The gold is easily available by simple methods, though certain difficulties have hitherto prevented its extraction on a larger scale. But now every grain is an asset to China in economic warfare, and so many goldwashing cooperatives have been organized. In the whole country there are 66 cooperatives, most of which are in the Han valley.... Now the cooperatives ... are self-supporting and produce 60 to 70 oz. of gold a day. _Coal and Iron_. Throughout the hinterland of China new sources of coal and iron are being needed continually by newly transplanted industry. Szechwan has good coal, widespread, but rather thin in seam.... At the same time plans for the construction of blast furnaces have been worked out by C.I.C. engineers, and only wait for adequate financing. It is planned first to set up in South Shensi at a point within easy distance of coal and iron supplies a coke-making and a smelting plant, the total capitalization being $105,000. _Alcohol._ A first experimental plant for the production of 96 per cent pure alcohol has been running nearly a year with a maximum output of 350 gallons a day. Since the cost of such a plant is comparatively small, and available supplies of grain make the cost of alcohol much less than that of gasoline, other plants have been set up. There are now six in operation and greater production in the future is envisaged. The sites of alcohol plants are naturally at key positions on the highway, where good supplies of coarse grain meet with the traffic line. _Prime Movers._ In many cooperatives one may see a quaint mixture of old and new, where big flywheels are turned by human labor to maintain the spin of lathes, carding machines, and the like. This is a useful temporary expedient, possible where labor is cheap. Animal power is also used. But C.I.C. engineers are not satisfied with this state of affairs; they are always on the lookout for new sources of power. So charcoal-or gasoline-burning internal combustion engines are commonly employed. But most popular are waterwheels, and in every part of China will be found old wheels adapted for modern uses--driving textile machinery, turning lathes, grinding flour--undershot or overshot, single or in series. Gradually the wheels are being made of better materials and more efficient. Iron wheels are constructed at present weighing about one ton, at a cost of $3,000, and generating over 30 H.P. In the plains waterpower is rarely available, but in the foothills of Tibet, the Tsingling Shan, or in the rough country of southern China this cheapest of all forms of power will come more and more into its own as C.I.C. machine shops construct improved waterwheels.