Newfoundland to Cochin China

A Fresh Market for Lancashire

It is clear, therefore, that Manchester will have before long to a great extent to replace her Japanese market, of which she had, until lately, a monopoly. This may probably be done most advantageously and effectively in the direction of United Empire trade.

Proposed Increase of Japanese Tariff

20.—Closely allied with this question is the almost certain increase in a year or two of the Japanese tariff. The amount collected at the present time by the Customs Bureau (whose returns are compiled with much care and despatch) comes to about 5 per cent. ad valorem (60 cents per 100 catties or 133⅓lbs. of steel, and 30 cents per 100 catties of manufactured iron in rods, bars, etc., and 15 cents per 100 catties of pig), and yielded last year 4,488,384 dollars, or nearly double the customs revenue of 1881.

It is highly probable that this rate will be doubled, or even increased to 11 or 12 per cent. in accordance with the demand of national manufacturers and operatives.

Powerlessness of Her Majesty's Government. Partiality of the Japanese for the English

21.—Under present fiscal conditions in the United Kingdom Her Majesty's Government is powerless to negotiate for a special arrangement as regards England. Were we differently situated it is not impossible that the Emperor's Government might be willing to treat preferentially with Great Britain, not only by reason of the preponderance of British interests in Japan and Japanese waters, but also on account of the popular partiality throughout the empire for our countrymen and their productions. This is evidenced in a thousand ways in the national life of this most attractive people, and not least of all by the adoption of English as the secondary official and commercial language, to an extent so great as to render it ample for travel in all but the remote districts.

A Close Alliance with Japan most Desirable

22.—It is much to be desired that this feeling may receive all possible encouragement. No question is likely to disturb the harmony of Anglo-Japanese relations, and no alliance is calculated to be of greater mutual advantage to both nations.

"BRITISH INTERESTS IN CHINA."

REPORT TO CENTRAL SHEFFIELD

Having regard to the apprehension caused by the danger in which foreigners in China have been lately placed, many of my constituents desire to know the result of recent inquiries at Peking and elsewhere, into the condition of affairs as affecting British Trade and Industrial Employment. I have the honour, therefore, to submit the following report.

The details have been collected partly from official sources and partly from the views of authorities in various spheres who have favoured me with opinions founded for the most part upon long personal experience.

Extent of Chinese Empire

1.—It may be desirable, in the first place, to call to mind the area and population of the Chinese Dominions, and the system of government.

The Empire of China proper is about 1,500,000 square miles in extent, or twelve and a half times the size of the United Kingdom; sevenfold the area of France or of Germany; yet less than one-sixth the British Empire. To this must be added the dependencies of Mongolia, Manchuria, Thibet, &c., say 2,000,000 square miles.

Population

2.—This vast and productive Empire, bordered upon the West and South-West by the possessions of the British in India and Burmah, and by Thibet; upon the North by Asiatic Russia, and upon the South-East by French Indo-China, is estimated to contain about four hundred millions of what an English authority has described as "the most cheerfully industrious, orderly, and wealthy nation in Asia."

The Emperor of China

3.—Over them despotically reigns, from the absolute seclusion enforced by tradition of The Forbidden City at Peking, the youthful descendant of The Conqueror who, two centuries and a half ago, placed for the second time the Tartar sceptre over the Chinese, and assumed the style of "The Son of Heaven."

The Crown does not devolve by primogeniture, but by the posthumously declared selection of the reigning Emperor among the male members of a younger line of the Imperial House.

The Imperial Government

4.—The Central Government is regulated by an Inner Chamber, a Grand Council, and the following six Ministries or Boards: (a) Civil Office, (b) Revenue, (c) War, (d) Works, (e) Ceremonies, (f) Punishments. Each Board is composed of Manchus (Tartars) and Chinese in equal numbers, with two Presidents—a system excluding individual power or responsibility.

The executive orders go from the Throne, and are obtained, according to ancient custom, on petitions presented by the Presidents of Boards or Members of the Grand Council, upon their knees, at or before sunrise,—the course of the Vermilion Pencil of the sovereign being, it is said, much influenced by the Empress Dowager, who, during the Imperial minority of seventeen years, skilfully administered the Regency.

