As late as 1863 the Chinese Government did not possess a single fighting ship propelled by steam. Steamers belonging to Chinese merchants were sometimes employed to chase pirates; but they were not [Page 200] the property of the state. The first state-owned steamers, at least the first owned by the Central Government, was a flotilla of gunboats purchased that year in England by Mr. Lay, Inspector-General of Maritime Customs. Dissatisfied with the terms he had made with the commander, whom he had bound not to act on any orders but such as the Inspector should approve, the Government dismissed the Inspector and sold the ships. In the next thirty years a sufficient naval force was raised to justify the appointment of an admiral; but in 1895 the whole fleet was destroyed by the Japanese, and Admiral Ting committed suicide. At present there is a squadron under each viceroy; but all combined would hardly form the nucleus of a navy. That the Government intend to create a navy may be inferred from the establishment of a Naval Board. In view of the naval exploits of Japan, and under the guidance of Japanese, they are certain to develop this feeble plant and to make it formidable to somebody--perhaps to themselves. Their merchant marine is more respectable. With a fleet of fifty or more good ships the China Merchants' Steam Navigation Company are able by the aid of subsidies and special privileges to compete for a share in the coasting trade; but as yet they have no line trading to foreign ports.