“ The manufacturing progress of the nation seems, therefore, to have a bright future, the only serious impediment being deficient capital. There is abundance of coal, and steps have been taken on a large scale to utilize the many excellent opportunities which the country offers for developing electricity by water-power.
The fact that Japan’s exports of raw silk amount to more than 12 millions sterling, while she sends over-sea only 31/2 millions’ worth of silk fabrics, suggests some marked inferiority on the part of her weavers. ”

“ Industries.—In the beginning of the Meiji era Japan was practically without any manufacturing industries, as the term is understood in the Occident, and she had not so much as one joint-stock company. At the end of 1906, her joint-stock companies and partnerships totalled 9329, their paid up capital exceeded 100 millions sterling, and their reserves totalled 26 millions. It is not to be inferred, however, from the absence of manufacturing organizations 50 years ago that such pursuits were deliberately eschewed or despised in Japan. ”

“ During all this time private enterprise had remained wholly inactive in the matter of railways, and it became a matter of importance to rouse the people from this apathetic attitude. For the ordinary process of organizing a joint-stock company and raising share-capital the nation was not yet prepared. But shortly after the abolition of feudalism there had come into the possession of the former feudatories state loan-bonds amounting to some 18 millions sterling, which represented the sum granted by the treasury in commutation of the revenues formerly accruing to these men from their fiefs. ”

“ A silk-conditioning house at Yokohama; experimental tea-farms; laws to prevent and remove diseases of plants, cereals, silk-worms and cattle, and regulations to check dishonesty in the matter of fertilizers, complete the record of official efforts in the realm of agriculture during the Meiji era.
One of the problems of modern Japan is the supply of cattle. With a rapidly growing taste for beef—which, in former days, was not an article of diet—there is a slow but steady diminution in the stock of cattle. ”

“ As an importer, he enjoyed, in centres of supply, credit which the Japanese lacked, and he offered to native consumers foreign produce brought to their doors with a minimum of responsibility on their part. Finally, whether as exporters or importers, foreign middlemen always competed with each other so keenly that their Japanese clients obtained the best possible terms from them. ”

“ But before this reform had approached maturity, the second advent of Western nations introduced to Japan the products of an industrial civilization centuries in advance of her own from the point of view of utility, though nowise superior in the application of art. Immediately the nation became alive to the necessity of correcting its own inferiority in this respect. ”

“ A strong disposition to exclude them has displayed itself in the United States of America, in Australasia and in British Columbia, and it is evident that, since one nation cannot force its society on another at the point of the sword, this anti-Asiatic prejudice will have to be respected, though it has its origin in nothing more respectable than the jealousy of the labouring classes. One result is an increase in the number of Japanese emigrating to Korea, Manchuria and S. America. ”

“ It would be possible to draw up a formidable catalogue of the various kinds of silk fabrics manufactured in Japan before the opening of the Meiji era, and the signal ability of her weavers has derived a new impulse from contact with the Occident. Machinery has been largely introduced, and though the products of hand-looms still enjoy the reputation of greater durability, there has unquestionably been a marked development of producing power. Japanese looms now turn out about 17 millions sterling of silk textiles, of which less than 4 millions go abroad. ”

“ On the contrary, at the very dawn of the historical epoch we find that sections of the people took their names from the work carried on by them, and that specimens of expert industry were preserved in the sovereign’s palace side by side with the imperial insignia. Further, skilled artisans from the neighbouring continent always found a welcome in Japan, and when Korea was successfully invaded in early times, one of the uses which the victors made of their conquest was to import Korean weavers and dyers. ”

“ Every nation must desire to carry on its own commerce independently of alien assistance; and moreover, the foreign middleman’s residence during many years within Japanese territory, but without the pale of Japanese sovereignty, invested him with an aggressive character which the anti-Oriental exclusiveness of certain Occidental nations helped to accentuate. ”

