BRITISH TRADE WITH JAPAN
MEMORANDUM
ADDRESSED TO THE CUTLERS' COMPANY OF HALLAMSHIRE, UPON
British Trade with Japan
Progress of Japan
1.—Little idea can be formed of the progress and development of Japan without a personal visit. That the Japanese Empire should have been brought in less than a quarter of a century from barbaric darkness and isolation to a leading place in the civilized world, is not the least remarkable event of the present generation. The fact that this great revolution has been accomplished without the pressure of external war, and practically without internal riot or bloodshed, renders it the more extraordinary.
Some may affect to prefer the old order of things, may think that the transition has been dangerously rapid, may sneer at the wonderful adaptive faculty displayed. This is, however, certain, that in good order and sobriety, in cleanliness and politeness, in industry and contentment, the Japanese are already in the van of nations.
The police, postal, telegraphic, and educational systems are tributes to their capacity, while over 1400 miles of railway are being efficiently worked by native employés.
Care and caution will be undoubtedly very necessary for many years to come. But if reliance upon indigenous talent, and the new law that Japanese industrial undertakings must be represented by Japanese, are not carried to an extravagant point, the next decade or two may see the vast reforms not only matured, but carried onwards to a summit undreamt of, when, in 1868, the country was released from the chains of ages; or even when a score of years later his present Imperial Majesty, the 121st Mikado and Emperor of his race, voluntarily gave the nation one of the clearest constitutions in existence "in consideration of the progressive tendency of the course of human affairs and in parallel with the advance of civilization."
Concurrent Growth of British Interests
2.—There is nothing more striking in this transformation than the constant growth of British interests in the Empire, with which it has been attended.
Illustrated by large numbers of British Residents and Mercantile Firms and proportion of Trade and Shipping.
This is clearly illustrated by the following notable facts:—
(a) That British residents, numbering 1500 souls, of which two-thirds are males, equal numerically the representatives in Japan of the whole of the rest of the world, excluding the adjacent Chinese.
(b) That a like state of affairs exists with regard not only to the number of foreign mercantile firms, located in Japan, but also in the proportion borne by the British flag of the external trade.
(c) That since 1868, the first year of the new Japanese era, British shipping in the waters of Japan has, according to the calculation of her Majesty's Consul at Kobé, increased threefold in number and fifteenfold in tonnage. It carried last year two-thirds of the (extra Chinese) foreign trade, and 71 per cent. of the whole, in over 1000 ships inwards and outwards, giving employment to more than 25,000 persons, and this notwithstanding the harassing exclusion of foreign vessels from any share in the large coasting trade between other than the six open ports.
Volume of Japanese External Trade
3.—The external trade (imports and exports) of Japan has more than doubled in the past ten years. It amounted in 1890 to 138¼ millions of silver yen or dollars2 (say 21,000,000l. sterling) against 62¼ million yens in 1881. The exports, of which the British Empire took nearly a third, amounted to 54¾ million dollars; the imports to 81¾ millions.
The Foreign Element as a Source of Wealth to Japan
4.—The financial value to the Empire of the foreign commercial houses is shown by the passage, through their agency, of 110 million dollars worth of the total external trade.
There is in addition the expenditure of many thousands of foreign visitors to the natural beauties of the country—of which 70 per cent. are calculated by Mr. Gubbins, secretary for Japanese to Her Majesty's Legation, to be British,—a sum estimated at an extreme minimum of three million dollars a year, or about 500,000l.
The Passport System and Disability of Foreigners
There is hope that these important considerations may lead ere long to a modification of the stringent passport regulations, and of the disability attaching to the alien tenure of real estate, hindering as it must do the permanent investment of capital.
Proportion of External Trade with several Foreign Countries.
5.—Foreign countries shared or divided in 1890 the external trade of Japan in the following proportions:—
Purchases by Japan of British Goods
6.—The purchases by Japan from the British Empire exceeded 41 million dollars (say 6,750,000l.), of which 26½ millions worth were obtained from the United Kingdom.
Unfortunately, however, a not inconsiderable proportion of the imports credited to Great Britain, are stated to have been of German, Belgian, or other foreign make, and although obtained through English houses, the advantage to the artisan community at home was thereby materially reduced.
