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by the Department of Foreign Affairs. But now it becomes evident that the importance of commercial affairs in a country has begun to be perceived by the Governments of many countries; the attention of statesmen is being paid as much to commerce as to the military defence, and I hear that the selection of these officials is made with a view to the promotion of commerce, and that some of the wideawake nations of the West have placed these officials under the direct instruction of the Department of Commerce of the Treasury instead of under the Department of Foreign Affairs. If we wish to expand our country, economically within and commercially without, we must be acquainted with the affairs of other countries. Our foreign diplomats should be required to report on the progress of commercial and economic affairs, especially to such as are related directly with Japan, of the countries to which they are sent, and not expected merely to perform the function of representative. It is desirable, therefore, that the selection and appointment of Consuls should be made by the Department of Commerce and Agriculture, and that these officials should receive their instructions, if not entirely, at least largely, from that Department. I desire also that those who go abroad for the purpose of observation, whether in an official function or in a private capacity, should study in more detail the aspect of our trade as related to foreign countries. At present our foreign traders are firing in the dark; they only send their goods out, without knowing for what market they are intended. A Japanese manufacturer sends his goods to Yokohama, and knows nothing of its further destination.

Such is never the case in European or American factories. Each load of their intending export has its definitely marked destination, the destination, apparently, being determined by the class of goods. The manufacturers of the West, moreover, seem clearly and constantly acquainted with the conditions of production in the competitive field, so that they can instantly perceive what is required of their goods in order that those goods may not be rejected at their destination. If there is an impending war endangering a foreign market, they at once regulate the production of their factories accordingly, and thereby avoid overproduction and waste. They do not wait for warnings from the Governments, but take care of themselves. Their Chambers of Commerce are always provided with records and information necessary for their prompt and decisive action.

In conclusion I should like to recapitulate what I have already said. Japan is fully developed as far as laws and militarism are concerned. She is fully established as a military Power; but an economic Japan is not yet created, and towards