No. 49.

Mr. Low to Mr. Fish.

No. 85.]

Sir: The proposition to return the surplus indemnity fund to the Chinese government having failed to receive the sanction of Congress, I now have the honor to submit some observations touching its proper disposition.

That the Chinese have no legal right to demand the return of this surplus, is beyond question, but whether they are not equitably entitled to it is not so clear; and although Congress does not see fit to give back the money absolutely, it may not be unwilling to appropriate the proceeds in a manner which might, and probably would, prove of greater advantage to the Chinese than the original proposition would, had it been agreed to. The plan I have to propose will, I think, accomplish such a result, and will, at the same time, secure corresponding advantages to the United States.

I would suggest that a sufficient sum thereof be appropriated for the purchase or erection of suitable buildings for a school, in which the natives should be taught our language, and our own people instructed in Chinese, and that the sum remaining should continue as it now is, invested in the United States, the interest of which to be devoted to the maintenance of such a school.

Such an institution could not, in the beginning, be denominated a university or college, nor would it be convenient or wise to confer upon the teachers of it high-sounding titles. Nor would it be necessary to pay the instructors extravagant salaries. Competent teachers could be obtained [Page 227] at moderate cost, and the total annual expense need not be large. If a successful beginning be made, and the school should become popular, it is not unlikely that the Chinese would themselves add to its income in order to extend its advantages. It should be located in Peking, under the immediate supervision of the legation, where it could be seen and known by the high Chinese officials, and where the pure language is spoken and taught.

If I am correctly informed, the income arising from the remainder, after deducting the amount necessary to provide suitable buildings, would be between $15,000 and $20,000 annually. With this income a school, such as is proposed, could be conducted successfully.

The necessity for providing suitable quarters for the legation in Peking was fully stated in a dispatch written in August or September, 1870, to which I again most respectfully beg to call your attention. Were the legation at present occupied purchased, the grounds belonging to it would be ample for all purposes, and the buildings could be extended at small cost to accommodate the school, in addition to the proper accommodation of the minister. Combining the two in this way would make the whole an economical expenditure; and the school, if attached to the legation, would command more attention and respect from the Chinese than if located elsewhere.

If the foregoing suggestions be thought favorably of by the Department, and Congress be disposed to act upon them, I would venture to suggest that sufficient of the original sum, and the interest of the remainder, be appropriated and. placed in the hands of the Secretary of State for the purpose of carrying the plan into effect. The arrangement of the plan, and its details, should be left with the President or the Secretary of State, who would be able to gather the information necessary to an intelligent and wise decision regarding its organization and management, and the whole thing could be put in successful operation without any great delay. If required, I would furnish full and minute particulars, of which the foregoing is merely an outline.

I am profoundly impressed as to the advantages likely to result from such a scheme if properly inaugurated and judiciously managed, and I may be pardoned if I venture to call the special attention of the Department to the matter with a view to bringing it before Congress for its consideration.

I have, &c.,

FREDERICK F. LOW.