In this International Development Scheme, I venture to present a practical solution for the three great world questions which are the International War, the Commercial War and the Class War. As it has been discovered by post-Darwin philosophers that the primary force of human evolution is coÖperation and not struggle as that of the animal world, so the fighting nature, a residue of the animal instinct in man, must be eliminated from man, the sooner the better.

International war is nothing more than pure and simple organized robbery on a grand scale, which all right-minded people deplore. When the United States of America turned the recent European conflict into a world war by taking part in it, the American people to a man determined to make this war end war forever. And the hope of the peace-loving nations in the world was raised so high that we Chinese thought that the "Tatung" or the Great Harmony Age was at hand. But unfortunately, the United States has completely failed in peace, in spite of her great success in war. Thus, the world has been thrown back to the pre-war condition again. The scrambling for territories, the struggle for food, and the fighting for raw materials will begin anew. So instead of disarmament there is going to be a greater increase in the armies and navies of the once allied powers for the next war. China, the most rich and populous country in the world, will be the prize. Some years ago there was great inclination among the Powers to divide China and Imperial Russia actually took steps to colonize Manchuria. But the then chivalrous Japan went to war with Russia and thus saved China from partition. Now the militaristic policy of Japan is to swallow China alone. So long as China is left to the tender mercy of the militaristic powers she must either succumb to partition by several powers or be swallowed up by one power.

However, the tide of the world seems to be turning. After centuries of sound slumber, the Chinese people at last are waking up and realizing that we must get up and follow in the world's progress. Now we are at the parting of the ways. Shall we organize for war or shall we organize for peace? Our militarists and reactionaries desire the former, and they are going to Japanize China, so that when the time comes they will start another Boxer Movement once more to defy the civilized world. But as the founder of the Chung Hwa Min Kuo—the Chinese Republic—I desire to have China organized for peace. I, therefore, begin to utilize my pen, which I hope will prove even mightier than the sword that I used to destroy the Manchu Dynasty, to write out these programs for organizing China for peace.

During the course of my writing, these programs have been published in various magazines and newspapers time after time and are being spread all over China. They are welcomed everywhere and by everyone in the country. So far there is not a word expressed in disfavor of my proposition. The only anxiety ever expressed regarding my scheme is where can we obtain such huge sums of money to carry out even a small part of this comprehensive project. Fortunately, however, soon after the preliminary part of my programs had been sent out to the different governments and the Peace Conference, a new Consortium was formed in Paris for the purpose of assisting China in developing her natural resources. This was initiated by the American Government. Thus we need not fear the lack of capital to start work in our industrial development. If the Powers are sincere in their motive to coÖperate for mutual benefit, then the military struggle for material gain in China could eventually be averted. For by coÖperation, they can secure more benefits and advantages than by struggle. The Japanese militarists still think that war is the most profitable national pursuit, and their General Staff keeps on planning a war once in a decade. This Japanese illusion was encouraged and strengthened by the campaign of 1894 against China, a cheap and short one but rich in remuneration for Japan; also by the campaign of 1904 against Russia which was a great success to the Japanese, and its fruit of victory was no less in value; finally by the campaign of 1914 against Germany which formed her part in the world war Japan took. Although Japan took the smallest part in the world war and expended the least in men and money, yet the fruit of her victory was Shantung, a territory as large as Roumania before the war, with a population as numerous as that of France. With such crowning results in every war during the last thirty years no wonder the Japanese militarists think that the most profitable business in this world is War.

The effect of the last war in Europe proves, however, just the contrary. An aggressive Germany lost entirely her capital and interests, plus something more, while victorious France gained practically nothing. Since China is awake now, the next aggression from Japan will surely be met by a resolute resistance from the Chinese people. Even granted that Japan could conquer China, it would be an impossibility for Japan to govern China profitably for any period of time. The Japanese financiers possess better foresight than their militarists as was proved during the dispute of the Manchurian and the Mongolian reservations when the former prevailed over the latter thus causing the Japanese Government to give up her monopoly of these territories to the new Consortium, in order to coÖperate with the other powers. We, the Chinese people, who desire to organize China for peace will welcome heartily this new Consortium provided it will carry out the principles which are outlined in these programs. Thus, coÖperation of various nations can be secured and the military struggle for individual and national gain will cease forever.

Commercial war, or competition, is a struggle between the capitalists themselves. This war has no national distinction. It is fought just as furiously and mercilessly between countries as well as within the country. The method of fighting is to undersell each other, in order to exhaust the weaker rivals so that the victor may control the market alone and dictate terms to the consuming public as long as possible. The result of the commercial war is no less harmful and cruel to the vanquished foes than an armed conflict. This war has become more and more furious every day since the adoption of machinery for production. It was once thought by the economists of the Adam Smith school that competition was a beneficent factor and a sound economic system, but modern economists discovered that it is a very wasteful and ruinous system. As a matter of fact, modern economic tendencies work in a contrary direction, that is, towards concentration instead of competition. That is the reason why the trusts in America flourish in spite of the anti-trust law and the public opinion which aim at suppressing them. For trusts, by eliminating waste and cutting down expenses can produce much cheaper than individual producers. Whenever a trust enters into a certain field of industry, it always sweeps that field clean of rivals, by supplying cheap articles to the public. This would prove a blessing to the public but for the unfortunate fact that the trust is a private concern, and its object is to make as much profit as possible. As soon as all rivals are swept dean from the field of competition, the trust would raise the price of its articles as high as possible. Thus the public is oppressed by it. The trust is a result of economic evolution, therefore it is out of human power to suppress it. The proper remedy is to have it owned by all the people of the country. In my International Development Scheme, I intend to make all the national industries of China into a Great Trust owned by the Chinese people, and financed with international capital for mutual benefit. Thus once for all, commercial war will be done away with in the largest market of the world.

Class war is a struggle between labor and capital. The war is at present raging at its full height in all the highly developed industrial countries. Labor feels sure of its final victory while capitalists are determined to resist to the bitter end. When will it end and what will be the decision no one dares to predict. China, however, owing to the backwardness of her industrial development, which is a blessing in disguise, in this respect, has not yet entered into the class war. Our laboring class, commonly known as coolies, are living from hand to mouth and will therefore only be too glad to welcome any capitalist who would even put up a sweat shop to exploit them. The capitalist is a rare specimen in China and is only beginning to make his appearance in the treaty ports.

However, China must develop her industries by all means. Shall we follow the old path of western civilization? This old path resembles the sea route of Columbus' first trip to America. He set out from Europe by a southwesterly direction through the Canary Islands to San Salvador, in the Bahama Group. But nowadays navigators take a different direction to America and find that the destination can be reached by a distance many times shorter. The path of western civilization was an unknown one and those who went before groped in the dark as Columbus did on his first voyage to America. As a late comer, China can greatly profit in covering the space by following the direction already charted by western pioneers. Thus we can foresee that the final goal of the westward-ho in the Atlantic is not India but the New World. So is the case in the economic ocean. The goal of material civilization is not private profit but public profit. And the shortest route to it is not competition but coÖperation. In my International Development Scheme, I propose that the profits of this industrial development should go first to pay the interest and principal of foreign capital invested in it; second to give high wages to labor; and third to improve or extend the machinery of production. Besides these provisions the rest of the profit I should go to the public in the form of reduced prices in all commodities and public services. Thus, all will enjoy, in the same degree, the fruits of modern civilization. This industrial development scheme which is roughly sketched in the above six programs is a part of my general plan for constructing a New China. In a nutshell, it is my idea to make capitalism create socialism in China so that these two economic forces of human evolution will work side by side in future civilization.