False Marking
The observations on this head of Consul Longford, in his report for 1886, are still deserving of attention:—
"While fully recognizing that it is only reasonable and right that English merchants in Japan should go to those producing centres which show the greatest readiness to meet and satisfy their demands, it is at the same time unfortunate that they should import the goods which they obtained from Germany with English marks and chops on them, even though the latter are only intended to acquaint native dealers with the name of the firm supplying them and not in any sense to designate the country of origin or production… for means are thus placed in the hands of the Japanese middlemen or the ultimate retailer, which may aid him considerably in selling (inferior goods) as English."
Merchandise Marks Acts
The enactment in the United Kingdom of the Merchandise Marks Act of 1887, so largely due to the Cutlers' Company, has no doubt modified this evil at its base. It has not, however, stamped it out, partly because foreign goods can still be imported into England, plain and devoid of any indication of origin, and the detection of subsequent false marking by the few dishonest, prior to home sale or foreign exportation, is practically impossible; and partly because few foreign nations have adopted a corresponding law, or if they have, it is rarely enforced.
The Japanese Trade Mark Regulations of October, 1884, do not touch the question, and moreover have been judicially held, so Mr. Consul Hall informs me, not to apply to foreigners or foreign goods.
Purchases by Japan of Sheffield Goods
7.—The purchases by Japan from Great Britain of those productions of iron, steel, and hardware, in which Sheffield is mainly interested, compare favourably with those from other foreign nations.
Iron Pig, Bars, Rods, Rails, etc
8.—In pig iron, iron bars, rods, plates, sheets, and rails, Japan bought last year from England 1,424,000 dollars worth (say 235,000l.) against one-fourth that amount from Germany, and only 20,000 dollars worth from France. Even this large figure shows some shrinkage on the British import in 1888-89, while the German, although so far behind, has increased.
Pipes and Tubes
9.—In iron pipes and tubes Great Britain supplied Japan in 1890 with 159,000 yen worth, out of a total purchase of 166,000 dollars—an increase of 98,000 dollars worth in two years.
Nails
10.—In nails, however, Great Britain has fallen behind and given place to Germany. Indeed, her Majesty's Consul at Yokohama says in his report for last year:—
"The consumption of wire nails is steadily increasing. The demand for nail rod is now almost extinct—manufactured nails being taken instead. These nails are now mostly of German, and a few of Belgian origin."
This is corroborated by the purchase from England of nails having fallen from 342,000 dollars worth in 1888 to 134,000 dollars worth in 1890.
Screws
This is the more remarkable as in iron screws, Great Britain holds the market with a supply of 70,000 dollars worth in 1890, against only 2000 dollars worth by Germany, and a like amount by France.
Steel
11.—In steel 162,000 dollars worth was obtained from England out of a gross importation amounting to 194,000, France supplying 23,300 dollars worth, and Germany, subject to the observations in paragraph 6, only 3900 dollars.
Mr. Consul Troup has observed "that the steel imported by the Government for the making of barrels at the small-arms factory at Tokio, and for the Osaka arsenal is mostly French, German, or Italian, and at the Yokosuka dockyard there is a certain preference for Creuzot steel."
With the approval of the Minister for Foreign Affairs, whose great courtesy I take leave to acknowledge, and by permission of the Minister of War, I visited the Osaka arsenal to ascertain the cause.
Osaka Arsenal
12.—It is an admirably organized institution with canal service direct to the sea, provided with the best English, German, French, Italian, and Austrian machinery, employing 1400 hands at an average wage of ten pence for a ten hours' day, and turning out 24-ton guns, besides all other material for a standing army, 80,000 strong, formed on the French model with German improvements, and reserves 240,000 in number, but deficient in officers.
Advantage of the Metric Scale
The Director, Lieutenant-Colonel T. Ota of the Imperial Artillery and European trained, was so good as to give me for the Cutlers' Company, on hearing that it included the members of the great iron and steel firms, a complete set of photographs, illustrating the workshops, the guns, and the target experiments. He expressed himself as fully sensible of the excellence of the metal manufactures of Sheffield, and their superiority, both in cost, quality, and workmanship, for original productions. Upon the other hand, though, he frankly said that there was so much risk of error in the measurement by "feet" and by "inches," that it saved much anxiety and trouble, when specific and exact size was required to order from Creuzot, or from Krupp, in the metric scale, adopted by Japan of "mètres and millimètres." One well-known English firm has in consequence, I understand, determined to follow the German example, and to render specifications to foreign governments or individuals in their own lineal and currency calculations.
