May 30.
Tue situation in north China is the most extraordinary that has been seen since China nominally became a Republic. Within twenty-four hours of the Dragon Festival, when money is almost as greatly in demand as at China. New Year, not only is there no money for the multifarious needs of Government, but it might be said that, even if there were, there is no Government to distribute it. Mr. Tung Kang's position as Minister of Finance commands more pity than hopefulness. He is there chiefly because he wrote a denunciation of corruption in high places which has actually made his name known in London, whereby it is hoped that he may impress the foreigner and delude him into opening his purse. But that is palpably a delusion; and though we hear of promissory notes to pay such pressing claimants as the police, there is no sign of ready money forthcoming, and the salt surplus, the only lable security, is probably carrying more than it ought to bear. Nor is there any hope from Mr. Kao En-hung, Minister of Communications because he is General Wu Pei-fu's old friend and may thus impart some of General Wu's prestige to the remnants of Government. But General Wu has made it clear that the appointment is none of his choosing and that Mr. Kao has merely been lent to Peking for ''face'' sake until after the Dragon Festival. In any case the railways have probably been milked dry of every penny by previous Ministers of Communications. The other Ministers appear to be taking a holiday and there is no Premier, while in the Presidential Palace sits President Hsu Shih-chang undisturbed because no one has openly chal-
Text read from the printed page and cleaned; old type leaves the occasional error.