1901.] COMMERCIAL JAPAN. 2233 



from this time. A stamp tax on the licen.ce permitting the transfer of property, etc., began to be used, bringing a good revenne and yet 

 reducing tlie expense of the Government by leaving out revenue ofiicers. The world's fair took place at Vienna in 1873, j:nd the 

 Government tent delegates. After the exposition ICuropean goods became more and more -welcomed, and imitation.s of tho=e Enropt-an 

 articles were manufactured in all parts of the country. This gave great advancement to the indu.stry of the countrv. In l:-71 the 

 Government entered into the Univereal Postal and Telegraph Convention. In 1877 tlie internal exposition took plare and gave 

 encouragement and improvement for both export and import articles. In 1881 the Specie Bank, with a capital of 0,0<X),000 vc-n, waa 

 chartered for the purpose of foreign exchange, to afford facilities to foreign trade in the direct exportation of fieveral exportin<r lirma. 

 It v.as tlie prevalent desire to improve, develop, and protect the home m.anufactures and products and to check importation. Ijv this 



it may issue notes binding itself to pay a tax of not less than 5 per cent on the issue, according to the condition of the money ir^arket, 

 with the consent of the secretary of treasury, thus giving a monetary elasticity as in Germany. This legal limit was amendf.d and 

 increased to 85,000,000 yen, and in 1897 increased again to 120,000,000 yen, with the increase of paid-up capital to 30,000,0(X) vcn in 189.5. 

 The Bank of Japan, as the central bank of the country, is the organ of financial administration; it displaces the inflated curreiicv that 

 was in use. It gives a sniooth circulation, increases ciipital available for trade and industry, discounts bills, and transfers Government 

 bonds, as the Bank of England does. Its issue department is separated from its business department. Since 1889 treasury notes have 



its 



became the most powerfuJ 

 : transportirg of troops 

 . ^ . ^ - - .=tern ideas advo;-".t d the 

 parliamentary system of government for the better develoimient of the country, and in 1883 the first political partv was orgnni::';.-. In 

 1884 a telegraph line was laid on the bottom of the sea between Korea and Japan. In 1885 a patent law was enacted, and gave i.:!vi leges 

 and advantages to inventors. In 1885 the Mitsubishi Navigation Company was consolidated with a rival company, which was esti.l.-iished 

 in 1884 with the same privilege and subsi(iy from the Goveinment, and named The Japan Mail Steamship Company, with 12.200,000 

 ven of capital. ^ '— -' ''- -"^ '"^ "'^'"' '- — i— ' ^ x. ^i. : i .. . .. , . ^ .. , • . . 



hx 



tons, 



yen subsidy yearly to this organized company. _ 



In 1889 Dr. Eoesler, a German jurist, who was one of the counselors of the department of justice, compiled a commercial code 

 under the supervision of the minister to the department, but this code did not take effect owing to the deficiency of its provisions. In 

 February, 1890, the constitution of Japan was issued to be the motive power of all the laws of the country, and in November Parliament 

 was opened. A great step has been taken in adopting Western civilization. In the annual session of the Imperial Diet, in 1893, a proposal 

 to organize a committee for the revision of the commercial code was made to the Government. According to this proposal a committee 

 was organized, consisting of members of the Imperial Diet, professors of the law department of the Imperial University, higher cinl 

 officials, eminent judges, and learned barristers. The committee worked vigorously under the direct control of the minister president 

 at the time. To revise the former code which had been compiled by Dr. Roesler was the original intention of the committee, but in 

 the course of the work so many changes had to be made that the result was what is substantiallv a new code, in which the German 

 system is followed even more closely than in the former ones. In the extra session of the Imperial Diet in 1898, this new commercial 

 code passed the Diet by a large majority, and took effect at the end of the year. This commercial code is divided into five books, 

 according to systematic, scientific, and logical principles. The first treats of commerce in general; that is, of the application of the code, 

 trade, commercial registration, trade names, trade books, and trade assistants and agents. The second is entirely devoted to commercial 