“ They contribute nothing to the solution of the problem whether Japanese industries are destined ultimately to drive their foreign rivals from the markets of Asia, if not to compete injuriously with them even in Europe and America. Japan seems to have one great advantage over Occidental countries: she possesses an abundance of dexterous and exceptionally cheap labour. ”

“ He argued that the monopoly system, since it included Osaka, exposed the Yedo market to all the vicissitudes of the former city, which had then lost much of its old prosperity.
Finally, in 1841, the shōgun’s chief minister, Mizuno Echizen-no-Kami, withdrew all trading licences, dissolved the gilds and proclaimed that every person should thenceforth be free to engage in any commerce without let or hindrance. ”

“ Kiōto always remained, and still remains, the chief producing centre, and to such a degree has the science of colour been developed there that no less than 4000 varieties of tint are distinguished. The sense of colour, indeed, seems to have been a special endowment of the Japanese people from the earliest times, and some of the combinations handed down from medieval times are treasured as incomparable examples. During the long era of peace under the Tokugawa administration the costumes of men and women showed an increasing tendency to richness and beauty. ”

“ A period of interruption now ensued, owing to domestic troubles and foreign complications, and when, in 1878, the government was able to devote attention once again to railway problems, it found the treasury empty. Then for the first time a public works loan was floated in the home market, and about £300,000 of the total thus obtained passed into the hands of the railway bureau, which at once undertook the building of a road from Kiōto to the shore of Lake Biwa, a work memorable as the first line built in Japan without foreign assistance. ”

“ Japan’s trade with the outer world was built up chiefly by the energy and enterprise of the foreign middleman. He acted the part of an almost ideal agent. As an exporter, his command of cheap capital, his experience, his The Foreign Middleman. knowledge of foreign markets, and his connexions enabled him to secure sales such as must have been beyond reach of the Japanese working independently. Moreover, he paid to native consumers ready cash for their staples, taking upon his own shoulders all the risks of finding markets abroad. ”

“ In the field of what may be called minor manufactures—as ceramic wares, lacquers, straw-plaits, &c.—there has been corresponding growth, for the value of these productions increased from 11/4 millions sterling in 1897 to 31/2 millions in 1906. But as these manufactures do not enter into competition with foreign goods in either Eastern or Western markets, they are interesting only as showing the development of Japan’s producing power. ”

“ Scarcely less important to Japan than the cereals she raises are her silk and tea, both of which find markets abroad. Her production of the latter staple does not show any sign of marked development, for though tea is almost as essential an article of diet in Japan as rice, its foreign consumers are Silk and Tea. practically limited to the United States and their demand does not increase. ”

“ The general cause was that several years necessarily elapsed before the nation’s material condition began to respond perceptibly to the improvements effected by the Meiji government in matters of administration, taxation and transport facilities. Fiscal burdens had been reduced and security of life and property obtained, but railway building and road-making, harbour construction, the growth of posts, telegraphs, exchanges and banks, and the development of a mercantile marine did not exercise a sensible influence on the nation’s prosperity until 1884 or 1885. ”

“ In the cities and towns horses used as beasts of burden are now shod with iron, but in rural or mountainous districts straw shoes are substituted, a device which enables the animals to traverse rocky or precipitous roads with safety.
Railways.—It is easy to understand that an enterprise like railway construction, requiring a great outlay of capital with returns long delayed, did not at first commend itself to the Japanese, who were almost entirely ignorant of co-operation as a factor of business organization. ”

“ In mercantile or manufacturing families, while the eldest son always succeeded to his father’s business, not only the younger sons but also the apprentices and employees, after they had served faithfully for a number of years, expected to be set up as branch houses under the auspices of the principal family, receiving a place of business, a certain amount of capital and the privilege of using the original house-name. ”

“ Japanese green tea also, differing radically in flavour and bouquet from the black tea of China, appealed quickly to American taste, so that by the year 1907 Japan found herself selling to foreign countries tea to the extent of 11/4 millions sterling, and raw silk to the extent of 121/4 millions. This remarkable development is typical of the general history of Japan’s foreign trade in modern times. ”

