interference with the foreign control of the department constitutes an infringement of the loan agreement. In various parts of China, some independent of Peking, others not, the local Tuchuns (military governors) impound the collections and materially diminish the total coming under the control of the foreign inspectorate, but the balance remaining has been so large, and protest so useless, that hitherto all concerned have considered it expedient to acquiesce. But interference at points on the Yangtsze, where naval force can be brought to bear, is another matter. The situation is interesting in view of the amiable resolutions adopted at Washington, by which the Powers would seem to have debarred themselves, in the future, from any active form of intervention in this country. In view of the extensive opposition to the Liang Shih-yi Cabinet and the present interference with the salt negotiations, the $90,000,000 (£11,000,000) loan to be secured on the salt surplus has been dropped. The problem of how to weather the new year settlement on January 28th remains unsolved.
It is a pretty game: creating artificial bankruptcy, and then inflicting punishment for the resulting anarchy. How regrettable that the Washington Conference should attempt to interfere!
It is useless to deny that the Chinese have brought these troubles upon themselves, by their inability to produce capable and honest officials. This inability has its roots in Chinese ethics, which lay stress upon a man's duty to his family rather than to the public. An official is expected to keep all his relations supplied with funds, and therefore can only be honest at the expense of filial piety. The decay of the family system is a vital condition of progress in China. All Young China realizes this, and one may hope that twenty years hence the level of honesty among officials may be not lower in China than in Europe—no very extravagant hope. But for this purpose friendly contact with Western
