Japan by the Japanese/Chapter 22.1

The history of Japanese maritime enterprise dates back only some forty years. The policy of isolation from foreign intercourse, adopted by the Tokugawa regents during nearly three centuries in order to prevent the spreading of Christianity, which was supposed to have some political designs, and therefore to be dangerous to the safety of the State, checked the natural development of our maritime enterprise. Before these restrictions were imposed Japan possessed large ships, suitable for ocean-going trade. In fact, she carried on commerce by means of her own vessels with some twenty countries and provinces beyond the seas. But, in order to enforce effectually the policy of isolation, a strict veto was officially imposed on the building of large vessels, and the result, necessarily, proved disastrous to the growth of maritime enterprise. Thenceforth Japan had to confine herself to a mere coasting trade, which she conducted with small sailing boats. Things remained thus until visits from foreign steamers and demands from foreign Powers for the commercial opening of the country made our Government realize the necessity, not only of cancelling the prohibitory measures which had been in force for nearly 220 years, but also of encouraging the construction of large ships. This abandonment of that old system of restriction was quickly followed by conspicuous results. Within ten years of the repeal of the veto the Japanese acquired no less than 138 vessels of foreign type.

Naturally, the unsettled condition of the country, both on the eve of the great political revolution of 1868 and in its immediate ​sequel, impeded the development of a mercantile fleet. Moreover, the people did not immediately shake off the habits of mind educated by centuries of exclusion from this field. Thus, the first notable private effort in the matter of maritime enterprise after the restoration of peace was made by Mr. Iwasaki in 1872, whose name and that of the company organized by him—the Mitsu Bishi Mail Steamship Company—will ever be associated with the inception of maritime enterprise in Japan. Another large steamship company—the Union Steamship Transport Company—was started in 1880, and these two, having been amalgamated in 1885, formed the present Japan Mail Steamship Company (Nippon Yusen Kaisha). Meantime, the Osaka Shosen Kaisha and other smaller shipping companies were formed. Thus there has been a large increase in tonnage and a corresponding increase in the facilities in the home and short distance trade. But distant ocean service was not regularly undertaken until 1892, when the Nippon Yusen Kaisha opened a monthly service to Bombay.

The successful issue of the Chino-Japanese War of 1894–1895, which marked an epoch in the history of Japan, gave a strong impulse to our maritime enterprise. The Nippon Yusen Kaisha opened in 1896 a service between Yokohama -and London and Antwerp, which now has fortnightly sailings; a service between Hong Kong and Seattle, which also is now fortnightly; and still another monthly service between Yokohama and Melbourne. Further, a Japanese company, organized under the name of the Toyo Kisen Kaisha (Oriental Steamship Company), runs a line of steamers between Hong Kong and San Francisco; and the Osaka Shosen Kaisha (Osaka Mercantile Marine Company) has opened various lines—e.g., a service between Shanghai and Hankow, and services between Foochow and Hong Kong, Hong Kong and Angpin, Hong Kong and Tamsui, etc. Many smaller shipowners carry on regular or irregular services between various Asiatic ports. Thus the field of Japanese maritime enterprise has been very largely extended. An arithmetical idea of the progress of our mercantile marine may be gathered from the fact that, whereas the tonnage of our vessels of foreign type (steamers and sailing ships included) in 1879 totalled only 110,000 tons gross, it rose to 220,000 tons gross in 1889, and to 796,930 tons gross in 1900, thus doubling in the first decade of that period and more than trebling in the second period. Japan ranked tenth amongst the maritime nations of the world in 1898, and the Nippon Yusen Kaisha stood seventh in point of tonnage amongst the principal shipping companies.

As to the share taken by Japanese vessels in the outward and inward carrying of trade of the country, statistics show ​that, whereas the total foreign commerce of Japan in 1889, less the cost of steamers and ships’ gear purchased abroad, was 133,000,000 yen, the value of the goods carried by Japanese vessels represented only 10,125,000 yen, or less than one-twelfth of the total. In 1899, however, out of an aggregate foreign commerce of 428,000,000 yen (similar corrections being applied on account of ships and gear), Japanese vessels carried 140,000,000 yen worth, or one-third of the total.

