The Chinese certainly appear to be preparing for war with
the Japanese. They are collecting an army estimated to number 40,000 men, are gathering transports, and have given Z00,000 for an ironclad belonging to the King of Denmark. Cannon, guns, and powder are being forwarded to the coast, and the ides at Pekin is believed to be that during the stormy season the army may be thrown upon Formosa before the two Japanese ironclada can interfere effectually. In that case, the position of the Japanese would be perilous, as the Chinese, though possibly not their equals in battle, would be more numerous, would have European advice, and would have the assistance of at least a portion of the islanders, who are indisposed to yield to Japanese invasion. The Chinese Government, moreover, has more command of money than its rival, and money in any partly maritime war will tell heavily. The finance of the Empire is still an obscure subject, but the Pekin Treasury has certainly no external debt—there is a floating debt of some sort—has £3,000,000 a year from customs— good, solid coin—and receives a heavy tribute from the provinces, which being in excess of all expenses, is available for war. It is hard to fix the precise amount which reaches the Pekin Treasury, but the Government has never been seriously impeded in its military operations by want of cash.
