GERMAN VIEW OF THE RESULTS OF THE WAR.

Consul-General Mason sends from Frankfort, under date of August 22, 1898, the following translation of an article in the Frankfürter Zeitung of August 20, 1898:

The conclusion of peace which ends the Spanish-American war marks a new epoch in history, not only for the United States, but likewise for Europe. The United States has taken an important step toward the exclusive control of the American continent; it has also reached beyond that and claimed its share in the conduct of the world's affairs. Since it now controls the West Indies, the construction of the Nicaraguan Canal will be no longer delayed. Then will the eastern and western portions of the Union be brought into closer relations, which will be of important significance not only for the commerce, but for the naval power, of the United States.

From San Francisco westward by way of Hawaii and the Ladrone and Philippine islands, which will be developed into strongholds of American power, the United States will reach across the Pacific Ocean to the Asiatic coast and will have a powerful voice in deciding the destiny of eastern Asia, for it has there just as important commercial interests to foster and protect as any of the European powers. That it realizes fully the importance of this and other questions at issue, is evinced by the promptness with which it is proceeding to a notable strengthening of its Navy and standing Army.

With what force and energy the Union enters upon its rightful position among the controlling nations of the world will be shown by a glance at its material resources and productive capacity. There is, first, the fact that in the fiscal year ended June 30, 1898, the Union had a surplus of exports over imports amounting to 2,500,000,000 marks ($595,000,000), while all the European nations show a more or less important deficit in their balance of trade-Germany about 700,000,000 marks ($166,600,000) and England about 2,400,000,000 marks ($571,200,000). Other comparisons are equally instructive. John Shafroth, in his speech before the House of Representatives on the 26th of May last, gave the following statistical data:

In the year 1890, the property of the United States was valued at $62,000,000,000, while the property of the whole world was estimated at $290,000,000,000. The American people, who number 70,000,000 souls, or one-twentieth of the population of the globe, possess, therefore, more than one-fifth of the entire wealth of the human race. The Union has 182,000 miles of railways, half as much as the remainder of the world entire. In the year 1892, the freight transported in the United States was equivalent to 845,000,000 tons carried a distance of 100 miles; in the same year all other countries together transported the same distance only 503,000,000 tons. The annual earnings of the railways of the United States are about $1,000,000,000, nearly half of the railway receipts of the whole world, which amount to $2,515,000,000. The steam marine of the United States registers 14,400,ooo horsepower, one-third of the registered steam tonnage of the world.

In the year 1896, the United States produced 10,000,000 bales of cotton, and out of the 13,000,000 bales produced by the whole world the Union alone consumed 3,500,000 bales-that is, more than one-fourth of the entire cotton consumption of the human race. Its production of cereals is more than one-fourth of the crops of the world entire. Its output of coal in 1897 reached 198,000,000 tons; while all

other countries combined produced only twice as much-in round numbers 400,000,000 tons. The telegraph lines of the world included, in 1897, 4,908,000 miles of wires, of which 2,506,000 miles, or more than half, are in the United States. The postal service of the world transports yearly 17,000,000,000 letters, of which the United States alone sends 5,000,000,000. The mechanical appliances which the United States employs to aid and supplement human labor comprise more than one-fourth of the equipment of the entire world.

These figures, to which might be added others equally significant, will suffice to show that the people of the United States, in respect to their resources and capacity of performance, can no longer be compared with any other single nation; the comparison must be made with the entire rest of the world. They form the clearest and most convincing proof that the United States is, in fact, a great world power and as such must have a world policy.

Thus far, there is not the slightest cause to regret the development of this power; we believe, on the other hand, that it is a cause for rejoicing to all mankind. We can, indeed, see the numerous dark spots which shadow the condition of the American people; but when one compares with these the many bright spots, it is seen that there are far more lights than shadows. The American national character wins when compared with that of other nations; and it must be remembered that in the frankness and intelligence of this national character, its tireless energy and ardor for improvement, are given the conditions and the strength which modify even the defects of the people and shield them from the dangers of degeneration. Labor, freedom, tolerance-these are the foundations upon which American statehood rests, and upon which it can securely rest in future.

