November 4, 105.]
MONEY AS CONTRABAND.
(Daily Press, 1st November), NOTHING could show more strongly the ridiculous lengths to which irresponsible arbitration courts will proceed than the recent suggestion which was made that lending money to belligerents ought to be regarded as an infringement of neutrality. If it had been desired to set forth the absurdi y of the majority of the rules as to preserving neutrality, probably to better illustration could have been hit upon. No doubt the lending of money to a belligerent is in one sense a breach of neutrality; as to supply the sinews of war clearly tends very
1 greatly to the advantage of the nation to whom they are thus supplied. Lending money may thus be said to be taking a very important part in assisting a nation who contracts a loan iu time of war; but in the true, that is, the international sense of being a breach of neutrality, it is manifestly ridiculous to hold that such an act is fairly open to protest. No one would seriously maintain that a nation, which happens not to bave sufficient means to carry on hostili- ties in which she may be engaged, cannot legitimately obtain assistance from any nation, more fortunately sit inted than her self, who may be able and willing to supply her with such funds as are necessary To take up such a position would be practically to say that no nation could assist in obtain ing a loan for another, unless there were some guarantee that the borrowing nation would keep the peace for at least ten or twenty years. Money lent in advance of a war is likely, for obvious reasons, to be of much more effective value than that lent after hostilities have cominenced; as there is nothing against its being invested in war- like material in any part of the world with- out any international question arising. If it is necessary to swallow this camel, it seems childish to strain at the gnat of lend- ing money at a much less convenient time. The absurdity of such a position is, perhaps, best shown by the fact that by no possible stretch of imagination can it be maintained that a nation cannot lend another money in advance of a war which is contemplated for the
purpose of enabling it to carry on that war on its arising. What was there to pre- vent England or France or any other nation lending Japan money which she might use to complete the navy which she used to such good purpose in the recent war? Absolutely nothing; and as a matter of fact, loan after loan was obtained by Japan and was devoted by her to that purpose.
If funds can be lent thus in advance, what substan- tial reason can there be for their not being advanced while the war is actually going on? Very little thought must show that such a conclusion is quite untenable. Granted that funds may be sent in advance and that a portion of the funds so obtained may be saved for use actually during the wur, it is manifest that there can be no real distinction between the residue thus retained and loans before the outbreak of hostilities. The only effect of any such rule as that suggested being adopted would be to equally embarrass all nations who have occasion to make arrangements for their own protection in advance. Practically it would be to agree that no nation, which was un- able to raise all its possible requirements in the way of money for warlike expendi. ture within its own borders, would be able to take any precautions for its protection in case of the outbreak of Lostilities. In other words the only nations that would be safe would be those who had been able to fund vast amounts to meet contingencies that have no doubt to be guarded against,
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CHINA OVERLAND TRADE REPORT. but which might never arise. Such а restriction upon the natural right of a nation as well ณร an individual to do what it likes with its own could never be maintained, even if by any possibility the Powers could be brought to agree to it. In addition to its inherent unreasonable. could be evaded in half a dozen different ness, it is a regulation which, of course, ways, and this would be in itself a sufficient reason for its not being entertained. Of Course the idea has originated from Japanese loans having been taken up largely in the United Kingdom, but the important point is overlooked that such loans were not taken up by the British Government, but by individuals, and not upon political, but upon purely commercial and financial grounds. If any loan of the kind was unduly aided by the Government of a neutral state, some grounds for objection wight well be raised; but when the leudi..g of the money is a bankers or private individuals, it is quite matter purely from impossible, without going counter to the well-accepted principle that war between nations does not constitute war between private individuals belonging to the respec- tive nationalities, to hold that such loans, cannot be made. The case would, of e urse, stand on a very different footing where a neutral Government, as government, guar- anteed a loan of a nation at war which, but for such guarantee, could not float it itself Such a case, however, is very little likely to arise, as it is difficult to conceive that any nation would lend money, in its collec- tive capacity, to a nation which was not trusted by the people of the lending untion individually. In some rare instances, such, for instance, as in the case of the loan which it was stated Germany was willing to offer Morocco, something of this kind might be done to a very limited extent; but it would be obviously unreasonable to accepta general principle, which would affect all inter- national relations, to meet a possible case of so entirely exceptional a character.
