Chamber of Commerce to state its own views respecting the whole question. We have, therefore, the honor to make several remarks as hereafter mentioned regarding the same. After considering what influence has been exerted upon the country by the present treaty, the Chamber of Commerce is led to believe that not only the present treaty has been disadvantageous to Japan, but it has defeated the general principles of commerce which are to promote the interests between this country and foreign nations. The present treaty has, therefore, been injurious to both Japan and foreign countries. We have no hesitation in believing that the imperial government has already perceived the injuries so inflicted, and that the treaty powers also must have regarded the present treaty to be injurious to commercial interests; so, then, they ought undoubtedly to be quite willing to agree to the revision of the treaty, especially to those articles respecting trade. If, however, on the contrary, they should have any occasion to raise objections to our claim for revision of the treaty, we should regard them as thereby breaking the morality as well as justice. We shall now proceed to relate the reasons why they should be so regarded. The present treaty was concluded at the close of the late government, when Japan had been secluded from foreign intercourse and had had no experience of that nature, and, among others, the tariff attached thereto was fixed, as it is, under unavoidable circumstances then existing in this country, without any consideration of the national vicissitudes or interests that might be thereby affected in future. A comparison of that tariff to that now in force in any of the European or American countries will soon show that such partial and unjust one as that of Japan does not exist in any of those countries. Since the first conclusion of our treaty with foreign nations, Japan has made greater progress every year in her government and civilization, and Japan at the present day cannot be looked upon as the Japan in old times, and, therefore, the imperial government, in claiming the revision of the treaty which is necessitated by the change of national circumstances, and which is based upon proper principles, has a right to have sufficient amendments made in the treaty to be proper and just, notwithstanding the absence of a given time in it for the purpose; but when such time is given in the treaty as really is provided, how much more should Japan be justified in claiming the revision. Should the treaty powers still raise any objections to a revision of the treaty, notwithstanding the principles and circumstances so much necessitating it, they should be looked upon as disregarding them, and then the obligation of Japan towards the treaty powers to maintain friendly relations as heretofore would thereby be absolved. The absolute sovereign right of the government to adjust its tariff is undeniable as a question of principle. We have already related the reasons why the present treaty should be revised, and we shall now give the same reasons upon the other basis, which is through the unjust adjustment of tariff, greatly affecting the national economy as well as the commercial interests. It is because of the constitutional principles of Japan by which the national economy has depended upon the land and peasants from the ancient time that the agricultural industry of this country is principally cared for, and the national revenue has been principally raised from the land. This system has existed for twenty-five hundred years. But since the restoration of the imperial government, it perceived the burdens of land taxes involving certain impediments in the promotion of agricultural industry, and has greatly reformed the revenue system, so as to lessen the land taxes. In addition to this, an imperial decree was issued in the 8th year of Meiji to reduce the tax to 24 per cent. on the value of land, and thus the imperial government has been diligently endeavoring to adjust any partiality in the revenue, although the system so reformed for land taxes does not still prove to be quite equitable in proportion to the other kind of taxes. In the budget issued by the minister of finance for the 12th fiscal year we have observed that out of the total revenue of 55,651,379.034 yen, the amount of 53,470,069 yen is estimated on the domestic revenue, and 2,181,310 yen on the customs duties, and that of that amount of the domestic revenue the land taxation amounts to 41,376,458 yen, which is 74.35 per cent. on the whole revenue, while the customs duties are only 2.7 per cent. on the same, and in comparing such state of the budget with that of any European or American country we find a very great difference existing between them, as shown by the annexed table, No. 1. From that table it is evident that Japan levies the heaviest domestic taxes and the lightest customs duties. How, then, can we say that our revenue system is founded on an equitable basis! Besides, the principal articles for export are mostly agricultural products. According to the table of exports and imports for the 11th fiscal year, the total exports amount to 24,614,760 yen, of which the sum of 16,666,730 yen, or about 67 per cent. on the whole export, was paid for the three articles of raw silk, tea, and rice. It is, therefore, just to say that our countrymen principally live upon agricultural products, and any augmentation of the domestic productions of all kind in future should greatly depend on the same resources, and it is now only a mistaken policy of the national economy to levy such heavy taxes on land, which is the important national resource, while imposing extraordinarily light duties on the imports; and with such a state of things existing we can never expect by any chance to promote agricultural industry as well as commercial interests, for the reasons which we shall now proceed to give. = The proceeds from the products yielded by land under the present revenue system are not the same in different localities, but upon an average the value of paddy fields may be estimated at 47 yen per ton (about one-fourth of an acre), and the harvest therefrom