est services. In the organization of modern business out of the traditional methods in China, some of the excellences of the ancient system tend to become defects unless they are corrected. The traditional commercial virtue of the Chinese should be taken over into the modern method of doing business, or there will result a reign of rank materialism in China. It is there that the sympathetic guidance of Americans in coöperative enterprise can do the most for China-to teach them the proper and effective use of corporate machinery.

From an intercourse extending over a period of 140 years, there has resulted on the part of the Chinese a feeling of confidence, trust and good will towards the Americans, who have desired that the Chinese should be masters in their own country. The Americans, for their part, have confidence in Chinese honesty, fairness, and humanity. You may take it as a rule that the longer anyone has worked among the Chinese, and especially in the interior, the more strongly will he be impressed by their fine qualities and capacities.

The word "prestige" is very often mentioned in international matters"we must not lose our prestige," or "this action would be dangerous to our prestige"; it is a term very closely bound up with what we call the old diplomacy. Where prestige is the result of strength of resources, of sound methods and of just dealing, it is a national asset. But there is often a desire to get prestige by outward bravado and the rattling of sabres. Those who rattle sabres, I think history has shown, have gained in the long run only hatred or ridicule, or both.

The Chinese are keen judges of human nature and human character, and are not impressed by bluster. If anyone loses his temper it strikes them as

amusing, and if anyone swears and scolds, they smile. They can only be moved by a man who keeps himself perfectly in hand and remains calm and reasonable; otherwise, whatever he may say or do is discounted. In international intercourse they have, of course, been repeatedly made to do things by the mailed fist, by being told "this must be done or the war ships will bombard." We must remember, however, that action in such cases was taken by individual officials or ministers who stood alone without feeling back of them the public opinion of a great nation restraining and upholding. Very often the most valuable concessions were given in a weak desire to put off the evil day, to gain a present respite in the hope that the evil could be undone in the future. The individual minister did not himself have the strength of stubborn resistance. Therein lies the weakness of the Chinese; they do not have the spirit of John Hampden and Luther, the strength to stand up and say, "Here I am, and nothing shall move me, because it is my right."

It is a remarkable fact that when a Chinese desires to protest against an evil he commits suicide as a last resort. We do not yet know all the facts of the recent suicide of the Viceroy of Nankin, a very able and strong man; but it is reported that he has left in writing a statement that he felt unable to cope with the difficulties which confront China, and that therefore he resigned his life. That has been one way which both men and women in China have taken to resist or protest evil.

In China right has always been vindicated by society as a whole rather than by individuals; and society has been strong to resist evil, to oppose tyranny. Therefore they have relied upon it and not upon individual action. Society has protested in a different

way from individuals, and in a very effective way-by passive resistance or non-action. The first thing anyone who desires to understand the Chinese must know is that the Chinese do not think very much of the formal act of the government. They know that nothing can be accomplished permanently unless the people are convinced of its justice; otherwise, they will fall back on passive resistance and the enterprise in question will not make much progress, it will not be profitable or beneficial, because there will be a little resistance here and a little delay. there a boycott, a strike or mere leaden indifference. The usual way in which official acts that were considered unjust were resisted was by universal strike; all the shops would close, people simply sat down and did nothing. The magistrate responsible had to scurry about to make a compromise; he had to call the business people together and talk it over, and see how it could be adjusted; but if he could not settle the trouble he had to leave and make way for somebody else. So the Chinese were not at first sufficiently aware of the danger of making extensive national concessions to foreigners; they were accustomed to see time smoothe out the acerbities of unfair projects. The traditional method worked well enough until China came out into international life. But when her affairs became interwoven with those of other nations, when pressure was brought to bear by foreign diplomats insisting on concessions which were then enforced by gun-power, the old methods of adjustment could not be relied on. China in many cases was tied up unmercifully, as in the case of Shantung and the concessions to Germany, which could have been resisted.

There has come about within the last two years an organization of public

opinion in China on a national basis,which is in a fair way to change all this. At the present time the men who manage the public business of China have come to feel back of them the enormous strength of public opinion, which restrains them for they do not dare to make any concessions that will be disapproved-but which also upholds them in any resistance to unjust demands. That is an entirely new thing in the development of China. Heretofore, public opinion has been purely negative in its action, and the individual has not come forward; now individual leaders appear and public opinion makes positive demands.

At the present time public opinion in China is becoming active, demanding certain things, forbidding others; official action is both strengthened and restrained by this new development. It may truly be said, "the first time in four thousand years." When we consider that, you will see what a treasure it is to us that the people of China who are coming to their own, who are now beginning actively to think about political affairs and to influence the course of their government, cherish within their hearts a feeling of confidence towards the United States; and you will agree with me that it is not a matter of indifference to this nation what is thought of us by the four hundred million who live beyond the Pacific. It is not a matter of indifference to us whether they are to continue an industrious, peaceable nation, aiming at greater approximation to our democratic practices and ideas, or whether they are to be stirred up by foreign aggression into militarism or by foreign intrigue made to misunderstand our national purposes. The good will of the Chinese excuses itself also in a universal desire among the

for the purpose prescribed by any treaty now existing between the government of the United States and the nation or country of which such alien is a citizen or subject, and not otherwise.