Foreign Affairs

5.—The relations of China with Foreign Powers are conducted through a special Board or office—the "Tsung-Li-Yamen,"—consisting of eleven members of the Grand Council and six Chief Secretaries, a considerable number of whom, with a large retinue of servants, receive, round a sweetmeat-covered table, the official visits of diplomatic representatives. This collective conduct of state business, added to the difficulties of a language which, although monosyllabic, contains over 20,000 characters, and the necessity of all communications passing through interpreters (except in the case of the French Minister, who speaks Chinese), much restrains and practically prohibits the confidential and personal negotiations which, in other countries, so much facilitate the satisfactory conclusion of public affairs.

Provincial Administration

6.—For purposes of provincial administration, China is divided into several Viceroyalties, each invested with a large amount of sovereign power, including taxation, internal order and defence. It is subject, however, to many ingenious checks. In the first place, a Tartar General is attached to each Viceroy, in a semi-independent position, and his assent to many administrative matters is essential. Secondly, there is a rule against the appointment of a Chinese Viceroy over any province or provinces whereof he is a native. There is also the vigilance of a Board of Censors, established 160 years B.C., and theoretically consisting "of the most enlightened, righteous, and firm persons," whose duty it is to warn the Emperor direct of anything done to the public detriment, not excepting even Imperial laches; for the Chinese maxim runs—"To violate the law is the same crime in the Emperor as in a subject."

There are, within the Viceroyalties, 18 provinces, over each of which is an Imperially-appointed Governor, a Treasurer, a Judge and Comptrollers of the Salt Monopoly and the Grain Tribute. Every province is again subdivided into prefectures, departments, districts, and townships under small Mandarins, and into village communes under Headmen.

The territories of Mongolia and Manchuria are administered martially; in Thibet and Corea there are "Residents" representing the Chinese Suzerain.

The Mandarinate

7.—The Mandarinate is not hereditary, save in the case of a few princely families, largely debarred from public life, and the still surviving house of Confucius, which was elevated to a Dukedom, 1500 years after the death of its founder, in 479 B.C.

Public Offices

Public Offices are filled by nominated Mandarins of various grades. They obtain their posts partly by proficiency in successive urban, provincial, metropolitan, and palace open competitive examinations in Chinese classical lore, and partly by purchase or judicious bribery.

The former literary tests were established twelve centuries ago, and at least 1100 years before merit or study had much place in European patronage.

The brilliant graduate of humble origin rarely lacks, moreover, the pecuniary support necessary for the prosecution of his studies, or for official recognition of his examination laurels. Localities, banks, and capitalists are usually ready to stand behind a man of promise, as an investment, to be liberally recouped by ulterior "squeeze,"—on his attaining place,—smally paid in itself, however exalted, but prolific in indirect sources of enrichment.

Influence of the Literati

8.—Nothing is declared to press so heavily upon the social, political, and national progress of China, as the adverse influence of the "educated" classes. So it was even in the time of the great monarch who, 200 years before Christ, consolidated the Chinese Empire, and built the still-enduring Great Wall, in hopes of thereby defeating Tartar incursions. To overcome the opposition of the Literati, he ordered all their books to be destroyed. But the fact remains that the vigorous heads among the people, who, in other lands, have had to carve their forward path, by agitation and revolution, through the barriers of social rank, caste, and the privileges of wealth, have had for ages in China an open avenue to advancement.

Thus it is that the student tendency, instead of being, as in every other part of the world, in the direction of reform, is applied to the most absolute maintenance of the present system, and to the rejection alike of the methods and appliances of the Western world.

