[29] We need only give a single example of what we mean.  If, in the matter of the reform of the currency, instead of authorizing trade-agencies, i.e. the foreign Exchange Banks, to make a loan to China, which is necessarily hedged round with conditions favourable to such trade-agencies, the Powers took the matter directly in their own hands; and selecting the Bank of China—­the national fiscal agent—­as the instrument of reform agreed to advance all the sums necessary, provided a Banking Law was passed by the Parliament of China of a satisfying nature, and the necessary guarantees were forthcoming, it would soon be possible to have a uniform National Currency which would be everywhere accepted and lead to a phenomenal trade expansion.  It should be noted that China is still on a Copper Standard basis,—­the people’s buying and selling being conducted in multiples of copper cent-pieces of which there has been an immense over-issue, the latest figures showing that there are no less than 22,000,000,000 1-cent, ten cash pieces in circulation or 62 coins per head of population—­roughly twenty-five millions sterling in value,—­or 160,000 tons of copper!  The number of silver dollars and subsidiary silver coins is not accurately known,—­nor is the value of the silver bullion; but it certainly cannot greatly exceed this sum.  In addition there is about L15,000,000 of paper money.  A comprehensive scheme of reform, placed in the hands of the Bank of China, would require at least L15,000,000; but this sum would be sufficient to modernize the currency and establish a universal silver dollar standard.

The Bank of China requires at least 600 branches throughout the country to become a true fiscal agent.  It has to-day one-tenth of this number.

[30] It should be carefully noted that not only has Japan no unfriendly feelings for Germany but that German Professors have been appointed to office during the war.  In the matter of enemy trading Japan’s policy has been even more extraordinary.  Until there was a popular outcry among the Entente Allies, German merchants were allowed to trade more or less as usual.  They were not denied the use of Japanese steamers, shipping companies being simply “advised” not to deal with them, the two German banks in Yokohama and Kobe being closed only in the Autumn of 1916.  It was not until April, 1917, that Enemy Trading Regulations were formally promulgated and enforced,—­that is when the war was very far advanced—­the action of China against Germany being no doubt largely responsible for this step.

That the Japanese nation greatly admires the German system of government and is in the main indifferent to the results of the war has long been evident to observers on the spot.