CHAPTER XXI

MY RECALL TO CHINA

In 1894-5 war broke out between China and Japan on account of Korea. My

sympathies were enlisted on the side of China, not because I am a

Chinese, but because China had the right on her side, and Japan was

simply trumping up a pretext to go to war with China, in order to show

her military and naval prowess. Before the close of the war, it was

impossible for me to be indifferent to the situation--I could not

repress my love for China. I wrote to my former legation interpreter and

secretary, two letters setting forth a plan by which China might

prosecute the war for an indefinite time.

My first plan was to go over to London to negotiate a loan of

$15,000,000, with which sum to purchase three or four ready built

iron-clads, to raise a foreign force of 5,000 men to attack Japan in the

rear from the Pacific coast--thus creating a diversion to draw the

Japanese forces from Korea and give the Chinese government a breathing

spell to recruit a fresh army and a new navy to cope with Japan. While

this plan was being carried out, the government was to empower a

commission to mortgage the Island of Formosa to some Western power for

the sum of $400,000,000 for the purpose of organizing a national army

and navy to carry on the war. These plans were embodied in two letters

to Tsai Sik Yung, at that time secretary to Chang Tsze Tung, viceroy of

Hunan and Hupeh. They were translated into Chinese for the Viceroy. That

was in the winter of 1894. To my great surprise, Viceroy Chang approved

of my first plan. I was authorized by cable to go over to London to

negotiate the loan of $15,000,000. The Chinese minister in London, a Li

Hung Chang man, was advised of my mission, which in itself was a

sufficient credential for me to present myself to the minister. In less

than a month after my arrival in London, I succeeded in negotiating the

loan; but in order to furnish collaterals for it, I had to get the

Chinese minister in London to cable the government for the hypothecation

of the customs’ revenue. I was told that Sir Robert Hart,

inspector-general of customs, and Viceroy Li Hung Chang refused to have

the customs’ revenue hypothecated, on the ground that this revenue was

hardly enough to cover as collateral the loan to meet the heavy

indemnity demanded by Japan. The fact was: Viceroy Li Hung Chang and

Chang Chi Tung were at loggerheads and opposed to each other in the

conduct of the war. The latter was opposed to peace being negotiated by

Li Hung Chang; but the former had the Dowager Empress on his side and

was strenuous in his efforts for peace.

Hence Sir Robert Hart had to side with the Court party, and ignored

Chang Chi Tung’s request for the loan of $15,000,000; on that account

the loan fell through, and came near involving me in a suit with the

London Banking Syndicate.

I returned to New York and cabled for further instructions from Chang

Chi Tung as to what my next step would be. In reply he cabled for me to

come to China at once.

After thirteen years of absence from China, I thought that my

connections with the Chinese government had been severed for good when I

left there in 1883. But it did not appear to be so; another call to

return awaited me, this time from a man whom I had never seen, of whose

character, disposition and views I was altogether ignorant, except from

what I knew from hearsay. But he seemed to know all about me, and in

his memorial to the government inviting me to return, he could not have

spoken of me in higher terms than he did. So I girded myself to go back

once more to see what there was in store for me. By this recall, I

became Chang Chi Tung’s man as opposed to Li Hung Chang.

Before leaving for China this time, I took special pains to see my two

sons well provided for in their education. Dr. E. W. Kellogg, my oldest

brother-in-law, was appointed their guardian. Morrison Brown Yung, the

older son, had just succeeded in entering Yale, Sheffield Scientific,

and was able to look out for himself. Bartlett G. Yung, the younger one,

was still in the Hartford High School preparing for college. I was

anxious to secure a good home for him before leaving the country, as I

did not wish to leave him to shift for himself at his critical age. The

subject was mentioned to my friends, Mr. and Mrs. Twichell. They at once

came forward and proposed to take Bartlett into their family as one of

its members, till he was ready to enter college. This is only a single

instance illustrative of the large-hearted and broad spirit which has

endeared them to their people both in the Asylum Hill church and outside

of it. I was deeply affected by this act of self-denial and magnanimity

in my behalf as well as in the behalf of my son Bartlett, whom I felt

perfectly assured was in first-class hands, adopted as a member of one

of the best families in New England. Knowing that my sons would be well

cared for, and leaving the development of their characters to an

all-wise and ever-ruling Providence, as well as to their innate

qualities, I embarked for China, this time without any definite and

specific object in view beyond looking out for what opening there might

be for me to serve her.

On my arrival in Shanghai, in the early part of the summer of 1895, I

had to go to the expense of furnishing myself with a complete outfit of

all my official dresses, which cost me quite a sum. Viceroy Chang Chi

Tung, a short time previous to my arrival, had been transferred from the

viceroyalty of the two Hoos to the viceroyalty of the two Kiangs

temporarily. Instead of going up to Wu Chang, the capital of Hupeh, I

went up to Nanking, where he was quartered.

