Gordon resigned his command and the “Ever Victorious Army” wasdisbanded at Kunshan. Gordon was offered Tls. 10，000 reward uponthe fall of Soochow， and the offer was renewed when he resigned hiscommand. On both occasions it was refused.
Memorial to the“ Ever Victorious Army‘’
Li Hung-chang made a grant of ＄1，500 for erecting memorials tothose who died in the service of China. The Shanghai memorial nowstands just within the southern entrance to the Public Gardens on TheBund. It is a stone monument and bears the following inscription：“In memory of the officers of the "Ever Victorious Army‘ whowere killed in action while serving against the Taiping Rebels in theProvince of Kiangsu， A. D. 1862-64.“On it are 48 names of foreigners， headed by that of General Ward.
Strangely enough， with the exception of a street named after him，no memorial has been erected in Shanghai to General Gordon himself，a man who did so much for keeping the Settlements from utterdestruction.
The Lay-Osborne Fleet and the Appointment of Rober Hart asInspector-General of CustomsDuring the course of the rebellion， in 188 2， the ImperialGovernment resolved to create a properly organized navy to be mannedby Europeans， and instructions were sent to Mr. H. N. Lay to purchaseand equip a steam fleet in England. When the matter was disussedwith the British Government， the question arose as to what flag thevessels should fly， for at that time China had no national flag. Thequestion was referred to Peking， and Prince Kung gave orders that atriangular flag with the dragon design should be adopted and flown onall Chinese warships.
A small squadron of seven steamers and one store ship werebought and equipped and sent out to China.
Mr. Lay appointed Captain Sherard Osborne to be in commandof the fleet for four years.
As soon as the fleet arrived a bitter controversy broke out betweenthe Chinese Government on the one side and Mr. Lay and CaptainOsborne on the other. The Chinese Government wished to appoint aChinese commander-in-chief， and to make Captain Osborne assistantcommander-in-chief， having authority over the foreign naval officers.
He was to receive his orders from the Viceroys and Governors withinwhose jurisdiction he might happen to be.
Mr. Lay insisted that Captain Osborne should be commander-inchief，and furthermore held that all orders to Captain Osborne were tobe transmitted through himself.
The two points of view differed so radically that it was impossibleto effect a compromise. Finally the Chinese Government refusedto take over the ships and they were purchased by the BritishGovernment. Mr. Lay was dismissed from his post as Inspector-Generalof Customs， and Mr. （afterwards Sir） Robert Hart was appointed in hisplace， and began to build up what became a very remarkable service.
Kiangnan Arsenal
As one of the results of the Taiping Rebellion， the KiangnanArsenal was established by Tseng Kuo-fan and Li Hung-chang in 1865.
It was located at first in Hongkew， and moved to its present site nearLunghua in 1867.
It manufactured rifles and large guns， and constructed navalship. A school and a translation department were attached to it. Theformer at one time was under the direction of Dr. Young J. Allen， andthe latter was for many years conducted by Dr. John Fryer， and diduseful work in supplying China with books on Science in the Chinese
language.