2260 COABIEKCIAL JAPAK. [Decejibeb, 



4. Feared that foreigners might come into possession of the railways, unless Government secures them; by short-sighted non- 

 economists. 



5. Good fiscal policy; by treasury officers. 



6. Large combinations of industry under one management are beneficial to the community; by nonstockholders. 



7. Remedy of scarcity of business capital or tightness of money market; secured by foreign loan; by self-interested money wanter. 



8. Competition of y)rivate railways favor large towns; by country gentlemen. 



I am sorrj' to state that it has been suspected from the outset that many of the so-called advocates of State ownership were the motive 

 power in the movement, and published stories for the purpose of "rigging" the market. The failure of the party of State ownership in 

 1899 was due to the insufficiency of their method of purcha-se, and in consequence of the lack of funds in the Government. I am of the 

 opinion that the railroads should be kept in their present state and am glad of the decision of the Congress. I may oppose it if in the future 

 the ca.se occurs again: 



1. In Germany and France, whose boundary Unes are contiguous, the State owTiership of railroads is entirely necessary, but in 

 Japan, being well protected from invasion, as I have said in the introduction, it would be better to leave the matter to private 

 corporations. 



2. Of course cheap rates would give increased commercial activity, but often governments utilize the railroad revenues for the deficit 

 of the public finance; therefore the cheapening of the rates may never come. 



3. If the country had plenty of revenue, it would be possible; otherwise it would increase the burden of the people; better give 

 some special privileges to private companies. 



4. If the Government has proper control or regulation over them, there is no fear of their going into the possession of foreigners; 

 if not, it is desirable that they should, if improvements would rasult from their better management. 



5. A merely fiscal policy is in conflict with Nos. 2 and 3, and also it is doubtful whether tlie Government is wise enough to 

 manage as well as private business men. 



6. Large combinations of industrial organization are good for any business, but private companies could combine most effectively 

 under circumstances where the locality is favorable. 



7. I am in favor of the purchase of private railroads by the Government if a foreign loan can be secured low enough, but to buy up 

 all private railroads at a fair and just figure is impo.ssible. The only way is to buy them in the daily market, fixing the maximum price 

 on the (Government side. As to the importation of foreign money, it is desirable not only to improve railroads, but also industrj- and 

 trade, but when it comes to this question the country must show to lenders prosi>erity and safe security, which is now lacking in the 

 country; the only way is to improve industry and make the country prosperoas, and this will naturally cause an inflow of foreign money. 



8. Competition among private railroads, etc. : The most striking mfluences of the growth of railroads are .seen in the concentration of 

 people in cities. The cities are growing larger and larger, although the small town is growing year by year, especially fast where the 

 factories are. Competition is a good thing for the community if it is not "cutthroat." 



The best enterprises have l)een constructed entirely by individuals. This gives mental education, a mode of strengthening their 

 active faculties, of exercising the judgment, and better improvements of the road because of self-interest and of competition. This would 

 avoid the great evil of adding unneceasarily to the power of the government. Mill says: "To avoid class feeling, which is the great evil 

 of society, and to give equal opportunity to all fellow-citizens who are fit to use it, and to avoid increasing the burden of government 

 obligations is the wisest plan." President Iladley says: "Government management involves corruption unless the ci%'ii service is 

 improved. Therefore let us have private railroads." 



Postal, telegraph, and telephone systems are in a sufficiently good condition, although many complain of misdeliveries. It can not 

 be stated here as to the utility of telegrams in trade, for the statistics do not distinguish the number of public, private, and merchants' 

 dispatches and receipts. An enormous amount was collected in the telegraph office, l)ut the fact is that almost all of it was for political 

 and diplomatic uses and very little for tnide purposes. I hope that the country merchants will utilize this facility more and more, and 

 with quick communication take advantage on their sales. 



AETICLE II. INDUSTRY. 



