1. _Everybody always needs to borrow._ That the business of the world even in Western lands depends upon the borrowing of money, and that credit is the largest factor in trade, are positions which we do not for a moment forget. But Chinese borrowing is of a different type from that with which the great expansion of modern commerce has made us familiar. We do not affirm that there are not Chinese who do not need the money of other people for the conduct of their affairs, but only that these people are so rare that they may as well be disregarded. The whole scale of Chinese living and the whole system of economics are of such a sort, that as a rule there is but a narrow margin of financial reserve. With all their practicality and skill in affairs, it is a constant source of wonder that so few Chinese ever have anything to fall back upon. One reason for this is the fact that it is very difficult for them to accumulate a reserve, and another equally potent is the fact that there is nothing which can be safely done with it pending its use. There are no savings-banks, and there are no investments which are safe. The only thing which can be done with ready money, is to lend it to those who need it, which is generally done with some reluctance, as the lender justly fears lest he should never again see either interest or principal. Whoever has a wedding in his family, is liable to have to borrow money to carry it through, and if it be a funeral the necessity will be still more urgent. He needs money to start in business, and he needs more to settle up at the end of the year, when, if their own accounts are to be trusted, nine Chinese out of ten who engage in business in a small way, find that they have "lost money"; though this often signifies that they have not realized so much as they had hoped. In short it is hard to find a Chinese to whom the loan of a sum of money at any time, would not be as welcome as "water to a fish in a dry rut." It is this all-prevailing need which smoothes the surface of the spot where the pit is to be dug.
2. _Everybody is obliged to lend money._ We have just remarked that the man who happens to have a little surplus cash does not like to lend it, lest he should never see it again. But there are various kinds and degrees of pressure which can be brought to bear upon the capitalist. One of these is connected with the solidarity of the Chinese family, or clan. If one of the members has money which he might lend and another is desperately in need of it, the latter will get a member of the generation higher than that to which the capitalist belongs, to intercede for him. This may be done unwillingly, but it will probably be done. To a sufficient amount of pressure of this ancestral description, the capitalist will find it best to yield, though not improbably against his financial judgment. But every Chinese is from infancy accustomed to the idea that it is seldom easy to have one's own way in all things, and that when one cannot do as he would, he must do as he must. If the borrower does not belong to the same family or clan as the lender, the difficulty will be greater, but it may perhaps be overcome by the same description of pressure, by means of friends. A would-be borrower is often obliged to make a great many kotows before he can secure the favour of a loan (at an extortionately high rate of interest), but he is much aided in his efforts by the Chinese notion that when a certain amount of pressure has been brought to bear, a request _must_ be granted, just as one of a pair of scales must go down if you put on enough weights. Thus it comes about that in all ranks of Chinese, the man who has, is the man who must be content to allow to share in his wealth (for a handsome remuneration).