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from purchasing leaf-tobacco either directly from the Government or from the dealers.

The leaves cultivated for the purpose of exportation may be sold individually under the permission of the Government, but such leaves must be placed in official custody.

In case the above-mentioned leaves have not been exported within one year after they were put in official custody, they are to be transferred to the Government on payment of appropriate compensations to their owners.

This law was put in force on the 1st of January, 1898. At the same time there were established sixty-one leaf tobacco Monopoly Offices throughout the country, where the collection, sale, and management of the leaves are carried on.

It was, however, found that some points of the law were inconvenient in practice, and consequently in March, 1899, some necessary amendments were effected, the more important of these amendments being as follows:

To regulate the districts for cultivation, and to limit the area of every cultivating field, as well as the sorts of tobacco to be cultivated, with reference to the condition of the markets.

Foreign tobacco-leaves shall be imported and sold by the Government only.

Every manufacturer of tobacco and leaf-tobacco dealer shall apply for and receive a license every year. In case of a manufacturer operating more than one factory, he is required to obtain a separate license for each factory.

Such a manufacturer or dealer shall pay 50 yen for each license mentioned in the foregoing paragraph.

The tobacco-leaves may, if necessary, be sold at auction, instead of at the prices fixed for them.

The object aimed at by these amendments is:

To prevent overcultivation.

To secure the more perfect management of the monopoly.

To reserve the power of importing tobacco-leaves to the Government, thus enabling the maintenance of a proper balance of prices between the domestic and foreign leaves.

To prevent smuggling.

To safeguard against unprofitable sales.

This amended law was put in operation on the 22nd of March, 1899, and the districts for cultivation, after careful investigations, were regulated in November, 1900, while the varieties of tobacco and the areas of cultivating fields were indicated in 1901. Thus, the fields were well arranged, the method of cultivation was improved, and, moreover, the importation of foreign leaves was kept within the limits required for the manufacture of imitation foreign cigarettes. Yet the