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WORK FOR THE HIGHER CLASSES. 65majority of the students have come from other placesthan Shanghai. At presentit would be difficult toattract students from a distance, unless we had a largerand better-equipped staff of teachers than provided forin other schools, and unless we had more money at ourdisposal for the maintenance of such a type of educational work. At the close of the last term we were verymuch pleased with the kindly feeling that was shown bythe students in attendance, who were to leave for otherschools to complete their education. Regrets for thetemporary abandonment of our educational work wereexpressed by teachers and students and by Chinesemembers of the Institute. I deem it, however, a wisemove in thus turning from the close attention of classroom work, averaging seven hours a day, to otherdepartments of work more in consonance with the mainintent of the Institute plan, and far more important andindispensable during this period of transition in thesocial and political life of this great Empire.Turning now to the more positive aspects of thework as contemplated in the change which has beenmade, I would emphasize the fundamental principle onwhich the Institute has been founded, and for the consummation of which we should direct all our energiesin the future. This principle is one of the harmonybetween Chinese and foreigners, and between Christiansand non-Christians living in China, for the special welfare of China and the Chinese people, but also seekingto give benefits and assistance to legitimate foreigninterests. The Institute, therefore, is the one joint stockcompany in China in which Chinese and foreigners areon an equal basis, have equal responsibilities, and areequally benefited by such cooperation. The barriersthat exist between the East and the West are to bebroken down through the process of larger mutual appreciation. This is a work full of difficulty, but inspite of the difficulty we have gladly undertaken thework for nearly thirty years. We have been willing to