REPRESENTATIVE GOVERN- MENT IN CHINA.
(Daily Press 2nd November). No one will accuse the Chinese with being too rapid in their actions towards obtaining some improvement in the administration of the internal affairs of the country. It has for a long time been announced that China was at last really going to do something in this direction which would astonish the world; and many who had long despaired of any good thing coming from Peking had a faint hope that happier days were about to dawn upon the Celestial Empire. At last something definite came out when it was announced that it had been de- termined that a Proclamation should be issued next China New Year in favour of introducing representative Government into the country in twelve years. The most captious of critics could hardly say that this was doing things in too great a hurry; and the Chinese, if they are at last bent upon some kind of reform, seem determined to keep up their reputation of acting on the golden principle of "festina lente.' It is not surprising if some of a more sceptical disposition than the average should have grave fears that this announcement may be merely the Chinese way of again putting off action; but still there are signs that possibly there may be something in it, and that at last the long prophesied Chinese awakening is to take place. The declara- tion which has been made at least shows that the Chinese have been forced by cir- cumstances to recognise that the question
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of internal reform is one which in some way must receive their practical attention; and that it cannot be shelved, as has hitherto been the case at Peking, as one quite beneath the dignity of the Celestial authorities to consider as within the range of practical politics. No doubt the Peking altogether, and simply dismiss so revolu- Officials would gladly put aside the matter tionary an idea, as that of granting repre- sentation to the people, as utterly incompat- ible with the paternal system of (tovernment with which China in blessed. Their idea would be to do something which would keep people quiet for a time, while the Government was actively engaged in doing as little as it could, a plan which at least has the advantage of giving the authorities a chance of getting out of the difficulty if tunity of so doing should arise. The dis- from unexpected circumstances the oppor- tance of time at which something in the mised does not seem very encouraging; but way of representative Government is pro- still there is room to hope that circumstances will be such as to force the Government of China, in this instance, to adhere, at least to some extent, to their promises. Some improvement in the internal administration of the country is essential if China is to preserve her national independence, with a neighbour of such progressive tendencies as Japan close by. This fact cannot have escaped the notice of the officials; and it' must be well known to them that the weak spot in their system is their inability to rely upon the masses; and the history of recent events in Japan ought to have made it apparent to them that the best (if, indeed, not the only) way of securing popular sup- port is to give facilities for a reasonable amount of representation.
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At first sight it might seem that the instincts of the Chinese were so much opposed to representative institutions that, even if the authorities desired to introduce them, a movement of the kind would be impossible. Such, however, will hardly be considered to be the case by those who have had an opportunity of studying Chinese institutions practically, and of judging of Chineso powers of organisation and adminis tration, not from books, but from the actual facts. In theory, it might be supposed that the autocratic instinct was that which most generally characterises the Chinese. The system of Government is based upon an extension of the idea of paternal authority. and passive obedience would seem to be the special habit that would be evolved from such a system of Government in the course of centuries. The Chinese, however, as existing in the present day, have by no means so blind a reverence for authority of an arbitrary character might be supposed, while in a variety of directions they undoubtedly show capabili ties of self-government, which are not ordinarily credited to them. In their village organisations and in the system of government by hundreds" in force in their cities they show considerable ad- ministrative instincts, while their Guilds and other associations prove that they are able to unite for common objects, and to devise measures for general advantage within stated limits. This, of course, is the very germ of representative govern- ment; and if it be true that the Chinese intend to follow up the Japanese idea of improving upon these various existing associations, and working out from them a system of representation which will apply to the larger affairs of state, there is nt lenst good reason to hope for satisfactory results. From what we know of Chinese powers of administration as displayed by them in.