and sold for America 40,000 tons of rails. Then I got them to try a little of the American cotton, telling them if it was not satisfactory I would pay for the cotton, and the result was satisfactory."

In these ways, the interrelation of nations is becoming closer and closer, their separation from the world's life more and more difficult. Dr. Josiah Strong well observes :—

"Until the nineteenth century, there was but little contact between different peoples throughout the world. They were separated, not only by distances hard to overcome, but by differences of speech, of faith, of mental habit and mode of life, of custom and costume, of government and law, and isolation tended steadily to emphasize the divergence which already existed. Thus increasing differences of environment perpetuated and intensified the differences of civilization which they had created. In other words, until the nineteenth century, the stream of tendency down all the ages was towards diversity. Then came the change, the results of which are, in their magnitude and importance, beyond calculation. Steam annihilated nine-tenths of space, and electricity has cancelled the remainder. Isolation is, therefore, becoming impossible, for the world is now a neighbourhood. This means that differences of environment will, from this time on, become constantly less. The swift ships of commerce are mighty shuttles which are weaving the nations together into one great web of life."

IX

THE ECONOMIC REVOLUTION IN ASIA1

T

HE result of the operation of this commercial force is an economic revolution of vast proportions. Wherever I went in Asia, I found wider interest in this subject than in the aggressions of European nations. The reason is obvious. The common people in Asia care little for politics, but the price of food and raiment touches every man, woman and child at a sensitive point. Almost everywhere, the old days of cheap living are passing away. Steamers, railways, telegraphs, newspapers, labour-saving machinery, and the introduction of western ideas are slowly but surely revolutionizing the Orient. Shantung wheat, which formerly had no market beyond a radius of a few dozen miles from the wheat-field, can now be shipped by railroad and steamship to any part of the world, and every Chinese buyer has to pay more for it in consequence. In like manner new facilities for export have doubled, trebled and, in some places, quadrupled the price of rice in China, Siam and Japan. The Consul-General of the United States at Shanghai reports that the prices of seventeen staple articles of export have increased sixteen per cent. in twenty years while in Japan the increase in the same articles for the same period was thirty-one per cent."

The depreciation in the value of silver has still further complicated the situation. The common Chinese tael, which formerly bought from 1,500 to 1,800 cash (the current coin of China), now buys only 950 cash. The Shanghai tael brings

1 Part of this chapter appeared as an article in the Century Magazine, March, 1904.

?" Commercial China," p. 2902.

897 cash, and the Mexican dollar only 665. This of course, means that the common people, who use only cash, have to pay a larger number of them for the necessaries of life. The same difficulty is being felt to a greater or less extent in many other countries of Asia, while in China, an already serious advance in prices is being heightened by the heavy import taxes which have been levied to meet the indemnity imposed by the Western Powers on account of the Boxer outbreak.

The prices of labour and materials have sharply advanced in consequence of the enormous demands incident to the construction of railways, with their stations, shops and round-houses, the vast engineering schemes of the Germans at Tsing-tau, the British at Wei-hai Wei and the Russians at Port Arthur, the extensive scale on which the Legations have rebuilt in Peking, the reconstruction of virtually the entire business portions of both Peking and Tien-tsin, as well as the coincident rebuilding of the mission stations of all denominations, Protestant and Catholic. It will be readily understood what all this activity means in a land where there are as yet but limited supplies of the kind of skilled labourers required for foreign buildings, and where the requisite materials must be imported from Europe and America by firms who "are not in China for their health.” It is futile to hope that the competition will be materially less next year, or the year after, or the year after that. Commerce and politics are projecting works in China which will not be completed for many years. Railway officials told me of projected lines which will require decades for construction. China has entered upon an era of commercial development. The Western world has come to stay, and while there may be temporary reactions, as there have been at home, prices are not likely to return to their former level. There are vast interior regions which will not be affected for an indefinite period, but for the coast provinces, primitive conditions are passing forever.

The knowledge of modern inventions and of other foods and articles has created new wants. The Chinese peasant is no