These facts indicate pretty clearly that much attention and energy have been devoted by our people to the line of enterprise. Nor is the progress confined to a mere augmentation of the mercantile fleet. There has also been a corresponding development of the people’s attitude for navigation, which the policy of isolation referred to above had necessarily checked. Considerable proficiency has certainly been attained in the art of navigation, as well as in that of engineering. This may be illustrated by saying that, in 1899, Japanese certificates of competency in navigation and engineering were held by 13,088 Japanese subjects, whereas the number of foreigners holding such certificates had fallen to 302. In fact, the necessity of employing foreigners in responsible positions on vessels owned by Japanese is rapidly disappearing.

Establishments essential to the success of maritime enterprise are not wanting in Japan. More than ten dock companies have been organized, exclusive of the Government yards, and some of these have docks capable of accommodating vessels of from 8,000 to 10,000 tons. Some of these also undertake the building of ships. Among the latter the Mitsu Bishi Company is the largest. During the past few years they have constructed the Hitachi Maru, the Awa Maru, and the Kaga Maru for the Nippon Yusen Kaisha, all of which are steamers of more than 6,000 tons.

Such is Japan’s present condition with regard to maritime enterprise, nor does it seem difficult to predict the future lying before her. It may be confidently asserted that her people fully realize the necessity of possessing a large fleet, not merely in the interests of the country’s commercial independence, but also for military and naval reasons. Further, they are fully alive to the fact that the eyes of the commercial and industrial world are turned toward the growing markets of China, Siberia, and Eastern Asia in general, and that shipping companies and firms of Germany, America, and other countries are already seeking a footing in this part of the world by extending trunk lines or by opening feeding lines. They are also fully sensible of the changes that will probably result from the completion of the great Siberian Railway. These facts, considered in conjunction with the activity Japan has already displayed in ​the domain of maritime enterprise, indicate that she will not allow herself to be outdistanced by other nations. It is, indeed, difficult to predict accurately the direction which the extension of her efforts will take, but the fact that they will be extended does not admit of any question. There is no room to doubt that the wealth of Japan has increased largely during recent years. A comparison of the figures relating to the export trade during the years from 1880 to 1900 inclusive shows that the value of exports in 1880 was 29,373,400 yen, whereas in 1890 it rose to 56,603,506 yen, and in 1900 to 204,207,873 yen. Thus, during these two decades there was an increase of nearly 170,000,000 yen; or, to put it differently, the export trade of 1900 was nearly seven times as great as that of 1880, and the average annual increase during the period of 1890–1900 was 14,750,000 yen, against an average annual increase of only 2,750,000 yen for the period of 1880–1890. The returns further show that during the fourteen years from 1880 to 1894, the year of the outbreak of the war between China and Japan, the annual volume of exports was invariably greater than that of imports, with three exceptions only. These facts bear testimony to the development of the country’s wealth and economic activity. It is true that, since 1894, the total volume of imports has exceeded that of exports, but when the figures relating to the latter are carefully studied, it is found that, whereas between 1894 and 1900 inclusive the value of the commodities imported exceeded that of the commodities exported by 307,500,000 yen, the outflow of specie during that time aggregated only 19,750,000 yen, this large difference being covered by the indemnity which China paid to Japan.

Further, a considerable portion of the excess of imports took the form of articles for productive purposes, such as steamships, railway materials, machinery, and locomotives. Thus, while disbursing a comparatively small amount of specie, Japan laid in a large stock of materials which will sensibly help her industrial development. Her recent depressed economic condition was simply a natural reaction from the booming time that followed the victorious war of 1894–1895. Nor are the consequences of this depression nearly so disastrous as some foreign journals represent them to be. On the contrary, this small storm has had the salutary effect of purifying the economic atmosphere from the excessive elements of speculation and false buoyancy with which it was previously charged. In the full tide of enterprise that swept over the country after the war, many thousand industries were started, with corresponding waste of capital and labour, whereas the petty crisis through which the people have now passed has reinforced their sobriety, seriousness, and industry. In my opinion, the real benefits ​resulting from the stimulus of our victorious war and from the indemnity it brought us were not shown in the exciting time which immediately followed the war, but will be seen in the future.

