Directory_and_Chronicle_1924 — Page 617

CHINA

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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. Notwithstanding these drastic measures the President continued to proclaim his faith in the future of China under a Republican form of government. 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 Conipact, 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 sudden death of Yuan Shih-kai and the collapse of the ill-starred attempt to restore the monarchical forni 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 a rupture which resulted in Li Yuan-hung being compelled to dissolve Parliament at the instigation of the militarists. Then followed, in 1916, Chang Hsun's mad attempt to restore the Manchu Dynasty. He was over-thrown by Marshal Tuan Chi-jui after which Feng Kuo-chang, the Vice-President assumed the Presidency as Li Yuan-hung declined to complete his term. The second election of President took place in October, 1918, when Hsu Shih-chang was unanimously chosen. He retired in June, 1922, and Li Yuan-hung was induced to return as acting President by promises of support for his programme of reform from the Tuchuns. Twelve months later, however, he fled from Peking owing to pressure exerted by the militarists. He was succeeded by Marshal Tsao Kun, who was elected in October 5th, 1923.

FINANCE

The conditions associated with national finance in China were never more discreditable than now. 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, 1916, 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 tlie 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 harmful effect upon the national credit. The Government, however, managed to carry on the administration, and, in October, 1916, 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 by the Southern revolt. Several large and many small loans were obtained from Japanese sources, but the year 1918 proved even more discreditable in the matter of national finance than 1917. To finance the futile war against the South the Government borrowed