SECTION 3. Any company, association or corporation organized under the laws of this or any other state or nation, of which a majority of the members are aliens other than those specified in section one of this act, or in which a majority of the issued capital stock is owned by such aliens, may acquire, possess, enjoy and convey real property, or any interest therein, in this state, in the manner and to the extent and for the purposes prescribed by any treaty now existing between the government of the United States and the nation or country of which such members or stockholders are citizens or subjects, and not otherwise. Hereafter all aliens other than those specified in section one hereof may become members of or acquire shares of stock in any company, association or corporation that is or may be authorized to acquire, possess, enjoy or convey agricultural land, in the manner and to the extent and for the purposes prescribed by any treaty now existing between the government of the United States and the nation or country of which such alien is a citizen or subject, and not otherwise.

SECTION 4. Hereafter no alien. mentioned in section two hereof and no company, association or corporation mentioned in section three hereof, may be appointed guardian of that portion of the estate of a minor which consists of property which such alien or such company, association or corporation is inhibited from acquiring, possessing, enjoying or transferring by reason of the provisions of this act. The public administrator of the proper county, or any other competent person or corporation, may be appointed guardian of the estate of a minor citizen whose parents are ineligible to appointment under the provisions of this section.

On such notice to the guardian as the court may require, the superior court may remove the guardian of such an estate whenever it appears to the satisfaction of the court:

(a) That the guardian has failed to file the report required by the provisions of section five hereof; or

(b) That the property of the ward has not been or is not being administered with due regard to the primary interest of the ward; or

(c) That facts exist which would make the guardian ineligible to appointment in the first instance; or

(d) That facts establishing any other legal ground for removal exist.

SECTION 5. (a) The term "trustee” as used in this section means any person, company, association or corporation that as guardian, trustee, attorney-in-fact or agent, or in any other capacity has the title, custody or control of property, or some interest therein, belonging to an alien mentioned in section two hereof, or to the minor child of such an alien, if the property is of such a character that such alien is inhibited from acquiring, possessing, enjoying or transferring it.

(b) Annually on or before the thirtyfirst day of January every such trustee must file in the office of the secretary of state of California and in the office of the county clerk of each county in which any of the property is situated, a verified written report showing:

(1) The property, real or personal, held by him for or on behalf of such an alien or minor;

(2) A statement showing the date when each item of such property came into his possession or control;

(3) An itemized account of all expenditures, investments, rents, issues and profits in respect to the administration and control of such property with particular reference to holdings of corporate stock and leases, cropping contracts and other agreements in respect to land and the handling or sale of products thereof.

(c) Any person, company, association or corporation that violates any provision of this section is guilty of a misdemeanor and shall be punished by a fine not exceeding one thousand dollars or by imprisonment in the county jail not exceeding one year, or by both such fine and imprisonment. (d) The provisions of this section are

cumulative and are not intended to change the jurisdiction or the rules of practice of courts of justice.

SECTION 6. Whenever it appears to the court in any probate proceeding that by reason of the provisions of this act any heir or devisee can not take real property in this state or membership or shares of stock in a company, association or corporation which, but for said provisions, said heir or devisee would take as such, the court, instead of ordering a distribution of such property to such heir or devisee, shall order a sale of said property to be made in the manner provided by law for probate sales of property and the proceeds of such sale shall be distributed to such heir or devisee in lieu of such property.

SECTION 7. Any real property hereafter acquired in fee in violation of the provisions of this act by any alien mentioned in section two of this act, or by any company, association or corporation mentioned in section three of this act, shall escheat to, and become and remain the property of the State of California. The attorney general or district attorney of the proper county shall institute proceedings to have the escheat of such real property adjudged and enforced in the manner provided by section four hundred seventy-four of the Political Code and title eight, part three of the Code of Civil Procedure. Upon the entry of final judgment in such proceedings, the title to such real property shall pass to the State of California. The provisions of this section and of sections two and three of this act shall not apply to any real property hereafter acquired in the enforcement or in satisfaction of any lien now existing upon, or interest in such property, so long as such real property so acquired shall remain the property of the alien, company, association or corporation acquiring the same in such manner. No alien, company, association, or corporation mentioned in section two or section three hereof shall hold for a longer period than two years the possession of any agricultural land acquired in the enforcement of, or in satisfaction of a mortgage or other lien hereafter made or acquired in good faith to secure a debt.

SECTION 8. Any leasehold or other inter

est in real property less than the fee, hereafter acquired in violation of the provisions of this act by any alien mentioned in section two of this act, or by any company, association or corporation mentioned in section three of this act, shall escheat to the State of California. The attorney general or district attorney of the proper county shall institute proceedings to have such escheat adjudged and enforced as provided in section seven of this act. In such proceedings the court shall determine and adjudge the value of such leasehold or other interest in such real property, and enter judgment for the state for the amount thereof together with costs. Thereupon the court shall order a sale of the real property covered by such leasehold, or other interest, in the manner provided by section twelve hundred seventy-one of the Code of Civil Procedure. Out of the proceeds arising from such sale, the amount of the judgment rendered for the state shall be paid into the state treasury and the balance shall be deposited with and distributed by the court in accordance with the interest of the parties therein. Any share of stock or the interest of any member in a company, association or corporation hereafter acquired in violation of the provisions of section three of this act shall escheat to the State of California. Such escheat shall be adjudged and enforced in the same manner as provided in this section for the escheat of a leasehold or other interest in real property less than the fee.

SECTION 9. Every transfer of real property, or of an interest therein, though colorable in form, shall be void as to the state and the interest thereby conveyed or sought to be conveyed shall escheat to the state if the property interest involved is of such a character that an alien mentioned in section two hereof is inhibited from acquiring, possessing, enjoying or transferring it, and if the conveyance is made with intent to prevent, evade or avoid escheat as provided for herein.

A prima facie presumption that the conveyance is made with such intent shall arise upon proof of any of the following groups of facts: