2258 



COMMERCIAL JAPAInT. 



[December, 



The constantly decreasing number of paupers, the increased deposits in savings banks and post-ofEces, the increased utility of the 

 bank system are evidences of the generally improved condition of the mass of the people. The figures show a great decrease in the 

 number of convicts sentenced for negligence in paying their land taxes: 



The source of this increase of wealth is the development of commerce and the consolidation of small scattered sums of money into 

 incorporated enterprise!--. 



Just lately the tightness of the money market and the Chinese trouble had a mischievoas effect on the industry of our country. 

 But this should not be regarded as a symi)tom of economic retrogression, for new industries are being founded, improved on the old 

 ones, which diminish our consumption of foreign merchandise. The economic movement is most actively reflected in the table of 

 exports which shows a steady increa.se. There is no doubt that the productive power of the country is increasing, and therefore there 

 is no basis for the pessimistic conclusion that the country is in a stagnant condition. Toillastrate more forcibly this expan.«ion of forces, 

 silk and manufactured goods will be named. The export of silk has more than doubled both in quantity and value, and the increase of 

 imports of raw materials demonstrate the fact that the country has achieved real economic progress, both in consumption and production. 

 The iiiiDicnse and yearly increasing imports of raw materials, such as cotton, wool, hides, iron, steel, etc., absolutely necessary for 

 manufacturing industries, which they could not possibly do without, show the great development of the industry of the country. 

 Though the country is very dependent on foreign countries for her supplies of raw materials, yet they are her markets for her industrial 

 produclioiis. The tendency is for the country to become a manufacturing one, toward which it is progressing favorably. The rise of the 

 price of coal and iron shows its development, whereas agriculture seems less promising and will doutjtless for many reasons remain 

 comparatively stationary, as it is in England, although the country has mighty forests, large rivers, great lakes, mountain ranges, broad, 

 high prairies, fertile valleys, and inexhaustible mines and fisheries. 



It is difhcult to state accurately th(^ progress of the commerce of the country, but if it be compared with that of the world I am 

 sorry to say the country is still in itJs infancy. The supply of coal; which is the motive power of manufacturing, though small compared 

 with Knrftpean countries, yet exceeds the home demand, and this shows the need of more manufacturing industry, although the home 

 deiiiaiid fur coal is greatly increasin.L-. 



The (intire Ktate expenditure, though in fact not more than the expenditure of the city of Paris, is still a little too hea\y a burden 

 upon till! j)t'oi)le, and caused the recent economic troubles. The mines of gold, silver, copper, nickel, iron, and coal are only beginning 

 to be developed. 



Chapter III. 



FUIlTnER OBSERVATIONS. 



As I have stated in previous chapters on the hi.story and the present condition of commerce, Japan is still in need of economic 

 study in regard to future development — the necessity, possibility, and consideration of the interchange of articles whose production is 

 thus so enormously increased. Geographical location, natural facility of transportation, etc., are worthless unless they are utilized. 



AETICLE I. TRANSPOETATION. 



The subject of transportation is one of the most important in the whf)le field of economic investigation. 



"With the improvenuint of home navigation the movements of trade have also improved. In 1898, 21 per cent of total trade of the 

 country was (;arried by .lapanese vessels, against 7.(5 jier cent in 1894 and 0.02 per cent about twenty years ago. The improvement is 

 wonderful; but on the other hand this fact ])lainly sliovvs not only that navigation is not fully develope<l, but that it is insufficient to 

 serve tlie country. The iniprovenient of navigation is the most urgent demand of the country. 



At the time of the civil wartlu" United States lost her power in navigation, having stopped her subsi<ly policy, but lately she has 

 regretted her loss, and in March, 1891, Congress revived the ixilicy, and the country has recovered most rapidly her trade and jxiwer on 

 water. .Japan has taken uj) the subsidy policy, having jiaid 2,()73,894 yen on her European lines; G.^4,0.30 yen on the Seattle line, and 

 1,01;{,8S() yen on the Sun Francisco line. The most important form of subsidy is by j)ostal contracts for mail service by quick steamers, 

 thougli it is frankly acknowledged that other imjxirtant objects are kejit in view throughout, such as the indirect advantage.>» that would 

 ac(;rue to trade, th(> (•()veted means of favoring home industries, and the privilege of using the sliijis as cruisers in time of war. The 

 charters of navigation coiiqianies sjieak ai'curately on the latter subject, but in fact only one !-teamer was used a.>5 a cruiser in the Chino- 

 Jajmne.se war, and this one caused undeniable liindrance to action in the battle on aci'ount of its lack of six'edand other defects. So far, 

 the facilities of navigation are incn-asing sullicientlv fast, but tliere is no encouragement given to the subject of auxiliary cruisers by 

 which steamers are used for transportation .service In i)eace and for crui.sers in war, as seen in the Canadian Pacific, the French Mail, the 

 German IJoyd, and lines of all other strong companies. A navy is to encourage conunerce in time of peace and protet^t it in time of 

 war. .Ia]tan has im))roved her naval power wonderfully since the war, but yet it is nece.«s;\ry to continue its progress to secure the 

 balance of i»o\ver as well as her commercial interests. A .syi-item of auxiliary cruiseix would l)e l>eneticial and economical to the countrj*; 

 it would decrease the irxpense of the navy and at the same time give great facilities and improvements in navigation, and also encourage 

 the marine int»'resls. 



For the advantage of navigation the im]>roving of ports is also demanded. Breakwaters or dikes for i^fety of anchorage to protect 

 against gales, i)iers constructed of iron and steel at whicii vessels may receive and discharge their p.tssengers and cjirg<x's, al>olishing the 

 tardy movement of goods in lighters, and docks for repairs must all be provided. The iron and .«teel industry nuist Ih^ c-^taltlishe*! and 

 encouraged. Tlie.se are the most important matters to consider. If the.se an^ not in comjilete shape natural facilities will never giA"e 

 permaniMit benelit. Owini; to the lack of good docks in the country, all ve.«.>^els hurry to Shanghai for repairs. 



.\s the means of comiiuinication develop, bringing nearer tln> relations of countries, competition in trade Wcomes more active, and 

 prompt slii|)ments are a gn^al advantage to trade. The rea.>Jon of the su|>renie power of England on water is her farsightetl imjimvement 

 in shipbuilding, usiiit; steel instead of wood, emi^loying steam engines instead of sjiils. thus i>ayim: reganl to sjv.vd. The improvement 

 of ocean transiKirtation lies in the direction of larger ves.sels of rapid movement; competition is alwavs to the advantagt' of the vessel of 

 large capacity and speed. Japan's tratle is increasing by strides unparalleled in her history, and her Tines of etcamshii^s are niiuiing to all 