Students sent to Europe

9.—It is true that a few youths have, from time to time, been sent to Europe and America, but their studies have been either cut short, or the palace circle has succeeded in relegating them, on return, to distant posts. Some also have gone back, not imbued, like the Japanese, with ardent enthusiasm for reforms, but apparently more embittered than ever against the foreigner.3 How little influence they have had, and how little is really known of the West, may be illustrated by the belief said to have been expressed by a provincial functionary in high office, that foreigners came to China, from the barren rock of Europe, to obtain "rice" as a means of subsistence; and to the opinion of another, that we owed scientific progress, not to our own discoveries, but to having obtained a copy of the ancient Chinese classics, saved from the above-mentioned Imperial destruction.

National Result

10.—The national result is that, although recent events have hastened forward the completion of a telegraph system, there is throughout the Chinese Empire but one short railway, no proper road communication, and defective attention to the unrivalled waterways, no uniform system of taxation, no reliable administration of justice, no Chinese currency (other than brass cash), no postal system, and little regard for the public health and welfare; yet, wherewithal, there is great respect for private property and the due transmission of the small holdings into which the land is divided.

Prospect of Reform

11.—That a people sometimes accounted "the active race of mankind"; as keen and reliable in business as any in the universe; the reputed first inventors of the mariner's compass, of gunpowder, of ink, printing, and paper (which have contributed so much to England's greatness), should be content with such a condition of things may well pass belief. Ambassadors have of late been sent to Europe, Diplomatists, consuls, traders, and missionaries have endeavoured to show the light. The example of Japan is at hand. Yet no man can say, upon any foundation of actual fact, that a change is probable or imminent.

It is true that fully two millions of industrious Chinese emigrants can testify to their speedy acquirement of comparative wealth under happier conditions, despite laws of exclusion in America. The majority are said, however, to return quietly home and settle down (awaiting interment in one of the family burial places which cover the surface of the country and much prevent the sale of land) to that worship of ancestors, filial obedience, and veneration for authority, which are quoted with pride as contrasting favourably "with a society where each generation despises the one which immediately preceded it, and strains after the future without respect to the past."

Want of Leaders

12.—There is also an undoubted want of men willing to champion, or capable of leading, a party of reform.

The two most conspicuous statesmen in the Empire—and, indeed, the only ones—are the Viceroy of the Metropolitan Province of Chilhi, and the Viceroy of Hupeh.

The former is His Excellency Li Hung Chang, who, for 40 years, has possessed a great and beneficial influence. To the viceregal functions are united those of Grand Secretary of the Empire and Commissioner for Northern Trade, in which capacity His Excellency is consulted on all foreign and naval matters. He has the forts on the Peiho in good order, the troops well trained and armed—not with matchlocks or bows and arrows, as in other viceroyalties, but with modern weapons, replenished from arsenals at Tientsin, under foreign direction. A railway4 runs, moreover, under English management, to the Gulf of Pechilhi, and its extension to within 14 miles of Peking was once authorized, but subsequently disallowed.

Unfortunately, Li Hung Chang, who has given not a few proofs of his good-will and preference for England, is over 70 years of age, and his brother, the Viceroy of Canton, who also vainly seeks to build a railway to Kowloon, opposite Hong Kong, is still older.

His Excellency Chang Chili Tung, Viceroy of Hupeh and Houan, is a different stamp of man, in the prime of life, and energetic. But the regeneration of the Chinese must be, he contends, by the Chinese, and not by foreigners. To carry out his project of a railway from Hankow to Peking, he was transferred from a superior viceroyalty, and to this end an iron foundry has been established at Hanvang. The rails and the plant are all, however, to be of Chinese make, so that the commencement, not to say the opening of the line, is still in the Greek Kalends.

Secret Societies

13.—The influence of secret societies is also prejudicial to reform. They exist in every province, but their objects are often merely local and devoid of revolutionary aims. Their existence has, however, been put forward upon more than one occasion in extenuation of popular excesses.

Some, moreover, like the "Kolao Hui," or Association of Elder Brethren, mainly formed of disbanded soldiers eager for employment, have spread widely, and could bring about serious trouble. Others, like the "Broken Coffin Society," so well repressed by the British among the vast Chinese population of the Straits Settlements, have predatory aims.

