CHAPTER I

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[Illustration:

MAP SHOWING “THE REGIONS WHERE THE INTERESTS OF THE TWO POWERS MEET”

]

THE RUSSO-JAPANESE CONFLICT

ITS CAUSES AND ISSUES

BY

K. ASAKAWA, PH. D.

_Lecturer on the Civilization and History of East Asia at Dartmouth

College; author of the “Early Institutional Life of Japan,” etc._

WITH AN INTRODUCTION BY

FREDERICK WELLS WILLIAMS

_Assistant Professor of Modern Oriental History in Yale University_

_ILLUSTRATED_

[Illustration: The Riverside Press]

BOSTON AND NEW YORK

HOUGHTON, MIFFLIN AND COMPANY

The Riverside Press, Cambridge

1904

COPYRIGHT, 1904, BY HOUGHTON, MIFFLIN & CO.

ALL RIGHTS RESERVED

_Published November, 1904_

------------------------------------------------------------------------

INTRODUCTION

The issues of the conflict that forms the topic of this little volume

are bound inevitably to influence the future of the civilized world for

many years. Dr. Asakawa presents them with a logical thoroughness that

reminds us of the military operations of his countrymen now in evidence

elsewhere, and recalls very pleasantly to my own mind the sane and

accurate character of his scholastic work while a student at Yale. It is

the sort of presentation which a great subject needs. It is content with

a simple statement of fact and inference. It is convincing because of

its brevity and restraint.

The generous and almost passionate sympathy of our countrymen for Japan

in this crisis of her career has aroused some speculation and surprise

even amongst ourselves. The emotion is, doubtless, the outcome of

complex causes, but this much is obvious at present: the past

half-century has brought both America and Japan through experiences

strikingly similar, and their establishment at the same moment as new

world Powers has afforded both the same view of their older competitors

for first rank among nations. Both have earned their centralized and

effective governments after the throes of civil war; both have built

navies and expanded their foreign commerce; both have arrested the

belated and rather contemptuous attention of Europe by success in

foreign wars. No state of Christendom can appreciate so well as America

the vexation of enduring for generations the presumption or the

patronage of those European courts who have themselves been free for

less than a century from the bonds that Napoleon put upon the entire

Continental group; and Japan has suffered under the same observance.

With the acknowledgment of the existence of these two Powers of the

first class on either shore of the Pacific, the bottom drops out of that

system whereon was based the diplomacy of nineteenth-century Europe, and

the jealousy with which they are both regarded establishes a certain

_rapprochement_ between the two newly arrived nations.

The attitude of the American people does not appear to me to be greatly

influenced by prejudice against Russia. It is likely, indeed, that we

had less to fear directly from the ambition of the Great Colossus than

any other state. Yet we have been among the first to discern that Japan

is doing the world’s work if, by reducing the pressure of Russia’s

assault upon Eastern Asia, she removes China in the crisis of her

awakening from the list of those derelict states whose present

decrepitude offers such deplorable temptation to the military nations of

the West. There would seem to be fresh need, moreover, of convincing

modern statesmen that a policy of conducting diplomatic intercourse by

means of tergiversation and lies is unprofitable in the long run, and

therefore unjustified by the most cynical school of political ethics.

Without debating the righteousness of her pretensions, it is obvious

that Russia cannot proceed further in her headway without materially

affecting the legitimate ambitions of other peoples of proved vitality,

nor can her characteristic diplomacy secure success without debauching

the political morality of Christendom. While apprehension of Russian

aims need not involve dislike of the Russian people, we have an abiding

idea in this country that both alike lie under a necessity of

chastisement, and that Japan, as the only nation now really at home on

the Pacific, is the hand to hold the rod.

