There is one highest, ultimate principle of all existence,—­the Tae-keih, or Grand Extreme.  This is absolutely immaterial, and the basis of the order of the universe.  From this ultimate principle, operating from all eternity, come all animate and inanimate nature.  It operates in a twofold way, by expansion and contraction, or by ceaseless active and passive pulsations.  The active expansive pulsation is called Yang, the passive intensive pulsation is Yin, and the two may be called the Positive and Negative Essences of all things.  When the active expansive phase of the process has reached its extreme limit, the operation becomes passive and intensive; and from these vibrations originate all material and mortal existences.  Creation is therefore a perpetual process,—­matter and spirit are opposite results of the same force.  The one tends to variety, the other to unity; and variety in unity is a permanent and universal law of being.  Man results from the utmost development of this pulsatory action and passion; and man’s nature, as the highest result, is perfectly good, consisting of five elements, namely, charity, righteousness, propriety, wisdom, and sincerity.  These constitute the inmost, essential nature of man; but as man comes in contact with the outward world evil arises by the conflict.  When man follows the dictates of his nature his actions are good, and harmony results.  When he is unduly influenced by the outward world his actions are evil, and discord intervenes.  The holy man is one who has an instinctive, inward sight of the ultimate principle in its twofold operation (or what we should call the sight of God, the beatific vision), and who therefore spontaneously and easily obeys his nature.  Hence all his thoughts are perfectly wise, his actions perfectly good, and his words perfectly true.  Confucius was the last of these holy men.  The infallible authority of the Sacred Books results from the fact that their writers, being holy men, had an instinctive perception of the working of the ultimate principle.

All Confucian philosophy is pervaded by these principles:  first, that example is omnipotent; secondly, that to secure the safety of the empire, you must secure the happiness of the people; thirdly, that by solitary persistent thought one may penetrate at last to a knowledge of the essence of things; fourthly, that the object of all government is to make the people virtuous and contented.

Sec. 5.  Lao-tse and Tao-ism.

One of the three religious systems of China is that of the Tao, the other two being that of Confucius, and that of Buddhism in its Chinese form.  The difficulty in understanding Tao-ism comes from its appearing under three entirely distinct forms:  (1) as a philosophy of the absolute or unconditioned, in the great work of the Tse-Lao, or old teacher;[16] (2) as a system of morality of the utilitarian school,[17] which resolves duty into prudence; and (3) as a system of magic, connected with the belief in spirits.  In the Tao-te-king we have the ideas of Lao himself, which we will endeavor to state; premising that they are considered very obscure and difficult even by the Chinese commentators.