such statistics in taels, because currency
fluctuations make the results deceptive when reckoned in sterling. The
tael is not a coin, but a certain weight of silver, and therefore its
value fluctuates with the value of silver. The _China Year Book_ gives
imports and exports of Chinese produce for 1902 as 325 million taels and
214 million taels respectively; for 1911, as 482 and 377; for 1917, as
577 and 462; for 1920, as 762 and 541. (The corresponding figures in
pounds sterling for 1911 are 64 millions and 50 millions; for 1917, 124
millions and 99,900,000.) It will thus be seen that, although the
foreign trade of China is still small in proportion to population, it is
increasing very fast. To a European it is always surprising to find how
little the economic life of China is affected by such incidents as
revolutions and civil wars.

Certain principles seem to emerge from a study of the Chinese railways
and mines as needing to be adopted by the Chinese Government if national
independence is to be preserved. As regards railways, nationalization is
obviously desirable, even if it somewhat retards the building of new
lines. Railways not in the hands of the Government will be controlled,
in the end if not in the beginning, by foreigners, who will thus acquire
a power over China which will be fatal to freedom. I think we may hope
that the Chinese authorities now realize this, and will henceforth act
upon it.

In regard to mines, development by the Chinese themselves is urgent,
since undeveloped resources tempt the greed of the Great Powers, and
development by foreigners makes it possible to keep China enslaved. It
should therefore be enacted that, in future, no sale of mines or of any
interest in mines to foreigners, and no loan from foreigners on the
security of mines, will be recognized as legally valid. In view of
extra-territoriality, it will be difficult to induce foreigners to
accept such legislation, and Consular Courts will not readily admit its
validity. But, as the example of extra-territoriality in Japan shows,
such matters depend upon the national strength; if the Powers fear
China, they will recognize the validity of Chinese legislation, but if
not, not. In view of the need of rapid development of mining by Chinese,
it would probably be unwise to nationalize all mines here and now. It
would be better to provide every possible encouragement to genuinely
Chinese private enterprise, and to offer the assistance of