Abstract:According to the Sino-American indemnity treaty of 1858,China had settled upon the United States 700,000 dollars for fire damages.When all the claims were paid,it appeared that some 200,000 dollars of the indemnity would be left over.Williams conceived using that for a school in China and that was the earliest plan of using the remission of indemnity for a school.Due to lack of mature conditions,the plan failed.However,it demonstrated a good willing: using Chinese money to educate Chinese excellent students with American model.It had an important influence on the later Boxer indemnity scholarships.