June 3, 1905.]
for gold at their recognised value as fractional parts of the gold sovereign. So long as the credit of the Government in this respect is beyond dispute the silver coin is as good as gold coin representing the same
fraction-in other words ten silver shillings are as good as the ten-shilling gold piece or half sovereign. If, however, any doubt arises as to its being absolutely possible to exchange the silver coins for their nominal value in gold, ʼn very different state of
matters will at once arise. This is never likely to be the case in Great Britain, or in
any country whose monetary credit stands high; but it might easily take place in a country like China, where a very diffrent state of affairs exists. The best that could be established in China would be a mixed silver and gold coinage; and the exchange. ability of the silver coin for the gold nt a fixed rate might become problematical, with the necessary result of a further deprecia- tion of silver as compared with gold, which might have serious effects upon mercantile cransactions and international finance.
CHINA OVERLAND TRADE REPORT. CHINA'S POTENTIAL
MILITARISM.
(Daily Press, 2nd June.)
when speculation was rife as to how far At the opening of the Russo-Japanese war, the Japanese could hold their own against Russia in military matters, it was pointed out by the Military Correspondent of the Times that it had always been assumed that the Chinese had been a centemptible foe in the war between them and Japan, but that this assumption had possibly been made without any very solid basis, and that it might prove that it was a mistaken con- clusion, and that the Chinese were in reality a much more formidable enemy than had been generally believed. The comparative
ease with which the Chinese were defeated by the Japanese, conbined with what was then known of them in former wars, led naturally to this conclusion, but events which have since happened again raise cou. siderable doubt as to its correctness.
as
It is, therefore, a question whether with
All we know of the Chinese would lead a Government like that of China, the to the conclusion that they are quite unable adoption of a gold currency would be to fight in the way the Japanese fight. If attended with unqualified advantage. In there were no other reason for this, there Itself it would be, no doubt, highly desirable is a want of real patriotism amongst them but, at the same time, the manner in which which would always prevent such fervour, ti might be introduced would have to be as the Japanese have so conspicuously dis tarefully considered; and it cannot be played, from arising. Moral as well denied that there are just reasons for physical qualities are required to doubt whether such a step might not be battles and to carry on a difficult campaign; Win attended with trouble. The mass of the and there is no moral force comparable to a Chinese are so accustomed to "cash and, true devotion to country and government. at most, dollars, that these would continue, In this, however, the Chinese have always the medium to a large extent; and if the been conspicuously deficient and, unless some dollar, or other similar silver coin, were kept quite unforeseen change should arise, it at a fixed ratio in respect to gold, the ques- may reasonably be assumed they will con- tion might at a given time arise as
tinue to be wanting in true patriotis 'n actually being convertible at such rate. If for many years to come. two currencies-one silver and one gold- ran side by side, the requirements of trade might possibly be fairly met but, in such case, there would often be the same incon- venience to meet, that is familiar in respect to dollars and taels, and which has often been felt as extremely troublesome in mer- cantile dealings; while there is always the possibility that if a gold currency ran sim- ultaneously with a recognised silver stan- dard, the silver, under certain circumstances (as the least stable medium) would become greatly depressed-so that the evil which it is desired to overcome, would remain prac. tically unchecked.
to its
That China has through all the ages of her existence, never been able to establish any other standard than the copper cash is a significant ciroum- stance in connection with a nation of such strong commercial instincts; and the fact is to be accounted for only by, the distrust which the mercantile classes and the people at large entertain towards the Government in regard to coinage. It is, of course, reasonable to hope that this state of things is somewhat modified in the present day; but still it cannot be entirely overlooked. If steps could be taken gradually to intro- duce a gold coinage entirely independent of silver, the two running side by side, pos- sibly some good might result, and the way be paved for further improvement in the future. In such case the gold currency
would be used for large mercantile trans- actions and the cash and dollars continue as at present in use for smaller matters. It is, however, a question which must be care fully considered; whether it would be wise to urge the Chinese to introduce a gold currency in
other any
way until the Chinese Government showed itself of a more stable and reliable character in such matters than it has proved itself up to the present time.
