One of the most serious questions for China to-day is that of finance, and I was told by a reliable business man that the unification of the coinage would have been settled long ago, but for the fierce opposition of the banking community, who make unheard-of profits by the present system. It is extremely tiresome and injurious to trade, and adds greatly to the difficulty of travelling. As soon as we had crossed the frontier the scenery changed and became grander. The railway passes through malarious districts, and its construction was impeded (at one time even entirely suspended) on account of the number of deaths which took place among the workmen. It is a narrow-gauge single line, and there are so frequently obstructions and accidents that the train only runs by daylight; it takes therefore three days to accomplish the journey; but it is so interesting that one is glad to go slowly. The stations on the line are few, and the only important town is Mongtsze, a big trading centre. The province is considered one of great natural wealth and beauty, and I was glad to be in it once more, having already traversed it from north-east to west (a distance of over a thousand miles) on foot or carried in a chair. On the second day we passed through glorious wooded gorges, gradually rising to a height of two thousand seven hundred feet. The hill-sides were terraced up to the very summits in places, and despite the sparse population the land was well cultivated wherever possible. We reached the town of Amichow soon after five o’clock, and found a decent little French hotel. Strolling out to watch the glorious sunset, we came to a barracks, where men were drilling in orthodox German style and singing a monotonous sort of chant. Next morning when we came to pay our seven-dollar bill with the Yünnanese notes we had bought at Haiphong, we had an unusual experience with regard to the exchange, for we found that it only meant three Yünnanese dollars. While I attended to this, my niece went ahead to secure the window seats, for you see very little otherwise. There were other travellers who had secured them the previous day, and we knew the scenery would be magnificent. The line is really a remarkable one, running in and out of the rock, crossing rivers far below, and wholly unlike the tame railway lines at home. One part was singularly beautiful as we emerged from a tunnel at a high level; we saw a lovely jade-coloured lake spread below us, melting away into the far distance. As we approached the capital, Yünnanfu, we left the mountains behind and passed through well-cultivated lowlands, already clad in shining green, or reflecting the blue sky in watery ricefields. We were not sorry, however, to say good-bye to the railway for many weeks to come. Friends had arranged for us to stay at a comfortable French hotel, the _Terminus_, outside the city wall and with a fine view across the fields to distant hills.