Partiality of Students for Country Of Education
13.—In this connection the Consul at Yokohama calls attention to another important matter. He says "the Government official prefers the material of the country where he has received his training."
The Japanese authorities have in the last fifteen years sent large numbers of students to Europe. Many have given since their return solid proof of their industry, perseverance, and natural aptitude. More than one Continental Cabinet has taken an active interest in these students. But not so, I understand, her Majesty's Government. Several have consequently gone to France, Germany, Austria, and Italy, who might with advantage have come to England, as well as those studying ship-building and engineering. It is a matter not to be lost sight of in the future, for there are other backward lands likely to be stimulated by the bright example of Japan, and to endeavour to follow it.
Cutlery, Table Knives
14.—The imports of cutlery have averaged 21,000 dollars (say 3000l.) during each of the past three years, and practically the whole came from Sheffield. It is a trade capable, I believe, of great development. At the present time, the use of table cutlery is confined to the foreign population and visitors, and to a small proportion of the Japanese, perhaps 100,000 out of the forty millions.
But this number is likely to increase every year, and, indeed, every day, as European ideas, habits, and costume, encouraged, by the imperial Court, the nobility, and the leaders of commerce and thought, gain a firmer foothold. It is illustrated inter alia by the wide adoption of English head gear on the Lop of the native costume, and the consequent importation of a million dollars worth of English hats and caps in the last triennial period.
Encouragement of Table Cutlery
At a recent industrial conference with some of my constituents, an artisan asked if nothing could be done to encourage Eastern races to abandon "chop sticks" in favour of knives and forks. The question created some amusement, but it showed much intelligence and acumen. It has since occurred to me that possibly advantage might be taken of the Japanese and Oriental generous custom of present-giving to stimulate a taste for our cutlery, by enabling donors to obtain at a small cost a gift knife and fork, attractively got up either upon a card or in a case. In any case an experiment would not be ruinous.
Razors, Scissors, and Pocket Knives
15.—I have obtained for the information of the Sheffield trade, specimens of the razors, scissors, and pocket knives now in use among the Japanese, and shall on my return forward them to the Cutlers' Hall. As will be seen, they are of a very rough and primitive description.
Skill of Japanese as Cutlers
Time was when, according to Professor Rein, the German scientist sent by the Prussian Government to report upon "The Industries of Japan," "among the nations of Eastern Asia the Japanese were known as skilful workers in iron, which their celebrated armourers transformed into famous weapons of excellent steel. The forging and polishing of swords was a wearisome work demanding much skill and practice. The tempering of the edge was carefully done in the charcoal furnace, the softer backs and sides being surrounded up to a certain point by fire clay, so that only the edge remained outside. The cooling was in cold water. Skilful sword cutlers gained for themselves high social position, and won great glory and fame with their swords."
It now survives only in collections of old weapons. An Imperial edict forbade the carrying of swords, and in a few weeks the most costly arms were a glut in the market.
Demand for Razors
It is noteworthy that the Japanese very rarely allow any hair to grow upon the face, and the humblest peasant is regularly shaved by the barber, "dry," and with a rude handleless razor.
There is scope here. Indeed, a contract has just been concluded with an English house in Japan, for the supply of a considerable quantity of soft "German" steel, for the blocking out of razors, and I noticed one considerable shop-keeper announcing himself as "manufacturer of all kinds of European hardware."
Locomotive and other Engines
16.—In locomotive engines Great Britain supplied Japan in 1890 with 474,000 dollars worth out of a total of 659,000 dollars, Germany following with 81,000 dollars worth, and the United States with rather more than half that sum. In other engines and boilers 253,000 dollars worth came from England out of a total import of 345,000 dollars, while of railway carriages the United Kingdom supplied 10,000l. worth, or the whole save 600l.
