On the other hand, the Chinaman has qualities which, translated into military virtues, should theoretically give him a great initial advantage over any other race. He is comparatively without nerves; he can hold a gun without a tremor for what to a Westerner is an inconceivably long time; he has good eyes and a strong sight; he can be victualed on a few handfuls of rice; he is entirely indifferent as to where or how he lodges; he is sober and reliable; he is a big-bodied man, stronger even, perhaps, than the Japanese; he is docile, obedient, and susceptible to discipline. Indeed, in all that concerns his physical qualities and certain moral superiorities, one could not ask for better raw material. When well led he has at times done very creditably. A generation of such leadership as Yuan Shi Kai’s would do not a little toward bringing out what there is latent in this people. If in the army organization the gap between what is and what should be is so great, how much wider is it in the government organization needed to finance reform. The revenues of China are some $100,000,000. About $36,000,000 are allotted to military purposes. When from this has been deducted the eighteen million-odd which go to the generals of the Red and Green Banners, there is left, theoretically, about $18,000,000 for the real army. Actually there is efficiently applied probably not over $10,000,000. The regular army of Japan--two hundred and twenty-five thousand--takes $40,000,000 effectively expended. China must begin from the very bottom, whereas Japan is simply carrying along. A judicious total expenditure of at least $50,000,000 is needed for China’s army. With the additional railway and arsenal programme, and other concomitant work, the demands over and above present outlays would reach around $110,000,000. Add this to the present budget, less the well-spent ten millions, and there is to be reckoned a total budget of at least $200,000,000. Could China raise such a defense-fund on top of her present hundred-million-dollar budget? Could she cut down on present expenses to help it out? The latter might be considered. Theoretically the wasted army money of the present budget might be saved and applied. Practically the vested interests in the graft are so important as to make it of infinite difficulty. The mere beginning of sinecure-cutting cost the Emperor the actuality of his throne and nearly his head.