 companies, prescribing general provisions, ordinary partnerships, limited partnerships, joint stock companies, joint stock limited 

 partnerships, and foreign commercial companies and penal provisions. The third treats of commercial transactions; tliat is, of seneral 

 provisions as to sale, current account, anonymous association, brokerage, commission agency, forwarding agencv, carriage, deposit, and 

 insurance. The fourth covers bills; that is, general provisions as to bills of exchange, promissory notes, and checks. The fifth treats 

 of commerce by sea; that is, of ships and shipowners, mariners, carriage, sea damage, insurance, and ship's creditors. 



The rapid improvement and development of the transportation facilities on land and water aided the rapid increase in population 

 and production and enabled the Government to raise the enormous revenue which it spent in the development of the countrv, and also 

 on its defensive and offensive power, increasing and improving the army and the navy to face the European powers. This prepa'ration waa 

 unexpectedly shown, to the great surprise of the world, by the victory over China in 1894-95. Enormous sums were paid in that war for 

 the transportation of troops and their supplies, and this was a great aid to the navigation and railroad companies. But these sums were paid 

 back to the Government by the enormous indemnity exacted of China. By the vast importation of this indemnitv from London a creat 

 distribution of money was made in the interior of the country, which naturally resulted in extravagance among "the people and auised 

 the importation of luxuries from western countries. However, this great achievement over China gave p. new era to the country. A 

 new treaty, on equal footing with the first powers of the world, was signed with the United States and all European countries, to take 

 effect after July 17, 1899. By this new treaty foreigners living in Japan are made subject to the laws of the country. It amended the 

 customs tariff, by which Japan before this could not levy a duty greater than 5 per cent ad valorem. Its policy was' toward regular free 

 trade. 



With the advantage of the Chinese indemnity in gold, Japan became a gold-standard country in 1897, by which stabilitvof crrency 

 was gained, as well as international banking facilities. Tlie effect of this change was great. It' has been most beneficial to the steady 

 and natural development of both imports and exports by causing a feeling of security on the part of shippers owing to the stiibiiity of 

 exchange, except in silver-standard countries. As Hon. O. P. Austin has written, "Now that the capitalists of the gold-standard 

 countries have become assured that they will no longer be in constant danger of suffering unexpected losses from investment made in 

 the country on account of fiuctuations in the price of silver, they seem to show a growing tendency to make such investments at low 

 rates of interest. This tendency, if encouraged, will doubtless bring about a closer connection between Japan and the centnil money 

 markets of tlie vrorld." 



Another effect of the war was an educational development. During the war the newspaper reports and telegrams were of very 

 great interest to the whole people of the countrv. Every man, woman, ancl child talked about the v,-ar, and newspaper sales wore more 

 than ten times larger than in former years. Even farmers, peasants, hunters, and fishermen, who never before had any interest in the 

 world's affairs, being satisfied with their small incomes, enough to support their families in a most humble way, besKin to learn to read. 

 This was shown in the statistics of recruits, which show that only 25 per cent of the recruits before the war above 21 years of age could 

 read and write their names, while the percentage went up to 60 or 70 per cent a few years later, and still is increasing year by year, 

 aided by compulsory education adopted in the country. 



During this period, especially right after the war, manufacturing industry made rapid progress. Several factories and industrial 

 firms were founded one after another. Foreign trade wonderfully increased, both in business done by foreignei-s and by our |>eop!e with 

 their increased facilities for transportation, especially in navigation. During the first ten years after the restoration, the principal items 

 of export of the country consisted of natural products and raw materials, while manufartnred goods were imported from the western 

 countries; but now the fact is quite the reverse. 



The food of the natives was comparatively simple, being rice, wheat, fish, and vegetables; now beef, mutton, pork, and chicken 

 are the principle courses of the meals, although hunters enjoyed meats of deer, bear, rabbit, and partridge from time immemorial. This 

 eating of simple food was only because of the abundant production of rice and wheat and the economical doctrines of the Buddhist 



