to be unnecessarily indignant. If they are financiers pure and simple, why should they not become political tools of the Russian Government? Pure finance has no passions or prejudices. If from the Russo-Chinese Bank, which is assumed to mean the Russian Government, certain Belgian financiers can get, in exchange for political usefulness, better terms than the open market would give them, why should they not take those terms? As financiers seeking to earn a profit they can have no objection to becoming a political cat's-paw if it pay them to become a political cat's-paw.

An American scheme, which certainly is purely financial and non-political, is to build from Canton northwards, into the valley of the Yang-tsze, a line that would no doubt meet and become the continuation of the Belgian line that is to run from Peking southwards. The Belgian and American schemes, when combined, would therefore connect Peking with Canton, while a short British line is proposed to connect the latter city with British Kowloon opposite Hong Kong. That short British scheme is, however, independent of any other, and will no doubt be proceeded with, in any event, on its own merits.

With these and various lesser schemes the total railway mileage at present proposed to be constructed in China proper is about 3,000 miles, which at £8,000 per mile would cost about £24,000,000. Beyond, and in addition to that, is the line to

be constructed by Russia in Manchuria, which I do not take into the present calculation, partly because Manchuria is outside of China proper, and partly because the Russian railway scheme is the one scheme that is certain to go on quickly, and that belongs therefore to a somewhat different category from the others. It cannot be said that that quantity of mileage or that sum of money is too much for the railway necessities of China. The total mileage proposed to be constructed is really moderate, and, oddly enough, no part of that mileage is foolishly or wastefully conceived. All of it seems designed to follow certain natural trade routes, to tap wealthy areas and great populations, and, generally speaking, to serve useful purposes. Nor do I doubt that the railways I have enumerated, if properly constructed and properly worked, would be remunerative adventures.

The general scheme of these railways is to drive a great trunk line amidst the teeming population that exists between Peking and Canton, at the same time to connect China on the north with Siberia, and on the south with Burmah, while simultaneously bringing all railways into touch with the great navigable rivers, and therefore with the open sea. It is an extraordinary thing that, as an outcome of selfish international jealousies and of opposing financial interests, there should emerge a scheme of railway construction that might almost have been devised by a prudent

and sagacious Government, intent only on benefiting the people of China and promoting the commerce of the world.

Now let us consider how these schemes are likely to progress. The railway development of Manchuria, and the connection of Port Arthur and Talienwan with Siberia, may be taken as settled. In a few years that scheme will be completed.

The extension to Niu-chwang of the railway that rests on the Pei-ho River may also be taken as fairly hopeful of completion. It is true that the Russian Government has made itself very disagreeable over this railway, and has been able to impose the condition that that portion of the railway beyond the Great Wall of China shall not be subject to foreclosure for financial default. Such a condition, with which Russia can have no possible concern, save on the theory that Manchuria is practically a Russian province, was calculated to hamper the financing of the line. But the people who are going to finance the line the Hong Kong and Shanghai Banking Corporation and Messrs. Jardine, Matheson and Co. -are old hands in dealing with the Chinese Government, and the financing has been practically arranged. Indeed, as I write-Christmas, 1898the Tsung-li-Yamen has formally agreed that the Chinese Government will not alienate or part with the northern railways that are to be pledged with or through the Hong Kong and Shanghai Bank. That

formal undertaking was given to the British Minister, and it is, of course, calculated to smooth the ways of financing for the northern railway extension connecting Shan-kai-wan with Niu-chwang.

Another railway that is likely to proceed is the Anglo-German scheme that will start at Tientsin, connecting therefore with Niu-chwang, will run southwards to the very important river port of Chingkiang, will open up part of Shantung, and will tap the trade route of the Grand Canal. The English financial interests here are also in the care of the Hong Kong and Shanghai Bank and of Messrs. Jardine, Matheson and Co.

The proposed British railway from Kowloon to Canton will be constructed. The proposed French lines from Tonquin seem lines that are only to be talked about. The connection of Burmah with Yunnan, although by no means certain, is a scheme to be placed in a wholly different category from the French schemes. The Burmah connection will be built unless the physical geography of the country renders the scheme impracticable, save at an excessive cost. It may be remembered that some years back the Government of India decided to build a railway from Mandalay to the Kunlon Ferry on the Salween River. The object of the work was to develop the Shan States, and to encourage the opening up of one of the old trade routes to China, the route by which Marco Polo travelled. The

Burmah Railways Company, which in 1896 took over all the Burmah railways from the Government of India, has been steadily prosecuting the construction of this railway to the Kunlon Ferry.

The work presents exceptional engineering difficulties, the greatest of which is the bridging of the Gohtick Gorge, over which it is necessary to throw a viaduct on iron trestles nearly 400 feet above the bed of the stream. The extension to Kunlon Ferry, however, is proceeding. As to the further extension that is to lead into China, discouraging statements have been published to the effect that the character of the country on the China side of the ferry is impossible, and that it is impracticable, at any reasonable expenditure, to tap from Burmah the south-west of China. These vague fears have delayed the proper and thorough examination of the route, but such delay has only been a delay. Now a properly-organized party of capable officers has set forth, with the encouragement of the Indian Government, to make a scientific examination of the country. That, of course, will take time, but before the railway now under construction has been advanced as far as the Salween River the report of the exploration-party will be received. Until the report be produced, it is idle to speculate on the result; but if that report be not unfavourable, the railway connection will certainly be made.

The key of the railway situation in China is,