The opinion [Mr. Bland says] is widely held amongst European residents and traders that the section of Young China which has received its education in Foreign Mission schools displays no more honesty than the rest. What is the conclusion to be drawn from these facts? It is that not only in order to obtain adequate security for the bond-holders--in whom I am not in any way personally interested, for I shall certainly not be one of them--but also in the interests of the Chinese people, it is essential, before any loan is contracted, to insist on a strict supervision of the expenditure of the loan funds. That Young China, partly on genuine patriotic grounds and also possibly in some cases on grounds which are less worthy of respect and sympathy, should resent the exercise of this supervision, is natural enough, but it can scarcely be doubted that unless it be exercised a large portion of the money advanced by European capitalists will be wasted, and that no really effective step forward will be taken in the solution of the economic problem which constitutes the main Chinese difficulty. The very rudimentary ideas entertained by the Chinese themselves in the matter of applying funds to productive works is sufficiently illustrated by the episode mentioned by Mr. Bland, where he tells us that "the Szechuan Railway Company directors made provision for the building of their line by the appointment of station-masters"; while the fact that but a short time ago 1400 German machine guns, costing £500 apiece, which had never been used or paid for, were lying at Shanghai, indicates the manner in which it is not only possible but highly probable that the loan funds under exclusively Chinese supervision would be frittered away on unproductive objects. Those, indeed, who have had some practical experience of financial administration in Eastern countries may well entertain some doubts as to whether supervision which only embraces the expenditure, and does not apply to the revenue, will be sufficient to meet all the requirements of the case. The results so far attained by the more limited scheme of supervision do not appear to have been satisfactory. Herr Rump was appointed auditor to the German section of the Tientsin-P'ukou Railway, but Mr. Bland tells us that "the auditorship on this railway has proved worse than useless as a preventive of official peculation." On the other hand, the system of collecting the revenue is in the highest degree defective. It violates flagrantly a principle which, from the days of Adam Smith downwards, has always been regarded as the corner-stone of any sound financial administration. "For every tael officially accounted for by the provincial authorities," Mr. Bland says, in words which recall to my mind the Egyptian fiscal system under the régime of Ismail Pasha, "at least five are actually collected from the taxpayers."