2294 co:sniEiiCiAL japa^\ [Decembeb, 



JAPANESE INDUSTRIAL PROGRESS. 



The j^rowthof industrial, and, especially manufacturing, enterprise in Japan is discussed in an address by Mr. Ariga Xagafumi, of 

 the agricultural and commercial department of the Government, which is summarized as follows by the Hiogo (Japan) News, and 

 forwarded to the State Department by Consul-General Gowey: 



"The actual state of Japanese industry is best explained by statistics. Taking the sum total of the exports to be 100, the ratio of 

 increase of industrial exports wasCG per cent in 1888, 64 percent in 1889, 67 per cent in 1890, 55 per cent in 1891, 67 per cent in 1892, 71 

 per cent in 1893, 75 per cent in 1894, 77 per cent in 1895, 74 per cent in 1896, and 78 per cent in 1897. In short, the exports have mcreased 

 from 66 per cent in 1888 to 78 per cent in 1897. The decrease in the import of industrial products for the same period is shown by the 

 following figures: Ninety-two per cent in 1887, 87 per cent in 1888, 87 per cent in 1889, 73 per cent in 1890, 73 per cent in 1891, 72 ijer 

 cent in 1892, 76 per cent in 1893, 67 per cent in 1894, 71 percent in 1895, 71 percent in 1896, and 60 per cent in 1897. That is, imports of 

 industrial products declined from 92 per cent in 1887 to 60 per cent in 1897. There is thus a tendency to decrease m manufactured 

 imports and to increase in exports. 



"Of the capital used in Japanese industry no perfect statistics are obtainable witii regard to moneys absorbed in industrial works 

 conducted by partnerships and individuals. But in regard to industrial companies, the increase of capital is from 56,000,000 yen 

 (128,000,000) in 1894 to 02,000,000 yen ($31,000,000) in 1895, 74,000,000 yen ($37,000,000) in 1896, and 151,000,000 yen ($75,500,000) in 

 1897. That is to say, the capital employed by industrial companies in 1897 is about three times that used in 1894. But all this capital 

 was not actually paid up. The actually subscribed sums were 36,000,000 yen ($18,000,000) in 1894, 41,000,000 yen ($20,500,000) in 1895, 

 48,000,000 yen ($24,000,000) in 1896, and 74,000,000 yen ($37,000,000) in 1897. Thus, the actual capital of industrial companies is 

 74,000,000 yen, to which debentures— 4, 000,000 yen ($2,000,000) in 1894, 4,900,000 yen ($2,450,000) in 1895, 5,500,000 yen ($2,750,000) in 

 1896 (that of 1897 is not yet ascertained)— have to l)e added. Of these debentures 610,000 yen ($305,000) in 1894, 420,000 yen ($210,000) in 

 1895, and 440,000 yen ($220,000) in 1896, were actually paid up. Briefly stated, the industrial capital in 1897 was three times that in 1894. 



"The capital employed by companies carrying on Western industries is 140,000,000 yen ($70,000,000) — of which 74,000,000 yen is paid 

 up— with debentures, etc., as above stated. It consists generally of fixed capital, floating capital for the payment of wages, purchase 

 of raw materials, etc. The interest charged is very high. In the case of one company, 36,943 yen ($18,977) and in that of another 

 company 26,400 yen ($13,200) were paid in interest in the first half of 1898. It is thus inevitable that, with high interest and inefficient 

 workmanship, the companies sometimes suffer great losses." 



CHEAP LABOR IN JAPAN. 



[From United States Consular Reports, 1809.] 



From a recent issue of the Japan Times, a daily newspaper edited and published in Tokyo by Japanese, I lake the following 

 information relative to cheap labor in Japan: 



"A member of the O.-aka Watch Company says that the wages paid to the workers in that factory are certainly much lower than 

 those i.aid in ICuropean or American factories; yet, despite this fact, the business of watch making is not a paying one in Japan. Lack 

 of skill among the mechanics is one of the reasons given for this state of affairs. The employment of men at 40 to 50 sen (20 to 25 cents 

 in American money) per diem would appear a much more profitable method than paying workman $3 per diem, and such are the wages 

 said to Ije received by Western watchmakers; but against this it may be said that 10 of the latter can easily do work which would 

 require from 70 to 80 Japanese." 



Tlui Times goes on to say: 



" We are apt to think that wages in Japan being very low at present, foreigners will take advantage of the cheap labor and make 

 very i)r()(ital)le inve.><tments of their capital wIhmi the revised treaties are put into practice. It is true that wages are low, counted by 

 yens and sens, but when we consider the nature of the labor, the wages will be found to be far from low." 



THE BANK OF JAPAN. 



[The following article on the Bank of Japan is reproduced from the Bankers' Magazine of April, 1899, liy i>crmission of Bradford 

 Rhodes & Co., of New York, by whom it will be reissued as part of a volume entitlctl History of the Great Banks of the World:] 



Thk Baxk of J.\pan. 



GROWTH ok TUI: JAPANESE BANKING SYSTEM. 



In onlcr to »md(>rs(an<l the organization of the Bank of Japan let ua briefly study the growth of the Japanese banking business in 

 general, ncfon* tli(> restoration there were a number of rich merchants who kept what were known as "exchangt^ hon.st^'s'' and who 

 acted as Ihe financiers of the Shognnate Government and local feudal Daimios. They also received deposit."" and made advances tn the 

 publii', lifiiig tlie (Tnter.M of the credit sy.«teni of the time. There still exist some firms in Tokyo ami 0.saka which now carry on an 

 extensive banking business, which may be rightly ivgarded as the direct heirs of these exchange houses. 



In 1S()9 ten discount companies were established under the special patro.iago of tlie new (Jovernmcnt. Among many otlier 

 privileges they received a large sum of the Government paper money tvs the jniblic deposit and acquired the right of isetiing certificates 

 with the security of gold, silver, or foreign coins. But these establishments shnrtly passeil away without any success. 



In 1S70 Mr. Ito (now Manpiis), then vice-tninister oi linance, ailvisiMl the estshlishment of lianks aft^r the niolel of the national- 

 banking system of the I'nited States. Thi.^ suggestion was favorably reeeive<l, and as its result the natioual-bauk act was enacted in 



