It may be supposed that it cannot be proper to make such a comparison between the native and foreign vessels in the quantity of cargoes they have carried, because there are some very troublesome formalities to be observed in case of loading Japanese products in foreign vessels which make them unfavorable to the public.

Taking this supposition for granted, the chamber is still of opinion that if the Japanese vessels were found insufficient to the public needs, so as to necessitate the service of foreign vessels, the quantity of cargoes carried by the latter must have been greater. But the fact that the case was not so proves that the Japanese vessels are able to meet the need for transportation of our products without requiring the service of foreign vessels.

It may further be supposed that should the right of coasting trade be granted to foreign vessels the rate of freight would be lowered to the great advantage of merchants in consequence of competition taking place between the native and foreign vessels. This is also an unsustainable view; although as long as they can they could support themselves with low freights in competition, but when one of the rivals should fail it is quite possible that the others would immediately raise again their rates, because the low rate during the competition cannot be a reasonable one.

We admit that Japan is still incomplete in her ship-building facilities, but we have already many docks; they are at Kobe, Nagasaki, Yokosuga, Osaka, Tokio, and Hakodate, of which the first three belong to the government and the others belong to private individuals, and they are all constantly working busily.

The ships constructed at these docks, it is admitted, are not all of a proper method of construction, but there is no doubt that they are by far superior to the old junks in their construction. And besides, as the marine insurance company has been established in this country, and as the ships being insured by that company are to be sur veyed by a committee who is sent from the general post-office, those who engage in carrying trade will gradually know that they ought not to construct their ships roughly, but to construct in a proper method; and also there is no doubt that as the transportation of goods can be secured by the establishment of this company, it should be greatly increased in future. Since the establishment of this company, 58 ships, exceeding in all 31,877 tons, have been already insured by them.

It may be expected that when the foreign insurance companies are informed themselves of the above circumstances, they should also be willing to give insurances to the goods to be carried by the Japanese vessels which have once been insured by the Japanese insurance company at Tokio, and which have been surveyed by a committee of the general post-office, so that both the foreign and native merchants shall have no complaint of any inconvenience for the transportation of their goods between the ports in this country. If, however, the right of coasting trade be granted to foreign vessels, it will not only hinder the progress of the carrying trade of our people, but also cause it to be depressed. The chamber consequently urges that on this occasion of the treaty revision the right of coasting trade should be reserved by Japan.

OPENING OF NEW PORTS.

In this country we now have only five ports and two cities open to foreign trade, and therefore the products of the interior must be brought to either of these open ports or cities to meet the demand of foreign merchants.

It may be supposed that the trade of our products is accustomed to be carried on at the old open ports and that the products being naturally concentrated at the thriving places, as silk is brought exclusively to Yokohama and tea to Yokohama and Kobe, the opening of any new ports, even in the vicinity of the productive districts, would not do much to induce the foreign merchants to remove there for trade.

In the opinion of the chamber, the opening of new ports is very desirable, the reasons for which are as follows:

Coal of Japan is gradually getting a good demand in the East, and it is chiefly ex ported to China. During the eleventh fiscal year of Meiji, the amount of 123,382 tons was exported, and it seems to increase year after year, while the consumption of foreign coal is gradually decreasing.

The working of coal mines in Japan is greatly improving by purchasing the neces sary machinery and providing steamers for the purpose of transportation, and it will not be long before the people in the East can buy coal at a cheap rate. However, under the present circumstances, to export Japanese coal it would be brought from the interior to some of its nearest open ports, causing thereby much labor and expense; for instance, coal produced at Takashima, Karatsu, and Taku would be sent to Nagasaki for exportation; so, also, coal to be shortly produced from the mines at Horonai and Iwanai, in the Hokkaido, would have to be sent over to the port of Hakodate.

In this state of things, those who engage in coal mining would find it difficult to obtain any profit therefrom; while it would be also disadvantageous to those who consume such coal, and such would not be the way to promote the coal mining in Japan.

Rice of Japan is also of late greatly esteemed in Europe, and is demanded there at much higher prices than that of Indian rice. It was not a fixed goods of export, and only what was stored in the government warehouse has been exported; but the chamber has no doubt that in future it will be made one of the general goods of export. When China or Australia happen to feel the scarcity of provisions, our rice or wheat will be sent to them, and at times of scarcity in Japan it would be necessary to obtain Chinese rice. But rice as well as coal is a very bulky article, inconvenient to be transported. If such bulky article should be sent to the open ports before it can be exported from or imported into the interior of the country, the price of it would thereby more or less be raised. Such would be inconsonant with the principle of developing our national products, and also it would be unfit to save the people at the time of unfruitfulness in this country.

During the 8th and the 9th years Meiji a great quantity of rice was exported from Niigata. This could be done in consequence of that port being an open port. At that port the price of rice was always higher than at any non-open port of that vicinity, and it gave great gain to the peasants of that port, while foreign merchants gained also great profit in that trade, because the goods could be exported directly from that port.