In conclusion—if I may be allowed to extend these reflections a little

further—the situation before us suggests the possibility that Asia may

at this moment be passing the threshold of a renascence similar to that

which awakened Europe at the opening of the sixteenth century from the

lethargy of her dark ages. As the able editor of the _North China

Herald_ has observed, native Asia from Korea to Siam is to-day no more

deeply immersed in the mire of poverty, ignorance, and superstition than

was Europe in the Middle Ages, nor was the task of relief and

enlightenment less hopeless to human agencies then than now. Yet with

the Age of Discoveries came not only new worlds and new paths of

commerce, but the end of the tyrannies of scholasticism, the church, and

the despot. Within a century were laid all the foundations of these

political and intellectual institutions that distinguish Europe and her

children to-day. A like reconstruction may be effected in Asia during

the century just begun. The parallel is not altogether inadmissible, and

it may be pushed even further. For as the newly awakened Europe of the

sixteenth century developed one monster Power whose aggrandizement

threatened the liberties of all the rest, so has the present era brought

forth a monster fearful in the same fashion to Asia. It was England, a

naval folk and a new Power, that struck at Spain three centuries ago,

and by that brave adventure not only won wealth and prestige for

herself, but rid Europe of a great menace. It is Japan, also a naval

race and a new—so far as Continental history is concerned—that strikes

at Russia and hopes by her success both to avert the undoing of the

ancient states about her and to establish herself as mistress in her own

waters. Confident in their understanding of their great mission, we of

America may rightfully bid the dazed Asiatic seek his salvation from the

children of the Rising Sun, and declare in the Sibylline utterance of

the Psalmist, “The dew of thy birth is of the womb of the morning.”

FREDERICK WELLS WILLIAMS.

NEW HAVEN, CONNECTICUT,

November, 1904.

PREFACE

This is an attempt to present in a verifiable form some of the issues

and the historical causes of the war now waged between Russia and Japan.

Powerfully as it appeals to me, I would not have discussed a subject so

strange to the proper sphere of my investigation, had it not been for

the fact that no one else has, so far as I am aware, undertaken the task

in the same spirit in which I have endeavored to write these pages.

Although I deeply regret that I do not read the Russian language and

cannot do full justice to the Russian side of the question, the

impartial reader will observe, I trust, that this work is neither a plea

for the one side nor a condemnation of the other, but a mere exposition

of the subject-matter as I comprehend it. When the author offers what he

considers a natural explanation of a question, the reader should not

read into it a moral judgment. Indeed, I earnestly wish that the kind

reader would thrash out of these pages every grain of real prejudice.

Nor can I welcome a greater favor from any person than a more complete

and just statement of Russia’s case than I have been able to make. After

having said so much, it is unnecessary to tell the reader how, when the

substance of the introductory chapter to this volume was published last

May in the _Yale Review_, some of its critics ascribed to the writer

motives utterly foreign to himself. One of those alleged motives was

that I had sought to prove that the American trading interest in

Manchuria and Korea would be better served by a final victory of Japan

than by that of Russia. I neither proved nor disproved such a theme, but

I did state that Japan’s interest demanded the maintenance in those

regions of the principle of the impartial opportunity for all nations.

Whether the result of this policy would prove better or worse for the

interest of any one nation than the effect of an exclusive policy, did

not concern me. It did not and does not belong to me to appeal to the

commercial instinct of the reader, or even to his sympathy with, or

antipathy to, either of the present belligerents. My only plea is that

for truth.

The substance of the introductory chapter, as has been said, and also a

brief summary of the body of the volume have been published in the _Yale

Review_ for May and August of the present year. I am greatly indebted to

the editors of the _Review_ for allowing me to use the material in the

preparation of this work. I also wish to express my sincere thanks to my

friends who have encouraged me in the publication of this volume.

ASAKAWA.

HANOVER, NEW HAMPSHIRE,

August 30, 1904.

CONTENTS

PAGE

INTRODUCTORY 1

Economic issues: (1) Japan’s side; transition from an

agricultural to an industrial stage, pp. 1–10; community of

interest between Japan and Korea and Manchuria, 10–32. (2)

Russia’s side, 32–47; comparison, 47–48; political issues,

48–51; summary, 51–53; conclusion, 53–61.

Supplementary Note 61

CHAPTER I. Retrocession of the Liao-tung Peninsula 65

Primorsk and Sakhalien, 65–67; intervention of 1895, 68–77;

its historical significance, 77–78; its effects on Japan,

78–82.

CHAPTER II. The “Cassini Convention” and the Railway Agreement 83

The Russo-French loan and the Russo-Chinese Bank, 83–85; the

agreement of alliance, 85–87; the “Cassini Convention,”

87–95; the railway agreement of September 8, and statutes of

December 23, 1896, 95–100.

CHAPTER III. Kiao-chau 101

The seizure of Kiao-chau, and the Agreement of March 6, 1898,

101–105; the conduct of Great Britain, 106–109.

