NOTES FROM JAPAN.

Otago Daily Times, Issue 13586, 7 May 1906, Page 4

NOTES FROM JAPAN.

(Fiou Otm Own Corresponlent.)

YOKOHAMA, March 26.

With tho (leiHU'tme of Princo Arthur of Connaught mutters of public interest in Japan havo become rather duil. Tho nation is weary of tho continual rejoicings which havo marked tho passage of tho months since tho treaty of pcaco was signed, and is glad of a rest. Even the proceedings in the Diet have boen watched with languid intorest, though many projects of major importance havo engaged the legislature. An exception, of course, must bo made with regard to tho Government sohemo for tho nationalisation of tho railways. This has aroused a good deal of excited discussion, and naturally so. Tho idea of the military classes is that tho entire safety of tho Empiro depends upon tho wholo of tho railways in the country coming under Government control, and such minor matters as the comfort and convenience of the passengers, or increased facilities for hauling goods, sink into insignificance beside tho strategic demands, of tho ,YVar Office. The whole business world of Japan is opposed to tho project, and the newspapers, with . one solitary exception, support tho mercantile classes. It is pointed out that tho privato railways are far ahead of the Government lines in economy of working, freedom from accidonts, and tho conveniences afforded the public. But tho present Government lias a largo working majority in the Diet, and so despite tho exceedingly strong case put forward by the Opposition the project passed tho" Lower Hoyso with a substantial majority. At present it looks _as if tho House of Peers will pass the bill just as tho Government wishes it to be passed. Financial circles view tho wholo schemo with alarm. Tho Government intontion is to pay for tho lines with Government bonds, and when wo consider the enormous amount of Goyornment bonds floated during tho past two years, tho further swamping of tho market with another 400,000,000 of paper must have tho inevitable result of a heavy depreciation in Government stocks.

