liberty, of the eighteenth century for constitutional government, of the nineteenth century for political freedom, the opening years of the twentieth century witness what Lowell would have called: "One death-grapple in the darkness 'twixt Old systems and the word." X FOREIGN TRADE AND FOREIGN VICES T HE influences that are thus surging into the Middle foreign trade date back to the third century, though it was not until comparatively recent years that it grew to large proportions. To-day the leading seaports of China have many great business houses handling vast quantities of European and American goods. The most persistent effort is made to extend commerce with the Chinese. That the effort is successful is shown by the fact that the foreign trade of China increased from 217,183,960 taels in 1888 to 583,547,291 taels in 1904. This shows the enormous gain of 168 per cent., though this is slightly modified by the fact that the report for 1904 includes goods to the value of 402,639 taels carried by Chinese vessels which, though plying between native and foreign ports, were not formerly reported through the customs. According to official reports,1 the foreign trade of China has been growing rapidly during recent years, the only falling off having been in the Boxer outbreak year 1900. In 1891, the imports into China were, in round numbers, 134,000,000 taels and the exports were 101,000,000, a total of 235,000,000, and an excess of imports of 33 per cent. In 1904 the imports had advanced to 344,060,608 taels and the exports to 239,486,683 taels, a total of 583,547,291 taels, an increase of 148 per cent. and an excess of imports of 44 per cent. In 1899 the total foreign trade of China had reached 460,000,000 taels. The next year it dropped to 370,000,000 taels, but in 1901 it sprang "Returns of Trade for 1904," published by the Maritime Customs Department of China. to 438,000,000 taels, and has advanced nearly 150,000,000 taels within the past three years.1 The share of the United States is larger than one might infer from the reports, as no inconsiderable part of our trade goes to China by way of England and Hongkong and is often credited to the British total instead of to ours. American trade has, moreover, rapidly increased since 1900. We now sell more cotton goods to China than to all other countries combined, the exports having increased from $5,195,845 in 1898 to $27,000,000 in 1905. In the year 1904, 63,529,623 gallons of kerosene oil valued at $7,202,110 were shipped from the United States to China. The development of the flour trade has been extraordinary, the sales having risen from $89,305 in 1898 to $5,360,139 in 1904. In Hongkong, I found American flour controlling the market. I learned on inquiry that years before, a firm in Portland, Oregon, had sent an agent to introduce its flour. The rice-eating Chinese did not want it, but the agent stayed, gave away samples, explained its use and pushed his goods so energetically and persistently that after years of labour and the expenditure of tens of thousands of dollars a market was created. Now that firm sells in such enormous quantities that its numerous mills must run day and night to supply the demand, and the annual profits run into six figures. That city of Portland alone exported to Asia, chiefly China, in 1903 : While cotton goods, kerosene oil and flour are our chief exports to China, there is a growing demand for many other 1" Returns of Trade for 1904," published by the Maritime Customs Department of China. Year ending June, 1905. American products. The utility of the American locomotive has become so apparent that in 1899, engines costing $732,212 were sent to China and additional orders are received every few months. With the enormous forests bordering the Pacific Ocean in the states of Oregon and Washington, and with the development of cheap water transportation, there is a rapidly widening market in China for American lumber. Eastern Asia is too densely peopled to have large forests, and those she has are not within easy reach. Native lumber, therefore, is scarce and often small and crooked. That in common use comes from Manchuria and Korea. I was impressed in Tsing-tau to find that the Germans are using Oregon lumber and to be told that it is considered the best, and in the long run, the cheapest. Oregon pine costs more than the Korean and Manchurian, but it is superior in size and quality. The transportation charges to the interior, however, are a heavy addition. Manchurian pine can be delivered at such an interior city as Wei-hsien, via the junk port of Yang-chia-ko and thence by land, for twenty dollars, gold, per thousand square feet, which is considerably less than the Tsing-tau retail price for Asiatic lumber. Oregon lumber costs in Shanghai, thirty-two dollars gold, per thousand, but an importer estimated that it could be delivered at Tsingtau for twenty-five dollars gold per thousand in large quantities. The exports of the United States to China, according to the reports of Consul-General Goodnow of Shanghai, increased from $11,081,146 in 1900 to $18,175,484 in 1901 and $22,698,282 in 1902, while for 1904 they reached the total of about $24,000,000, a gain of nearly 125 per cent. since 1900 and of several hundred per cent. as compared with 1894. Meantime, the United States imported from China goods to the value of $30,872,244 in 1904, which is an increase of $14,255,956 over the imports for 1901. Silk and tea are the principal items in this trade, the figures for the former being $10,220,543 and for the latter $7,294,570, though of goatskins we took $2,556,541, wool $2,325,445, and matting $1,615,838. The United States is now the third nation in trade relations with China. This is the more remarkable when we consider the statement of the late Mr. Everett Frazar of the American Asiatic Association that in January, 1901, there were only four American business firms in all China. When our business men establish their own houses in China instead of dealing as now through European and Chinese firms, it is not unreasonable to expect that the United States will outstrip its larger rivals Great Britain and France, though, as I have already intimated, it is one thing to ship foreign goods to China and quite another thing to control them after their arrival, for the Chinese are disposed to manage that trade themselves and they know how to do it. Unfortunately the stream of foreign trade with China has been contaminated by many of the vices which disgrace our civilization. The pioneer traders were, as a rule, pirates and adventurers, who cheated and abused the Chinese most flagrantly. Gorst says that "rapine, murder and a constant appeal to force chiefly characterized the commencement of Europe's commercial intercourse with China." There are many men of high character engaged in business in the great cities of China. I would not speak any disparaging word of those who are worthy of all respect. But it is all too evident that "many Americans and Europeans doing business in Asia are living the life of the prodigal son who has not yet come to himself." Profane, intemperate, immoral, not living among the Chinese, but segregating themselves in foreign communities in the treaty ports, not speaking the Chinese language, frequently beating and cursing those who are in their employ, regarding the Chinese with hatred and contempt,—it is no wonder that they are hated in return and that their conduct has done much to justify the Chinese distrust of the foreigner. The foreign settlements in the port cities of China are notorious for their profligacy. Intemperance and immorality, gambling and Sabbath desecration run riot. When after his return from a long |