Introduction. 19 



therefore surpassed the exports by nearly 92 million yen, as compared with 66 million 

 in the previous year. 



In spite of this considerable progress in commercial intercourse with foreign 

 countries a few factors were observable which were unfavourable to development. 

 For although the last rice-crop was a fair average one, speculators had succeeded in 

 driving up prices to an unexampled level, and in maintaining them there for quite a 

 considerable time. This circumstance naturally depressed seriously the whole economic 

 life of the nation, because wages and costs of maintenance depend directly upon the 

 price of this staple foodstuff, and the higher selling prices do not benefit the people 

 at large, but flow mainly into the pockets of a group of speculators and capitalists. 

 Another impediment in the way of the development of trade was the vacillating policy 

 of the Government. Since the late Emperor's death the Government no longer exercised 

 absolute control over the people and Parliament, and serious conflicts ensued in which 

 even the powerful Minister, Count Katsura, was overthrown. It remains an open question 

 whether the new Cabinet will be able to realise the long-cherished hope of a reduction 

 of taxation, but the threatening attitude of the people has certainly brought the pro- 

 bability of such an eventuality very much nearer. 



Trade between Japan and China has been very brisk. But the excess of Japan's 

 exports to China over her imports from that country has been greater last year by 

 two million yen than in 1911; the imports having fallen off by 60 000 yen, evidently 

 owing to the general stagnation of shipments from China. As soon as the situation 

 in China (a country which forms such an important outlet for Japanese products) has 

 become sound again, the Japanese export trade will no doubt commence to progress 

 once more. 



The ceaseless activity of the Japanese spirit of enterprise is evidenced by the fact 

 that according to official returns 1 ) 3888 new trading companies were founded in that 

 country last year with a total paid-up capital of 110 919 882 yen. According to the 

 Bank of Japan, the total amount of capital subscribed for new undertakings or towards 

 the increased capitalisation of existing concerns, was 521 million yen, divided as 

 follows: — 



New Already in existence 



Banks 13900000 59537000 



Spinning Mills 12 900 000 10 815 000 



Electrical industries 12170 000 31355 000 



Mines 9 020 000 18 000 000 



Marine products 8 050 000 650 000 



Railways and Tramways . . . 32 315 000 26 230 000 



Manufacturing industries . . .118 195 000 27 786 000 



Steamships 2 300 000 2 250 000 



Insurance 1 000 000 1 000 000 



Commerce and other pursuits . 123 636 000 10 000 000 



Total: 333 486 000 187 623 000 



The condition of affairs in China continues to be very uninviting and some time 

 must still elapse before the sequelae of the revolution have been surmounted, and 

 before the new form of government has gained the confidence of the people in such 

 a measure that it is possible to expect a real amelioration in trade and traffic. 



l ) ffandelsmuseum XXVIII, 13. 