With regard to the outlook, it is sometimes contended that the rapid increase of wages and the appreciation of commodities during recent years have so augmented the cost of production that Japan will soon cease to possess the special advantage she once enjoyed for purposes of international competition. There is no question that, after wages have risen and labourers have become accustomed to a higher standard of living, great difficulty must be experienced in reducing their emoluments so as to meet a falling off in demand and consequent depreciation of commodities. But low wages are not necessarily a factor of prosperity. On the contrary, small wage-earners are seldom hard-working, and consequently their labour is dear in the end. If Japanese labourers wish to maintain their present standard of living, they must work harder than formerly, and more efficiently. Japan cannot expect that her case will be exceptional in that respect among industrial nations. Thus in neither event does the labour problem in Japan suggest cause for uneasiness. But a question may be raised as to whether the country’s natural resources suffice to insure her future prosperity. A little reflection shows that we are not less fortunate in that respect than other countries. Apart from the rich but undeveloped mines, the wide tracts of uncultivated land, the sugar, camphor, tea, fishing, and other industries of Hokkaido and Formosa, and without taking into account the fact that the existing industries of Japan proper are capable of great improvement and development, it can scarcely be denied that the artistic talent of our people constitutes an important resource. This advantage can be utilized to a much greater extent than it is at present. The silk industry furnishes a striking illustration of this. Japan produces raw silk and exports it in large quantities. Why should she not apply her artistic talent and intelligent labour to work up and finish this silk, instead of allowing the French and the Americans to enjoy a practical monopoly of the textile industry? Further, it must not be forgotten that Japan has geographical facilities as well as the recommendation of kinship to promote her commerce with the people of China, whose foreign trade is confidently believed by all keen-sighted business men of the world to have a great future before it. To be so favourably situated in the matter of access to China’s markets is an undeniable advantage, and since the Japanese bring to the study of Chinese moods and manners the aids of a common literature and of centuries of close intercourse, their trading relations with their neighbours ​are not likely to be hampered by the prejudices that create a barrier between China and Western nations. These things are well understood in Japan, and the people are not slow to avail themselves of such manifest advantages.

Undoubtedly such advantages may justly be regarded as wealth-producing resources, and may be cited in support of my view that Japan’s economic future is full of brightness and hope. I admit that we have not acquired the experience and business qualities possessed by some Western peoples, but, on the other hand, I cannot forget that it is only some thirty years since my countrymen entered the sphere of international industry. Considering the shortness of the time, they deserve some credit, I think, for what they have achieved. It is a wholesome sign that they recognise their faults and are anxious to correct them. Judging from the skill, versatility and adaptability they have displayed in other lines of work, it does not seem unreasonable to expect that not many years will be needed for them to develop the qualities essential to commercial and industrial success.

What they really need is more capital. They need it to develop industries; they need it to enable them to conduct their present industries on a larger and consequently more economical scale. I therefore advocate the introduction of foreign capital. Opinion has been expressed that such a course would give renewed activity to the factors responsible for present depression. As to that, it is certainly true that the receipt of the Chinese indemnity, and the consequent inflation of the currency, encouraged the starting of many speculative industries without proper regard to their real worth. But it is equally true that a part at least of the late depression was due to the fact that many hopeful industries have been checked and even brought to ruin owing to want of funds to complete their development, with the result that money already invested in them has been sacrificed. I do not advocate the importation of foreign capital in a lump sum—as, for example, in the form of a loan for buying up private railways. That might result in creating an excessive supply of money seeking investment, and might thus become the means of again promoting speculative enterprise. What I suggest is that foreign capital should be obtained for employment in the development of specific enterprises, now either unessayed or in a languishing condition. At the same time, it must be fully realized that foreign capitalists will not invest their money in Japan without adopting ample precautions to insure the safety of their investments. Such means must be furnished, and I am confident that, were the course followed which I have indicated, the result would be beneficial equally to foreigners and to Japanese.