CHAPTER IV. Port Arthur and Talien-wan 110

Russian warships at Port Arthur, 111–112; British demand for

the opening of Talien-wan, 113–118; Port Arthur and

Talien-wan, the British and Russian Governments, 118–125;

Wei-hai-Wei, 125–129; the Agreement of March 27, 1898, and

supplementary agreements, 129–132; the administration of the

leased territory, and Dalny, 132–134.

CHAPTER V. Secretary Hay’s Circular Note 135

The circular of September, 1899, 135; the Powers’ replies,

136–138.

CHAPTER VI. The Occupation of Manchuria 139

Russia’s attitude toward the Boxer trouble in North China,

139–143; the Manchurian campaign, 143–146.

CHAPTER VII. North China and Manchuria 147

Characteristics of Russia’s diplomacy regarding Manchuria,

147–148; the distinction made between North China and

Manchuria; the circular note of August 25, 1900, 148–155.

CHAPTER VIII. The Anglo-German Agreement 156

The Northern Railway affair, 156–157; the Anglo-German

Agreement of October 16, 1900, 157–158; the Powers’ views,

158–160; Germany’s view, 160–161.

CHAPTER IX. A _Modus Vivendi_: the Alexieff-Tsêng Agreement 162

Peace negotiations at Peking, and Russia’s Manchurian policy,

162–165; the Alexieff-Tsêng Agreement of November, 1900,

165–168; the protests of the Powers, 168–169; Count

Lamsdorff’s explanation, 169–172.

CHAPTER X. A “Starting-Point”—the Lamsdorff-Yang-yu Convention 173

The Lamsdorff-Yang-yu Convention, 173–176; China’s appeal,

and the Powers’ protests, 176–178; Russia detached herself

from the allies, 178–181; the amendments of March, 1901,

181–182; the British and Japanese remonstrances, and

withdrawal of Russian demands, 182–188.

CHAPTER XI. Further Demands 189

M. Lessar’s demands in August, 189–190; in October, 190–193;

protests, replies, and delays, 193–196.

CHAPTER XII. The Anglo-Japanese Agreement and the Russo-French

Declaration 197

A growing sympathy between Great Britain and Japan prior to

the conclusion of the agreement, 197, 198; diplomatic steps

toward the conclusion, 199–202; the Agreement of January 30,

1902, 202–209; the Russo-French declaration of March 16,

209–213.

CHAPTER XIII. The Convention of Evacuation 214

The Russo-Chinese convention of April 8, 1902, 214–226; an

analysis of the document, 226–232.

CHAPTER XIV. The Evacuation 233

The first evacuation, October 8, 1902, 233; the nominal

character of the evacuation, 234–237; Niu-chwang, 237–238.

CHAPTER XV. Demands in Seven Articles 239

The second evacuation, 239–241; new Russian demands, April 5,

1903, 241–244; the opposition of three Powers to the demands,

244–246; Count Lamsdorff’s disclaimer, 246–248; Count

Cassini’s statement, 248–251; diplomacy at Peking, 251–256.

CHAPTER XVI. Diplomatic Struggle in Korea, I 257

Japan’s failure and Russia’s success at Seul, the murder of

the Queen, 257–261; the flight of the King, 262–263; the

Yamagata-Lobanoff Protocol, June 6, and the Komura-Waeber

Memorandum, May 14, 1896, 263–268; a decline of Russian

influence, 268–271; the Nishi-Rosen Protocol, April 25, 1898,

271–272.

CHAPTER XVII. Diplomatic Struggle in Korea, II 273

Pavloff and Hayashi, 273; the Masampo affair, 274–278;

abortive loans, 278–280; Russians and pro-Russian Koreans at

Seul, 280; the bank-note trouble, 281–282; the Keyserling

whaling concession, 282–283; the Tumên River telegraph lines,

283–285; the Seul-Wiju Railway, 285–289; the Yong-am-po

affair, 289–295.

CHAPTER XVIII. The Russo-Japanese Negotiations, I 296

Japan’s invitation to negotiate, July 28, 1903, 296–299;

Russia’s assent, 299; political changes in Russia, and the

Viceroy of the Far East, 299–302; Japan’s first proposals,

August 12, 302–307; negotiations transferred to Tokio,

307–308; Russia’s first counter-proposals, October 3,

308–311; Russian diplomacy at Peking, 311–318; the

development of the Yong-am-po affair, 318–323.

