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unfulfilled. I also am one of the citizens of the country and the single purpose of my heart is to effect the salvation of the nation and of its people. I dare not regard success or failure nor the hardships or slanders which I will have to bear. I have therefore forced myself to accept this post. I now take this opportunity to express some of my inost sincere and friendly thoughts to the people of the Republic.

It is a saying of western scholars that a constitutional government is founded on law, and that a republican government is founded on morality. Morality should be considered as the actuality and law as the outward manifestation. Our people have been suddenly converted into citizens of a Republic, therefore it is imperative that there be law to support the morality of the people. I have made many inquiries ainong the learned scholars of France, America and other nations and have come at the true nature of republicanism. The republican form of government is a government which gather's

for the strict observance of all, and liberty or freedom outside that system will be publicly discredited. This kind of law-abiding habit can only be developed gradually, until it becomes as habitual as rising up or going to bed, or as eating and sleeping. When such a point has been reached with us then will this nation be called a lawabiding nation. Though our citizens are by nature tractable they have never acquired to any great extent the habit of obedience to law. I expect the citizens of this country all to keep the laws, thereby, unconsciously raising their moral standard.

Furthermore, the body of republican government is the people. The desire of the majority of the people is to live quietly and enjoy the fruit of their labors. But since the revolution the people havo sustained all manner of hardships and difficulties, and to speak of their condition is heartrending. I have daily hoped for the restoration of the people to their normal condition, and I have not dared to put forth any measures which would tend to disturb them. I deeply regret that no precautions could be taken to restrain the violent characters who have caused the innocent to be a fllicted. I wish to exert my utmost strength to allow the people to enjoy the real blessings of a republic so that the goal of seeking for them the greatest possible happiness may be attained. Earning a living has become so difficult, and the people have been so pressed by hunger and cold, that the more cunning ones among the violent characters bare availed themselves of the opportunity to drive them to the path of death. This is indeed deplorable. It is desirable that the country enjoy a long period of peace. It is imperative that every man be enabled to earn a living, and this will only become possible by paying special attention to agriculture, industry and commerce.

I have heard that the best class of people in the enlightened countries enter upon a life of industry. The climate and natural resources of our country are by no means inferior to those of other powers; but as the arts of agriculture and cattle-breeding have not been studied, the results of industry are inferior, and mines, forests and fisheries are undeveloped, leaving the riches under the ground. No reliance has been placed on commerce and the export trade has steadily languished. It is like a rich man who after burying his money in the ground complains continually of his poverty. I hope that the people of the whole country will direct their attention to industrial enterprises, so that opportunities of earning a living may be thereby extended. Thus will the foundation of the nation be firmly laid.

There are two reasons why the industries of the country liave not been developed: first, because of the rudimentary state of education; second, because of a lack of capital. Every branch of industry is closely related to science. But physics and chemistry are not understood and the principles of steam and electricity are untaught. While others are engaged in the struggle for education or the war of commerce, we are still cleaving conservatively to the old system, and superstitiously resting our faith upon empty talk. I hope that the citizens of the country will introduce the enlightened educational methods of foreign countries. In government and law the practical and not the theoretical, must be emphasized. These are my views regarding education.

Unless there is capital it is no use to talk of industry. In view of the fertility of our soil and the richness of our produce, how can this country be called poor? The necessities of life are but those things which are associated with clothing, food and dwelling, for which silver and gold serve as a medium of exchange. If there is a shortage of silver and gold the means of exchange are lessened. Without silver and gold we should be without a medium of exchange. Therefore, to prepare for the various industrial enterprises, we must look to our neighbors who possess an ample sụpply of the medium of exchange. When the natural resources are opened and there are no waste lands nor idle people, the capital which has been borrowed will become a never-ending source of profit. After paying off the capital a surplus will be left. Would not this be a better method than that of the man who buried his treasure and yet was continually worrying about his poverty? I hope, therefore, that my country will introduce foreign capital in order that the industry of the country may be stimulated and developed.

