banks are also quite numerous (681), and are helping to develop habits of thrift and economy among the common people.1

The first Japanese mint was established at Ōsaka in 1871, and has been actively at work ever since; and there is an institution in Tōkyō for the manufacture of paper money. The coins now chiefly used are copper, nickel, silver, and gold; but in the country districts it is still possible to find brass coins of less than mill values. The copper pieces are sen (5 rin), 1 sen, and 2 sen; the sen piece is the only nickel coin; the silver pieces are 5 sm, 10 sen, 20 sen, and 50 sen; and the gold coins are 5 you, 10 yen, and 20 yen. There are also paper, notes of 1 yen and upward: these are issued only by the Bank of Japan, and amounted in 1899 to over 250,000,000 yen.

In 1897 Japan adopted the gold standard, so that exchange fluctuations with the Occident are slight, and the Japanese currency has a fixed value, at the rate of about 50 cents for the yen.2

Concerning the prospects of industrial and commercial Japan, it may be well to note the views of Baron Shibusawa, one of the foremost of Japanese merchants and financiers. In referring to the capacity of the Japanese for business, the Baron says:

"There are, however, four peculiarities in the Japanese character which make it hard for the people to achieve

1 See Hamaoka's pamphlet on "The Bank of Japan."

2 For tables of currency, weights, measures, etc., see Appendix. 8 See "Japan and America" for June and July, 1903; also consult Diosy's "New Far East," chap. vi.

business success. These are: Firstly, impulsiveness, which causes them to be enthusiastic during successful business and progressive even to rashness when filled with enthusiasm; secondly, lack of patience, which causes easy discouragement when business is not so successful; thirdly, disinclination for union; and fourthly, they do not honor credit as they should, which is so important a factor in financial success. These four peculiarities are to be met with in Japanese business men in a more or less marked degree.

"Although Japan, as a country, is old, yet her commercial and industrial career being new, there are necessarily many points of incompleteness. For example, although we have many railways, yet there is no close connection made between the railway station and the harbor. Again, although we have railways, yet we have no appropriate cars, etc. To complete such work and to open up the resources of the country, and to allow Japan to benefit from them, we need more capital. The capital we have in the country is not enough. So what is now wanted in Japan is foreign capital. A great proportion of the Japanese people, however, are opposed to the, idea of sharing any profits equally with any other nation. Their exclusiveness in this respect is a distinct relic of the old era. They ignore altogether the fact that, with the assistance of foreign capital, the profits would be quadrupled. The very idea of sharing with an outside power is distasteful to them. For instance, I have been endeavoring for many years by word and deed to obtain a revision of the laws relative to the ownership of land in Japan by foreigners. I may say that Marquis Itō and other public men are of my opinion in the matter. Because, however, of this exclusive element in Japan, it has still been found impossible to allow foreigners to own Japanese land. Until this change is