Th(! nation as a whole has held the physiocratic doctrine and has thought the only proper way is to cultivate the land in rice and 

 other agricullural products. Different conditions in different districts, as weather favorable to one crop and unfavorable to others, 

 produce a variety of crops, ))ut rice is generally a good crop everywhere. The food of the people is mainly rice, and this rice crop was 

 thought the only source of growth of the country. The majority (about 70 per cent of the people) is cla.s.«ed as farmers or peasants, as 

 coini)ared with 40 i)cr cent in the United States and 15 per cent in l-'ngland. This great amount of agricultural products is of great 

 importance to the workmen, whose comfort and family hap]iiness are largely due to the price of rice. On account of the lack of fundi? 

 among tiu; agriculturists, the method of cultivation, the inijtlements used, and the manures are not sufliciently studied, although great 

 imi>rovcni('nts have been made. These agricultural products have only one harvest in a year, and they depend on escaping the annual 

 storm, which usually occurs at the change of the season from summer to autumn, when rice is blooming. This storm often destroys 

 considerable i)roducts, and the labor which they spend with a hojie of a good harvest return is gone without compensation. So our 

 agriculturists should study all the scientific a])])liances in use in western countries, as manures, latest implements for lahor saving, and 

 sliould utilize the machinery for o])tainirfr a water su])ply instead of depending on the water afforded by rivers alx)ut which they strugcle 

 when dry weather conies; and they should also give attention to controlling the river flood. The recent ri.=e of prices gave prosjierity to 

 farmers, but the total production for years has remained almost stationary, and the area under cultivation also has not changed, showing 

 that the stage of increasing returns has already reached its maxinuuu, and almost all cultivatable places have been touched with the plow 

 and are getting into the stage of diminishing returns. But the increase of population is enormous, about 400,(KX) being addeil yearly, and 

 therefore most of the arable land nuist be devoted to tl)e])roduction of foodstuffs; the country must strive to establish manufactures and 

 endeavor to export largely and receive raw materials and food stuffs in exchange. Kveu now the country has to import a j^art of its 

 fooil sup]>ly, and the jjhysiocratic doctrine has gone out of existence for us. lUit the maintenance of home agricultun^ is, from a militar\- 

 })uint of view, most nccesj-ary in order not to be entirely dependent on a f(U-eign food supply, although a blockade of the whole countrv 

 ]s inconceivable. Economically, also, agriculture, especially of the mulherry tree and tiie'tea plant, should lie studied and iniprovetf. 

 The great factor of our safety is an improved method of Iransporlation which would enable us to produce rice and other crojw whore they 

 can be raised to greatest advantage, creating new areas of cultivation which no application of capital and labor can otherwise overcome. 

 Prof. Mayo Smith says: "The grand fact indicated by the statistics of agriculttn-o and of agricultural production is that Kuroix» is 

 dejuMiding more and inore uiion new countries for its bread, meat, and the raw matc.nals of manuf.actures. In IS'.H") 41 per cent of the 

 imports of (!n:U Ibitain consisted of articles f)f food and drink; .'50 per cent of raw materials of manufactui-es. Fngland is snpplii'«l with 

 food anil raw maU'rial by new countri(>s, while it employs its labor in turning out manufactured goods which it exch.ingos for thorn. 

 From 1852 to 18.')il (ireat Jbifain i>roduced three-fourths of the wheat it consumed. In l^SlMtO it produced only 31 per ivnt of what 

 it con.^junied and imported the ninainder. Kngland gtts two-thirds of its wheat suT>ply from abroad, all its cotton," mo-^t of its wool, and 

 a great deal of its iron ori-s." The great fertile jilains of North .Vmerica, South America!, Australa.>^ia, and Kussia have be<'ome the world's 

 producers of graiii and provisions and are increasing their demand for textiles, while .Taiwan stands ready witli her silk and tea, Africa 

 tenders its gold, diamonds, ivory, and native tropical products, all of which are requinvl by tiie great manufacturing aMitorsof thoT'nitcd 

 Stales and iMuope, which can ^ive in exchange tlu-ir nuuiufactures of cotton, wool, silk, iron, and stcx*!. Thus commonv is coustantlv 

 incrcasiii!^ its volinne by its own activity. The advantages of industry and trade depend upon the jirinciple of division of lal^or. K.ncli 

 locality in general ])roduces that wliii'h if can produc(> to llu< best advantage cheaper than others, and each country should pn^f< r what 

 is mo.-'t prolitahk' to it. Japan can be turiuHl from rice growing to an industrial country and the juxxluotion of silk .and tea, which are 

 so nuich in demand the world over. This would be advantageous to Jai>au because she would make a greater profit by this exchange. 