At the same time it is not to be overlooked that China, under certain circumstances, might become a formidable adversary Alone, she is likely to be able to do little, but in combination with a nation such as Japan, possessing real esprit de corps, she might prove very different to what she has been under half-hearted and in many cases corrupt leaders. There is no position in which it is more true that a little leven levens the whole than that of an army in the field. The manner in which NAPOLEON inspirited his soldiers the instant he took the field is a good illustration of this and there have been many instances in our history where British dash and pluck have made good soldiers out of very unpromising native material. In China itself we had an illustration of this in GORDON'S "Invincible Army." Although, in its later days, it owed very much to the prestige which it had acquired, there is no doubt that Gordon succeeded in making his Chinese troops perform feats which it would have been impossible for them to attempt if not insped by their leader. In the same way it is likely that, under Japanese direction, Chinese troops would prove very different from what they have been hitherto, and it is by no means unlikely that this may before long be put to practical test. Already tho Chinese have called in Japanese military teachers in many directions; and it is pro- bable that the Japanese, in their own interests, will reconstruct much of the Chinese military system in Manchuria, with a view of en- abling China to hold her own there, which is one of the things which Japan recognises essential to the preservation of peace. Under such conditions, the Chinese would be able to hold their own there with little difficulty. Without, therefore, interfering with Chinese jurisdiction, the Japanese will probably find it necessary to keep sufficient
+
943
military police" in Manchuria to preserve
and to make a renewal of the encroach. tnents of Russia an impossibility.
There is every likelihood that something
has practically acquiesced in such an Korea and also in Manchuria. The former. of this kind will be organised both in
arrangement and there are indications, from what has been done at Mukden, that China will be willing to follow suit in what will. be substantially a similar arrangement differing, possibly, in form and name. long, however, as Chinese authority is recognised in Manchuria, China will not be
As
face and
too nice as to submitting to the protection must be fully aware of her inability to of some other Power. By this time she protect this part of her Empire herself; and, if an arrangement with Japan can be come to by which she can save her she will probably look with complacency. still preserve her territorial authority, upon the military Power being in Japanese hands; and will be willing to place against ment might be considered to involve, the any loss of prestige, which such an arrange- material security which it will undoubtedly provide.
posed to acquiesce in such an arrangement How far European nations may b dis-
could be relied upon to protect herself no is a question of some nicety. If China doubt they would much prefer to see her past experience makes it manifest tothe have complete control in Manchuria. But ·
counted upon to hold her own; and thta if most sanguine that she could not be Manchuria were restored to her without only be a question of time for the of some form of military protection, it woule
state of affairs to arise again. When Russia had recovered from the effects of the tion, and endeavour to carry out her war, she would cast eyes in the old direc traditional policy of encroachment. Under happen, at all events for some years, is that the circumstances the best thing that can
Manchuria. Possibly, in the course of time, the Japanese should in some way protect China may be able to do this herself, and Japan would be glad to be relieved of the responsibility. The moral position of China, it must be remembered, would become much stronger when once she had come into line with European nations and the Unite 1 States in opposing the advance of Russia,
a
It
is hardly likely that those who have hitherto in China will be inclined to continue auch been disposed to favour Russian aggression policy after the lesson that the Japanese taught them; and, if only there is ananimity on this subject, the chances of success of any aggressive action on the part of Russia will be so much diminished that China may be able to take care of herself and once which, if Russia had kept her promises, more resume the full control over Manchuria ought long ago to have been restored to her.
Plague is present in epidemic form at Hong- kong. In recording the official figures, without comment, there is no ** sensationalism.” As a matter of fact, it has been much worse in former
years; but it is nonsense to hollos until we are yet, and a bigger jump than usual on Tuesday out of the wood. The season is not half over brought the total number of cases up to 105 (now 109.) Six out of Tuesday's seven cases were fatal. So long as there are Chinese in Hongkong, so long will there be plague, unless the authorities have the pluck and power to do as Japan does-to burn down whole infected areas. The Chinese, and some others, cannot be All that the Government can manage under persuaded, to report the presence of rats. present conditions is a partial remedy, that is evidently 'scotching" the disease, but
64
not abolishing it.