urplus 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 nations is essential. If we insist upon rousing Chinese
nationalism as we have roused that of India and Japan, the Chinese will
begin to think that wherever they differ from Europe, they differ for
the better. There is more truth in this than Europeans like to think,
but it is not wholly true, and if it comes to be believed our power for
good in China will be at an end.

I have described briefly in this chapter what the Christian Powers did
to China while they were able to act independently of Japan. But in
modern China it is Japanese aggression that is the most urgent problem.
Before considering this, however, we must deal briefly with the rise of
modern Japan--a quite peculiar blend of East and West, which I hope is
not prophetic of the blend to be ultimately achieved in China. But
before passing to Japan, I will give a brief description of the social
and political condition of modern China, without which Japan's action in
China would be unintelligible.

FOOTNOTES:

[Footnote 24: In 1691 the Emperor Kang Hsi issued an edict explaining
his attitude towards various religions. Of Roman Catholicism he says:
"As to the western doctrine which glorifies _Tien Chu_, the Lord of the
Sky, that, too, is heterodox; but because its priests are thoroughly
conversant with mathematics, the Government makes use of them--a point
which you soldiers and people should understand." (Giles, op. cit. p.
252.)]

[Footnote 25: _Annals an