Zinc
17.—In zinc, however, Germany took the lead with consignments amounting to 141,000 dollars against 89,000 from Great Britain. As the prosperity of the country advances the use of zinc, especially for roofing purposes, is likely to increase.
Woollens and Flannels
18. While in woollen cloths England holds her own in Japan with the supply of three-fifths of a gross import exceeding last year a million dollars, she falls far behind in woollen yarns and flannels. In the former Germany led in the proportion of 3½ to 1, and in the latter by a sale of 715,000 dollars worth out of 927,000 dollars, and I understand that the representative of a well-known English house recently found the trade much overrun and business exceedingly difficult.
Apprehended Decline of English Cotton Trade
19.—It is, however, the cotton trade of Lancashire which is likely to feel a serious change ere long in its relations with Japan. Her Majesty's commercial representatives have given warning of it for some time, and shown not only the danger to be apprehended by English operatives from the competition and cheap labour of India, but also from the establishment of cotton spinning factories in Japan, and the growing preference for the home made article.
In 1885 there were only 62,000 Japanese spindles at work. Now there are over 313,000 in 35 mills. Some have not done well owing to defective management. But others are working day and night. The importation of raw cotton has quadrupled in the last three years, while that of cotton on the seeds has doubled. A million dollars worth of the most improved British spinning machinery was laid down last year, and much attention is being given to the cultivation of the cotton plant, although, owing to the typhoons, with indifferent success.
While British cotton velvets, satins, and handkerchiefs have not lost ground, and grey shirtings, T cloths, and Italian cloths came almost entirely from England, as also turkey reds and victoria lawns, the work of the Japanese mills is evidenced by a decline in the importation of cotton yarns by over three million dollars since 1888, of which two million fell on Great Britain, and a diminution in the purchase of foreign cotton drills by two-thirds. In shawls also there has been a shrinkage.
A Fresh Market for Lancashire
It is clear, therefore, that Manchester will have before long to a great extent to replace her Japanese market, of which she had, until lately, a monopoly. This may probably be done most advantageously and effectively in the direction of United Empire trade.
Proposed Increase of Japanese Tariff
20.—Closely allied with this question is the almost certain increase in a year or two of the Japanese tariff. The amount collected at the present time by the Customs Bureau (whose returns are compiled with much care and despatch) comes to about 5 per cent. ad valorem (60 cents per 100 catties or 133⅓lbs. of steel, and 30 cents per 100 catties of manufactured iron in rods, bars, etc., and 15 cents per 100 catties of pig), and yielded last year 4,488,384 dollars, or nearly double the customs revenue of 1881.
It is highly probable that this rate will be doubled, or even increased to 11 or 12 per cent. in accordance with the demand of national manufacturers and operatives.
Powerlessness of Her Majesty's Government. Partiality of the Japanese for the English
21.—Under present fiscal conditions in the United Kingdom Her Majesty's Government is powerless to negotiate for a special arrangement as regards England. Were we differently situated it is not impossible that the Emperor's Government might be willing to treat preferentially with Great Britain, not only by reason of the preponderance of British interests in Japan and Japanese waters, but also on account of the popular partiality throughout the empire for our countrymen and their productions. This is evidenced in a thousand ways in the national life of this most attractive people, and not least of all by the adoption of English as the secondary official and commercial language, to an extent so great as to render it ample for travel in all but the remote districts.
A Close Alliance with Japan most Desirable
22.—It is much to be desired that this feeling may receive all possible encouragement. No question is likely to disturb the harmony of Anglo-Japanese relations, and no alliance is calculated to be of greater mutual advantage to both nations.
"BRITISH INTERESTS IN CHINA."
REPORT TO CENTRAL SHEFFIELD
Having regard to the apprehension caused by the danger in which foreigners in China have been lately placed, many of my constituents desire to know the result of recent inquiries at Peking and elsewhere, into the condition of affairs as affecting British Trade and Industrial Employment. I have the honour, therefore, to submit the following report.
The details have been collected partly from official sources and partly from the views of authorities in various spheres who have favoured me with opinions founded for the most part upon long personal experience.
Extent of Chinese Empire
1.—It may be desirable, in the first place, to call to mind the area and population of the Chinese Dominions, and the system of government.
