supply. So the demand and supply between the two places are not very great, thus the trade between the two ends of the railway could not be very lucrative. While the difference of the economic condition between a well populated country and an unpopulated country is very great. The workers of the new land have to depend upon the supplies of the thickly populated country almost in everything excepting foodstuffs and raw materials which they have in abundance and for disposal of which they have to depend upon the demand of the well populated district. Thus the trade between the two ends of the line will be extraordinarily great. Furthermore, a railway in a thickly populated place will not affect much the masses which consist of the majority of the population. It is only the few well-to-do and the merchants and tradesmen that make use of it. While with a railway between a thickly populated country and a sparsely settled or unsettled country, as soon as it is opened to traffic for each mile, the masses of the congested country will use it and rush into the new land in a wholesale manner. Thus the railway will be employed to its utmost capacity in passenger traffic from the beginning. The comparison between the Peking-Hankow Railway and the Peking-Mukden Railway in China is a convincing proof.

The Peking-Hankow Railway is a line of over eight hundred miles running from the capital of the country to the commercial center in the heart of China right along in an extraordinarily densely settled country from end to end. While the Peking-Mukden line is barely six hundred miles in length running from a thickly populated country to thinly populated Manchuria. The former is a well paying line but the latter pays far better. The net profit of the shorter Peking-Mukden Line is sometimes three to four millions more yearly than that of the longer Peking-Hankow line.

Therefore, it is logically clear that a railway in a thickly populated country is much better than one that is in a thinly populated country in remuneration. But a railway between a very thickly populated and a very thinly populated or unpopulated country is the best paying proposition. This is a law in Railway Economics which hitherto had not been discovered by railway men and financiers.

According to this new railway economic law, our projected railway will be the best remunerative project of its kind. For at the one end, we have our projected port which acts as a connecting link with the thickly populated coast of China and the Yangtze Valley and also the two existing lines, the Kingham and the Tsinpu, as feeders to the projected port and the Dolon Nor line. And at the other end, we have a vast and rich territory, larger than China Proper, to be developed. There is no such vast fertile field so near to a center of a population of four hundred millions to be found in any other part of the world.

PART III
The Colonization of Mongolia and Sinkiang

The Colonization of Mongolia and Sinkiang is a complement of the Railway scheme. Each is dependent upon the other for its prosperity. The colonization scheme, besides benefitting the railway, is in itself a greatly profitable undertaking. The results of the United States, Canada, Australia, and Argentina are ample proofs of this. In the case of our project, it is simply a matter of applying waste Chinese labor and foreign machinery to a fertile land for production for which its remuneration is sure. The present Colonization of Manchuria, notwithstanding its topsy turvy way which caused great waste of land and human energy, has been wonderfully prosperous. If we would adopt scientific methods in our colonization project we could certainly obtain better results than all the others. Therefore, I propose that the whole movement be directed in a systematic way by state organization with the help of foreign experts and war organizers, for the good of the colonists particularly and the nation generally.

The land should be bought up by the state in order to prevent the speculators from creating the dog-in-the-manger system, to the detriment of the public. The land should be prepared and divided into farmsteads, then leased to colonists on perpetual term. The initial capital, seeds, implements and houses should be furnished by the state at cost price on cash or on the instalment plan. For these services, big organizations should be formed and war work measures should be adopted in order to transport, to feed, to clothe and to house every colonist on credit in his first year.

As soon as a sufficient number of colonists is settled in a district, franchise should be given for self-government and the colonists should be trained to manage their own local affairs with perfect democratic spirit.

If within ten years we can transport, let us say, ten millions of the people, from the congested provinces of China, to the Northwestern territory to develop its natural resources, the benefit to the commercial world at large will be enormous. No matter how big a capital that shall have been invested in the project it could be repaid within a very short time. So in regard to its bearing to "the principle of remuneration" there is no question about it.

Regarded from "the principle of the need of the Nation" colonization is the most urgent need of the first magnitude. At present China has more than a million soldiers to be disbanded. Besides, the dense population will need elbow room to move in. This Colonization project is the best thing for both purposes. The soldiers have to be disbanded at great expense and hundreds of millions of dollars may be needed for disbandment alone, in paying them off with a few months' pay. If nothing more could be done for these soldiers' welfare, they will either be left to starve or to rob for a living. Then the consequences will be unimaginable. This calamity must be prevented and prevented effectively. The best way for this is the colonization scheme. I hope that the friendly foreign financiers, who have the welfare of China at heart, when requested to float a reorganization loan for the Chinese Government in the future, will persist on the point—that the money furnished must first be used to carry out the colonization scheme for the disbanded soldiers. Otherwise, their money will only work disasters to China.

For the million or more of the soldiers to be disbanded, the district between our projected port and Dolon Nor is quite enough to accommodate them. This district is quite rich in mineral resources and is very sparsely settled. If a railway is to start at once from the projected port to Dolon Nor these soldiers could be utilized as a pioneer party for the work of the port, of the railway, of the developing of the adjacent land beyond the Great Wall, and of preparing Dolon Nor as a jumping ground for further colonization development of the great northern plain.

PART IV
The Construction of Canals to connect the Inland Waterway Systems of North and Central China with the Great Northern Port

This scheme will include the regulation of the Hoangho and its branches, the Weiho in Shensi, and the Fenho in Shansi and connecting canals. The Hoangho should be deepened at its mouth in order to give a good drawing to clear its bed of silt and carry the same to the sea. For this purpose, jetties should be built far out to the deep sea, as those at the mouths of the Mississippi in America. Its embankments should be parallel in order to make the width of the channel equal right along, so as to give equal velocity to the current which will prevent the deposit of silt at the bottom. By dams and locks, it could be made navigable right up to Lanchow, in the province of Kansu, and at