October 31: I presented General Liggett to President Li. In a long conversation the President was frank in his statement concerning the international difficulties of China. He expressed himself in strong terms as desirous of close coöperation with America. I gathered that he feared that certain foreign influences might stir up trouble between the parliament and the Government, and otherwise seek to cause embarrassment.
November 3: I went with a small party to the mountain temple Djetaissu. Mrs. Chadbourne, the sister of my friend Mr. Charles R. Crane; Miss Ellen Lamotte the writer; Mr. and Mrs. Burns of Shanghai; and Mr. Charles Stevenson Smith, of the Associated Press, took this excursion riding on donkeys, with many spills as the animals slipped on the rocky road. The temple is near the top, commanding a magnificent view of the plains and of the higher mountains farther inland. It rises tier above tier, its platforms shaded by huge trees, with enchanting vistas of architecture and a broad sweep of view in all directions.
November 9: The Continental Commercial Bank Loan is announced. I am happy that this result has been achieved. An advance of only $5,000,000 will be made, but even that small sum will be an important aid to the Chinese Government. The fact that a big Western financial institution has taken up relations with China is promising. What foreign banking there is in New York is tangled up with European interests, follows the lead of London, and has not manifested much readiness to exert itself for the development of American interests abroad.
November 10: I attended the balloting for the election of the Vice-President of the Republic, at a joint session of the two houses of parliament. While no speeches were made, with the exception of brief discussion on points of order, yet it was of interest to see the general aspect of parliament. The procedure, certainly, was business-like. Balloting was by written and signed vote; after each ballot, the individual votes are read off from the tribune. I had the impression that a true election was going on. General Feng Kuo-chang, the Military Governor of Kiangsu, had the lead from the start, which was gradually increased by the balloting until finally he got the necessary majority. I could not stay until the result was announced, when there was a demonstration to honour the nominee. But I saw before me a body which had evidently mastered the procedure of parliamentary action, so that things were done with a smoothness and ease which implied long experience. Many people witnessed the election, among them several of my colleagues. I had a brief conversation with Mr. C.T. Wang, who was hopeful that, now the Vice-Presidential succession was settled legally and peacefully, the future of the Republic was assured.
General Feng has occupied a pivotal position at his post at Nanking. He is shrewd and clever. Like a boy standing over the centre of a seesaw, he used his weight to balance either side according as the pendulum movement required. He was at first believed to have given Yuan Shih-kai encouragement to be emperor, but when asked to express himself, had allowed the report that he was neutral to gain currency; then, as the opposition gained strength, he added his weight with gradually increasing force to its side, although never at any stage coming out with positive statements. His selection was an attempt to form a compromise between the militarist and the progressive parties.
November 10: I took a long excursion with Prince Koudacheff. We rode to the foothills by automobile, then climbed to the top of a lofty range back of his temple, where one can promenade for six or eight miles along the crest of the ridge with glorious views of mountain country on either side.
November 15: I had a long conversation with Baron Hayashi to-day.
November 20: Admiral and Mrs. Winterhalter arrived for a few days' visit. The Admiral is tall, gray-haired, strong-featured, of energetic movements. He has always manifested a deep interest in what is going on in China; we sat down for a long talk immediately after his arrival.
November 22: I presented the Admiral to President Li and we had a pleasant conversation, although the President was not quite so expansive and confidential as during my last call. As we made the rounds of calls on the cabinet ministers, I took the conversation beyond the ordinary civilities, so as to give the visitor an opportunity of getting more insight into the affairs now engaging our attention; also, to use this valuable time for an exchange of ideas with the Chinese leaders.
November 25: The French are protesting against the Continental Commercial Bank Loan, in so far as the security is concerned. The security of the tobacco and wine tax had been assigned to some previous French loans. I saw Doctor Chen, and Count Martel called on me. I take the position that as the French loan—which is small in amount and will require only a very minor portion of the proceeds of the tax—remains entitled to be the first lien, the French interests are in no way prejudiced. I imagine what they really object to is the eventual appointment of an American auditor or co-inspector for this revenue. As this, however, would still strengthen the security for their loan, I do not see that they have any reason for complaint. The representative of the French bank which is interested, saw me and made a tentative suggestion that if advisorships were established, the French might take the wine tax, and the Americans the tobacco tax. I feel, however, that the hands of the Chinese were perfectly free when the loan was made; there can be no objection, except on the supposition that whenever the Chinese do business, no matter how small, with respect to any subject matter, they impliedly give a lien on all future dealings.