120 



the rate of exchange that has been established from 

 ancient times, about 1.5HO rash to the tael. The 

 ivailable stock of cash consequently diminished, 

 until in 1*95 they began to go to a premium 

 and rose till only 1,150 would be given for a tael. 

 The decline in the price of silver lias caused a 

 shrinkage in the quantity of foreign goods import- 

 ed, with an increase in their total value. Exports, 

 owing to the same cause, have increased in quantity 

 11 as in value. The imperial customs receipts 

 have fallen off a full third in gold value in the last 

 IVw years. For this, among other reasons. Li-llung- 

 Ohang went to Europe in 1896 to endeavor to get 

 the consent of Great Britain and other countries to 

 an increased rate of customs duties, unless there was 

 a prospect of the restoration of silver to the mints. 

 The prices of domestic commodities and services in 

 China have changed very little in consequence of 

 the depreciation of silver. More revenue than was 

 formerly required is necessary in order to pay in- 

 : on the heavy imperial debt incurred on ac- 

 count of the war. The proposition was to raise the 

 import tariff from 5 per cent, to 10 per cent., the 

 same concession that was granted to Japan in ls'.'5. 

 The 5-per-cent. tariff was established in 1860 by the 

 Pekin convention supplementary to the treaty of 

 Tientsin. It was forced upon China when Euro- 

 pean troops held the capital. When it was signed 

 China was paid in taels of an exchange value of 3 

 to the pound sterling, enabling the Chinese to make 

 extensive purchase in the Western markets. In the 

 last twenty years the exchange value of the tael has 

 fallen to such an extent that the Chinese are now 

 obliged to remit 7 for each sovereign. A doubling 

 of the import and export duties would consequent- 

 ly only place China in the original position she oc- 

 cupied when the conventional tariff went into force. 

 France. Russia, and Germany gave their consent to 

 the proposition to increase the duties ; England held 

 out for large compensating concessions, such as the 

 abolition of all likin duties. 



The Viceroy Chang-Chih-Tung established a mint 

 at Hangkow for the coinage of Chinese dollars, but 

 could not keep them in circulation because he at- 

 tempted to hold their exchange value at 1.000 ea>h 

 by making them receivable for taxes at that rate, 

 while the people would accept them only for 860 

 cash. He had a quantity of cash minted, weighing 

 5 instead of 8 candarins each, and Viceroy Lieu, of 

 Xankin. took steps in the same direction, but the 

 Emperor refused to sanction the issue of debased 

 cash, though the people were willing to take them. 



The Army. The central army, stationed at Kal- 

 gan, near Pekin. has a strength of 50,000 men in 

 time of peace, capable of being doubled in war. con- 

 sisting of strong and well-trained men. armed with 

 Remington rifles. The army of Manchuria num- 

 bers about 70.000 men. equipped with Mauser rifles 

 and Krupp field pieces. The force garrisoned in 

 Turkestan is also well armed and drilled. The 

 provincial troops, constituting the bulk of the forces 

 that were often beaten easily by the Japanese in the 

 late war. are badly armed," no't efficiently trained, 

 and not apt to fight. Of these braves a force of 

 .><K) is kept up in peace time, which is capable 

 of being raised to a strength of 600.000 in case of 

 war. The Chinese arsenals, under foreign super- 

 vision, turn out large quantities of modern arms 

 and ammunition. The official military statistics 

 represent the efficient troops mentioned above, 

 classed as the Eight Banners, or Imperial Army 

 of Manchus. Mongols, and Chinese, to have a 

 strength of 323.800 men. of whom 100,000 are sup- 

 posed to be reviewed by the Emperor every year, 

 while the national or Chinese army is reported to 

 consist of 6.459 officers and 650.000 men. A scheme 

 of military reform and reorganization has been 

 VOL. xxxvi. 9 A 



adopted, in the execution of which European offi- 

 cers will be employed. Li-IIung-Chang made C-I.M- 

 tracts when in Europe in the summer of is'jfj for 

 rifles in France and artillery in Germany. 



The Navy. The Chinese navy was strong in 

 ships and guns before the war, and wa- 

 badly manned, but it broke down completely !- 

 cause the administration was inefficient and cor- 

 rupt and because the principal fleet was prevented 

 from effective manoeuvring by the order of the 

 Government to remain in Chinese waters, while the 

 other forces were kept from co-operating with it 

 by the provincial authorities. The northern squad- 

 ron, containing the effective fighting ships, was 

 captured or destroyed by the Japanese in the bat- 

 tles of Yalu and ' Wei-Hai-Wei. After the war 

 China had ro battle ships left. The present force 

 consists of 3 coast guards. 7 second-class crui- 

 third-class cruisers. 33 other steamers, and 30 first- 

 class and 13 second-class torpedo boats. There 

 were at the beginning of 1896 in course of construc- 

 tion 1 cruiser, 1 dispatch boat, 4 gunboats, and 4 

 torpedo boats. The creation of a new navy is one 

 of the first objects to be attained as soon as Chinese 

 finances can be reorganized. The plans adopted 

 are for a fleet of the English fashion, with English 

 naval officers. 



Commerce and Production. The chief com- 

 mercial products of China are tea. cultivated in the 

 western and southern provinces, and silk, which is 

 raised in all the provinces, but best in Kwangtung. 

 Szechuen, and Che-Kiang. Opium for home con- 

 sumption is largely produced in the west. In the 

 north cereals, such as wheat, barley, millet, and 

 corn, are cultivated, and in the southern provinces 

 rice and sugar are important crops. The coal 

 mines at Kaiping are worked under the direction 

 of foreign engineers. Mines have been opened also 

 at Hang-Kow. Thick beds of coal underlie nearly 

 the whole of China. Iron and copper are mined in 

 a primitive manner. In the copper mines of Yun- 

 nan Japanese engineers have lately been employed to 

 introduce modern methods. The total value of im- 

 ports in 1894 was 162.102.911 haikwan taels. taking 

 the market values in the ports of China, including 

 duties paid and costs of landing, storing, and sell- 

 ing. The value of exports, not including the ex- 

 port duty and cost of packing, and shipping, was 

 lis.lU4.5i2 taels. Deducting the extraneous charges 

 in the one case and adding the cost of exporting in 

 the other, the corrected values are 139.569.201 taels 

 for imports and 144.fi90.042 taels for exports. The 

 direct trade with foreign countries in 1894 was dis- 

 tributed as follows : 



The imports of opium in 1894 were valued at 

 33.336.067 taels ; of cotton cloth, 32.405.000 taels : 

 of cotton yarn, 19.700.000 taels: of raw cotton. 

 55f>,203 taels: of woolen goods. 3.540.195 taels; of 

 coal. 3.221.343 taels : of kerosene oil. 8.005.314 taels : 

 of sea products. 5.157.616 taels : of rice. 9.743.000 

 taels: of sugar. 9.5n7.0dO taels: of iron. 2,584.000 

 taels: of tin. 2.047.000 taels: of timber. 1.690.000 

 taels : of matches. 1.639.000 taels : of aniline. 1.169.000 

 taels. The value of the exports of tea was :il.s.~i4.- 

 575 taels: of raw silk. 33.004.000 taels: of silk 

 goods. 7.980.000 taels : of cotton. 7.361.000 taels ; 

 of straw braid. 2.5::i.21 ii taels; of sugar. 2.436.625 

 taels ; of wool, 2,355,000 taels : of clothing and foot 



