February 1, 1909.]
the whole world with the products of their fac- tories and foundries, would be Russia's entrance into competition with them for the world's market. Holding in our hands railway lines connecting the Pacific Ocean and the Baltic Sea, and having outlets to the Mediterranean and the Indian and Pacific Oceans, Russia, with her inexhaustible natural wealth, would become formidable commercial competitor to the powers of the entire world.
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CHINA OVERLAND TRADE REPORT. false impression were we to affirm that issued on lines set forth by Peking, but was the provinces were mainly, or even largely, to blame for present condition. Of told that the issue would be abundantly to be issued by the provincials; these were late years expenses have been growing, profitable, and were made to pay up partly due to natural and proper reasons accordingly for the right of coining. The such as a general reduction in the purchas- new coinage was much needed, the old ing power of the silver currency, and largely having nearly exhausted, so the people to the necessity for increasing the efficiency took kin lyto it. "Now was the time," "In view of the vast bodies of armed forces for instance ministers abroad, as heids of out of this than we intended: you must of the Government by appointing officials, aa Peking said; "you're making more money that the nations concerned possess, it is obvious that neither in the eighteenth nor the nineteenth new departments, &c. But, unfortunately, share the plunder." Meanwhile there were centuries have we encountered such difficulties besides these the late Regency permitted ominous signs of over-issue, and values and dangers as we should inevitably encounter the Palace expouses to increase beyond all began to drop: but as Peking had to be in wars in the twentieth century waged in con- bounds, and certain of the private officials paid, the issue went on. Japan and America flicts for warm seas. The forces of the present were permitted to levy contributions on were exploited for copper: ships came generation might prove insufficient for the at- their own account above and beyond those loaded with it; an at home on river and tainment of possessions necessary only to future authorised by the various legitimate spend- coast its carriage brought in a little harvest generations. More than that, an examination of our military forces might lead to the concluing departments. It has been these last to the owners of the steamers: but the sion that the execution of new tasks, indispen- that have thrown the finances of the Empire thing could not last, the farmers were sable for the Russia of the year 2,000-with into confusion, an have led to the gross nearly ruined by the depreciation in the its 400,000,000 of population-is not only irregularities complained of on the part of currency, and at last the Provincials, finding beyond the strength of the generation now liv- the high provincial officials. Very properly the country could absorb no more, at any ing, but that now, in consequence of the rela- the new Regency expre-ses its displeasure price, had to close their mints. What tively greater military preparedness of our neighbours, even the maintenance of Russia's issue a new coinage, and points out that in smaller proportions occurred with silver. at the evil use made of the directions to happened with copper on a huge scale also present boundaries in their integrity would be- come extremely difficult."
contrary to the expressed intention of the The Provincials were encouraged to mint, Throne the issue has been turned into a but had, whether they liked it or not, to fee source of private profit by the high provin-Peking. As they found they could not pay cial officers. When we come to look deeper the calls with honest money,they commenced we find that though blameworthy the crime to debage. With dollars which had to face of the provincials was led up to, and the local issues of taels this could not be rendered practically unavoidable through carried on to any extent, but with subsidiary the still greater crime of the late Regency. coins there seemed an inexhaustible fountain Practically that Regency found that all of wealth larger and larger issues were offices were made matters of purchase, and made; and as the exchange value fell, so in that each post had its assessed value. The proportion did the alloy, till as in the former system was bad, and led to a false under case the coins became literally a drug on standing of the relations between Govern- the market, and would not be accepted at toent and People, but it had continued for any price. Here as before, Peking, though so long that its worst effects were in a ready enough to vilify the Provincials, manner tempered by custom. The re- was itself all along the really guilty organisation of the State after the great perpetrator. Nominally there was a standard Taiping Rebellion, and the Foreign Wars alloy, but Peking well knew that honest made an increase in the contributions coin could not afford to meet the Palace necessary, and had this been done in a demands. So it was presumed that there proper, straightforward and statesmanlike was to be some check on the amount of the minner, they could have been met without issue, but Peking, ignorant and careless of debauching the administration. Unfortun- the first principles of finance, demanded ately they were exacted in a secret, and vails on the same scale, whatever was the almost surreptitious manner, by private local demand, and, as before, the game ran gifts from the officials, which the latter were on merrily till the over-burdened machine compelled to meet at the risk of being came to a dead stop.
