minister of Finance, prohibiting his issuing a new credit paper, and saying that the banks would refuse to accept it. At the same time they offered to assist the administrative departments out of their difficulty, if the Government would place the matter in their hands and authorize their working out a programme for China’s future finance. This took place, and the Government received six hundred million Mexican dollars, with which its liabilities were met.

The new financial scheme is being prepared, and an important part of it is the sweeping retrenchment in military expenditure. This extravagant and wasteful expenditure is a source of untold evil to the country at the present time. If the scheme can be achieved it will be a great factor in quieting the country; but the disbanding of large bodies of troops is no easy matter. The worst military leaders are extorting large sums of money from the Government, while the claims of those like Wu-pei-fu and Feng-Yu-Hsiang, who are keeping order, are disregarded. A tremendous sum of ready money would be required to pay the arrears of troops before disbandment: but it can be done if public confidence can be won by necessary guarantees.

I have tried to show many channels through which the new spirit of the Chinese race is flowing. I have taken advantage of the knowledge of men of all sorts and nationalities, in order to appeal to men of all sorts and conditions in the West. For we have the right of brotherhood in all world movements, and there is an infinite variety of mutual service possible to those who have undergone and are still undergoing the pangs of a new birth. My task has been to draw pictures with pen and brush, and my consolation in the inadequacy of its fulfilment is the poet’s view that “a man’s reach should exceed his grasp.” If the book proves a ladder’s rung by which others mount, it will have served its end.

CHINA & JAPAN

There is no standardised spelling of Chinese names.