may be one koku, 3 to and 3.24 sho (a koku = 5.13 bushels; to of koku, and sho fo of to), the value of which is estimated by an average of 557.74 yen. By deducting from this amount the sum of 1.85.91 yen, or the value of 4 to and .41 sho for the seeds, manure, and other expenses, and the amount of 1.18.5 yen, or the value of 2 to and 8.31 sho, for the land tax of 23 per cent. on the value; and further the sum of 0.23.77 yen, or the value of 5.66 sho, for the local revenue of 20 per cent. on the land tax, the net income per ton, after cleared of all those charges, will be 5 to and 4.85 sho, the value of which is 2.29.6 yen or 4.8 per cent. on the value of land. The above calculation has been based upon the estimate made by the revenue bureau of the Treasury Department, for the average amount of the proceeds from the paddy fields of the whole empire, when the value of land was fixed by that department including by average, the proceeds from such paddy fields yielding twice a year. But the above calculation excludes local expenses and famine stores, for which the proceeds are also to be deducted. As to the farms, the proceeds from the mulberry trees and tea are seemingly superfluous, but the average estimate of the proceeds from the different farms, after cleared of land tax and all other charges, shows no great difference from those of the paddy fields. Consequently the subscription to the agricultural fund has been very small from ancient times, and the implements used for the purposes of agriculture have been confined to the spade, hoe, and a few others, and only a few peasants could keep cattle in aid of their human labor in the cultivation of the ground. Therefore, in order to promote agricultural industry, upon which our national interests and economical resources greatly depend, while the proceeds and funds are so limited, it is a matter of vital importance to lessen the land tax so as to make certain allowance for the peasants for their own support. This is indeed the greatest duty of the government and the wisest policy of the state at the present time. Some might suppose that a large proportion of fifteen millions three hundred and twenty thousand of peasants, including decrepit persons, children, and women, or 4.5 per cent. on the whole population of thirty-five millions, is simply an indication of the profitableness of their occupation, because with so small proceeds from their labor they ought to convert to the other employments. But this does not follow, and is only a sign of the utter ignorance of the opponents of the general usages of this country. The occupation of the peasantry in this country has been inherited from their ancestors, and any negligence of occupation has been regarded among them as a violation of family instructions, and with exception of those having lost their estate or occupation through their indolence and prodigality, they strictly observe the family instructions to adhere to the occupation inherited from their ancestors, and do not care for the prosperous and advantageous condition of the other persons of different occupations, and this has become established and unsophisticated custom among the Japanese peasantry in the long continuance of their strict adherence to the family instructions. But owing to the facilities of communication introduced throughout the whole country by opening the postal and telegraphic lines of late years, it is quite natural that they will soon become conversant with the actual state of social phenomena and perceive the bitter circumstances of their condition so that they will finally appeal against the heavy imposition of land taxes. The imperial government is therefore just in the position to adopt some wise policy to make certain allowance for the peasants for their own support, as no oppressive measures would be effectual after the peasantry have so risen. We have already stated that the agricultural proceeds are greatly reduced by the heavy imposition of land taxes, and have also given the reasons for which agrientural industry could not be encouraged. The imperial government should therefore make every endeavor to lessen the land tax, and construct and open several roads to give all facility for transports and thereby should carry out its general object. But in order to effect improvements of this kind, the financial condition of the country should be first ascertained. Although at present the imperial government is raising an annual revenue of fifty-five millions of yen, we believe that it has no surplus be yond the expenditure, when all things should be improved in this country. But no more mercantile duties can be raised to make up the deficiency that may be found in the expenditure of the government. The imperial government had already attempted to supply the reduction occurred in the revenue under the reformed system of land tax by levying other taxes, duties in the shape of stamp dues, postage dues, and taxes on pensions, liquor, tobacco, &c. Under these circumstances no more mercantile duties can be raised, while it is essential to lessen the rate of land tax, and we would therefore suggest that it is now time for the imperial government to immediately revise the treaty and adjust the tariff, to the end that the duties shall be levied on imports. The adjustment of the import tariff for the increase of customs duties is not only essential for the reasons above given, but also regarding the principles and interests of foreign loans, which should be paid in coins. The coins of this country have been continually exported to pay for the balance of trade every year occurred since the first opening of Japan to the foreign trade, until at present the remains in this country are found so scanty that they will, it is feared, be finally withdrawn from circulation as the regular currency. If the coin currency should be, indeed, at any time withdrawn from circulation, it is doubtful whether the imperial government, who have had so far a full credit of the public regarding the foreign loans, might be able to escape from serious and critical embarrassment. To avoid any financial crises in future, customs duties are the