28 REPORT OF SCHIMMEL & Co. APRIL 1914. 
revolution in an increased measure, of the widespread excesses of robber-bands, 
recruited from ex-revolutionaries, disbanded soldiers, &c. The most important questions - 
which confront the country, next to the re-establishment of internal order, are those 
of the Constitution and of Financial Reform and both of these are still unsolved. The 
Constitutional problem could not be advanced under the sterile Parliamentary régime 
which was recently prevalent. Since, after endless difficulties, the first great loan of 
25 million £ sterling, advanced by the group of the Five Powers, was concluded in 
the spring of last year, negotiations have been set on foot for a another large loan, 
but so far as is known they have made no great progress up to the present. In the 
meantime the Five-Power group continues to exist only for the purpose of concluding 
large loans, and all the previous international combinations of different groups of banks, 
with the object of promoting industrial development, railways, 8c., were dissolved a 
few months ago. 
-The question of the introduction of ordered conditions of currency, which is be- 
coming more and more acute as the foreign trade of China increases, has been pushed 
into the background again by the political questions that have obtruded themselves. 
But that it has not been lost sight of altogether, is shown by the appointment last 
September of a German expert in banking affairs whose duty, in addition to the recon- 
struction of the Chinese National Bank, it will be to examine the currency-question 
and to take in hand the preliminary work for the introduction of a programme of reform. 
In spite of all adverse circumstances, the import-trade into China began to expand 
during the first half of the year; but as a result of the July-revolution and its conse- 
quences the consumption of the accumulating stocks was seriously arrested, and new 
orders are therefore coming in slowly. Consumption is further made more difficult 
by the greatly depreciated paper-money which is still in circulation in some provinces, 
and for the calling-in of which the Government is at present lacking funds. The almost 
total cessation of the imports of European apparel is worthy of note: owing to the 
cost and discomfort in wear European clothing has not proved suitable for the Chinese. 
The export-trade from China has continued to exhibit great possibilities of devel- 
opment, but it has been much hampered by disturbances, interruptions of transport 
from the interior owing to the movements of troops, the depredations of robbers, &c. 
Exports from Tientsin have again shown an increase, which has been greatly assisted 
by the extension of railways. In the South-western part of the country continuous 
rains and the overflowing of the Western River have caused great damage to life and 
property, the rice-crop in particular has been largely destroyed and the distress of the 
population caused thereby, together with the general scarcity of money, have greatly 
hampered export trade in this quarter. 