“ The average cost of labour doubled in the interval between 1895 and 1906, but, on the other hand, the number of manufacturing organizations doubled in the same time, while the amount of their paid-up capital nearly trebled. As to the necessaries of life, if those specially affected by government monopolies be excluded, the rate of appreciation between 1900 and 1906 averaged about 30%, and it thus appears that the cost of living is not increasing with the same rapidity as the remuneration earned by labour. ”

“ Great difficulties attended the movements of private persons. Even the task of transmitting to the central government provincial taxes paid in kind had to be discharged by specially organized parties, and this journey from the north-eastern districts to the capital generally occupied three months. At the close of the 7th century the emperor Mommu is said to have enacted a law that wealthy persons living near the highways must supply rice to travellers, and in 745 an empress (Koken) directed that a stock of medical necessaries must be kept at the postal stations. ”

“ Thus from the point of view of the average Japanese there are several reasons for wishing to dispense with alien middlemen, and it is plain that these reasons are operative; for whereas, in 1888, native merchants carried on only 12% of the country’s over-sea trade without the intervention of the foreign middlemen, their share rose to 35% in 1899 and has since been slowly increasing. ”

“ The average speed of passenger trains in Japan is 18 m. an hour, the corresponding figure over the metre-gauge roads in India being 16 m., and the figure for English parliamentary trains from 19 to 28 m. British engineers surveyed the routes for the first lines and superintended the work of construction, but within a few years the Japanese were able to dispense with foreign aid altogether, both in building and operating their railways. ”

“ In Germany and Italy the annual additions made to the arable area average 8% whereas in Japan the figure is only 5%. Moreover, of the latter amount the rate for paddy fields is only 3.3% against 7.9% in the case of upland farms. This means that the population is rapidly outgrowing its supply of home-produced rice, the great food-stuff of the nation, and the price of that cereal consequently shows a steady tendency to appreciate. ”

“ Not only does rice form the chief food of the Japanese but also the national beverage, called sake, is brewed from it. In colour the best sake resembles very pale sherry; the taste is rather acid. None but the finest grain is used in its manufacture. ”

“ Altogether 700 kinds of aquatic products are known in Japan, and 400 of them constitute articles of diet. Among manufactured aquatic products the chief are (in the order of their importance) dried bonito, fish guano, dried cuttle-fish, dried and boiled sardines, dried herring and dried prawns. The export of marine products amounted to £900,000 in 1906 against £400,000 ten years previously; China is the chief market. ”

“ Here again the government came to the rescue by establishing a firm whose functions were to familiarize foreign markets with the products of Japanese artisans, and to instruct the latter in adaptations likely to appeal to Occidental taste. Steps were also taken for training women as artisans, and the government printing bureau set the example of employing female labour, an innovation which soon developed large dimensions. ”

“ International commerce, on the other hand, lay under the veto of the central government, which punished with death anyone attempting to hold intercourse with foreigners. Thus the fiefs practised a policy of mutual seclusion at home, and united to maintain a policy of general seclusion abroad. ”

“ All these things show that the Japanese of the earliest era navigated the high sea with some skill, and at later dates down to medieval times they are found occasionally sending forces to Korea and constantly visiting China in vessels which seem to have experienced no difficulty in making the voyage. The 16th century was a period of maritime activity so marked that, had not artificial checks been applied, the Japanese, in all probability, would have obtained partial command of Far-Eastern waters. They invaded Korea; their corsairs harried the coasts of China ”

“ The seas that encircle their many-coasted islands teem with fish and aquatic products, which have always constituted an essential article of diet. Early in the 18th century, the Tokugawa administration, in pursuance of a policy of isolation, interdicted the construction of ocean-going ships, and the people’s enterprise in the matter of deep-sea fishing suffered a severe check. ”