In Viceroy Chang Chi Tung, I did not find that magnetic attraction which

at once drew me towards Tsang Kwoh Fan when I first met him at Ngan

Khing in 1863. There was a cold, supercilious air enveloping him, which

at once put me on my guard. After stating in a summary way how the loan

of $15,000,000 fell through, he did not state why the Peking government

had declined to endorse his action in authorizing the loan, though I

knew at the time that Sir Robert Hart, the inspector-general of the

Chinese customs, put forward as an excuse that the custom dues were

hardly enough to serve as collateral for the big loan that was about to

be negotiated to satisfy the war indemnity demanded by the Japanese

government. This was the diplomatic way of coating over a bitter pill

for Chang Chi Tung to swallow, when the Peking government, through the

influence of Li Hung Chang, was induced to ignore the loan. Chang and Li

were not at the time on cordial terms, each having a divergent policy to

follow in regard to the conduct of the war.

Dropping the subject of the loan as a dead issue, our next topic of

conversation was the political state of the country in view of the

humiliating defeat China had suffered through the incompetence and

corruption of Li Hung Chang, whose defeat both on land and sea had

stripped him of all official rank and title and came near costing him

his life. I said that China, in order to recover her prestige and

become a strong and powerful nation, would have to adopt a new policy.

She would have to go to work and engage at least four foreigners to act

as advisers in the Department for Foreign Affairs, in the Military and

Naval Departments and in the Treasury Department. They might be engaged

for a period of ten years, at the end of which time they might be

re-engaged for another term. They would have to be men of practical

experience, of unquestioned ability and character. While these men were

thus engaged to give their best advice in their respective departments,

it should be taken up and acted upon, and young and able Chinese

students should be selected to work under them. In that way, the

government would have been rebuilt upon Western methods, and on

principles and ideas that look to the reformation of the administrative

government of China.

Such was the sum and substance of my talk in the first and only

interview with which Chang Chi Tung favored me. During the whole of it,

he did not express his opinion at all on any of the topics touched upon.

He was as reticent and absorbent as a dry sponge. The interview differed

from that accorded me by Tsang Kwoh Fan in 1863, in that Tsang had

already made up his mind what he wanted to do for China, and I was

pointed out to him to execute it. But in the case of Chang Chi Tung, he

had no plan formed for China at the time, and what I presented to him in

the interview was entirely new and somewhat radical; but the close of

the Japan War justified me in bringing forward such views, as it was on

account of that war that I had been recalled. If he had been as broad a

statesman as his predecessor, Tsang Kwoh Fan, he could have said

something to encourage me to entertain even a glimpse of hope that he

was going to do something to reform the political condition of the

government of the country at the close of the war. Nothing, however, was

said, or even hinted at. In fact, I had no other interview with him

after the first one. Before he left Nanking for Wu Chang, he gave me the

appointment of Secretary of Foreign Affairs for Kiang Nan.

On the arrival of Liu Kwan Yih, the permanent viceroy of the two Kiang

provinces, Chang Chi Tung did not ask me to go up to Wu Chang with him.

This I took to be a pretty broad hint that he did not need my services

any longer, that I was not the man to suit his purposes; and as I had

no axe to grind, I did not make any attempt to run after my grind-stone.

On the contrary, after three months’ stay in Nanking under Viceroy Liu

Kwan Yih, out of regard for official etiquette, I resigned the

secretaryship, which was practically a sinecure--paying about $150 a

month. Such was my brief official experience with Viceroys Chang Chi

Tung and Liu Kwan Yih.

I severed my official connection with the provincial government of Kiang

Nan in 1896, and took up my headquarters in Shanghai--untrammeled and

free to do as I pleased and go where I liked. It was then that I

conceived the plan of inducing the central government to establish in

Peking a government national bank. For this object I set to work

translating into Chinese the National Banking Act and other laws

relating to national banks from the Revised Statutes of the United

States with Amendments and additional Acts of 1875. In prosecuting this

work, I had the aid of a Chinese writer, likewise the co-operation of

the late Wong Kai Keh, one of the Chinese students who was afterwards

the assistant Chinese commissioner in the St. Louis Exposition, who gave

me valuable help. With the translation, I went up to Peking with my

Chinese writer, and, at the invitation of my old friend, Chang Yen Hwan,

who had been Chinese Minister in Washington from 1884 to 1888, I took up

my quarters in his residence and remained there several months. Chang

Yen Hwan at that time held two offices: one as a senior member of the

Tsung Li Yamun (Office for Foreign Affairs); the other, as the first

secretary in the Treasury Department of which Ung Tung Hwo, tutor to the

late Emperor Kwang Su, was the president. Chang Yen Hwan was greatly

interested in the National Banking scheme. He examined the translation

critically and suggested that I should leave out those articles that

were inapplicable to the conditions of China, and retain only such as

were important and practicable. After the translation and selection were

completed, he showed it to Ung Tung Hwo, president of the Treasury. They

were both highly pleased with it, and had all the Treasury officials

look it over carefully and pass their judgment upon it. In a few weeks’

time, the leading officials of the Treasury Department called upon me to

congratulate me upon my work, and said it ought to be made a subject of

a memorial to the government to have the banking scheme adopted and

carried out. Chang Yen Hwan came forward to champion it, backed by Ung

Tung Hwo, the president.