The Americans have no aristocratic caste, born with the pretension of being better than other men, and for whose benefit the masses should toil; they have no clericalism which seeks to rule and finds in all progress an enemy that must be resisted at every cost; they have, finally, no bureaucratic traditions, which stifle every movement toward freedom and make the citizen the slave of the machinery of state. This does not please many European diplomats and their adherents, and they give unrestrained expression to their aversion to the "free-and-equal masses," the "plebeians," etc. They would even give expression to this aversion in overt acts if, indeed, the United States had not already become too great a power to be bullied.

The Kreuz Zeitung (Berlin) has been greatly distressed over the reasons which have led us in the present war to the side of the United States. After considering and demolishing several of such reasons, it is all the more forcibly struck by the final one—“because the United States is a republic!”

That is very superficially conceived. If we had ever rhapsodized over the republican form of government, as such, we should have been long ago thoroughly cured of such delusions by what has happened in France. We are not concerned with the outward form, but with the substance the independent, self-reliant citizenship; the respect for honest labor; the tolerance of free thought and action; the generous, unprejudiced humanity of thought, feeling, and deed. All these things we have not found in Spain, nor among many of the friends of Spain.

What would have happened had Spain triumphed in this war? National darkness, narrowness, and corruption would have prevailed; and everywhere the advocates of political and clerical absolutism, which the Spanish governmental system breeds and fosters, would have gained new and important strength. But this has not happened, and for these reasons it can be fairly said that the victory of the United States is a triumph for progress and a gain for mankind.

The new world power has now some new and difficult problems to solve. Cuba will present a serious task, and the Philippine question will be still more complex

and difficult. Cuba can be managed by the Americans alone, but the Philippines are a realm in which the interests of other great powers meet and collide. From the manner in which the United States Government meets and solves this problem will be seen and demonstrated whether it can command the wisdom and moderation proportionate to its opportunity and power.

THE SHANSI CONCESSION.*

I have the honor to report the first concession ever granted by the Imperial Chinese Government to a foreign syndicate, by the terms of which foreigners have the right to open and work mines, construct and operate railways, and all entirely free from Chinese. control other than the payment of a royalty and conformity with the general laws of the Empire as applicable to foreigners.

On the 21st day of May, 1898, there were signed, in the presence of the ministers of the Tsungli Yamên, articles of agreement which ceded to the Pekin Syndicate, Limited, of London, the sole right to open and work the coal and iron deposits of central and southern Shansi and the petroleum deposits of the entire province; also, the right to construct and operate all necessary railways to main trunk lines and navigable waters for exporting the mining products.

The agreement was signed by order of imperial edict, stamped with the seal of the Tsungli Yamên as a visible sign of imperial sanction and authority, and the whole proceedings were verified and ratified by the British and Italian ministers to China.

The signing of this contract marks the most important epoch in the industrial policy of China. The precedent has been established of allowing foreigners, for commercial purposes, to own real estate in the interior of China, open and operate mines, and construct and maintain railways.

There have been many so-called mining concessions granted in China, but not one of them is worth the paper it is written on.

Of the railway concessions, only one-the Belgian Syndicate for the Pekin-Hankau Railway-has gotten beyond the preliminary stage, and in none is the syndicate more than the financial agent of the Chinese. These railway syndicates have no voice in the management and not too much security for their money. As a matter of fact, up to date neither the Belgian Syndicate nor any other syndicate has furnished one cent of money.

The following is a synopsis of the articles of agreement between the Pekin Syndicate and the Chinese Government:

The right to open and work coal and iron deposits in certain

* See "Mining and railway concessions in China," ante, p. 260.

No. 217-9.

(named) districts in the province of Shansi, and the sole right to all petroleum-these rights to exist for sixty years-are granted. Private lands are to be purchased, and on Government lands the syndicate is to pay double the present land tax.*

All matters of administration, exploitation, management of employees and finances shall be controlled by the board of directors of the Pekin Syndicate. Each mine is to have foreign managers and one Chinaman to arrange disputes with natives. All accounts are to be kept by foreign methods, but audited annually by a native of China. All salaries are to be paid by the Pekin Syndicate, and all receipts and payments shall be controlled by foreigners.