It is not, however, thought that the overthrow of the system of government, or of a dynasty, which has exterminated its rival, is held in serious contemplation, except by extremists, who may, however, get the upper hand. Very summary proceedings and execution tend to damp the enthusiasm of active agitation. Moreover, the difficulty the Southern Provinces, speaking Cantonese, or the Centre and Western Districts, speaking other dialects, have in making themselves understood by Northerners, speaking Mandarin, or the official language,5 coupled with the practical absence of a press (besides the Official Gazette), restrains revolutionary propaganda by means more effectual than police edicts.

Intercourse with Foreign Nations

14.—At the same time the intercourse of China with the outer world has undergone frequent change, and especially during the present generation. The leading incentor to French activity in the Far East, says—"Yesterday Chinese trade did not exist for Europe, but to-day it puts thousands of arms in motion in England, and amounts to millions."

This is literally true. The Dutch and the Portuguese were before us. Even as early as A.D. 971, a superintendent was appointed at Ningpo to overlook foreign trade, and before that, there was such a functionary stationed at Canton. Until the latter part of the last century the British flag had hardly appeared. But now we have outstripped the competition of the whole of the world.

Fifty years ago England sent to China barely half a million worth of goods. The first war Her Majesty was obliged to wage in the interests of British trade, brought about the opening of new ports, and in 1844 the English exports to the China Sea exceeded £2,300,000. Then were forced upon us the operations of 1857-58, and the war of 1860, resulting in the Treaty of Peking. Within the next decade British commerce rose to £9,000,000 a year. Now it is half as much again. Apart, then, from the indemnity, and the anterior cession of Hong Kong, become one of the greatest, as well as most beautiful, ports in the world, the cost of the operations has been defrayed many times over in increased wages to British artisans.

Benefit to China

15.—Nor has the advantage been one-sided. The gain to China has been even greater. The value of the Chinese foreign trade for 1890 is given by Sir Robert Hart, the Inspector-General of the imperial Maritime Customs (an Englishman whose eminent services to China receive universal recognition), at 214 million Haikwan taels (the average value of which, for last year, was 5s. 2-1/4d.), say, in round numbers, £53,000,000, or double the total of a few years age, while in the last decennial period the imports have increased by 48 million taels, and the exports by 9 millions.

Treaty Ports

16.—Under various treaties, mainly negotiated by England, twenty-one ports and places have been opened for foreign trade and residence, of which five are on the River Yangtze, penetrating over a thousand miles into the heart of the interior. Two other places were added in 1889, under agreement with France.

At most treaty ports a portion of the urban area has been assigned to the foreign community, who are left free to provide for its regulations—a duty which is usually discharged by the help of tolls on shipping and house rates, as to roads, lighting, public conveyances, and buildings, in a manner which sets the most successful example of municipal work to the neighbouring native administration.

Duty upon Foreign Goods

17.—An import and an export duty, each averaging 5 per cent. ad valorem, is levied upon goods conveyed in foreign vessels, which are, upon the other hand, exempted from the "Likin" or war tax, and freely granted transit passes, clearing them from the prefectural tolls, which do not a little to embarrass the native trader in the interior.

The duty upon foreign goods is collected by the Imperial Maritime Customs—a splendid service, employing 700 Europeans and 4000 Chinese. It yielded, in 1890, a revenue of 22 million taels (say £5,500,000) to the Chinese Government, or a third more than ten years ago, and further supervises the lighting and buoying of the coast.

Duty upon Native Goods

18.—The import and the export duty upon goods conveyed in Chinese junks is levied by the Chinese Customs Service; and it is said that many shipments are so made to escape the vigilance and the higher taxation of the European Administration, and are subsequently transferred to foreign bottoms at Hong Kong or elsewhere.

British Share of Foreign Trade

19.—Three-fourths of the entire foreign trade of China fell, last year, to the share of the British Empire, or more, by three million taels, than that done by the entire Continent of Europe and the United States of America. The trade with the United Kingdom, including that passing through Hong Kong, exceeded £15,000,000.

The Commissioners of Customs at Tientsin, Newchwang, Ningpo, and other treaty ports, all speak of "the increased demand for British goods," in spite of much distress last year, owing to floods in many places; and while Shanghai reports that "German figures fall off decidedly," the Commissioner at Kinkiang states that "the British and Chinese had all the trade to themselves."

