Extraterritoriality, by creating the "treaty port" in China, had been
the most powerful weapon in undermining native economics; yet at the
same time it had been the agent for creating powerful new
counter-balancing interests. Though the increasingly large groups of
foreigners, residing under their own laws, and building up, under their
own specially protected system of international exchange, a new and
imposing edifice, had made the hovel-like nature of Chinese economics
glaringly evident, the mercantile classes of the New China, being always
quick to avail themselves of money-making devices, had not only taken
shelter under this new and imposing edifice, but were rapidly extending
it of their own accord. In brief, the trading Chinese were identifying
themselves and their major interests with the treaty-ports; they were
transferring thither their specie and their credits; making huge
investments in land and properties, under the aegis of foreign flags in
which they absolutely trusted. The money-interests of the country knew
instinctively that the native system was doomed and that with this doom
there would come many changes; these interests, in the way common to
money all the world over, were insuring themselves against the
inevitable.

The force of this--politically--became finally evident in 1911; and what
we have said in our opening sentences should now be clear. The Chinese
Revolution was an emotional rising against the Peking System because it
was a bad and inefficient and retrograde system, just as much as against
the Manchus, who after all had adopted purely Chinese methods and who
were no more foreigners than Scotchmen or Irishmen are foreigners to-day
in England. The Revolution of 1911 derived its meaning and its value--as
well as its mandate--not from what it proclaimed, but for what it stood
for. Historically, 1911 was the lineal descendant of 1900, which again
was the offspring of the economic collapse advertised by the great