the facts. There are also rumors that the governmental military party,
having got everything almost out of Japan that is coming to them and
finding themselves on the unpopular side, are about to forget that they
ever knew the Japanese and to come out very patriotic. This is also
unconfirmed, but I suppose the only reason they would stay bought in any
case is that there are no other bidders in the market.

PEKING, Wednesday, July 2.

The anxiety here is tense. The report is that the delegates did not
sign, but so vaguely worded as to leave conjectures and no confirmation.
Meanwhile the students' organizations, etc., have begun another attack
against the government by demanding the dissolution of Parliament.
Meantime there is no cabinet and the President can get no one to form
one, and half those inside seem to be also on the strike because the
other half are there.

PEKING, July 4.

We are going out to the Higher Normal this morning. The head of the
industrial department is going to take us. The students are erecting
three new school buildings this summer--they made the plans, designs,
details, and are supervising the erection as well as doing the routine
carpenter work. The head of the industrial department, who acted as our
guide and host, has been organizing the "national industry" activity in
connection with the students' agitation. He is now, among other things,
trying to organize apprentice schools under guild control. The idea is
to take the brightest apprentice available in each "factory"--really, of
course, just a household group--and give them two hours' schooling a day
with a view to introducing new methods and new products into the
industry. They are going to take metal working here. Then he hopes it
will spread all over China. You cannot imagine the industrial
backwardness here, not only as compared with us but with Japan.
Consequently their markets here are flooded with cheap flimsy Japan-made
stuff, which they buy because it's cheap, the line of least resistance.
But perhaps the Shantung business will be worth its cost. The cotton
guild is very anxious to co-operate and they will supply capital if the
schools can guarantee skilled workingmen, especially superintendents.
Now they sell four million worth of cotton to Japan, where it is spun,
and then buy back the same cotton in thread for fourteen million--which
they weave. This is beside the large amount of woven cotton goods they
impor