That is an eminently satisfactory view of the Russian position so far as the world at large is concerned, but General KUROPATKIN shares with H.M. the KAISER an overwhelming dread of the "Yellow Peril." He has always, he says, been a thoroughly convinced advocate of the idea that peaceful co-operation between Russia and England in Asia was imperative, and an opponent of all offensive plans in the direc- tion of India. Establishment of friendly relations with England is not only natural but desirable, he says, "for, in the event of a rebellion against England in India, we should be on the side of the English." The twentieth century, in General KUROPAT- KIN's opinion, is bound to bring a terrible conflict in Asia between Christian and non- Christian races, and he adds: "For the good of humanity, it is imperative and necessary that in the conflict we should be the ally of Christian England against the non-Chinese races of Asia." Sir ROBERT HART, on the other hand, has been comforting the world with the reflection that the development of China as a military power will afford a guarantee of permanent international peace. Time alone will decide which is the true prophet. No man can say what will happen, but we should imagine that the cultural pro-
gress of the Asiatic races, the growing success of diplomacy and the develop ment of international commerce, combined with an almost entire absence of religious fanaticism in Asia, all tend to discredit the bogey of a great conflict in which the whole military strength of non-Christian Asia will be measured against the amal- gamated forces of Christiau Europe.
CHINA'S FINANCIAL
ARRANGEMENTS.
This
accused of extortion or malversation. was not the worst: still more demoralising was the system of "vails" that now came to be carried to an excess never before dreamt and an evil reputation, but during the late of. The eunuchs about the Court have ever
Regency it came to be an understood thing that certain of the eunuchs had been made responsible for the expenses of the Palace, and that over and above the contributions for the upkeep of the Government, regular or irregular, no provinc al official could hope to remain in undisturbed occupation of his office, unless he contributed handsomely to the always irregular Palace expenses. The last of these enforced levies has been the most shameless, and at the same time the most far-reaching in its evil effects ou the (Daily Press, January 26th)
Government of the Empire. On the capture That the present Chinese administration of Peking by the combined foreign forces, is thoroughly in earnest in its desire to rendered necessary by the insane "Boxer" bring the financial arrangements of the movement, patronised by the reactionary Empire into order is clearly evident the element in the Government itself, certain task is, however, a gigantic one, and will stipulations were agreed to as to the future -need all the energies of the Government to administration of China; one of these be devoted to it for many years to come. concerned the currency, which the Govern- Peking is undoubtedly quite correct in
ment of the day promised to put on a proper stating that the greater part of the
basis. present financial difficulties of the Empire proceed from the mal-administration of the provinces, yet, in view of the equally unchallengeable fact that these provincial shortcomings are to be traced directly to the irregular and ever increasing exactions of the Imperial House hold at Peking, it would lead to an entirely
It was not pretended that there was any hardship about this; on the contrary it had been often spoken about in Peking, and only prevented being attempted by the extreme reactionaries. As it could not be delayed, the ingenuity of those who desired to wreck it was exercised, and proved equal to the occasion. A new currency was to be
:
But the Legations ?-What were they doing? Probably the Legations were nearly as much to blame for what happened as the Chinese Government itself. It is not pre- tended that they had any corrupt interest in
the debasement of the currency, but they had, what in the event turned out as dan- gerous, an intense and insuperable ignorance of the whole question; deceived by false information, which their ignorance did not permit them to gainsay, they looked upon these measures as a fulfilment of the pledges of China to reform the currency. Doubtless to a large extent the same might be urged on behalf of the Chinese Government, whether in the Capital or the provinces. But is ignorance in such a case any excuse ? We hardly think it is, seeing that informa- tion was readily available in both cases. China is beginning to learn from hard experience, what she might have readily learnt from others, had she chosen to apply herself to the task. But the practical lesson has not yet gone deep enough, and there is the same desire to have recourse to the em- piric. One of the quack medicines held up to the view of the new statesman is that if he apply to the new scheme the name of Banking all will be fair. He has only to substitute bank no.es for copper coins or subsidiary currency, and all will go right. The new complaint is that foreign bunks and foreigners generally fight shy of Chinese bank notes. Is not a Chinese note as well printed as a foreign, and does it not make
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