Charges of corruption were lodged against Chang Hu, Vice-Minister of Finance; Yeh Kung-cho, Vice-Minister of Communications; and the Director of the Tientsin-Pukow Railway. Including these, twenty-two high officials were impeached during July, besides several provincial governors. The Anhui Party was trying to eliminate radically the influence of the so-called Communications Party, which had tried to maintain itself through the vice-ministers and counsellors of several important ministries, the chiefs of which were Anhui men.

It appears that several Anhui leaders were involved in a movement to establish a monarchy, with Yuan Shih-kai as emperor. Care was exercised in picking the Committee of Ten to make a preliminary draft of the Permanent Constitution; it was believed by many that influences were at work for putting into that instrument provisions for reëstablishing the monarchy. Report had it that on July 7th General Feng Kuo-chang, military governor at Nanking, had urged that the President assume the throne, for which he was rebuked by Yuan in severe terms. Dr. Frank J. Goodnow, the American constitutional adviser, returned to Peking in mid-July for a short stay; he was asked on behalf of the President to prepare a memorandum on the comparative adaptability of the republican and monarchical forms of government to Chinese conditions. Doctor Goodnow complied. As a matter of general theory, he took the view that the monarchical form might be considered better suited to the traditions and the actual political development of the Chinese. He saw special merit in the fact that under the monarchical system, the succession to power would be regulated so that it could not be made an ever-recurring object of contention. On the expediency of an actual return at the time from the republic to the monarchy Doctor Goodnow expressly refrained from pronouncing a judgment. The memorandum was prepared simply for the personal information of the President. Advisers had been so generally treated as academic ornaments that Doctor Goodnow did not suspect that in this case his memorandum would be made the starting point and basis of positive action.

Meanwhile, Mr. Liang Shih-yi and his group, seeing their power threatened, decided to do something extreme to recover the lead. They concluded that the monarchical movement was inevitable; thereupon they seem to have persuaded Yuan Shih-kai that the movement could be properly handled and brought to early and successful issue only through their superior experience and knowledge. It was they who arranged for the memorandum of Doctor Goodnow. They had remained in the background until the middle of August, when an open monarchical propaganda began, based avowedly on the opinions expressed by the American adviser and thus given a very respectable and impartial appearance.

They formed the Peace Planning Society (Chou An Hui). Its aim was to investigate the advantages and disadvantages accruing from the republican form of government. Doctor Goodnow's views were widely heralded as categorically giving preference to monarchy for China, notwithstanding disclaimers which he now issued. The fact that an American expert should pronounce this judgment was cited as especially strong evidence in favour of the monarchical form, since it came from a citizen of the foremost republic in the world.

It became known in early September that the movement was in the hands of capable organizers. Notwithstanding Yuan Shih-kai's repeated disclaimers, he failed to take positive action to suppress the agitation; he was therefore believed to be at least in a receptive mood. The high officials in Peking with few exceptions had become favourable to the movement. The Vice-President, General Li Tuan-hung, was at first opposed, but even he appeared to be reconciled at last, being not entirely a free agent. The members of the Anhui faction, now that the lead had been taken out of their hands, were less enthusiastic for the change. Several political leaders began to withdraw from affairs. General Tuan Chi-jui, the Minister of War, and Mr. Liang Chi-chao, the Minister of Education, resigned, undoubtedly because of their tacit disapproval of the movement, although other reasons were alleged.[3] The Premier and Mr. Liang Tung-yen, the Minister of Communications, though not on principle opposed, considered that on account of his previous allegiance to the Imperial Family, Yuan Shih-kai could not with propriety assume the Imperial office. Within the inner circles of the movement there was no question of the desire of the President to have it put through. For a time, early in September, he was even thinking of forcing the matter, but began to be apprehensive regarding the action of certain foreign powers who might attach difficult conditions to their recognition of the new régime.

It was suggested that the Legislative Council might simply confer the title of emperor on the President, and the constitution might then be amended to make the presidency hereditary. Thus, it was naïvely believed, legal continuity could be preserved sufficiently to obviate the necessity of seeking a new recognition. A republic with a hereditary president seemed to some politicians the key to the difficulty. This proposal served to direct the minds of those who were managing the movement to the importance of letting a representative body participate in it, and of not carrying it through by a coup d'état.

On my return to China Mr. Chow Tsu-chi and other leaders waited on me, saying that present uncertainties involved such drawbacks to peace and prosperity that from all the provinces the strongest appeals were coming, to prevail upon Yuan to sanction the movement. Mr. Chow went so far as to say: "There is such a strong demand for this step that we shall have great trouble if it is not taken. There will be military uprisings." When I looked incredulous, Mr. Chow proceeded: "Yes, indeed, the people can only understand a personal headship, and they want it, so that the country may be settled." Though I took this all with a grain of salt, I was surprised at the apparent unanimity with which the inevitableness of the change seemed to be accepted. When I asked how the President would reconcile such a step with the oath he had taken to support a republican government, I was told that this was, indeed, the great obstacle; that probably it could not be overcome unless the whole nation insisted and made it a point of duty that Yuan Shih-kai continue to govern the state under the new form.

The attempt to reëstablish the monarchy seemed to me a step backward. I had always felt that, whereas the Chinese had no experience with elective representative institutions, nevertheless they were locally so largely self-governed that they were fitted by experience and tradition to evolve some form of provincial and national representation. Yet I was strongly convinced that it is under any circumstances injudicious for one nation or the officials of one nation to assume that they can determine what is the best form of government for another nation. The fundamental principle of self-government is that every people shall work out that problem for itself, usually through many troubles and with many relapses to less perfect methods.

The Legation had during my absence asked for instructions about a possible eventual decision to recognize the new form of government. It had suggested that acceptability to the people, and, consequently, ability to preserve order, should be among the factors determining our attitude. This position had been approved by the State Department. In the many conversations I had with the President and members of the cabinet, I confined myself to expressing the opinion that the Government would strengthen itself and gain respect at home and abroad in such measure as it made real use of representative institutions and encouraged local self-government.

The Council of State on 6th October passed a law instituting a national referendum on the question. Each district was to elect one representative. The delegates from each province were to meet at the respective provincial capitals and to ballot upon the question. The election was fixed for the 5th of November, the date for balloting on the principal issue on November 15th. Those desiring constructive and progressive action had allied themselves with the monarchical movement. They hoped to strengthen constitutional practice and administrative efficiency after the personal ambitions of Yuan Shih-kai had been realized. With Yuan in the exalted position of Emperor, Mr. Chow Tsu-chi explained to me, the government itself would be in the hands of the prime minister and cabinet; they would carry it on constitutionally and in harmony with the legislative branch. As Mr. Chow put it: "We shall make Yuan the Buddha in the temple."