The modern civilization so far attained by western nations is entirely an unconscious progress, for social and economic sciences are but recent discoveries. But henceforth all human progress will be more or less based upon knowledge, that is upon scientific planning. As we can foresee now, within half a century under our industrial development, the houses of all China will be renewed according to modern comfort and convenience. Is it not far better and cheaper to rebuild the houses of all China by a preconceived scientific plan than by none? I have no doubt that if we plan to build a thousand houses at one time it would be ten times cheaper than to plan and build one at a time, and the more we build the cheaper terms we would get. This is a positive economic law. The only danger in this is over-production. That is the only obstacle for all production on a large scale. Since the industrial revolution in Europe and America, every financial panic before the world war was caused by over-production. In the case of our housing industry in China, there are four hundred million customers. At least fifty million houses will be needed in the coming fifty years. Thus a million houses a year will be the normal demand of the country. Houses are a great factor in civilization. They give men more enjoyment and happiness than food and clothes. More than half of the human industries are contributing to household needs. The housing industry will be the greatest undertaking of our International Development Scheme, and also will be the most profitable part of it. My object of the development of the housing industry is to provide cheap houses to the masses. A ten thousand dollar house now built in the treaty port can be produced for less than a thousand dollars and yet a high margin of profit can be made. In order to accomplish this we have to produce transport, and distribute the materials for construction. After the house is finished, all household equipment must be furnished. Both of these will be comprised in the housing industry which I shall formulate as follows: a. The Production and Transportation of Building Materials. b. The Construction of Houses. c. The Manufacturing of Furniture. d. The Supply of Household Utilities. a. The Production and Transportation of Building Materials