From the actual state of things above set forth, the chamber feels it most desirable that rice and coal being such important products of Japan, certain new ports should be opened for coal trade at the coasts near where that article is produced, and for rice at certain central places, such as Simonoseki, Fushiki, and I'shinomaki, so that unnecessary labor and expense arising out of a circuitous way of transportation may be avoided.

REMEDYING AN INEQUITY IN THE RATE OF SPECIFIC DUTY.

Specific is the better system. Therefore ad valorem duties should be changed to specific duties as much as possible. Some of the specific duties under the present tariff, however, are inequitable, and this must be an injury to trade. For instance, there are different widths and qualities of woollen cloths and cotton cloths, so that it must be inequitable to impose the same duty on all of them.

The chamber therefore feels it desirable that distinction should be made in the duties to be imposed on these goods according to their widths and weight, &c. It would be in the discretion of the government to regulate this matter. But the chamber has also some opinions concerning this subject, and, if desired, will be happy to submit them.

ERECTING MORE BONDED WAREHOUSES FOR THE CUSTOMS.

It has been desired that there should be erected more bonded warehouses for the customs, to meet the demands of merchants in general at cheaper storage, which, in the opinion of this chamber, would not fail to be of great advantage in the encouragement of our commerce. Hitherto there was not much inducement to the merchants to store their goods in the warehouses, in consequence of the high rate of storage and an insufficient number of them. And it has been the practice that the imported articles were placed in the godowns of foreigners after landing, and when Japanese purchased their articles they were again brought to the landing-place for shipment. As to exports, the process was the same troublesome one, but vice versa, causing thereby unnecessary additional expense.

Goods imported are generally held as security by the banks for money which has been advanced on them, and, therefore, until the advance-money has been refunded the banks do not allow the owners to take the goods from their godowns. Consequently, when Japanese purchase their goods, they first pay the money and then examine the goods and take delivery thereof. As to goods to be sold to foreigners, they are sent to the godowns of foreigners, and after being kept there for some days the foreigners settle the transaction. All this causes great inconvenience to Japanese merchants, and must be remedied.

This chamber desires, therefore, that more bonded warehouses may be erected in the vicinity of the landing-places at the open ports to meet the demand for imports and exports at cheap storage, and that certificates will be issued by the custom-house for goods deposited, and that sales of goods may be made by samples, and that delivery thereof shall be made at the warehouses. Such an arrangement would avoid the labor and expense of frequent conveyance. As to the rate of storage for such new bonded warehouses, the chamber has some opinions, and, if desired, will be happy to submit them.

ESTABLISHING A SYSTEM OF DRAWBACKS.

There is no doubt that a system of drawbacks is highly advantageous to merchants,

and right in principle. The chamber, consequently, supporting the public opinion, desires earnestly the establishment of this system.

A system of drawbacks is that by which the custom-house will repay the duty levied on imported goods at the time of their inport, when these goods are re-exported to foreign countries. This is a system which is adopted at present in countries of Europe, America, and China. There are systems both strict and loose, but what the chamber demands is a strict one. In other words, we desire to apply the system not only in cases where the goods are exported in the same form, but also in cases where their forms have undergone changes; for instance, when drawn sugar imported from Formosa has been refined at home and changed into white sugar, or white sugar into loaf sugar, or when cloth is woven with English and Japanese cotton threads used in the length and breadth respectively, and it can be shown to the satisfaction of the custom-house that the articles have been manufactured in the way mentioned above, in all such cases we desire to apply a system of drawbacks. It will require a certain amount of trouble, yet the amount of duty to be repaid will not be great; and it will assist greatly in the development of the prosperity of the open ports, and also will stimulate home manufactures.

With respect to the mode and rules, the chamber has its opinions, but a few words of explanation being insufficient to exhaust the subject, they will be submitted in future.

REFORMING THE RULES OF APPRAISEMENT OF IMPORTED GOODS.

It is the present practice that whenever the custom-house considers the declared value of imported goods unreasonable, it causes the appraisers to determine their value, and the duty is levied according to the value appraised, but when the owners of these goods are unwilling to pay the duty according to the value thus appraised, the custom-house purchases the goods.

It appears that this rule is not without some advantages, but it is liable to make an opening whereby we may be made the victim of cunning merchants; because they, knowing the fact that the custom-house must purchase goods on the appraised value. import spurious goods and intentionally report them at low prices, and contrive to sell them as soon as their value is fixed by appraisement. Since the appraisement is made simply by looking at the trade-marks, if they happen to be false, it becomes nothing more than a means of falling into their contrivance. If it be desired to do away with this bad practice, the existing rule of appraisement must be abolished and the appraisers must be selected from competent merchants, both of Japan and foreign countries. When it happens that the custom-house thinks that the price of imported goods fixed by the owner of these goods is improper, let these appraisers fix their price and levy the duty according to the appraised value. The practice of purchasing imported goods on the part of the custom-house must also be done away with. If the matter be carried on in this way, then the cunning merchants can make no contriv ance, and proper duties can be levied. This is the reason why the chamber desires a reform to be made in the rule of appraisement.

