Frank Goodnow China's greatest economic need was railways...A period of railway building with foreign capital began soon after the termination of the Japanese war [in 1895].Quite a number of concessions were granted to foreign companies,but they led to so much scandal that this policy was subsequently changed.Most of the concessions were repurchased by the Chinese and the present method adopted.By this the government itself builds the roads out of the proceeds of loans made by foreign bankers,who then dispose of the bonds they receive.In order to protect the interests of the bondholders the government enters into an agreement in accordance with which foreigners,of the same nationality as the banks which make the loan,are appointed in the engineering and accounting services of each railway.The railways are operated by the Ministry of communications,which operates the telegraphs and the post office as well,though in these services,as in the railways,foreigners occupy important position. Just before the outbreak of the Great War [World War I]China had made in this way provision for the building of several thousand miles of new line,running not merely north and south,but as well east and west in those districts which were not well served by waterways.The carrying out of this plan was interrupted by the war,which made the financing of large enterprises impossible.Frank Goodnow • China’s greatest economic need was railways… A period of railway building with foreign capital began soon after the termination of the Japanese war [in 1895]. Quite a number of concessions were granted to foreign companies, but they led to so much scandal that this policy was subsequently changed. Most of the concessions were repurchased by the Chinese and the present method adopted. By this the government itself builds the roads out of the proceeds of loans made by foreign bankers, who then dispose of the bonds they receive. In order to protect the interests of the bondholders the government enters into an agreement in accordance with which foreigners, of the same nationality as the banks which make the loan, are appointed in the engineering and accounting services of each railway. The railways are operated by the Ministry of communications, which operates the telegraphs and the post office as well, though in these services, as in the railways, foreigners occupy important position. • Just before the outbreak of the Great War [World War I] China had made in this way provision for the building of several thousand miles of new line, running not merely north and south, but as well east and west in those districts which were not well served by waterways. The carrying out of this plan was interrupted by the war, which made the financing of large enterprises impossible