The Empire of China proper is about 1,500,000 square miles in extent, or twelve and a half times the size of the United Kingdom; sevenfold the area of France or of Germany; yet less than one-sixth the British Empire. To this must be added the dependencies of Mongolia, Manchuria, Thibet, &c., say 2,000,000 square miles.
Population
2.—This vast and productive Empire, bordered upon the West and South-West by the possessions of the British in India and Burmah, and by Thibet; upon the North by Asiatic Russia, and upon the South-East by French Indo-China, is estimated to contain about four hundred millions of what an English authority has described as "the most cheerfully industrious, orderly, and wealthy nation in Asia."
The Emperor of China
3.—Over them despotically reigns, from the absolute seclusion enforced by tradition of The Forbidden City at Peking, the youthful descendant of The Conqueror who, two centuries and a half ago, placed for the second time the Tartar sceptre over the Chinese, and assumed the style of "The Son of Heaven."
The Crown does not devolve by primogeniture, but by the posthumously declared selection of the reigning Emperor among the male members of a younger line of the Imperial House.
The Imperial Government
4.—The Central Government is regulated by an Inner Chamber, a Grand Council, and the following six Ministries or Boards: (a) Civil Office, (b) Revenue, (c) War, (d) Works, (e) Ceremonies, (f) Punishments. Each Board is composed of Manchus (Tartars) and Chinese in equal numbers, with two Presidents—a system excluding individual power or responsibility.
The executive orders go from the Throne, and are obtained, according to ancient custom, on petitions presented by the Presidents of Boards or Members of the Grand Council, upon their knees, at or before sunrise,—the course of the Vermilion Pencil of the sovereign being, it is said, much influenced by the Empress Dowager, who, during the Imperial minority of seventeen years, skilfully administered the Regency.
Foreign Affairs
5.—The relations of China with Foreign Powers are conducted through a special Board or office—the "Tsung-Li-Yamen,"—consisting of eleven members of the Grand Council and six Chief Secretaries, a considerable number of whom, with a large retinue of servants, receive, round a sweetmeat-covered table, the official visits of diplomatic representatives. This collective conduct of state business, added to the difficulties of a language which, although monosyllabic, contains over 20,000 characters, and the necessity of all communications passing through interpreters (except in the case of the French Minister, who speaks Chinese), much restrains and practically prohibits the confidential and personal negotiations which, in other countries, so much facilitate the satisfactory conclusion of public affairs.
Provincial Administration
6.—For purposes of provincial administration, China is divided into several Viceroyalties, each invested with a large amount of sovereign power, including taxation, internal order and defence. It is subject, however, to many ingenious checks. In the first place, a Tartar General is attached to each Viceroy, in a semi-independent position, and his assent to many administrative matters is essential. Secondly, there is a rule against the appointment of a Chinese Viceroy over any province or provinces whereof he is a native. There is also the vigilance of a Board of Censors, established 160 years B.C., and theoretically consisting "of the most enlightened, righteous, and firm persons," whose duty it is to warn the Emperor direct of anything done to the public detriment, not excepting even Imperial laches; for the Chinese maxim runs—"To violate the law is the same crime in the Emperor as in a subject."
There are, within the Viceroyalties, 18 provinces, over each of which is an Imperially-appointed Governor, a Treasurer, a Judge and Comptrollers of the Salt Monopoly and the Grain Tribute. Every province is again subdivided into prefectures, departments, districts, and townships under small Mandarins, and into village communes under Headmen.
The territories of Mongolia and Manchuria are administered martially; in Thibet and Corea there are "Residents" representing the Chinese Suzerain.
The Mandarinate
7.—The Mandarinate is not hereditary, save in the case of a few princely families, largely debarred from public life, and the still surviving house of Confucius, which was elevated to a Dukedom, 1500 years after the death of its founder, in 479 B.C.
Public Offices
Public Offices are filled by nominated Mandarins of various grades. They obtain their posts partly by proficiency in successive urban, provincial, metropolitan, and palace open competitive examinations in Chinese classical lore, and partly by purchase or judicious bribery.
The former literary tests were established twelve centuries ago, and at least 1100 years before merit or study had much place in European patronage.
The brilliant graduate of humble origin rarely lacks, moreover, the pecuniary support necessary for the prosecution of his studies, or for official recognition of his examination laurels. Localities, banks, and capitalists are usually ready to stand behind a man of promise, as an investment, to be liberally recouped by ulterior "squeeze,"—on his attaining place,—smally paid in itself, however exalted, but prolific in indirect sources of enrichment.
Influence of the Literati
8.—Nothing is declared to press so heavily upon the social, political, and national progress of China, as the adverse influence of the "educated" classes. So it was even in the time of the great monarch who, 200 years before Christ, consolidated the Chinese Empire, and built the still-enduring Great Wall, in hopes of thereby defeating Tartar incursions. To overcome the opposition of the Literati, he ordered all their books to be destroyed. But the fact remains that the vigorous heads among the people, who, in other lands, have had to carve their forward path, by agitation and revolution, through the barriers of social rank, caste, and the privileges of wealth, have had for ages in China an open avenue to advancement.
Thus it is that the student tendency, instead of being, as in every other part of the world, in the direction of reform, is applied to the most absolute maintenance of the present system, and to the rejection alike of the methods and appliances of the Western world.
Students sent to Europe
9.—It is true that a few youths have, from time to time, been sent to Europe and America, but their studies have been either cut short, or the palace circle has succeeded in relegating them, on return, to distant posts. Some also have gone back, not imbued, like the Japanese, with ardent enthusiasm for reforms, but apparently more embittered than ever against the foreigner.3 How little influence they have had, and how little is really known of the West, may be illustrated by the belief said to have been expressed by a provincial functionary in high office, that foreigners came to China, from the barren rock of Europe, to obtain "rice" as a means of subsistence; and to the opinion of another, that we owed scientific progress, not to our own discoveries, but to having obtained a copy of the ancient Chinese classics, saved from the above-mentioned Imperial destruction.
National Result
10.—The national result is that, although recent events have hastened forward the completion of a telegraph system, there is throughout the Chinese Empire but one short railway, no proper road communication, and defective attention to the unrivalled waterways, no uniform system of taxation, no reliable administration of justice, no Chinese currency (other than brass cash), no postal system, and little regard for the public health and welfare; yet, wherewithal, there is great respect for private property and the due transmission of the small holdings into which the land is divided.
Prospect of Reform
11.—That a people sometimes accounted "the active race of mankind"; as keen and reliable in business as any in the universe; the reputed first inventors of the mariner's compass, of gunpowder, of ink, printing, and paper (which have contributed so much to England's greatness), should be content with such a condition of things may well pass belief. Ambassadors have of late been sent to Europe, Diplomatists, consuls, traders, and missionaries have endeavoured to show the light. The example of Japan is at hand. Yet no man can say, upon any foundation of actual fact, that a change is probable or imminent.
It is true that fully two millions of industrious Chinese emigrants can testify to their speedy acquirement of comparative wealth under happier conditions, despite laws of exclusion in America. The majority are said, however, to return quietly home and settle down (awaiting interment in one of the family burial places which cover the surface of the country and much prevent the sale of land) to that worship of ancestors, filial obedience, and veneration for authority, which are quoted with pride as contrasting favourably "with a society where each generation despises the one which immediately preceded it, and strains after the future without respect to the past."
Want of Leaders
12.—There is also an undoubted want of men willing to champion, or capable of leading, a party of reform.
The two most conspicuous statesmen in the Empire—and, indeed, the only ones—are the Viceroy of the Metropolitan Province of Chilhi, and the Viceroy of Hupeh.
The former is His Excellency Li Hung Chang, who, for 40 years, has possessed a great and beneficial influence. To the viceregal functions are united those of Grand Secretary of the Empire and Commissioner for Northern Trade, in which capacity His Excellency is consulted on all foreign and naval matters. He has the forts on the Peiho in good order, the troops well trained and armed—not with matchlocks or bows and arrows, as in other viceroyalties, but with modern weapons, replenished from arsenals at Tientsin, under foreign direction. A railway4 runs, moreover, under English management, to the Gulf of Pechilhi, and its extension to within 14 miles of Peking was once authorized, but subsequently disallowed.