They believe that China is able to support herself and that her financial distress is entirely owing to maladministration. Therefore they have come forward as a body, offering to undertake a financial scheme of their own to solve the problem. “They believe that they can place and maintain China’s finances on so sound a basis that the unavoidable political unrest of the new era, which they realize is still far from concluded, will not greatly impair the Treasury’s credit. They are idealists, but pragmatic idealists.” When the Government was in terrible straits at the New Year (the financial settling day of China), the new union of bankers, through the Shanghai Association, served an ultimatum on the Minister of Finance, prohibiting his issuing a new credit paper, and saying that the banks would refuse to accept it. At the same time they offered to assist the administrative departments out of their difficulty, if the Government would place the matter in their hands and authorize their working out a programme for China’s future finance. This took place, and the Government received six hundred million Mexican dollars, with which its liabilities were met. The new financial scheme is being prepared, and an important part of it is the sweeping retrenchment in military expenditure. This extravagant and wasteful expenditure is a source of untold evil to the country at the present time. If the scheme can be achieved it will be a great factor in quieting the country; but the disbanding of large bodies of troops is no easy matter. The worst military leaders are extorting large sums of money from the Government, while the claims of those like Wu-pei-fu and Feng-Yu-Hsiang, who are keeping order, are disregarded. A tremendous sum of ready money would be required to pay the arrears of troops before disbandment: but it can be done if public confidence can be won by necessary guarantees. I have tried to show many channels through which the new spirit of the Chinese race is flowing. I have taken advantage of the knowledge of men of all sorts and nationalities, in order to appeal to men of all sorts and conditions in the West. For we have the right of brotherhood in all world movements, and there is an infinite variety of mutual service possible to those who have undergone and are still undergoing the pangs of a new birth. My task has been to draw pictures with pen and brush, and my consolation in the inadequacy of its fulfilment is the poet’s view that “a man’s reach should exceed his grasp.” If the book proves a ladder’s rung by which others mount, it will have served its end. [Illustration] [Illustration: CHINA & JAPAN _There is no standardised spelling of Chinese names._] FOOTNOTES [1] Yamen is the term used for official buildings in China.