CHAPTER XIX. The Russo-Japanese Negotiations, II 324

Japan’s second proposals, October 30, 324–328; Russia’s

second counter-proposals, December 11, 328–329; Japan’s third

proposals, December 23, 329–331; pacific declarations of

Russia, 331–332; Russia’s third counter-proposals, January 6,

1904, 332–335; new ports opened in Manchuria, 335; Japan’s

fourth proposals, January 13, 335–339; military activity of

the Russians, 339–341; the termination of the negotiations

and the rupture of diplomatic relations, February 5–6,

341–344; the first acts of war, 345; the Russian Manifesto

and the Japanese Declaration of War, January 10, 345–348.

Supplementary Note to Chapter XIX 348

The Russian _communiqué_, February 18, 348–349; the Russian

statement of February 20, 349–351; Japan’s reply to the

above, March 3, 352–354; the Russian note to the Powers

regarding Korean neutrality, February 22, 355–356; Japan’s

reply, March 9, 357–360; Russia’s counter-reply, March 12,

360–362.

CHAPTER XX. Chinese Neutrality and Korean Integrity 363

Japan’s advice to China to be neutral, 363, 364; Secretary

Hay’s note, 364–365; China’s own declaration, 365; Japan’s

pledge to China, 366; the Korean-Japanese alliance, 366–368;

its nature analyzed, 368–372.

INDEX 373

LIST OF ILLUSTRATIONS

PAGE

MAP SHOWING “THE REGIONS WHERE THE INTERESTS OF THE TWO

POWERS MEET” _Frontispiece_

COUNT CASSINI, RUSSIAN MINISTER AT WASHINGTON, AND

FORMERLY AT PEKING 90

COUNT LAMSDORFF, RUSSIAN FOREIGN MINISTER 146

LI HUNG-CHANG 193

COUNT KATSURA, PREMIER OF JAPAN 202

M. LESSAR, RUSSIAN MINISTER AT PEKING 255

M. PAVLOFF, LATE RUSSIAN MINISTER AT SEUL 276

Copyright, 1902, by George Grantham Bain

BARON KOMURA, JAPANESE FOREIGN MINISTER 296

ADMIRAL ALEXIEFF, VICEROY OF THE FAR EAST 303

MR. KURINO, LATE JAPANESE MINISTER AT ST. PETERSBURG 331

BARON DE ROSEN, LATE RUSSIAN MINISTER AT TOKIO 347

THE RUSSO-JAPANESE CONFLICT

INTRODUCTORY

SOME OF THE ISSUES OF THE CONFLICT

The deeper significance of the present dramatic struggle between Russia

and Japan over territories belonging to neither of the contestants

cannot perhaps be understood, until we examine some of the issues at

stake between them. The more fundamental of these issues, however, as in

many another international crisis, seem to be oftener understood than

expressed, and hence understood only vaguely, although it may fairly be

said that they constitute the very forces which have with irresistible

certainty brought the belligerents into collision. For Japan, the issues

appear to be only partly political, but mainly economical; and perhaps

no better clue to the understanding, not only of the present situation,

but also, in general, of the activities at home and abroad of the

Japanese people, could be found than in the study of these profound

material interests.

Among the most remarkable tendencies of Japan’s economic life of recent

years has been the enormous increase of her population, along with an

immense growth of her trade and industries. The number of her

inhabitants increased from 27,200,000, as estimated in 1828, to only

34,000,000 in 1875, but since that year it has risen so fast that it is

to-day 46,305,000[1]—exclusive of the 3,082,404[1] in Formosa and the

Pescadores—and is increasing now at the annual rate of nearly 600,000.

At the same time, the foreign trade of Japan has grown from 49,742,831

_yen_ in 1873 to 606,637,959 _yen_ in 1903. Up to the end of May, 1904,

the total amount showed 274,012,437 _yen_, as compared with the

248,506,103 _yen_ of the same period of 1903.[2] The significance of

these figures must be seen in the light of the important fact that the

bulk of the increase in population and trade has been due to the

decisive change of the economic life of the nation from an agricultural

to an industrial stage. The new population seems to increase far more

rapidly in the urban than in the rural districts, for if we consider as

urban the inhabitants of communities containing each more than three

thousand people, the ratio of the urban population to the rural may be

estimated as 1 to 3. If only towns of more than 10,000 inhabitants each

are included in the urban class, it is seen that their population

increases annually 5 or 6 per cent., while the corresponding rate with

the rural communities never rises above 3 per cent. and is usually much

lower.[3] This comparatively rapid growth of the cities also indicates

that the new population must be mainly supported by commerce and

manufacture.

