Directory_and_Chronicle_1918 — Page 664

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CHINA

in the province of Kiangsi and extended southward to Kwangtung, involving some fighting at Shanghai, Nanking and a few other points in the Yangtse Valley, the avowed purpose of the revolution being to organise an expedition "to punish Yuan Shih-kai." Within a couple of months this inovement was effectually suppressed by tlie Central Government, and the leading spirits of the revolution fled the country. Among the refugees was Dr. Sun Yat-sen. Thereupon the President and his Cabinet showed a greater determination to secure more effective control over the provinces. The first thing to be done was to confirm the President in his office, and Parliament, evidently impressed by the confidence the country had shown in him during the late troubles, elected him President of the Republic for the next five years, and Li Yuan Hung, who since the first Revolution had remained in command of the troops at Wuchang, was elected Vice-President. Hardly a month had elapsed since his election before the President startled the country by the issue of a mandate ordering the expulsion from Parliament of all members who had been identified with the Kuomingtang, the political party which had promoted the abortive revolution. This order was instantly obeyed, and the result of it was that Parliament was unable to sit for the remainder of the year, as without some of these members it was impossible to form a quorum in either House. Altogether 313 members were expelled, and the party was suppressed as a seditious organisation throughout the country. Nothwithstanding these drastic measures the President continued to proclaim his faith in the future of China, under a Republican form of governnient. His views were aptly summed up in his own phrase: "The nurse must not provide the infant with food only fit for adults." Thus it was that China became for a period of two years an autocracy under the guise of a Republic. A State Council consisting of 70 members, replaced the suppressed parliament. It was supposed to act as an advisory, administrative and legislative organ until the formation of the new Parliament under the Constitutional Compact, but its chief function was to give a veneer of legality to the policy of the President. All it did was to endorse his every action, even to the mad Monarchy Movement.

The death of Yuan Shili Kai and the collapse of the ill-starred attempt to restore the monarchical form of Government revived Republicanism. Li Yuan Hung, on the death of Yuan Shih Kai, quietly became President. He was officially confirmed in the appointment by a re assembly of the first Parliament. The Cabinet was soon afterwards approved by Parliament, and a constitution was drafted which was disliked by the Premier and the military chiefs by reason of the fact that it placed all authority in the hands of Parliament. This led to the rupture which still continues.

FINANCE

The conditions associated with national Finance in China were never more discreditable than in 1916. Progress towards an ordered system had been very marked until the outbreak of the anti-monarchical revolution, and then chaos set in, due of course to the multiple demands for money with which to pay the troops and to keep certain provinces loyal. The revolted provinces utilised their local revenue for military purposes, and Peking, further crippled by the Group Banks withholding the surpluses from the Salt Revenue, sought financial assistance from America, experienc- ing, however, the deep mortification of a refusal at the last moment. Attempts to raise loans in other quarters also failed. Confusion became worse confounded when, in May, the Government issued an order forbidding the Bank of China and the Bank of Communications to make specie payment against their own notes. Such an injunction for a day or two paralysed the trade and commerce of the entire country, but, fortunately, the branches of these banks in the big cities decided to ignore the order and resumed payment. China thus presented the unique spectacle of provincial branches of the two national banks carrying on business in defiance of the Government. Truly a Gilbertian situation. It was explained that the chief concern of the authorities was to retain a silver reserve with which to pay the troops and so prevent mutinies and looting, but whatever the motive which prompted the so-called moratorium, there can be no question as to its harniful effect upon the national credit. The Government, however, managed to carry on the administration, and, in October, sanctioned the payment of silver by the Bank of China, with the result that the value of the Bank of Communications notes rose in one day from 79 to 91, but declined again to 87 in consequence of the run on the Bank of China for silver payments. The year 1917 was little better than its predecessor. Government was hard pressed for money, its difficulties being, increased by Chang Hsun's attempt to restore the Manchu dynasty and the Southern revolt. Several small loans were obtained from Japanese sources.