Governor Kao had a most unfortunate financial inheritance, since his two predecessors 40 dissipated the funds of the province that not only was the treasury empty but the credit of the administration had gone. Indeed its resources have} been so anticipated that the official receipts for the first month of the government were only $200,- Many public buildings have been mortgaged and valuable concessions have passed out of government control. The Forestry Department and Forest Reserves, instituted at great cost by the Germans when in control of Tsingtao, were all but lost to the Chinese people; but by happy chance the Governor found out about it and cancelled the sale, Another tremerdoas handicap the Navy, a cumbersome collection of antiquated tubs, no one of them less than 25 years old, for whose upkeep the Governor is supposed to find $150,000 a month. The buildings are in a sad state disrepair and the roads, which received only superficial attention tion, were entirely neglected during the sway of the first two Chinese governors. Since March a great cal of improvement has been made fon the roadways, which have also been widened, but much remains to Money is acutely needed and in order to get funds to carry on the well as to m: sary improvements, the Governor proposed to lease for 30 years some 40 of the public buildings, most of them vacant and falling into disuse. For this he has been much criticized, some regarding the lenses as in the nature of a sale, which would, of course, be illegal; others pointing, out that, even if they were all sold, the revenue would be but $880,000, an inconsiderable part of their real value. As a matter of fact, few purchasers have come forward, fearing mo' doubt that the next Governor might reverse the policy of the present Executive and their bargain would not stand.
It is the opinion of our informant that Governor Kao is an upright oficial of sterling principles and that if he is only permitted two three years to work out his reforms he will demonstrate his ability. His relations with foreigners are pleasant and he seems generally regarded as a man of fine public spirit,
Text read from the printed page and cleaned; old type leaves the occasional error.