Newfoundland to Cochin China

Industrial Prosperity in the United States

25.—There appears to be little doubt that the Federal Commission now sitting will find that, although in some districts there may have been speculating failures, employment was never upon the whole more plentiful or better remunerated than at the present time. As in Canada so in the United States, it is work which is everywhere seeking hands—and not, as with us, men searching, too often vainly, for employment.

On both sides of the border between Canada and the United States the necessaries of life—wheat, flour, bread, meat, are extraordinarily cheap and excellent, while artisan clothing, so often reputed dear and pressing upon the family purse, is readily obtainable, so old Sheffield men have assured me, in very fair quality at from 8 dollars 50 cents. to 12 or 14 dollars per suit, that is 1l. 14s. to 2l. 16s. Indeed, before me is the advertisement of a New York house offering "Jersey Cloth (silk finish, new), blue, black or brown, per suit 14 dollars, quality XXX."

Beyond question the whole standard of industrial life is higher than in Europe—higher too, I am sorry to have to admit, than in Great Britain. Neither poverty nor distress are visible, while drunkenness, so far as it may exist, is kept carefully out of sight.

American Reciprocity Treaties

26.—It will be probably less, however, on the industrial prosperity of American workers, on the success of the high tariff in compelling competitors for the custom of the American people, to employ their capital within the United States, to pay wages to Americans, and use American materials, that the Republican party will appeal next year for a new Presidential lease of power (with what chance of success I do not pretend to prophecy), than upon the unexpected triumph that has attended Section III., or the Reciprocity clause of the McKinley Tariff Act in the hands of Mr. Secretary Blaine.

Already under its provisions free entry for American productions and manufactures has been secured into Brazil—a market taking in 1889 6,232,316l. worth of British goods—in exchange for the free entry of the raw materials and other commodities of that Republic so rich in natural wealth.

The same result has been achieved, and will shortly come into force with regard to Spanish possessions, taking together 8,000,000l. worth of British products every year.

To break up British Trade

27.—This latter treaty is viewed with especial concern in Canada, and the notice of terminating the Anglo-Spanish treaty of commerce which has been given, gives rise to a fear that the Americans will secure the trade with the Spanish Indies heretofore enjoyed by the Dominion.

Both treaties will also very injuriously affect the interests of the fishermen of Newfoundland, who among the Catholic population of Brazil and the territories of Spain seek the principal market for that dried fish, the sale of which, until improved fish trade and other mercantile relations are established with England, as they might easily be, constitutes their principal means of existence.

A like treaty has been concluded with San Domingo, and others are in active negotiation.

The vaunted object is "the breaking up piece-meal of British foreign trade," and whether or no it obtains that aim, the untoward influence these treaties, placing American trade upon a preferential basis, are calculated to exert in that direction, is not, I fear, a circumstance well calculated to induce the masses of the American people, in their present frame of mind, very speedily to destroy the instrument.

Effect of British Inaction

28.—It is a paramount duty to direct the attention of the Sheffield Chamber of Manufacture, as a body representative of the commercial and industrial community of Great Britain and Ireland, to this practical aspect of the present situation, lest buoyed up by a vain hope that the markets of the United States will be thrown open, England allows all opportunity to pass of following the example of America and Central Europe in establishing preferential trading relations on mutually advantageous terms. A commercial union richer in its prospects than any attainable by whatever phalanx of foreign nations, lies now, but not for much longer, ready to her hand—that of the British Empire, of a fifth of the entire world, peopled or fostered by her own people, capitalized by her own capital.

Inaction much longer maintained on the part of the mother country will be ascribed by the energetic minds of Greater Britain to callous indifference to Imperial responsibilities, and can have no other effect than to expose Canada, Newfoundland, the West Indies, British Guiana and British Honduras, aggregating not much short of half the area of the Empire, and not impossibly other Colonies, to the temptation of entering instead into commercial alliance with the United States, involving discrimination in favour of foreigners against the British flag, which even the loyalty of the most loyal Colonial subjects of her Majesty the Queen may not, with due regard to their material interests, be able to resist.

American Pioneers of Commerce

29.—But in any event I must note the amazing energy and push shown by American business houses. On every journey in nearly every quarter of the globe you meet their representatives, who lose no opportunity of skilfully advancing American trade; and while Germany, backed by a vigilant Government, is following closely in the same direction with astonishing results, the reports of her Majesty's Consular officers agree in declaring that the appearance of an English commercial traveller becomes more and more rare.

Boards of Trade

30.—American Boards of Trade, corresponding to our Chambers of Commerce, are also very active organizations, sparing neither expense nor trouble.

They occupy a like position in Canada, and in Toronto the Board of Trade—an enthusiastic meeting whereof I had the honour of addressing—has erected a palatial building, where business men meet daily for the mutual exchange of information and views. The turn of the market is recorded from hour to hour from the centres of commerce, and among the members there exists an admirable system of mutual life insurance.

Canada as a Field for British Capital and Immigration

31.—In conclusion, it is hardly possible to speak of Canada in exaggerated terms as a source from which Great Britain may most readily obtain the larger portion of the supply of corn, meat, and dairy produce, her increased population and diminished agriculture oblige her to purchase from over the sea.

The extremely fertile and virgin soil of the vast region occupied by Manitoba, the North-West Territories, and British Columbia—half the size of Europe, and lying between Lake Superior and the Pacific Ocean—has now been provided by British Canadian enterprise with a complete network of railways, bringing it, so soon as Atlantic communication by Nova Scotia and Newfoundland has been improved, to within fourteen days' steam of Liverpool.

Capital and immigration are alone needed for their development.

A better field for the former could not be found if British Commercial Union made the market secure of foreign caprice, while for steady industry under the old flag, under like institutions, under the same law, no wider scope exists in the universe.

BRITISH TRADE WITH JAPAN

MEMORANDUMADDRESSED TO THE CUTLERS' COMPANY OF HALLAMSHIRE, UPONBritish Trade with JapanProgress 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.