China produces large amounts of raw cotton, which are mostly manipulated by primitive methods; but there are a certain number of cotton-mills on modern lines. If low wages meant cheap labour for the employer, there would be little hope for Lancashire, because in Southern China the cotton is grown on the spot, the climate is damp, and there is an inexhaustible supply of industrious coolies ready to work very long hours for wages upon which an English working-man would find it literally impossible to keep body and soul together. Nevertheless, it is not the underpaid Chinese coolie whom Lancashire has to fear, and China will not become a formidable competitor until improvement in methods and education enables the Chinese workers to earn good wages. Meanwhile, in China, as in every other country, the beginnings of industry are sordid and cruel. The intellectuals wish to be told of some less horrible method by which their country may be industrialized, but so far none is in sight.
The intelligentsia in China has a very peculiar position, unlike that which it has in any other country. Hereditary aristocracy has been practically extinct in China for about 2,000 years, and for many centuries the country has been governed by the successful candidates in competitive examinations. This has given to the educated the kind of prestige elsewhere belonging to a governing aristocracy. Although the old traditional education is fast dying out, and higher education now teaches modern subjects, the prestige of education has survived, and public opinion is still ready to be influenced by those who have intellectual qualifications. The Tuchuns, many of whom, including
