There was none in China, at least none for the government. Financial chaos still reigned supreme in spite of the great Reorganization Loan of £25,000,000, which had been carefully arranged more for the purpose of wiping-out international indebtedness and balancing the books of foreign bankers than to institute a modern government. All the available specie in the country had been very quietly remitted in these troubled times by the native merchant-guilds from every part of China to the vast emporium of Shanghai for safe custody, where a sum not far short of a hundred million ounces now choked the vaults of the foreign banks—being safe from governmental expropriation. The collection of provincial revenues having been long disorganized, Yuan Shih-kai, in spite of his military dictatorship, found it impossible to secure the proper resumption of the provincial remittances. Fresh loans became more and more sought after; by means of forced domestic issues a certain amount of cash was obtained, but the country lived from hand to mouth and everybody was unhappy. Added to this by March the formidable insurrection of the "White Wolf" bandits in Central China—under the legendary leadership of a man who was said to be invulnerable—necessitated the mobilization of a fresh army which ran into scores of battalions and which was vainly engaged for nearly half a year in rounding-up this replica of the Mexican Villa. So demoralized had the army become from long licence that this guerrilla warfare was waged with all possible slackness until a chance shot mortally wounded the chief brigand and his immense following automatically dispersed. During six months these pests had ravaged three provinces and menaced one of the most strongly fortified cities in Asia—the old capital of China, Hsianfu, whither the Manchu Court had fled in 1900.
Meanwhile wholesale executions were carried out in the provinces with monotonous regularity and all attempts at rising ruthlessly suppressed. In Peking the infamous Chih Fa Chu or Military Court—a sort of Chinese Star-Chamber—was continually engaged in summarily dispatching men suspected of conspiring against the Dictator, Even the printed word was looked upon as seditious, an unfortunate native editor being actually flogged to death in Hankow for telling the truth about conditions in the riverine districts. These cruelties made men more and more determined to pay off the score the very first moment that was possible. Although he was increasingly pressed for ready money, Yuan Shih-kai, by the end of April, 1914, had the situation sufficiently in hand to bring out his supreme surprise—a brand-new Constitution promulgated under the euphonious title of "The Constitutional Compact."
This precious document, which had no more legality behind it as a governing instrument than a private letter, can be studied by the curious in the appendix where it is given in full: here it is sufficient to say that no such hocuspocus had ever been previously indulged in China. Drafted by an American legal adviser, Dr. Goodnow, who was later to earn unenviable international notoriety as the endorser of the monarchy scheme, it erected what it was pleased to call the Presidential System; that is, it placed all power directly in the hands of the President, giving him a single Secretary of State after the American model and reducing Cabinet Ministers to mere Department Chiefs who received their instructions from the State Department but had no real voice in the actual government. A new provincial system was likewise invented for the provinces, the Tutuhs or Governors of the Revolutionary period being turned into Chiang Chun or Military Officials on the Manchu model and provincial control absolutely centralized in their hands, whilst the Provincial Assemblies established under the former dynasty were summarily abolished. The worship at the Temple of Heaven was also re-established and so was the official worship of Confucius—both Imperialistic measures—whilst a brand-new ceremony, the worship of the two titulary Military Gods, was ordered so as to inculcate military virtue! It was laid down that in the worship of Heaven the President would wear the robes of the Dukes of the Chow dynasty, B.C. 1112, a novel and interesting republican experiment. Excerpts from two Mandates which belong to these days throw a flood of light on the kind of reasoning which was held to justify these developments. The first declares:
… "In a Republic the Sovereign Power is vested in the people, and the main principle is that all things should be determined in accordance with the desires of the majority. These desires may be embraced by two words, namely, existence and happiness. I, the President, came from my farm because I was unable to bear the eternal sufferings of the innocent people. I assumed office and tried vainly to soothe the violent feelings. The greatest evil nowadays is the misunderstanding of true principles. The Republicans on the pretext of public interest try to attain selfish ends, some going so far as to consider the forsaking of parents as a sign of liberty and regarding the violation of the laws as a demonstration of equality. I will certainly do my best to change all this."
In the second Mandate Yuan Shih-kai justifies the re-establishment of the Confucian worship in a singular way, incidentally showing how utterly incomprehensible to him is the idea of representative government, since he would appear to have imagined that by dispatching circular telegrams to the provincial capitals and receiving affirmative replies from his creatures all that is necessary in the way of a national endorsement of high constitutional measures had been obtained.
… "China's devotion to Confucius began with the reign of the Emperor Hsiaowu, of the Han dynasty, who rejected the works of the hundred authors, making the six Confucian classics the leading books. Confucius, born in the time of the tyranny of the nobility, in his works declared that after war disturbances comes peace, and with peace real tranquillity and happiness. This, therefore, is the fountain of Republicanism. After studying the history of China and consulting the opinions of scholars, I find that Confucius must remain the teacher for thousands of generations. But in a Republic the people possess sovereign power. Therefore circular telegrams were dispatched to all the provinces to collect opinions, and many affirmative answers have already been received. Therefore, all colleges, schools, and public bodies are ordered to revive the sacrificial ceremony of Confucius, which shall be carefully and minutely ordained." …
With the formal promulgation of the Constitutional Compact the situation had become bizarre in the extreme. Although even the child-mind might have known that powers for Constitution-making were vested solely in the National Assembly, and that the re-division of authority which was now made was wholly illegal, because Yuan Shih-kai as the bailiff of the Powers was able to do much as he pleased; and at a moment when Liberal Europe was on the eve of plunging into the most terrible war in history in defence of right against might, reaction and Prussianism of the most repulsive type were passed by unnoticed in China. In a few loosely drafted chapters not only was the governance of the country rearranged to suit a purely dictational rule, but the actual Parliament was permanently extinguished and replaced by a single Legislative Chamber (Li Fa Yuan) which from its very composition could be nothing but a harmless debating Society with no greater significance than a dietine of one of the minor German States. Meanwhile, as there was no intention of allowing even this chamber to assemble until the last possible moment, a Senate was got together as the organ of public opinion, ten Senators being chosen to draft yet another Constitution which would be the final one. Remarkable steps were taken a little later in the year (1914) to secure that the succession to the dictatorship should be left in Yuan Shih-kai's own hands. An elaborate ritual was contrived and officially promulgated under the title of the Presidential Succession Law on the 29th December whereby the Chief Executive selected three names which were placed in a gold box in a Stone House in the grounds of the Palace—the