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In the year 1661 Shun Chih, the first actual Emperor of the Ch`ing dynasty, "became a guest on high." He does not rank as one of China's great monarchs, but his kindly character as a man, and his magnanimity as a ruler, were extolled by his contemporaries. He treated the Catholic missionaries with favour.

That a similar type is not known to exist in China proves nothing conclusive, for China's attitude towards foreign innovations was always more conservative than Japan's. Scabbards, having been mostly of wood, have not survived, but occasionally one is found having a sheeting of copper thickly plated with gold. Arrow-heads are very numerous.

On board the flagship Ting-yuen was Major von Hannekin, China's military adviser, and an ex-petty officer of the British navy named Nichols. Philo N. McGiffin, a graduate of the United States Naval Academy, commanded the Chen-yuen. The Japanese advanced in column, or line ahead, in two divisions.

This was the period of great Japanese enthusiasm for China. The Chinese system of administration was copied, and Buddhism was adopted, together with every possible element of Chinese culture. This meant increased trade with Japan, bringing in large profits to China, and so the Korean middleman was to be eliminated. Externally China's prestige continued at its zenith.

The remedy of China's troubles by a strong, centralized government is on a par with curing disease by the expulsion of a devil. The evil of sectionalism is real, but since it is real it cannot be dealt with by trying a method which implies its non-existence. If the devil is really there, he will not be exorcized by a formula.

"It need not be a transfer of territory, but a 'lease, say for ninety-nine years. This would save China's 'face, and not disturb the powers." Hence a "lease" was prepared for all the territory bounded in a semi-circle drawn fifteen miles from Kiau-chau bay a goodly piece in all conscience. Then came pourparlers for greater German authority, and more territory.

The salt and other monopolies, together with the customs, also contribute an important part of China's revenue. There is the old native customs service, with its stations and barriers all over the empire, and the foreign customs service, as established at the treaty ports only, in order to deal with shipments on foreign vessels trading with China.

Prince Chun thereupon resumed his journey. An impressive, if theatrical, scene was prepared in the New Palace at Potsdam, where the Emperor, seated on the throne, his marshal's baton in his hand, and flanked by Ministers and the officers of his household, received the bearer of China's expressions of regret.

Thus the interests of the Japanese capitalists are amply safeguarded. Although the demand in the fourth group asking for a declaration not to alienate China's coast is an infringement of her sovereign rights, yet the Chinese Government offered to make a voluntary pronouncement so far as it comports with China's sovereign rights.

America, by placing herself in direct communication with the Peking Government on the subject of a possible peace, had given a direct hint that she was solicitous of China's future and determined to help her as far as possible.