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tions, such as the Hong Kong and Shanghai Bank, or the China Association, or Jardine, Matheson and Co., urging the Government to secure railway and mining concessions, etc. The English Government then gives instructions to its representative in Peking to open negotiations with the Chinese Government for attaining the object in view. But in the case of the Japanese no such representations have ever been forwarded. If Japan wishes to keep pace with other nations her business community must prove more alive to its opportunities.

The idea was formerly entertained that the revision of the treaties and the opening of the country to mixed residence would have the effect of inducing foreigners to come to Japan to engage in various industrial enterprises and to buy land. Yet since the revised treaties came into operation no single instance of the purchase of land by foreigners has come to our notice. It was expected also that foreign money would flow into the country. The fact, however, has proved the contrary. Specie needed in the interior has had to be borrowed from abroad. The recent loan amounted to 100,000,000 yen, for which 4 per cent. interest has to be paid annually. Four million yen in the form of such interest is therefore destined to go abroad irrespective of the balance of trade. There are, besides, Consols and war bonds aggregating on which interest to the amount of no less than 6,000,000 yen must also flow out of the country in specie every year. While such is the case views are still expressed by a majority condemning the foreign ownership of land and shares as detrimental to the interests of the country. The narrow-mindedness of the Japanese has prevented foreigners from investing their capital in industrial enterprises with any sense of security; their disinclination to invest seems to be owing to their inability to acquire full rights over land in this country. The only way of introducing foreign capital, therefore, in the present condition of affairs is by a loan. The abolition of extraterritoriality has really militated against the inflow of foreign funds. The interests of Japan demand that efforts should be made to secure intimate relations between the Government and business community with a view to allowing foreigners to engage in any enterprise in the interior with the utmost confidence and safety. Unless such an arrangement be made in future native capital alone cannot achieve much. The Russian Minister of Finance, at a recent meeting of the Cabinet, showed in his speech that conditions in parts of Russia are somewhat analogous to those in which Japan is now placed. In the abundant production of petroleum English capital is invested to a considerable amount. With unfriendly feeling towards the English, some of the Russian