In 1903, 84.6 per cent. of the total export trade of Japan consisted of

either wholly or partly manufactured articles.[4] On the other hand,

agriculture has progressed only slowly,[5] and is no longer able either

to support the increased population or to produce enough raw articles

for the manufactures. The average annual crop of rice may be put at 210

million bushels, and that of barley, rye, and wheat, collectively called

_mugi_, at 94.3 million bushels, while the average annual consumption of

these cereals may safely be estimated, respectively, at 228.3 and 106.7

million bushels. In years of poor crops, the importation of rice, wheat,

and flour amounts to large figures; as, for instance, in 1903, they

together were imported to the value of about 67 million _yen_.[6] Raw

material and food-stuffs, consisting of cotton, wool, rice, flour and

starch, beans and oil-cakes, the importation of all of which was next to

nothing twenty years ago, were in 1903 supplied from abroad to the value

of 169,600,000 _yen_, or 53.5 per cent. of the total imports of

Japan.[7] Japan will not only always have to rely upon foreign countries

for the supply of these articles, but also have to import them in ever

increasing quantities. Nor does agriculture occupy in the national

finances the position it once did, for in 1875 the land tax, the

incidence of which fell, as it still falls, very largely on the farmer,

supplied 78 per cent. of the total revenue of the state, while the

percentage fell, in the estimated budget for the fiscal year 1902–3, to

16, the actual amount also decreasing during the interval from 67.7 to

37 million _yen_, and the expenditures of the government, on the other

hand, increasing from 73.4 million in 1874, to the enormous figure of

223.18 million _yen_ in 1904–5.[8]

No one can say a cheerful word about agriculture in Japan or the life of

her farmer. Exclusive of Formosa, the development of which seems to lie

in the direction of industry and trade rather than agriculture, less

than 13,000,000 acres are under cultivation,[9] or, about 13 per cent.

of the extent of the country, while the arable area of the land cannot

possibly be increased by more than 10,500,000 acres,[10] so that the

_per capita_ share of arable land is less than one half of an acre,[11]

which is even below the corresponding rate in England and less than one

half of that in China. Japan’s agricultural life can, however, be no

more intensively improved than extensively enlarged. The sedimentary

soil so well adapted to the rice cultivation and so abundantly blessed

with moisture[12] is too minutely and carefully tilled, the climate

conditions are too cleverly made use of,[13] and, above all, the lots of

land are too diminutive,[14] to make the importation of new machinery

and methods always profitable or desirable.[15] The day-laborers on the

farm receive wages ranging between nine and fifteen cents, though the

latter have risen more than 100 per cent. during the last fifteen

years.[16] With this meagre income, some of the laborers have to support

their aged parents, wives, and children. The tenants, whose number bears

the ratio of about two to one[17] to that of the proprietors, live

literally from hand to mouth, and cannot always afford even the

necessary manure, and the proprietor’s profit hardly rises above 5 per

cent., while the capital he employs pays an interest of 15 to 30 per

cent.[18] and his local and central taxes further reduce his income. The

farmer would in many cases be unable to subsist, were it not possible

for him, as it fortunately is, to try his hand at silk-culture or some

other subsidiary occupation.

Japan’s agriculture, then, can neither be much extended nor be greatly

improved, can neither satisfy the old population nor support the new,

and, above all, can only produce smaller and smaller portion of the

necessary raw material for her growing industries. Under these

circumstances, it is becoming more evident every year that the time is

forever past when the nation could rely solely upon agriculture for

subsistence. It is hardly necessary to repeat the well-known law of

population—which is at the root of our subject—that every advance in the

economic life of a nation creates a situation which is capable of

supporting a larger population than in the preceding stage. What

agriculture cannot support, industry and trade may. Japan’s growing

population may only be supported, as it has already begun to be, by an

increased importation of raw material and food-stuffs and an increased

exportation of manufactures. Trade statistics unmistakably show that

such markets for her manufactures and such supply regions of her raw and

food articles are found primarily in East Asia, with which the

commercial relations of Japan have grown 543 per cent. since 1890, as

compared with the 161 per cent.[19] increase of the American and the 190

per cent. increase of the European trade,[20] until the East Asiatic

trade amounted in 1903 to 295,940,000 _yen_ in value, or 48.7 per cent.

