rates and fares, the combination of railway systems, the pooling of traffic, and State or private ownership. The conditions prevailing in China are rather the result of historical evolution, and cannot possibly be regarded as the outcome of any policy. If a railway has rails, then in China it can very well be called a railway--and China has shown us that she has been satisfied, and the Chinese Government has always been the victim of circumstances, guided wholly by the golden age in the past rather than an intelligent outlook for the golden age of the future. The railways that China possesses had always been, and still are, the most flagrant examples of how railways should not be run. They had been a disgrace to a nation that has put forward a claim to be making endeavours to get out of the grip of antediluvianism. They have lost money, have been allowed to get into the sorriest state of disrepair that can be imagined, and altogether have been white elephants. But the spirit of railway construction during the last few years took hold of the Government. In the enlightened provinces of north and east China the people talked railways, they thought railways, they dreamed railways, and with the advent of Tuan Fang as the Director-General of Railways they seemed set upon building railways. The need of opening up this wonderful Empire is an oft-repeated tale, not needing to be reiterated. In every province in the west of the Empire there is known to be a wealth in the earth that will in time allow China to vie with the United States in natural resources. For her own intercommunication and exchange of products China's first need is the railway. If her exports are {238} to increase in a proportionate measure with her opportunity of natural development, China must have a network of railroads to enable her speedily to transport her products to the coast. The need is there, and aided by the Great Four Nation Loan, China (so it seemed at the commencement of 1911) would be able to move with enormous strides. She now had the money, and she had now chosen the man. It was only to be hoped that his Excellency Tuan Fang, in entering upon his important mission to the New China, would not find his hands tied by that unmoving element of the Old China which still rigidly maintained an attitude of short-sighted independence.