alcohol. The manufacture of the kaoliang liquor calls for a much larger capital than a yufang or a mofang of local Chinese scope. The establishment of an ordinary shaochiu distillery takes about 30,000 Chinese dollars. Only comparatively large capitalists among the Chinese can engage in this business. In many cases the distilleries are conducted in connection with another enterprise of kindred nature.

The commodity produced by this branch of industry is of comparatively minor importance as far as the outside world is concerned. It is entirely and emphatically Chinese in demand. Some of the Japanese in Manchuria have entered the field; and there is quite a number of kaoliang liquor distilleries established in South Manchuria as joint enterprises of Chinese and Japanese capitalists.

SALT MANUFACTURE

Manufacture of salt is quite an industry in South Manchuria. The sun and the tide are the only things the Chinese need for the manufacture of salt. This natural method was first introduced to China-so the story goes by a Roman Catholic priest some time in the reign of Emperor Kanghsi (1662-1723). Salt gardens were established by imperial edicts along the coast of the Chihli Province: the Emperor wished to popularize the method of producing salt out of sea water among his people in maritime provinces. The result was that this simple method of manufacturing one of the fundamental necessities of life gained favor among millions of Chinese in seaside towns and villages. This was especially true with the people along the shores of the Gulf of Liaotung. Over the gulf and over the Yellow Sea dry weather prevails for a greater part of the year than elsewhere. There evaporation goes on steadily and rapidly, with the

result that the sea in this section is admirably fitted for the manufacture of salt through the sun's heat.

In South Manchuria the first attempt at the production of salt was made in 1862-just one year after Yingkou, the first treaty port in all Manchuria, was opened to foreign trade. To-day all along the shores of the Liaotung Peninsula extensive salt-fields are one of the striking sights which attract the eyes of a traveler. Fuchou, Kaiping, Yingkou, Pangshan, Hsiaotaotze, are all famous for their salt-fields. In 1919 the salt-production from this district amounted to more than 409,875,000 pounds. The salt is never exported anywhere. Its sales are confined to the Eastern Three Provinces of Manchuria and to Jehol District. The exportation of salt is prohibited by law, to keep the price of this vital commodity at a reasonably low level. The size and shape of salt-gardens differ considerably in every locality. Those in the Kwantung Leased Territory are from 5 to

100 acres.

OTHER INDUSTRIES

Silk filatures in Manchuria are centered in Mukden Province. There are thirty-seven of them employing more than 4,850 workers. Various textile mills and clothing factories in Manchuria number 274 with nearly 9,300 workers. Machine shops and various metal-working establishments number 356, employing more than 4,500 workers. Of this number 190 factories employing more than 2,550 workmen are located in Mukden Province.

Chemical industry in its various phases, including oil, dye-stuff, paper, earthen-ware, leather, and glass-factories, is represented by 503 plants (exclusive, of course, of all the minor native yufang of small scope), giving employment to more than 10,330 people.

There are 556 factories engaged in producing various

food products in Manchuria-counting here only larger establishments-with more than 12,000 people working at them. There are some 312 other factories engaged in the production of articles made of precious stones, of bamboo and wood, from animal skins, and also in printing and publishing. These employ more than 4,340 people. All these are Chinese establishments outside of the Kwantung Leased Territory.

Naturally the industrial activities of Manchuria to-day are centered and packed in the small section at the tip end of the Liaotung Peninsula, the Kwantung Leased Territory. Nothing tells more eloquently the story of the constructive activity of the Japanese in Manchuria than the facts presented below in connection with the industrial establishments clustering about the port of Dairen:

There are sixty-two iron-works capitalized at more than 13,476,800 yen and employing more than 2,600 Japanese and 3,710 Chinese workmen. Their total annual products are valued at more than 31,114,600 yen.

There are seventy-seven bean-oil mills with the total capitalization of more than 3,952,300 yen, whose total annual production of oil is valued at upward of 37,266,000 yen and whose bean cakes bring in more than 82,728,000 yen.

There are three cement works, whose total annual output is valued at more than 1,745,000 yen.

There are four shipbuilding plants with the total capital of more than 20,000,000 yen.

There are ten printing establishments, whose total business amounts to more than 2,667,000 yen.

There are five paint and chemical manufacturing plants, with the total capital of more than 3,853,000 yen. There are fifty-one brick-yards and tile-manufacturing plants, with the total capital of 2,762,000 yen.