To introduce the civilization and capital of foreign countries would benefit not only this country but also the world at large. The highest ideal of world civilization is to supply the deficiency of others from our own surplus, conferring happiness upon society, practically without distinction between countries. This is why Confucius loved to talk of universalization. Now that our country has become a Republic all the old ideas belonging to the period of seclusion should be swept away. As our citizens observe the laws of our own country so should they also understand the common law of nations. In intercourse with other nations everything should be in accordance with the practices of civilization, and there should be no prejudice shown towards foreigners, which only leads to trouble and law-breaking.

The attitude of the foreign powers towards us has always been that of peace and fairness, and whenever occasion there for has arisen they have rendered us cordial assistance. In this is furnished ample evidence of the civilization of the world, and such exhibitions of good will from friendly nations arouse in vis sentiments of deep gratitude. It is most important that all citizens of the Republic

should clearly understand this, in order that with sincerity of

purpose they may endeavor to strengthen the friendship of our international bonds. I hereby declare, therefore, that all treaties, conventions and other engagements entered into by the former Manchu and the Provisional Republican Governments with foreign governments shall be strictly observed, and that all contracts duly concluded by the former governments with foreign companies and individuals shall also be strictly observed; and further that all rights, privileges and immunities enjoyed by foreigners in China by virtue of international engagements, national enactments and established usages are hereby confirmed. This declaration I make with the view to maintain international amity and peace. All of you, citizens, should know that this is in accordance with a principle of international relations which must be carried out. If we can show an honest proof of our friendly intentions our relations with foreign countries will be properly managed.

The foregoing is but a summary of the thoughts which I desire to lay before you, citizens, and the moral which I want again to teach and enlarge upon consists of two characters: Tao Te fthe practice of virtue). These two characters are most comprehensive, and it has been impossible even for the great sages, by the use of thousands and thousands of words, to reveal their full significance. I will state what I understand by these two characters, and I will group my remarks under four heads: Chung [loyalty), Hsin shonesty), Tu [sincerity], and Ching (respect].

Loyalty. The original idea of loyalty is that a person should be loyal to his country and not to any particular man. If everyone held as his guiding principle loyalty to the nation instead of loyalty to a man or to a family, he would sacrifice his own interests for the interests of the majority. It is most important that everyone should pay less attention to the attainment of power and influence and more to the fulfillment of duty. The interests of the country should not he sacrificed for the acquisition of personal power and influence.

Honesty. Confueius said that without honesty no one can stand upright. In enlightened countries the deceitful are bywords among their fellow men and are held in general contempt. Washington when young received instruction from his father and thereafter never told a lie. From ancient times our country has laid stress on honesty, but of late the spirit of the people has not been as in earlier days. The people have acquired a habit of deceitfulness. Since it is difficult for a person to stand upright, how much more a nation. Tseng Kuo-fan of the late Ch'ing Dynasty said that in order to attain to upright stature it was essential never to tell a lie. Therefore, whether dealing with internal or with external problems, honesty is necessary.

Sincerity. In all enlightened countries no efforts have been spared to preserve the traditions of the nation, even so far as regards individual names or things. This is no impediment to progress. In the past the Renowned Religion has been the great bulwark of our country, and after four thousand vears of alterations and changes there is the germ of something indestructible in it still. However, there are some who have been misguided by theory and are bent on destruction. They do not follow what is practical but are full of

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high-sounding words. Before they have acquired any advantage from foreign learning they have thrown away all the traditions of their own country. This shallowness of mind has spread quickly. If there are no branches, where shall the leaves be attached? The remedy for the complaint here described is in sincerity.

Respect. One must have a constant mind before one can have a constant occupation. When a person destitute of constancy has business to attend to he will attend to it confusedly; when he has none to attend to he will be idle. All his affairs will be character: ized by idleness. Everything will come to grief through carelessness. No one will take any responsibility; all will stand by mockingly. No one will attend even to his own private affairs. From this we can understand the virtue of the saying of the ancients:

Respect your business.” To do away with pride and laziness there must be respect.