I am sorry to hear that Mr J. Graham Gow's mission to Japan as the New Zealand Government's ropresontativo on behalf of the proposed New Zealand International Exhibition has proved a failure. So far, Tokio and Yokohama havo officially replied that they cannot sco their way to participate. Mr Gow appears to have thoroughly investigated tho situation, and it may be of interest to record somo of tho features of his indefatigable efforts to promoto trade between his country and Japan. Among other peoplo ho interviewed the Minister of State for Commerce, and addressed meetings of the Chambers of Cominerco and I'rado Societies, besides receiving many; visits and communications from diplomats and other individuals. But Mr Gow's application came too late, from an official standpoint, as the Japanese Government had already, in a despatch of January 2, notified tho British Imperial Government that they would not bo able to participate as a Government, not having arranged for the samo in the Budget, and the time to elapse before the Diet closed being too brief to permit of special financial arrangements. At tho same timo it was notifled that, except in tho way of withholding a grant of money the Government would not throw any obstaclos in tho way of individual Japaneso participating. This view was sustained by Mr ■ Mateuoka, Minister of Commerce, who also kindly sent Mr Gow 23 letters of introduction to chiefs of leading business interests in Japan, so that lie could invito fihoir co-operation under tho best auspices. Mr .Gow accordingly exploited the loading commercial interests in Tokio, but failed to secure any fntbsla-ntipl eo-oporation. Mr Nakano, president of the Chamber of Commerce, regretted in a letter, addressed through Mr Gow to Mr Seddon, Premier of Now Zealand, that the Government oould not take part owing to lack of time, and that it would consequently be impossible for his body to move without a State grant. Ho also intimated tho Government wish that, even if Japanese should participate, their exhibits should not constitute a Japanese exhibit as a tfhole, but should be scattered as individual exhibits. -'Mr Morishima, of the Trade Society, also regretted his inability to exhibit for the same pecuniary reason, the Government having declined a. grant, and he also . explained that Japanese energies in the exhibition line would be largely monopolised by a _ proposed Manchuria™ Exposition. In this he was somewlat premature, for the Chineso Government has declined to sanction such an exhibition, on t.lie ground that China has never indulged in such a display in all her history. • With regard to the New Zealand Exhibition, there seems to be an idea in Japan that the Government, in declining tlie invitation, is merely echoing tho opinion of tho nation, which rather resents New Zealand's attitude towards Asiatics. It lieed 'not be forgotten that,, according to. Now Zealand law, it is necessary for all Asiatic immigrants to pay a : poll tax of £100 per capita, besides falisfying ap educational qualification; wid although, in t.hc case of proposed Japanese exhibitors, tlie tax has lieen specially suspended, still it cannot Ik doubted that the existence of this discriminating measure against the general population of Japan is an unpleasant reflecting on this country. At- almost every public meeting and interview in which Mr Gow participated in the coursc of tho execution of bis arduous labours to extend Ills country's invitation, tho first question with which lie was greeted was regarding this . invidious poll tax on Asiatics. As one journal wrote when dieeassing this question of the Zealand Exhibition:—'"We do not desire to dismiss the master of this New Zealand exclusion moasuro at this l ime, but the wholo incident of the refusal to exhibit in the southern colony of Groat Britain seems well worth recording as throwing ljght on the Japanese view 1 of the question, and also as marking tho fact that New Zealand iias offered her hand to Japan in commercial co-operation, although the hand has boon, refused. To many thinkers the inoreaso of commercial relations lietween these growing peoples is of more value than the accentuation of a racial distinction, but if Mr Gow's mission has resulted in a clearer understanding of international feeling on tho latter subject, his untiring presentation of tho olive branch lias not been altogether in vain, even in Tokio. And there still remains a oha-nce that the South-west of Japan will realise the opportunity which he offers, and that. Japan—or, rather, Japanese individual enterprise—will not bo wholly unrepresented at this great international gathering in New Zealand." The subscription to the new domestio loan of 200,000,000 yen closed on tho 20th inst. Tho result shows tho total amount of subscriptions was 372,829,100 yen. It appears that the substitution of Treasury bonds for payment fell far short of anticipation—in fact, the amount did not quite come up to 30,000,000 yen, as against 70,000,000 yen worth of bonds standing unredeemed. Especially is it noteworthy that substitution by foreign subscribers was conspicuous for its insignificance, It goes without saying that the railway nationalisation scheme has had a dampening effect on intending subscribers, who naturally looked on the investment with disfavour, inasmuch as the bonds will obviously depreciate when the market has been Hooded with railway bonds in the near future. The same view apparently obtains amongst home subscribers. Although the flotation was a complete success, yet it is undeniable that the amount over-subscribed does not come up to'anticipations, especially' when the present, easiness of the money market is taken into consideration. There has been a tendency of late years for the direct- export of raw silk by Japanese firms, without tho intervention of foreign export examiners, and tho transactions now begin to bear a 'respectable percentage to the gross amount of export. The following is a table showing the percentage of export mado by the Kiito Gomoi Kaisha., Mitsui Bussan, and tho Doshin Kaisha on the total amount of export during two months in the past six years:— Direct. Export Total by Japanese Export. Firms. PerBales. Bales. outage. 1900 .. 68,597 15,119 22.5 1901 .. 71,456 16,605 23.P 1902 .. 76,327 - 20,930 27.0 1903 .. 74,567 20,321 26.0 1904 .. 92,782 31,13? 30.0 1005 .. 57,308 21,100 . 37.0 Although there is no appreciable decrease in the volume of export by the foreign silk firms in Yokohama; yet the above figures plainly indicate a growth of Japanese direct transactions. A loan amounting to 10.000,000 yen was concluded between tho Korean Government and tho Kogyo Gitiko (Industrial Bank of Japan) on the 16th inst. The bonds, which bear interest at 6.5 per cent. per annum, are to be issued at 90 yen per 100 yen face value,- and are redeemable in 10 years, after being allowed to stand over unredeemed for the period of five years from the date of issue. Onehalf of the amount of the bonds is to be paid in this month, while the other half will be called lip as required by the Korean Government. The Customs revenue is hypothecated as security, and the interest- will be payable twice a year—in May and November. After consultation with Marquis Ito, the Resident General, the Korean Government decided to dovotc the proceeds of tho loan to educational,

industrial, and investigating purposes. With regard to education, it is proposed to appropriate half a million yen to provide for the accommodation of primary, high, and technical schools. The expenditure for industrial purposes comprises an outlay of 800,000 yen for tho establishment of an Agricultural and Industrial Bank, and another outlay of one million yen for the completion of waterworks in Chemulpo. A large appropriation is also to be made for the creation of a perfect iiolice system throughout the kingdom, and over 200 police stations are to be inaugurated.

A. Bellamy Brown.