LITMIR.BIZ

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themselves in office they went their respective ways with a sublime contempt for the chaos around them.

      What was this Central Government? In order successfully to understand an unparalleled situation we must indicate its nature.

      The manoeuvres to which Yuan Shih-kai had so astutely lent himself from the outbreak of the Revolution had left him at its official close supreme in name. Not only had he secured an Imperial Commission from the abdicating Dynasty to organize a popular Government in obedience to the national wish, but having brought to Peking the Delegates of the Nanking Revolutionary Body he had received from them the formal offer of the Presidency.

      These arrangements had, of course, been secretly agreed to en bloc before the fighting had been stopped and the abdication proclaimed, and were part and parcel of the elaborate scenery which officialdom always employs in Asia even when it is dealing with matters within the purview of the masses. They had been made possible by the so-called "Article of Favourable Treatment" drawn-up by Yuan Shih-kai himself, after consultation with the rebellious South. In these Capitulations it had been clearly stipulated that the Manchu Imperial Family should receive in perpetuity a Civil List of $4,000,000 Mexican a year, retaining all their titles as a return for the surrender of their political power, the bitter pill being gilded in such fashion as to hide its real meaning, which alone was a grave political error.

      In spite of this agreement, however, great mutual suspicion existed between North and South China. Yuan Shih-kai himself was unable to forget that the bold attempt to assassinate him in the Peking streets on the 17th January, when he was actually engaged in negotiating these very terms of the Abdication, had been apparently inspired from Nanking; whilst the Southern leaders were daily reminded by the vernacular press that the man who held the balance of power had always played the part of traitor in the past and would certainly do the same again in the near future.

      When the Delegates came to Peking in February, by far the most important matter which was still in dispute was the question of the oath of office which Yuan Shih-kai was called upon to take to insure that he would be faithful to the Republic. The Delegates had been charged specifically to demand on behalf of the seceding provinces that Yuan Shih-kai should proceed with them to Nanking to take that oath, a course of action which would have been held tantamount by the nation to surrender on his part to those who had been unable to vanquish him in the field. It must also not be forgotten that from the very beginning a sharp and dangerous cleavage of opinion existed as to the manner in which the powers of the new government had been derived. South and Central China claimed, and claimed rightly, that the Nanking Provincial Constitution was the Instrument on which the Republic was based: Yuan Shih-kai declared that the Abdication Edicts, and not the Nanking Instrument had established the Republic, and that therefore it lay within his competence to organize the new government in the way which he considered most fit.

The discussion which raged was suddenly terminated on the night of the 29th February (1912) when without any warning there occurred the extraordinary revolt of the 3rd Division, a picked Northern corps who for forty-eight hours plundered and burnt portions of the capital without any attempts at interference, there being little doubt to-day that this manoeuvre was deliberately arranged as a means of intimidation by Yuan Shih-kai himself. Although the disorders assumed such dimensions that foreign intervention was narrowly escaped, the upshot was that the Nanking Delegates were completely cowed and willing to forget all about forcing the despot of Peking to proceed to the Southern capital. Yuan Shih-kai as the man of the hour was enabled on the 10th March, 1912, to take his oath in Peking as he had wished thus securing full freedom of action during the succeeding years.^[6]

      An Encampment of "The Punitive Expedition" of 1910 on the Upper Yangtsze.

      By courtesy of Major Isaac Newell, U.S. Military Attaché.

      Revival of the Imperialistic Worship of Heaven by Yuan Shih-kai in 1914: Scene on the Altar of Heaven, with Sacrificial Officers clothed in costumes dating from 2,000 years ago.

      A Manchu Country Fair: The figures in the foreground are all Manchu women and girls.

      A Manchu Woman grinding Grain.

      It was on this astounding basis—by means of an organized revolt—that the Central Government was reorganized; and every act that followed bears the mark of its tainted parentage. Accepting readily as his Ministers in the more unimportant government Departments the nominees of the Southern Confederacy (which was now formally dissolved), Yuan Shih-kai was careful to reserve for his own men everything that concerned the control of the army and the police, as well as the all-important ministry of finance. The framework having been thus erected, attention was almost immediately concentrated on the problem of finding money, an amazing matter which would weary the stoutest reader if given in all its detail but which being part and parcel of the general problem must be referred to.

      Certain essential features can be very rapidly exposed. We have already made clear the purely economic nature of the forces which had sapped the foundations of Chinese society. Primarily it had been the disastrous nature of Chinese gold-indebtedness which had given the new ideas the force they required to work their will on the nation. And just because the question of this gold-indebtedness had become so serious and such a drain on the nation, some months before the outbreak of the Revolution an arrangement had been entered into with the bankers of four nations for a Currency Loan of £10,000,000 with which to make an organized effort to re-establish internal credit. But this loan had never actually been floated, as a six months' safety clause had permitted a delay during which the Revolution had come. It was therefore necessary to begin the negotiations anew; and as the rich prizes to be won in the Chinese lottery had attracted general attention in the European financial world through the advertisement which the Revolution had given the country, a host of alternative loan proposals now lay at the disposal of Peking.

      Consequently an extraordinary chapter of bargaining commenced. Warned that an International Debt Commission was the goal aimed at by official finance, Yuan Shih-kai and the various parties who made up the Government of the day, though disagreeing on almost every other question, were agreed that this danger must be fought as a common enemy. Though the Four-Power group alleged that they held the first option on all Chinese loans, money had already been advanced by a Franco-Belgian Syndicate to the amount of nearly two million pounds during the critical days of the Abdication. Furious at the prospect of losing their percentages, the Four Power group made the confusion worse confounded by blocking all competing proposals and closing every possible door. Russia and Japan, who had hitherto not been parties to the official consortium, perceiving that participation had become a political necessity, now demanded a place which was grudgingly accorded them; and it was in this way that the celebrated six-power Group arose.

      It was round this group and the proposed issue of a £60,000,000 loan to reorganize Chinese finance that the central battle raged. The Belgian Syndicate, having been driven out of business by the financial boycott which the official group was strong enough to organize on the European bourses, it remained for China to see whether she could not find some combination or some man who would be bold enough to ignore all governments.

      Her search was not in vain. In September (1912) a London stockbroker, Mr. Birch Crisp, determined to risk a brilliant coup by negotiating by himself a Loan of £10,000,000; and the world woke up one morning to learn that one man was successfully opposing six governments.

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