Entering through a gate of the old stone wall, we found the only European hotel in the city, the “Victoria,” where, after having had breakfast, we engaged two sedan chairs carried by coolies, and sought the places of interest. The streets are so narrow that two chairs can just barely pass each other. We visited the ancient pagodas, the execution ground and block where highbinders are beheaded, the markets, bazaars, and opium dens, and finally witnessed a Chinese wedding. One of the interesting sights of the Pearl River is its floating population. It is estimated that three million Chinese live in junks on this river. I was not at all reluctant to leave this relic of the dark ages for the more up-to-date city of Hong Kong. We know the nations of the earth are represented in our New York, but for real cosmopolitanism the “Queen’s Road” in Hong Kong makes old Broadway look like a street in a country village. The principal enterprises of Hong Kong are shipping, the manufacture of chinaware, silk goods, sedan wood-work, and pyrotechnics. Labor is very cheap, and, as British imports are entered free of duty, the living in this city of the far East is very cheap. Many Hong Kong Chinamen are educated in the English language, have adopted the customs and manners of the English people, and for cleverness in business and practical affairs are unexcelled. A tram-way leads up the mountain-side to the Peak Hotel, from which you can be conveyed in sedan chairs to the zenith of Victoria Peak. At the Peak Hotel I met two American prospectors, with whom I played several games of billiards; these men had spent three years in Sumatra and were awaiting a liner for “Frisco.” With them I visited Happy Valley, the Chinese Court, the Dairy Farm, Douglass Castle, Kennedy Road, the Chinese market, the Royal Naval Canteen, the barracks of the Welsh Fusileers, the Highlanders, the Scots Guards, and the Sikhs, old Chinese joss houses, and the famous Traveller’s Inn, where British bar-maids do the honors. Horse-racing is the favorite sport in Hong Kong, and the track at Happy Valley is the Epsom Downs of the Far East. A Derby is a signal for the suspension of business, and the excitement in the paddock, grand stand, and along the rail is akin to that at Sheepshead Bay on the day of the Brooklyn handicap. The Chinese are born gamblers, whether playing at “fan tan” or picking the winners on the track. They will carry complete data of a horse: the distance he can go at his best; the weight he can best carry; whether fast or slow in starting; and whether a good or bad animal in mud; all this a Chinaman will study over before placing his money, and it is usually safe to follow his system.