d he will tell you that China cannot
develop because she has no transportation facilities. Talk to him about
building railroads and he tells you China ought to have railroads but
she cannot build them because she cannot get the material. Talk to him
about fuel when you see all the weeds being gathered from the roadsides
for burning in the cook stoves, and he tells you China cannot use her
mines because of the government's interference. There are large coal
mines within ten miles of this city with the coal lying near the surface
and only the Japanese are using them, though they are right on the bank
of the Yangste River. The iron mines referred to are near the river, a
whole mountain of iron being worked by the Japanese, who bring the ocean
ships up the river, load them directly from the mines, the ore being
carried down the hill, and take these ships directly to Japan, and they
pay four dollars a ton to the Chinese company which carries on all the
work.

The last hope of China for an effective government passed away with the
closing of the Peace Conference, which has been working hard here for
weeks. It seems the delegates from the south could act with plenary
power. The delegates from the north had to refer everything to the
military ministers from Peking, and so at last they gave up. Despair is
deeper than ever, and they all say that nothing can be done. We have
gone round recommending many ways of getting at the wrong impressions
that prevail in our country about them, such as propaganda, an
insistence upon the explanation of the differences between the people
and the government. But the reply is, "We can do nothing, we have no
money." Certainly the Chinese pride has been grounded now. An American
official here says there is no hope for China except through the
protection of the great powers, in which Japan must join. Without that
she is the prey of Japan. Japanese are buying best bits of land in this
city for business, and in other cities. Japan borrows money from other
nations and then loans it to China on bleeding terms. The cession of
Shantung has, of course, precipitated the whole mess and some Chinese
think that is their last hope to so reduce them to the last extremity
that rage will bring them to act. The boycott of Japanese goods and
money has begun, but many say it will not be persistently carried out.
The need for food and clothes in China keeps everybody bound by the
struggle for a livelihood, and everyth