All damage done private property in prospecting is to be paid for; cemeteries and mortuary shrines are not to be disturbed.

The Chinese Government is to receive 5 per cent producer's tax on the actual cost of extracting coal, iron, or other material. The syndicate is to receive 6 per cent interest on the capital of the company, and 10 per cent shall be set aside as a sinking fund with which to repay the capital. Of the balance net profit, the Chinese Government is to receive 25 per cent and the Pekin Syndicate 75 per cent. All future coal or iron mines worked with foreign capital shall pay the 5 per cent producer's tax.

I

The Chinese Government is not to be held responsible for losses. All important machinery and material shall pay 11⁄2 per cent the regular maritime customs dues, but no likin taxes. Mining products exported from a seaport shall pay regular export duty.

At the expiration of sixty years, all machinery, plant, buildings, mines, railways, etc., revert gratis to the Chinese Government.

The syndicate shall establish a school of civil engineering and mining for about twenty Chinese students.

Chinese may buy shares in the company (the Imperial Chinese Government has reserved £250,000 worth of shares, for which it pays cash the par value).

When Chinese own 75 per cent of the shares of any one mine, they may redeem the balance from the syndicate and operate the mine. Private mines now in operation may continue to work or sell out to the syndicate.

The syndicate has the right to build all necessary roads and bridges, open or deepen canals or rivers, and construct all railways to connect mines with main trunk railways or navigable waters.

In case China goes to war, the syndicate will obey the orders of the Chinese Government prohibiting aid to the enemy.

*This will be about 50 cents gold per acre, and applies only to land the surface of which is actually occupied.

+ According to the Chinese tariff, the import tax on machinery is 5 per cent.

The Pekin Syndicate is composed of a few men who control immense capital, and who have obtained the most valuable concessions China could make. The preliminary work has been in progress for over two years. The concessions will be worked by the AngloItalian Syndicate, with a capital of £6,000,000.

The success of this enterprise is due, first, to the fact that the syndicate was willing to spend money upon the chance of getting a concession, and that, after sending their general agent to China, they simply allowed him to manage affairs here and kept him supplied with money. Then the agent, Mr. A. Luzzatti, has shown wonderful tact in dealing with Chinese officials, judgment in selecting his assistants and in utilizing all available means to success, and untiring perseverance.

The province of Shansi lies to the west of Chihli. It consists of an interior plateau of 3,000 feet elevation, more or less cut up by rivers. This plateau is bounded on all sides by mountains rising to 8,000 and 14,000 feet above the sea. In some places, these ranges have been cut through by rivers; but in all parts they are rugged, and transportation must be effected by pack mules or camels. In the eastern portion of the province, and running into the province of Honan, are deposits of anthracite coal. The western half has bituminous coal covering some 12,000 square miles, and all along the western boundary are deposits of petroleum. At many different points in the coal region are deposits of rich iron ore.

The coal strata are practically horizontal, and at an elevation of about 2,500 feet. They show wherever erosion has cut to a sufficient depth. This anthracite-coal vein is unbroken over an area of 13,500 square miles, and its thickness varies from 25 to 50 feet, an average of 40 feet. All of this deposit is within the limits of the concession. There are thousands of native coal mines now in operation, and the coal has been used for probably three thousand years. The iron ore is now worked by the natives. This entire region has been examined by William H. Shockley, mining engineer, and Charles D. Jameson, civil engineer, both Americans and in the employ of the syndicate.

There is probably no coal field known in the world that can compare with this of Shansi, either in quality or quantity of coal or the possibility of cheap production. In addition to the concession in Shansi, there was signed on the 21st of June an identical agreement ceding to the Pekin Syndicate all of that portion of Honan north of the Yellow River (about 10,000 square miles) and another agreement by the terms of which all of the mountainous part of Honan south of the Yellow River is ceded to the syndicate as soon as work is begun on the Shansi concession. The total area of these concessions