To have a basis upon which to start the National Bank of China, it was

necessary to have the government advance the sum of Tls. 10,000,000; of

this sum, upwards of Tls. 2,000,000 were to be spent on machinery for

printing government bonds and bank-notes of different denominations and

machinery for a mint; Tls. 2,000,000 for the purchase of land and

buildings; and Tls. 6,000,000 were to be held in reserve in the Treasury

for the purchase of gold, silver and copper for minting coins of

different denominations for general circulation. This Tls. 10,000,000

was to be taken as the initiatory sum to start the National Bank with,

and was to be increased every year in proportion to the increase of the

commerce of the Empire.

We had made such progress in our project as to warrant our appointing a

committee to go around to select a site for the Bank, while I was

appointed to come to the United States to consult with the Treasury

Department on the plan and scope of the enterprise and to learn the best

course to take in carrying out the plan of the National Bank. The

Treasury Department, through its president, Ung Tung Hwo, was on the

point of memorializing for an imperial decree to sanction setting aside

the sum of Tls. 10,000,000 for the purpose indicated, when, to the

astonishment of Chang Yen Hwan and other promoters of the enterprise,

Ung Tung Hwo, the president, received a telegraphic message from Shing

Sun Whei, head of the Chinese Telegraphic Co., and manager of the

Shanghai, China Steamship Navigation Co., asking Ung to suspend his

action for a couple of weeks, till his arrival in Peking, Ung and Shing

being intimate friends, besides being compatriots, Ung acceded to

Shing’s request. Shing Taotai, as he was called, was well-known to be a

multimillionaire, and no great enterprise or concession of any kind

could pass through without his finger in the pie. So in this banking

scheme, he was bound to have his say. He had emissaries all over Peking

who kept him well posted about everything going on in the capital as

well as outside of it. He had access to the most powerful and

influential princes in Peking, his system of graft reaching even the

Dowager Empress through her favorite eunuch, the notorious Li Ling Ying.

So Shing was a well-known character in Chinese politics. It was through

his system of graft that the banking enterprise was defeated. It was

reported that he came up to Peking with Tls. 300,000 as presents to two

or three princes and other high and influential dignitaries, and got

away with the Tls. 10,000,000 of appropriation by setting up a bank to

manipulate his own projects.

The defeat of the National Banking project owed its origin to the

thoroughly corrupt condition of the administrative system of China. From

the Dowager Empress down to the lowest and most petty underling in the

Empire, the whole political fabric was honey-combed with what Americans

characterize as graft--a species of political barnacles, if I may be

allowed to call it that, which, when once allowed to fasten their hold

upon the bottom of the ship of State were sure to work havoc and

ruination; in other words, with money one could get anything done in

China. Everything was for barter; the highest bid got the prize. The two

wars--the one with Japan in 1894-5 and the other, the Japan and Russian

War in 1904-5--have in some measure purified the Eastern atmosphere, and

the Chinese have finally awakened to their senses and have come to some

sane consciousness of their actual condition.

After the defeat of the national banking project at the hands of Shing

Taotai, I went right to work to secure a railroad concession from the

government. The railroad I had in mind was one between the two ports of

Tientsin and Chinkiang; one in the north, the other in the south near

the mouth of the Yangtze River. The distance between these ports in a

bee line is about five hundred miles; by a circuitous route going around

the province of Shan Tung and crossing the Yellow River into the

province of Hunan through Anwhui, the distance would be about seven

hundred miles. The German government objected to having this railroad

cross Shan Tung province, as they claimed they had the monopoly of

building railroads throughout the province, and would not allow another

party to build a railroad across Shan Tung. This was a preposterous and

absurd pretension and could not be supported either by the international

laws or the sovereign laws of China. At that time, China was too feeble

and weak to take up the question and assert her own sovereign rights in

the matter, nor had she the men in the Foreign Office to show up the

absurdity of the pretension. So, to avoid any international

complications, the concession was issued to me with the distinct

understanding that the road was to be built by the circuitous route

above described. The road was to be built with Chinese, not with foreign

capital. I was given six months’ time to secure capital. At the end of

six months, if I failed to show capital, I was to surrender the

concession. I knew very well that it would be impossible to get Chinese

capitalists to build any railroad at that time. I tried hard to get

around the sticking point by getting foreign syndicates to take over the

concession, but all my attempts proved abortive, and I was compelled to

give up my railroad scheme also. This ended my last effort to help

China.

I did not dream that in the midst of my work, Khang Yu Wei and his

disciple, Leang Kai Chiu, whom I met often in Peking during the previous

year, were engaged in the great work of reform which was soon to

culminate in the momentous _coup d’état_ of 1898.

My Life in China and America · 第 21 / 22 章