of the entire foreign trade of Japan.[21] The following table gives a

comparison of the importation in the years 1882, 1902, and 1903, of what

may be considered as primarily East Asiatic products:[22]—

1882 1902 1903

Cotton 467,249 _yen_ 79,784,772 _yen_ 69,517,894 _yen_

Wool 3,397,564 4,811,811

Rice 134,838 17,750,817 51,960,033

Wheat 240,050 4,767,832

Flour 3,278,324 10,324,415

Beans 4,956,000 7,993,411

Oil-cakes 44,468 10,121,712 10,739,359

From these eloquent facts, the conclusion would seem tenable that,

should the markets of East Asia be closed, Japan’s national life would

be paralyzed, as her growing population would be largely deprived of its

food and occupation. These markets, then, must be left as open as the

circumstances permit, if Japan would exist as a growing nation. Observe

here the tremendous significance for Japan of the principle of the “open

door” as applied to East Asia—the principle, in a more accurate

language, of the equal opportunity in East Asia for the economic

enterprise of all foreign nations.[23]

In this great problem Manchuria and Korea occupy, perhaps, the most

important position, for they together receive a large portion of the

cotton yarn and cotton textiles exported from Japan, besides several

other manufactured goods and coal, and in return supply Japan with much

of the wheat and rice, and practically all of the millet, beans, and

oil-cakes, imported into the country. Let us briefly demonstrate these

statements by figures. First, consider the exportation of cotton yarns

and textiles from Japan to Manchuria and Korea. It is rather difficult

from the material on hand to estimate the exact ratio which the import

of these articles from Japan into Korea and Manchuria bears to the total

import of the same articles from all nations. In the case of Korea, we

can make an approximate estimate, as we possess both the export values

in Japan and import values in Korea, but with regard to Manchuria, we

know only the quantities, but not the values, of the cotton goods

imported. By assuming, however, that 40 per cent. of these goods

imported by the Chinese Empire from Japan go to North China (of which

Manchuria is here considered by far the most important part), it may be

said, roughly, that in 1903 about 6 per cent. of the cotton yarn

exported from Japan went to Korea and perhaps 40 per cent. to North

China. The average import of this article during the past two years was

probably 1,200,000 _yen_ in Korea and 8,000,000 _yen_ in North China,

making the total about 36 per cent. of the export value in Japan. On the

same basis of calculation, the average importation of cotton textiles

from Japan during the past three years was 3,190,000 _yen_ in Korea and

765,000 _yen_ in North China, or about 69.5 per cent. of the entire

export of these articles from Japan. These figures are only tentative,

but may serve to show that Manchuria receives comparatively much yarn

and Korea much textiles, and that they together receive at least a large

percentage of those articles exported by Japan, where their manufacture

occupies an increasingly important place in her economic life.[24] As to

the exportation of agricultural products from Manchuria and Korea, it is

seen that wheat is only beginning to be cultivated in Manchuria, while

the rice cultivation is there practically unknown except in a few places

near the Korean border, where during the campaign of 1894–5 the Japanese

troops introduced it. The position which Korea occupies in the

importation of wheat into Japan will be seen from the following table:—

Wheat imported into Japan, 1898–1902,[25] _kin_ = 1.325 lbs. av.

_yen_ = 49.8 cents.

From │ 1898 1899 1900 1901 1902

Australia │ 4,339,845 5,554,513 18,423

│ 143,260 185,274 721

────────────┼──────────────────────────────────────────────────────────

Korea │ 2,770,755 1,668,207 5,182,533 1,644,577 8,556,813

│ 72,698 71,764 132,734 43,875 237,217

────────────┼──────────────────────────────────────────────────────────

Great │ 457,450

Britain │

│ 15,502

────────────┼──────────────────────────────────────────────────────────

The United │ 2,039,371 395,009 12,370,022 1,388,372 864

States. │

│ 71,173 14,697 400,829 43,720 43

────────────┼──────────────────────────────────────────────────────────

Other │ 1,560 990 547 77,343

countries.│

│ 41 27 14 2,069

════════════╪══════════════════════════════════════════════════════════

Total │ 4,811,686 2,064,206 22,350,397 8,587,462 8,653,443

│ 143,913 86,489 692,341 272,869 240,050

A glance at these figures will show that the import trade of wheat, like

that of rice, is dependent on many fluctuating conditions at home and

abroad. The poor crop in Japan caused an enormous importation of wheat

in 1903 to the value of 4,767,000 _yen_. From the above table, it is

seen that Korea supplied during the five years, respectively, 57.5,

80.7, 23.1, 19.1, and 98.8 per cent., in weight, of the wheat imported

into Japan. As regards rice, the following table will show that in the

five years between 1898 and 1902 Korea supplied, respectively, 5.5,

26.5, 49.4, 46.8, and 19.8 per cent. in weight of the cereal imported

into Japan:—

Rice imported into Japan, 1898–1902,[26] _picul_ = 133⅓ lbs. av.