only resources upon which this nation can depend. The foreign loans are not the only thing requiring coin for their payment. It is not expedient to pay the internal debt with a redeemable currency. It is, therefore, most essential to revise the treaty and impose additional duties on imports, in order to enable us thereby properly to lessen the land tax, increase internal production, promote commercial interests, and redeem foreign loans, so that the credit of the nation will be firmly secured before the public. Some might suppose, again, that should the imperial government increase the annual revenue upon the customs duties the export duties would be increased as well as the import duties. But this is a grave mistake. As we have already stated, the land tax should be lessened in order to make certain allowance for the agricultural products, which form a greater part of the exports, as before mentioned, and an imposition of export duties is nothing but that of land tax, and will no doubt affect the condition of the peasantry. We deem it, therefore, not only inexpedient to increase export duties, but advisable to abolish them altogether. Our opponent would still insist upon his opinion that an increase of import duties will immediately affect the price of goods, so that the native consumers will not be able to pay for the foreign articles, and that the consequence so occasioned will be a loss to consumers and the ruin of trade, and Japanese and foreigners will be both brought to the unhappy position to sustain certain injuries from it. But this is only a superficial idea. What are mostly consumed in the life of Japanese producers are beverages and provisions and clothing; furniture and other articles for their household are next in order, and the foreign goods consumed by them are confined only to cotton yarn, shirtings, kerosene oil, and a few others, all of which are in value only two or three tenths of beverages and provisions they are consuming. Therefore, any rise of those imports in value will not so much affect the household expenditure of Japanese producers to raise the price of exports. Whether the articles of import are purchased by the agricultural producers or not, most of them are already accustomed in daily consumption, and ought to increase in importation according to demand, notwithstanding the rise in value, and when the price of imports was raised during late years by the rise of legal-tender, we observed, on the contrary, that foreign articles were more demanded than when they were low in price. This is an evident proof that the quantity of imports greatly depends upon the demands instead of the value, and therefore the reduction of land tax to make certain allowance for the benefit of agricultural products, and the improvement of roads for reducing the expenses of transportation, are not only essential in order to increase the internal products of this country, but are highly important for the increase of demands for the articles of import. The Japanese products for exportation are mostly agricultural and marine products, such as raw silk, tea, rice, wheat, camphor, vegetable wax, sea-weed, dried awabi, &c. We think, therefore, it is not out of place to refer to the annexed table No. 2, which shows the quantity of products exported during six years from the 7th year of Meiji, as follows: According to the statistics above referred to, it is apparent that raw and unmanufactured articles must comprise the greater part of the exports, and that they are altogether agricultural products. Under these circumstances, Japan has now by all means to make every endeavor to increase agricultural products, and at the same time to facilitate the demands for foreign articles, so that exports will be gradually augmented, together with imports-the only reliable policy for the promotion of commercial interests. If, however, on the contrary, the thing is conducted without regard to the original cause of the financial condition of the country, we shall have no expectation for the increasing of products, and shall be obliged to make pecuniary payment for imports. This theory has been practically acted on in Japan, by exporting an enormous amount of yen, 43,398,529.31.5 in gold and silver, to pay for the balance of trade, from the 5th year of Meiji to the 6th month of the 12th year, and if this state of things is not changed, it is most probable that the result will be the ruin of the commercial interest of Japan, and reduce the country to the most miserable condition, so that she will be finally obliged to discontinue all export and import trades, as the limited amount of treasure in this country will not answer to pay for the boundless quantity of import from several foreign countries. It is needless to say that there can be no country or nation in the world which pays all her treasure for the purchase of foreign articles to supply only her own demands without exporting her products in exchange. It is the true principle of commerce to establish a reciprocity between the buyer and the seller. The necessity to purchase certain articles makes it necessary to sell certain other articles, and so the sale of certain articles is rendered necessary by the purchase of certain other articles. Japan of this day is only purchasing, not selling, and is sure to be brought to the most miserable condition, as before mentioned, and we have no hesitation to foresee Japan so destined, according to the true principle of commerce. Our inconsiderate opponent (who is afraid of the rise of imports in value by an increase of duties, and does not care for making certain allowance for agricultural producers, who must be good mediators to increase demands for foreign articles) may be compared with a botanist who is seeking for the luxuriance of branches and leaves of a tree without nourishing the root. Should the opponent still insist on his erroneous view and object to an increase of import duties, he is only a promoter of selfish interests, and is committing violent action "to make his own good by defrauding another of his dues," as told in a proverb, and should he regard as guilty of violating the rule of reciprocity, which is the true principle of commerce. For the reasons repeatedly given in the foregoing articles, it is the most sincere prayer of the Chamber of Commerce that the imperial government shall immediately decide upon revision of the treaty, and make certain allowance for domestic producers, thus encouraging an increase of productions and promotion of commercial interests. As regards the other demands which we have, regarding the treaty revision, we shall hereafter furnish our views in separate articles. RIGHT OF COASTING TRADE. On the occasion of revising the present treaties, it is one of the most important points, and which the chamber is very desirous of securing, viz, that the right of controlling the coasting trade should be reserved by Japan. Japan is a country surrounded by sea, and the greatest attention should be paid to the carrying trade by sea, of which a mere theoretical study would not answer, but which requires experience and practice. With this object in view, the government has not failed to cause the carrying trade to be undertaken in the country, and to give it the necessary protection. If now, however, foreign vessels be allowed to carry on this trade in Japan, that of the Japanese vessels must naturally be depressed thereby, in consequence of inferiority in point of experience, and it would result in discouraging our ship-building and the educa tion of mariners. This is the real cause why the right of coasting trade should be reserved by Japan under the present state of things. It may be supposed that our carrying trade is not still in an advanced state; there is now only the Mitsu Bishi Company, which carries on this trade in Japan, but it, subsisting under government protection, and being of the nature of a monopoly, is not to be relied upon, and as any one will find it impossible to undertake a competition with such a subsidized company, it is necessary to grant foreign vessels the liberty of carrying on the coasting trade, and thereby to increase the means of conveyance in this country. This the chamber must say is an opinion arising out of an insufficient knowledge of the facts. According to the table showing the number of vessels belonging to Japanese, prepared by the general post-office on the first month of the present year, the number of merchant vessels has been annually increased since the 3d year Meiji, as follows: In the 3d Meiji. In the 4th Meiji 48 72 20 7 ད ཚོ ཡ 7:? The number of steamers and sailing vessels on the 1st month of the 12th year Meiji: From this rapid increase of vessels Japan appears to have made considerable advance in its marine trade, and although it is true that the Mitsu Bishi Company receives the protection of the government, it can never be satisfied with that, and it appears endeavoring to further extend their trade. The said company has now in its possession thirty-three steamers and seven sailing vessels, and its vessels run between all important ports on our coasts, viz, Kobe, Osaka, Yotsukaichi, Shimidzu, Shimonoseki, Kochi, Nagasaki, Kagoshima, Oshima, Riu-Kiu, Fushigi, Sakai, Hachinobe, Samusawa, and Funakawa, and also abroad it has already commenced regular navigation between Shanghai, Hong-Kong, and Korea. Within only a few years past it has made conspicuous advances in its business, and is rapidly more and more progressing. Thus, although that company appears to hold a monopoly, in reality it is not the case. Now, to demonstrate this it would be expedient to show to what numbers vessels upon foreign models have increased in Japan and how many persons are the owners of them. There are now 180 steamers, of which 37 are the property of the Mitsu Bishi Company, while the remaining 143 belong to other owners; and 146 sailing vessels, of which seven are the property of the said company, while the remaining 139 are owned by other companies, or individuals consisting in number of 130 persons. The sea-carrying trade in Japan is in such progressive state, and as the people have understood the profitableness of this trade, there can be no doubt that they would be willing to offer their capital and undertake the building of new vessels, so as to further promote this carrying trade. As to the mistaken supposition above alluded to, that the Mitsu Bishi Company enjoys a monopoly, it needs no refutation, because if it should be understood that the government protection given to the said company is not for the company itself, but for the enterprise in which it is engaged, such a misapprehension would not have arisen. It is not only the Government of Japan which gives protection to its mail vessels; in Great Britain, France, and the United States the same is the case. It must be especially expedient to do so for Japan, when considering the state of affairs under which she is at present placed. But there can be no doubt that if that company would conduct itself wrong and do any injuries to the public, the government should not fail to condemn it, and also the people should never yield to such injuries. Besides, if the foreign merchants be informed of the fact that foreign vessels have not much to interfere with our coasting trade, they would find it inadvisable on their part to give any inconvenience thereto. As is shown in the report of the Kobe foreign chamber of commerce, presented to the British minister at Tokio, the foreign vessels which arrived at and departed from that port with cargoes of Japanese products during the period of seventeen months from the 1st of January, 1878, to the 1st of May, 1879, were only eighteen, and the amount of freight they realized was only $13,375, whereas the vessels of the Mitsu Bishi Company made 279 runs between Tokio and Kobe during the period of one year from the 1st of January, 1878, to the 31st of December, 1878, and the freight received amounted to 1,640.26.5 yen. If in comparison with only a portion of trade carried on by one company the foreign vessels were so greatly surpassed in their freight and quantity of cargoes, there will, therefore, be far more difference when compared with many other Japanese steamers, sailing vessels, and junks, as well as those of the Mitsu Bishi Company. |