REFORMING THE SYSTEM OF IMPOSING DUTIES ON IMPORTED GOODS.

In accordance with the existing tariff regulations, it is the practice to impose an ad valorem duty on imported goods according to the value mentioned in the invoice. This is indeed simple in the system and easy in the proceeding. But on careful consideration, it appears to be unsatisfactory and not in accordance with any right principle, for the following reason:

In imposing duties on all goods imported from other countries, it is necessary to make their rates equal. Our present tariff regulations, however, cannot be satisfactory on this point, because the value of goods set forth in the invoice is the value paid at the places of manufacturing, and is not the market value at the port whence they are shipped, and it is quite evident that the value at the manufacturing places is much cheaper than at such port. For instance, if we compare the value mentioned in the invoice of shirting bought at the manufactory at Manchester with that bonght in London, we will find the latter higher, because there are added the transportation expenses from Manchester to London. But the duty is levied at our custom-house on such shirting in accordance with the value set forth in the invoice.

There is more inequality of duty on goods brought from different countries. Cotton thread is chiefly imported into Japan from England and India; England being further from Japan than from India. But both countries equally import that article, so that it is supposed that the value of it in the former must be as much lower than that in the latter as the added expenses for transportation. But on the arrival of these goods in Japan from both countries they must pay the duties equally, according to the declared value. It is a heavy duty for India, while for England light; in a word, the nearer country has to pay a heavier duty, and the further country a lighter one.

There must be some differences in the rate of duties according to distance from Japan; therefore the present system cannot be an equitable one. The present system of ad valorem duty being thus inequitable, the chamber desires that, instead of imposing duties according to the value set forth in the invoice, the duty should be imposed on the value, with all the added expenses incurred for transportation of goods from the manufacturing place to port and from port to Japan, so that there may be inequality of duties according to the distances of countries.

LIMITING PAYMENT OF CUSTOMS DUTIES TO OUR STANDARD CURRENCY.

When the existing treaty was concluded with foreign powers it was agreed that payment of all duties should be made in silver ichiboos, for this was then the sole currency of Japan, used as a standard of trade. However, in making payment, foreigners often found it difficult to obtain the silver ichiboo; it was accordingly permitted to use Mexican dollars for such payment as well as the ichiboo, at the rate of $100 for 311 boos. But from this improper proportion of exchange our government lost much of its revenue. We have now, however, a standard currency in Japan, and therefore it is necessary for us to receive duties in the standard currency, and it would be right to exclude the Mexican dollars, which have been hitherto the medium of trade in our open ports for the payment of customs duties, because our coin is gradually increasing in credit in China, Singapore, and in many other places, and foreign merchants in Japan also appear to be willing to receive it. We have also a mint, where imported bullion can be easily coined, so that we can help ourselves well without foreign coin. For the above reasons the chamber hopes that in the present treaty revision payment of the customs duties may be limited to trade-dollars of Japan instead of the Mexican dollars.

Total value of raw materials and manufactured articles exported, respectively, during the five years from the 7th year to the 11th year of Meiji.

Description.

Raw materials:
Dutiable
Free of duty

Total....

Mannfactured articles:

Dutiable

Free of duty

Total......

Miscellaeneous:

18, 064, 955. 404 17, 173, 271. 470 26,399, 404. 025 21, 809. 044. 930 24, 121, 900. 723

Grand total of export

18,782, 320.999 17, 968, 006. 129 27, 225, 278. 608, 22, 978, 110. 681 25, 566, 067. 649

Dutiable

Articles not herein mentioned are included within a class of raw materials.
Table of gold and silver coins and bullion imported and exported.

No. 1008.]

Mr. Bingham to Mr. Evarts.

UNITED STATES LEGATION, JAPAN,

Tokei, October 27, 1879. (Received November 26.) SIR: I beg leave to acquaint you that during the stay of the Vega in Japan, after making the northeast passage, and shortly before the departure thereof, some ten days ago, I had the honor to entertain at my table the learned and distinguished Professor Nordenskjöld, chief of the Swedish expedition, to whom the world is indebted for the successful navigation of the northeast passage, and also with him Capt. Louis Palander, who commanded the Vega, and His Excellency Chevalier de Stoetwegen, the diplomatic representative of Sweden at this court.

I learned, among other things, from the professor, that the Lena River, which flows out from Central Siberia, can easily be reached from the Pacific by experienced sailors, and that thereby trade may be opened and prosecuted with the interior of Siberia from our shores.

I have, &c.,

JNO. A. BINGHAM.