The four words Loyalty, Honesty, Sincerity and Respect should be used to encourage us. Let us keep them in mind every day and not allow them to leave our mouths. The principles upon which the nation is established are right and wrong, good and bad, and although the likes and dislikes of individuals are not always exactly the same, yet there is the same standard for right and wrong, good and bad. Speaking generally, those who discharge their duties and abide by the law are right and good, and those who have overstepped the bounds of propriety and violated the laws of righteousness are wrong and evil. I desire that the citizens of the country may have the power to discriminate between these two classes.

There are some persons who say that as civilization advances economy will give place to extravagance.

A weak and poverty. stricken country trying to imitate the extravagances rather than the civilization of other nations is like a bed-ridden invalid trying to fight against an athlete. During recent years the standard of living of the people has steadily risen, but wealth has decreased in even greater proportion. There is an ancient saying that when a nation becomes extravagant economy should be preached. I therefore hope that in the practice of morality by the citizens more attention will be paid to economy.

In a word, if law and morality go hand in hand, the state will be firm and immovable. As for the problem of national defense, the country needs rest and recuperation, and this therefore is no time for struggle with armed force. But I am most anxious that every man in the army and navy regard it as his duty to obey orders and protect the people. Who among the officers does not know this? But these two duties have not been entirely observed in the shock of the late storm, and I must acknowledge that I have not been equal to my responsibilities. Hereafter I will pay great attention to moral education so that I may not be ashamed to face the people.

Actuated now by the most sincere and friendly sentiments, I declare before you, citizens, that for each day that I remain in office that day will I take full responsibility. The Chinese Republic is a republic of its four hundred million people. If brothers are friendly the family will be prosperous, if the people are of one heart and one mind the nation will be prosperous. This is my prayer for the Chinese Republic.

POLITICAL AFFAIRS. ORGANIZATION OF THE NATIONAL ASSEM

BLY. RECOGNITION OF THE REPUBLIC OF CHINA BY THE UNITED STATES AND OTHER POWERS. INAUGURATION OF PRESIDENT YUAN SHIH K'AI. UPRISING IN SOUTHERN PROV, INCES SUPPRESSED. EXPULSION BY PRESIDENTIAL DECREE OF NATIONALIST MEMBERS OF THE ASSEMBLY. FORMATION BY THE PRESIDENT OF A POLITICAL COUNCIL,1

File No. 893.00/1505.

The American Minister to the Secretary of State.

[Extract.) No. 671.]

AMERICAN LEGATION,

Peking, November 12, 1912. Sir: I have the honor to report that as far as outward appearances go, the political situation here is one of gradual improvement. It is still far from ideal, and no great promise for the future is present, but, upon tbe whole, the political outlook is better than it was a few months ago.

This improvement is largely evidenced by the single fact that Yuan Shih-kai is slowly but steadily increasing his hold upon the country. * * * By common consent all hopes for the future are largely centered in this one man. Unfortunately he is aging fast, and the fear is often expressed that he may break down, and the wonder is, what will happen if such a misfortune occurs; there is no man in sight to take his place. * * *

It may be said that the improvement I have noticed is largely superficial. That no constructive work of any great importance has been done and none is under way. That the fundamental question as to the relation of the central government to the provinces remains undetermined. * * * This important question will probably not be settled until the permanent constitution is adopted. * *.**

I think the over-shadowing fact remains that the country lias settled i down to the new order of things. The people, so far as they know anything about it, have accepted the Republic as an established fact. / For a time I was afraid that there would be a great struggle for control, between the north and south, at the coming election, and that all kinds of trouble would ensue. But now that the opposition to Yuan has so largely disappeared, he may be regarded as the accepted leader, for the time at least. The crops this year have been uniformly good, except perhaps in a few districts subjected to unusual floods. This fact helps the situation very much; it brings not only comfort but confidence to the people; confidence, because the good crops show that Heaven was not so much displeased, after all, by the removal of the Emperor, and therefore, they may accept the new order with the assurance that it is all right from a religious as well as il political standpoint.

The difficult, the delicate and the dangerous problem with which the President is confronted, is how to get rid of the independent tutus or provincial governors, and also the military chiefs who defy all civil anthority. Only one or the other of two ways is possible for the solu- ! tion of this problem. The President must fight these men with armed

* Continued from For. Rel. 1912, pp. 46-86.

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