of an economic distress that can be cured or forestalled in a democracy by other means than a soldiery, which we have found a failure in America and Britain. The new Chinese navy could add a new dreadnought battleship each year, and provide crews, yards, and a full revenue marine. Above all, education and transportation would be taken care of lavishly, and China would not need to beg at any one’s door for a loan. She would be a land of peace, because a total tax of $2 gold a year per capita can raise not the slightest discontent in any land. The debt of the Chinese government, contracted before October 13, 1911, which debt the republicans recognize, is as follows: AMOUNT AMOUNT LOANS in £ Interest in £ DUE 7% silver loan, ’94 £490,500 1924 6% gold loan, ’95 800,000 1924 6% gold loan, ’95 333,400 1915 5% gold loan, ’96, from France and Russia for Chinese-Eastern Railway 12,397,425 1933 4½% gold, ’98, Britain and Germany for railways 14,022,625 1933 5% gold railway loan 1,955,000 1933 5% gold (Boxer indemnities, etc.) 52,500,000 1940 5% Shanghai-Nanking railway 2,900,000 1915 5% Canton-Kowloon railway 1,500,000 1920 5% Tientsin-Pukow railway (British) 1,850,000 1918 5% Tientsin-Pukow railway (German) 1,100,000 1918 5% Shanghai-Ningpo railway 1,500,000 1918 5% Hukuang railways 1,500,000 1921 ---------- Total gov’t debts-- China £92,848,950 £4,642,000 Japan 300,000,000 12,000,000 India 170,000,000 Italy 1,000,000,000 France 1,200,000,000 Britain 1,000,000,000 United States 200,000,000 If Japan returned to China the £35,000,000 indemnity coerced from her by the Shimonoseki treaty, the Chinese debt would be greatly reduced. This is Japan’s moral duty, especially if she is allowed by the nations to retain Formosa, Korea, and possibly part of Manchuria, all of which she plans to retain. Several of the European nations should follow America’s example and return the excess in the Boxer indemnities. The banking nations, as long as America and Britain retain their present high standard of altruism, will never again permit any power to wheedle an indemnity out of China. The foreign and local banks operating in China are the following. I use gold dollars for the table: