Book: The Fight For The Republic in China

B >> Bertram Lenox Putnam Weale >> The Fight For The Republic in China




As we are now able to see very clearly, fifty years ago--that is at the
time of the Taiping Rebellion--the old power and spell of the National
Capital as a military centre had really vanished. Though in ancient days
horsemen armed with bows and lances could sweep like a tornado over the
land, levelling everything save the walled cities, in the Nineteenth
Century such methods had become impossible. Mongolia and Manchuria had
also ceased to be inexhaustible reservoirs of warlike men; the more
adjacent portions had become commercialized; whilst the outer regions
had sunk to depopulated graziers' lands. The Government, after the
collapse of the Rebellion, being greatly impoverished, had openly fallen
to balancing province against province and personality against
personality, hoping that by some means it would be able to regain its
prestige and a portion of its former wealth. Taking down the ledgers
containing the lists of provincial contributions, the mandarins of
Peking completely revised every schedule, redistributed every weight,
and saw to it that the matricular levies should fall in such a way as to
be crushing. The new taxation, _likin_, which, like the income-tax in
England, is in origin purely a war-tax, by gripping inter-provincial
commerce by the throat and rudely controlling it by the barrier-system,
was suddenly disclosed as a new and excellent way of making felt the
menaced sovereignty of the Manchus; and though the system was plainly a
two-edged weapon, the first edge to cut was the Imperial edge; that is
largely why for several decades after the Taipings China was relatively
quiet.

Time was also giving birth to another important development--important
in the sense that it was to prove finally decisive. It would have been
impossible for Peking, unless men of outstanding genius had been living,
to have foreseen that not only had the real bases of government now
become entirely economic control, but that the very moment that control
faltered the central government of China would openly and absolutely
cease to be any government at all. Modern commercialism, already
invading China at many points through the medium of the treaty-ports,
was a force which in the long run could not be denied. Every year that
passed tended to emphasize the fact that modern conditions were cutting
Peking more and more adrift from the real centres of power--the economic
centres which, with the single exception of Tientsin, lie from 800 to
1,500 miles away. It was these centres that were developing
revolutionary ideas--_i.e._, ideas at variance with the Socio-economic
principles on which the old Chinese commonwealth had been slowly built
up, and which foreign dynasties such as the Mongol and the Manchu had
never touched. The Government of the post-Taiping period still imagined
that by making their hands lie more heavily than ever on the people and
by tightening the taxation control--not by true creative work--they
could rehabilitate themselves.

It would take too long, and would weary the indulgence of the reader to
establish in a conclusive manner this thesis which had long been a
subject of inquiry on the part of political students. Chinese society,
being essentially a society organized on a credit-co-operative system,
so nicely adjusted that money, either coined or fiduciary, was not
wanted save for the petty daily purchases of the people, any system
which boldly clutched the financial establishments undertaking the
movement of _sycee_ (silver) from province to province for the
settlement of trade-balances, was bound to be effective so long as those
financial establishments remained unshaken.

The best known establishments, united in the great group known as the
Shansi Bankers, being the government bankers, undertook not only all the
remittances of surpluses to Peking, but controlled by an intricate
pass-book system the perquisites of almost every office-holder in the
empire. No sooner did an official, under the system which had grown up,
receive a provincial appointment than there hastened to him a
confidential clerk of one of these accommodating houses, who in the name
of his employers advanced all the sums necessary for the payment of the
official's post, and then proceeded with him to his province so that
moiety by moiety, as taxation flowed in, advances could be paid off and
the equilibrium re-established. A very intimate and far-reaching
connection thus existed between provincial money-interests and the
official classes. The practical work of governing China was the
balancing of tax-books and native bankers' accounts. Even the
"melting-houses," where _sycee_ was "standardized" for provincial use,
were the joint enterprises of officials and merchants; bargaining
governing every transaction; and only when a violent break occurred in
the machinery, owing to famine or rebellion, did any other force than
money intervene.

There was nothing exceptional in these practices, in the use of which
the old Chinese empire was merely following the precedent of the Roman
Empire. The vast polity that was formed before the time of Christ by the
military and commercial expansion of Rome in the Mediterranean Basin,
and among the wild tribes of Northern Europe, depended very largely on
the genius of Italian financiers and tax-collectors to whom the revenues
were either directly "farmed," or who "assisted" precisely after the
Chinese method in financing officials and local administrations, and in
replenishing a central treasury which no wealth could satisfy. The
Chinese phenomenon was therefore in no sense new; the dearth of coined
money and the variety of local standards made the methods used economic
necessities. The system was not in itself a bad system: its fatal
quality lay in its woodenness, its lack of adaptability, and in its
growing weakness in the face of foreign competition which it could never
understand. Foreign competition--that was the enemy destined to achieve
an overwhelming triumph and dash to ruins a hoary survival.

War with Japan sounded the first trumpet-blast which should have been
heeded. In the year 1894, being faced with the necessity of finding
immediately a large sum of specie for purpose of war, the native bankers
proclaimed their total inability to do so, and the first great foreign
loan contract was signed.[4] Little attention was attracted to what is a
turning-point in Chinese history. There cannot be the slightest doubt
that in 1894 the Manchus wrote the first sentences of an abdication
which was only formally pronounced in 1912: they had inaugurated the
financial thraldom under which China still languishes. Within a period
of forty months, in order to settle the disastrous Japanese war, foreign
loans amounting to nearly fifty-five million pounds were completed. This
indebtedness, amounting to nearly three times the "visible" annual
revenues of the country--that is, the revenues actually accounted for to
Peking--was unparalleled in Chinese history. It was a gold indebtedness
subject to all sorts of manipulations which no Chinese properly
understood. It had special political meaning and special political
consequences because the loans were virtually guaranteed by the Powers.
It was a long-drawn _coup d'etat_ of a nature that all foreigners
understood because it forged external chains.

The _internal_ significance was even greater than the external. The
loans were secured on the most important "direct" revenues reaching
Peking--the Customs receipts, which were concerned with the most vital
function in the new economic life springing up, the steam-borne coasting
and river-trade as well as the purely foreign trade. That most vital
function tended consequently to become more and more hall-marked as
foreign; it no longer depended in any direct sense on Peking for
protection. The hypothecation of these revenues to foreigners for
periods running into decades--coupled with their administration by
foreigners--was such a distinct restriction of the rights of eminent
domain as to amount to a partial abrogation of sovereignty.

That this was vaguely understood by the masses is now quite certain. The
Boxer movement of 1900, like the great proletarian risings which
occurred in Italy in the pre-Christian era as a result of the
impoverishment and moral disorder brought about by Roman misgovernment,
was simply a socio-economic catastrophe exhibiting itself in an
unexpected form. The dying Manchu dynasty, at last in open despair,
turned the revolt, insanely enough, against the foreigner--that is
against those who already held the really vital portion of their
sovereignty. So far from saving itself by this act, the dynasty wrote
another sentence in its death-warrant. Economically the Manchus had been
for years almost lost; the Boxer indemnities were the last straw. By
more than doubling the burden of foreign commitments, and by placing the
operation of the indemnities directly in the hands of foreign bankers by
the method of monthly quotas, payable in Shanghai, _the Peking
Government as far back as fifteen years ago was reduced to being a
government at thirty days' sight, at the mercy of any shock of events
which could be protracted over a few monthly settlements_. There is no
denying this signal fact, which is probably the most remarkable
illustration of the restrictive power of money which has ever been
afforded in the history of Asia.

The phenomenon, however, was complex and we must be careful to
understand its workings. A mercantile curiosity, to find the parallel
for which we must go back to the Middle Ages in Europe, when "free
cities" such as those of the Hanseatic League plentifully
dotted river and coast line, served to increase the general difficulties
of a situation which no one formula could adequately cover.
Extraterritoriality, by creating the "treaty port" in China, had been
the most powerful weapon in undermining native economics; yet at the
same time it had been the agent for creating powerful new
counter-balancing interests. Though the increasingly large groups of
foreigners, residing under their own laws, and building up, under their
own specially protected system of international exchange, a new and
imposing edifice, had made the hovel-like nature of Chinese economics
glaringly evident, the mercantile classes of the New China, being always
quick to avail themselves of money-making devices, had not only taken
shelter under this new and imposing edifice, but were rapidly extending
it of their own accord. In brief, the trading Chinese were identifying
themselves and their major interests with the treaty-ports; they were
transferring thither their specie and their credits; making huge
investments in land and properties, under the aegis of foreign flags in
which they absolutely trusted. The money-interests of the country knew
instinctively that the native system was doomed and that with this doom
there would come many changes; these interests, in the way common to
money all the world over, were insuring themselves against the
inevitable.

The force of this--politically--became finally evident in 1911; and what
we have said in our opening sentences should now be clear. The Chinese
Revolution was an emotional rising against the Peking System because it
was a bad and inefficient and retrograde system, just as much as against
the Manchus, who after all had adopted purely Chinese methods and who
were no more foreigners than Scotchmen or Irishmen are foreigners to-day
in England. The Revolution of 1911 derived its meaning and its value--as
well as its mandate--not from what it proclaimed, but for what it stood
for. Historically, 1911 was the lineal descendant of 1900, which again
was the offspring of the economic collapse advertised by the great
foreign loans of the Japanese war, loans made necessary because the
Taipings had disclosed the complete disappearance of the only _raison
d'etre_ of Peking sovereignty, _i.e._ the old-time military power. The
story is, therefore, clear and well-connected and so logical in its
results that it has about it a finality suggesting the unrolling of the
inevitable.

During the Revolution the one decisive factor was shown to be almost at
once--money, nothing but money. The pinch was felt at the end of the
first thirty days. Provincial remittances ceased; the Boxer quotas
remained unpaid; a foreign embargo was laid upon the Customs funds. The
Northern troops, raised and trained by Yuan Shih-kai, when he was
Viceroy of the Metropolitan province, were, it is true, proving
themselves the masters of the Yangtsze and South China troops; yet that
circumstance was meaningless. Those troops were fighting for what had
already proved itself a lost cause--the Peking System, as well as the
Manchu dynasty. The fight turned more and more into a money-fight. It
was foreign money which brought about the first truce and the transfer
of the so-called republican government from Nanking to Peking. In the
strictest sense of the words every phase of the settlement then arrived
at was a settlement in terms of cash.[5]

Had means existed for rapidly replenishing the Chinese Treasury without
having recourse to European stockmarkets (whose actions are
semi-officially controlled when distant regions are involved) the
Republic might have fared better. But placed almost at once through
foreign dictation under a species of police-control, which while
nominally derived from Western conceptions, was primarily designed to
rehabilitate the semblance of the authority which had been so
sensationally extinguished, the Republic remained only a dream; and the
world, taught to believe that there could be no real stability until the
scheme of government approximated to the conception long formed of
Peking absolutism, waited patiently for the rude awakening which came
with the Yuan Shih-kai _coup d'etat_ of 4th November, 1913. Thus we had
this double paradox; on the one hand the Chinese people awkwardly trying
to be western in a Chinese way and failing: on the other, foreign
officials and foreign governments trying to be Chinese and making the
confusion worse confounded. It was inevitable in such circumstances
that the history of the past six years should have been the history of a
slow tragedy, and that almost every page should be written over with the
name of the man who was the selected bailiff of the Powers--Yuan
Shih-kai.

[Illustration: The Funeral of Yuan Shih-kai: The Procession passing
down the great Palace Approach, with the famous Ch'ien Men (Gate) in the
distance.]

[Illustration: The Provincial Troops of General Chang Hsun at his
Headquarters of Hsuchowfu.]

[Illustration: The Funeral of Yuan Shih-kai: The Catafalque over the
Coffin on its way to the Railway Station.]

[Illustration: The Funeral of Yuan Shih-kai: The Procession passing down
the great Palace Approach, with the famous Ch'ien Men (Gate) in the
distance.]

FOOTNOTES:

[1] As there is a good deal of misunderstanding on the subject of the
Manchus an explanatory note is useful.

The Manchu people, who belong to the Mongol or Turanian Group, number at
the maximum five million souls. Their distribution at the time of the
revolution of 1911 was roughly as follows: In and around Peking say two
millions; in posts through China say one-half million,--or possibly
three-quarters of a million; in Manchuria Proper--the home of the
race--say two or two and a half millions. The fighting force was
composed in this fashion: When Peking fell into their hands in 1644 as a
result of a stratagem combined with dissensions among the Chinese
themselves, the entire armed strength was reorganized in Eight Banners
or Army Corps, each corps being composed of three racial divisions, (1)
pure Manchus, (2) Mongols who had assisted in the conquest and (3)
Northern Chinese who had gone over to the conquerors. These Eight
Banners, each commanded by an "iron-capped" Prince, represented the
authority of the Throne and had their headquarters in Peking with small
garrisons throughout the provinces at various strategic centres. These
garrisons had entirely ceased to have any value before the 18th Century
had closed and were therefore purely ceremonial and symbolic, all the
fighting being done by special Chinese corps which were raised as
necessity arose.

[2] This most interesting point--the immunity of Chinese women from
forced marriage with Manchus--has been far too little noticed by
historians though it throws a flood of light on the sociological aspects
of the Manchu conquest. Had that conquest been absolute it would have
been impossible for the Chinese people to have protected their
women-folk in such a significant way.

[3] A very interesting proof--and one that has never been properly
exposed--of the astoundingly rationalistic principles on which the
Chinese polity is founded is to be seen in the position of priesthoods
in China. Unlike every other civilization in the world, at no stage of
the development of the State has it been necessary for religion in China
to intervene between the rulers and the ruled, saving the people from
oppression. In Europe without the supernatural barrier of the Church,
the position of the common people in the Middle Ages would have been
intolerable, and life, and virtue totally unprotected. Buckle, in his
"History of Civilization," like other extreme radicals, has failed to
understand that established religions have paradoxically been most
valuable because of their vast secular powers, exercised under the mask
of spiritual authority. Without this ghostly restraint rulers would have
been so oppressive as to have destroyed their peoples. The two greatest
monuments to Chinese civilization, then consist of these twin facts;
first, that the Chinese have never had the need for such supernatural
restraints exercised by a privileged body, and secondly, that they are
absolutely without any feeling of class or caste--prince and pauper
meeting on terms of frank and humorous equality--the race thus being the
only pure and untinctured democracy the world has ever known.

[4] (a) This loan was the so-called 7 per cent. Silver loan of 1894 for
Shanghai Taels 10,000,000 negotiated by the Hongkong & Shanghai Bank. It
was followed in 1895 by a L3,000,000 Gold 6 per cent. Loan, then by two
more 6 per cent. loans for a million each in the same year, making a
total of L6,635,000 sterling for the bare war-expenses. The Japanese war
indemnity raised in three successive issues--from 1895 to 1898--of
L16,000,000 each, added L48,000,000. Thus the Korean imbroglio cost
China nearly 55 millions sterling. As the purchasing power of the
sovereign is eight times larger in China than in Europe, this debt
economically would mean 440 millions in England--say nearly double what
the ruinous South African war cost. It is by such methods of comparison
that the vital nature of the economic factor in recent Chinese history
is made clear.

[5] There is no doubt that the so-called Belgian loan, L1,800,000 of
which was paid over in cash at the beginning of 1912, was the instrument
which brought every one to terms.




CHAPTER II

THE ENIGMA OF YUAN SHIH-KAI

THE HISTORY OF THE MAN FROM THE OPENING OF HIS CAREER IN KOREA IN 1882
TO THE END OF THE REVOLUTION, 12TH FEBRUARY, 1912


Yuan Shih-kai's career falls into two clear-cut parts, almost as if it
had been specially arranged for the biographer; there is the
probationary period in Korea, and the executive in North China. The
first is important only because of the moulding-power which early
influences exerted on the man's character; but it is interesting in
another way since it affords glimpses of the sort of things which
affected this leader's imagination throughout his life and finally
brought him to irretrievable ruin. The second-period is choke-full of
action; and over every chapter one can see the ominous point of
interrogation which was finally answered in his tragic political and
physical collapse.

Yuan Shih-kai's origin, without being precisely obscure, is unimportant.
He came of a Honanese family who were nothing more distinguished than
farmers possessing a certain amount of land, but not too much of the
world's possessions. The boy probably ran wild in the field at an age
when the sons of high officials and literati were already pale and
anaemic from over-much study. To some such cause the man undoubtedly
owed his powerful physique, his remarkable appetite, his general
roughness. Native biographers state that as a youth he failed to pass
his _hsiu-tsai_ examinations--the lowest civil service degree--because
he had spent too much time in riding and boxing and fencing. An uncle in
official life early took charge of him; and when this relative died the
young man displayed filial piety in accompanying the corpse back to the
family graves and in otherwise manifesting grief. Through official
connections a place was subsequently found for him in that public
department under the Manchus which may be called the military
intendancy, and it was through this branch of the civil service that he
rose to power. Properly speaking Yuan Shih-kai was never an
army-officer; he was a military official--his highest rank later on
being that of military judge, or better, Judicial Commissioner.

Yuan Shih-kai first emerges into public view in 1882 when, as a sequel
to the opening of Korea through the action of foreign Powers in forcing
the then Hermit kingdom to sign commercial treaties, China began
dispatching troops to Seoul. Yuan Shih-kai, with two other officers,
commanding in all some 3,000 men, arrived from Shantung, where he had
been in the train of a certain General Wu Chang-ching, and now encamped
in the Korean capital nominally to preserve order, but in reality, to
enforce the claims of the suzerain power. For the Peking Government had
never retreated from the position that Korea had been a vassal state
ever since the Ming Dynasty had saved the country from the clutches of
Hideyoshi and his Japanese invaders in the Sixteenth Century. Yuan
Shih-kai had been personally recommended by this General Wu Chang-ching
as a young man of ability and energy to the famous Li Hung Chang, who as
Tientsin Viceroy and High Commissioner for the Northern Seas was
responsible for the conduct of Korean affairs. The future dictator of
China was then only twenty-five years old.

His very first contact with practical politics gave him a peculiar
manner of viewing political problems. The arrival of Chinese troops in
Seoul marked the beginning of that acute rivalry with Japan which
finally culminated in the short and disastrous war of 1894-95. China, in
order to preserve her influence in Korea against the growing influence
of Japan, intrigued night and day in the Seoul Palaces, allying herself
with the Conservative Court party which was led by the notorious Korean
Queen who was afterwards assassinated. The Chinese agents aided and
abetted the reactionary group, constantly inciting them to attack the
Japanese and drive them out of the country.

Continual outrages were the consequence. The Japanese legation was
attacked and destroyed by the Korean mob not once but on several
occasions during a decade which furnishes one of the most amazing
chapters in the history of Asia. Yuan Shih-kai, being then merely a
junior general officer under the orders of the Chinese Imperial
Resident, is of no particular importance; but it is significant of the
man that he should suddenly come well under the limelight on the first
possible occasion. On 6th December, 1884, leading 2,000 Chinese troops,
and acting in concert with 3,000 Korean soldiers, he attacked the Tong
Kwan Palace in which the Japanese Minister and his staff, protected by
two companies of Japanese infantry, had taken refuge owing to the
threatening state of affairs in the capital. Apparently there was no
particular plan--it was the action of a mob of soldiery tumbling into a
political brawl and assisted by their officers for reasons which appear
to-day nonsensical. The sequel was, however, extraordinary. The Japanese
held the Palace gates as long as possible, and then being desperate
exploded a mine which killed numbers of Koreans and Chinese soldiery and
threw the attack into confusion. They then fought their way out of the
city escaping ultimately to the nearest sea-port, Chemulpo.

The explanation of this extraordinary episode has never been made
public. The practical result was that after a period of extreme tension
between China and Japan which was expected to lead to war, that
political genius, the late Prince Ito, managed to calm things down and
arrange workable _modus vivendi_. Yuan Shih-kai, who had gone to
Tientsin to report in person to Li Hung Chang, returned to Seoul
triumphantly in October, 1885, as Imperial Resident. He was then
twenty-eight years old; he had come to the front, no matter by what
means, in a quite remarkable manner.

The history of the next nine years furnishes plenty of minor incidents,
but nothing of historic importance. As the faithful lieutenant of Li
Hung Chang, Yuan Shih-kai's particular business was simply to combat
Japanese influence and hold the threatened advance in check. He failed,
of course, since he was playing a losing game; and yet he succeeded
where he undoubtedly wished to succeed. By rendering faithful service
he established the reputation he wished to win; and though he did
nothing great he retained his post right up to the act which led to the
declaration of war in 1894. Whether he actually precipitated that war is
still a matter of opinion. On the sinking by the Japanese fleet of the
British steamer _Kowshing_, which was carrying Chinese reinforcements
from Taku anchorage to Asan Bay to his assistance, seeing that the game
was up, he quietly left the Korean capital and made his way overland to
North China. That swift, silent journey home ends the period of his
novitiate.

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