British Shipping in Chinese Waters

20.—This fortunate state of affairs is strikingly illustrated by the British shipping in Chinese waters. The red ensign of England, which appeared on the first steamer in the Yellow Sea, in 1830, floated in 1890 upon 16,897 of the 20,530 foreign vessels which entered and cleared at Chinese ports, while the British tonnage amounted to 8/9ths of the whole.

Our next competitors were the Germans, with whom we have so much in common, and who are sparing no effort to develop their China trade. They entered and cleared 2140 vessels last year, or 622 fewer than in 1888, with a diminution of 227,000 tons burthen.

A good proportion of the coast-carrying trade was also done by British-built steamers, carrying the dragon flag, and wholly owned by Chinese merchants. But, with very few exceptions, insurance companies and underwriters insist upon such vessels being commanded and officered by British or Americans. Besides this, the majority of the pilots on the Peiho and other rivers are British, a state of affairs pointing to the necessity of nothing being omitted by the Board of Trade to afford every possible facility to the merchant marine to acquire the technical knowledge necessary to maintain this world-wide reputation of the English for superior nautical skill.

Preponderance of British Interests

21.—These facts show the enormous preponderance of British interests in China,—a condition of things existing also in Japan,—not only over those of the whole world, but especially as regards those of France, Germany, Russia, or any other European power.

They are corroborated by the establishment in China of 327 British firms, or double the number of the mercantile houses of every other nation, and by the residence at the treaty ports of over 3300 British subjects, out of a total foreign population of about 8000.

Germany comes next with 80 firms and 640 residents; following her, America, with 32 firms; and then France, with 19 firms and 590 persons.

Representation of the British People

22.—Under such circumstances the British public cannot be otherwise than glad that Her Majesty the Queen is fitly represented at Peking by what is not unfrequently described in the vernacular as "The Great English Legation."

The consular service of Britain in China is also manned by some three-score officers, each one of whom is an accomplished Chinese scholar, a large majority having passed through the arduous Student Interpreter Course, which is ready to fill junior vacancies, as they occur, with young men evidently as well selected as they are carefully trained.

Diplomatic and Consular Assistance to British Trades

23.—At the same time it would be idle to deny that, in spite of recent improvements, British traders generally complain in China, as elsewhere, of the lack of diplomatic and consular assistance in the advancement of English trade, and the apparently little official interest shown therein.

The French have a like grievance, and the work of German representatives for their nationals is often cited with envy. It is said, though probably with exaggerated truth, that German Ministers and Consuls are unflagging in their efforts to advance German commercial interests, to show that German traders have government recognition and approval, and that the employment of Germans, instead of English or French, is much appreciated by the Emperor William.

It is possible that the out-of-date view that diplomatic and consular officers are purely political agents may be excessively retained in some instances, and that the assistance rendered by Her Majesty's Consuls to British trade might advantageously receive more encouragement and departmental recognition.

There can be no doubt, however, of the difficulty which would ensue by consular espousal of the interests of a particular firm to the inevitable prejudice of a rival house.

Nor is the prestige small or unimportant which Her Majesty's service derives from the fact that any expressions of opinion, or any advice tendered, are known to be wholly free from any interested motives.

Iron and Steel Trade in China

24.—In examining the position in China of particular industries, attention must first be directed to the iron, steel, and hardware trade.

The standard work (Williams' "Middle Kingdom") says:—"Handicraftsmen of every name are content with coarse-looking tools compared with those turned out at Sheffield; but the work produced by some of them is far from contemptible. The bench of the carpenter is a low, narrow, inclined frame, on which he sits to plane, groove, and work his boards, using his feet and toes to steady them. His augers, bits, and gimlets are worked with a bow; but most of the edge-tools employed by him and the blacksmith are similar in shape, but less convenient than our own. They are sharpened with bows, on grindstones, and also with a cold steel like a spokeshave, with which the edge is scraped thin.