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in such a disadvantageous position as we do, we have no great economists, and our economical policy is yet far from being satisfactorily shaped.

I grieve profoundly for the future of our country, and I urgently hope, therefore, that the Japanese will consider this point of view, and spend their energy in pursuance of an industrial and economical policy for the sake of our country. For it is the only way that we of to-day can serve our country. The making of laws has already been done by our predecessors; the perfection of the military defences has been worked out by our military men; and the only thing left to us is to improve Japan economically.

How best to establish this economic policy of our country must be considered. Russia is not an industrial, but an agricultural, country. Her industry and commerce are as yet in their infancy. She has devoted her energy exclusively to her military defences, and, as a result, she is not looked upon as a competitor by the economic countries of Europe. Japan, on the contrary, occupies a small amount of land and has a large population, with but little material out of which to manufacture, hence has to rely upon the material imported from other countries. We have coal, but not sufficient iron, and almost no gold. Hence, in my opinion, Japan must stand as an industrial country. An agricultural policy is not bad. It was satisfactory in the feudal period—that is, for so long as we were not pressed by the approach of the Russians, English, and the Americans from all sides. But the conditions are otherwise to-day. The Pacific is becoming the centre of the struggle, in which we are called to compete with much stronger foes. Japan as an agricultural country cannot stand against Russia, Australia, Canada, or America. Hence we must try other means for the struggle—that is, we must obtain raw materials from them and manufacture them for the Asiatic markets.

As I have said before, our politicians, our soldiers, and our officials in the great work of the Restoration some thirty years ago have theorized much; but those who read closely the history of the Meiji era will see that our statesmen have largely ignored the economical side of our country. We lack the practical view. Our study was the statesmanship of the Gyoshium period, and our heads were filled with the doctrines of the Chinese classics. But to-day we have to struggle in Asia against superior economic foes like England and America, and even such countries as Germany, Italy, and France, with all their theories, are not lacking in practical and economic spirit; and we find a great gulf existing between the ideas of these countries and those of Japan, which are grounded upon the