_yen_ = 49.8 cents.

From │ 1898 1899 1900 1901 1902

British │ 2,663,087 53,827 249,344 220,650 1,793,362

India │

│ 11,642,416 174,507 973,747 876,057 7,530,356

───────────┼───────────────────────────────────────────────────────────

China │ 967,216 60,323 83,998 227,234 90,401

│ 3,989,422 231,625 327,673 867,272 341,689

───────────┼───────────────────────────────────────────────────────────

Korea │ 649,570 436,716 1,131,787 1,456,661 891,186

│ 2,704,887 1,689,909 4,694,166 6,009,641 3,961,312

───────────┼───────────────────────────────────────────────────────────

Dutch │ 403

Indies │

│ 1,816

───────────┼───────────────────────────────────────────────────────────

French │ 6,445,390 956,142 726,859 919,774 1,324,789

India │

│ 25,762,726 3,354,095 2,739,752 3,199,420 4,651,395

───────────┼───────────────────────────────────────────────────────────

Siam │ 969,413 143,575 94,530 287,594 409,307

│ 4,114,065 510,007 284,178 926,486 1,265,970

───────────┼───────────────────────────────────────────────────────────

Other │ 1,576 9 58 25 27

countries│

│ 6,290 21 200 82 94

═══════════╪═══════════════════════════════════════════════════════════

Total │ 11,696,252 1,650,592 2,286,979 3,111,938 4,509,072

│ 48,219,810 5,960,166 9,021,536 11,878,958 17,750,817

As will be seen in this table, much rice comes also from Saigon and

Bangkok, to which, however, Japan hardly exports anything. In Korea, on

the contrary, the greater her exportation of rice, the larger her

purchasing power of the goods from the country to which the rice goes.

In the case of beans and oil-cakes, Manchuria and Korea occupy in the

list of the importation of these articles into Japan an even more

important place than is the case with wheat or rice, as will be seen in

the following table:—

Beans and oil-cakes imported into Japan in _picul_ = 133⅓ lbs. av.

1902,[27] _yen_ = 49.8 cents.

From │Beans, pease, and pulse Oil-cakes

China │ 1,306,103 4,064,198

│ 3,524,138 8,656,775

───────────────────────┼───────────────────────────────────────────────

Korea │ 777,151 5,671

│ 2,254,899 12,331

───────────────────────┼───────────────────────────────────────────────

Russian Asia │ 545 345,022

│ 1,505 1,448,868

───────────────────────┼───────────────────────────────────────────────

French India │ 742

│ 2,178

───────────────────────┼───────────────────────────────────────────────

The United States │ 281

│ 2,405

───────────────────────┼───────────────────────────────────────────────

Other countries │ 545 846

│ 1,582 3,738

═══════════════════════╪═══════════════════════════════════════════════

Total │ 2,086,367 4,415,737

│ 5,786,707 10,121,712

An explanation is necessary that, to all probability, much of the

oil-cakes from Russian Asia was reëxported from Manchuria. In 1903,

beans and oil-cakes were imported to the value of, respectively,

7,993,000 and 10,739,000 _yen_. In considering all these facts as a

whole, attention is called to a point of immense importance, that

Manchuria and Korea supply Japan with necessaries of life, and receive

in return, in the main, useful goods, instead of wares of luxury. We

shall have occasion further to develop this point.

Let us now take a general survey of the position Japan holds in the

trade relations of Korea and Manchuria. In Korea, whence the Chinese

merchants withdrew during the China-Japan war of 1894–5 and were

replaced by the Japanese traders,[28] it is Japan alone of all trading

nations which enjoys a large share both in the import and export trade,

as is suggested in the following table:—

Japan’s export Total import of Japan’s import Total export of

to Korea Korea from Korea Korea

1902 10,554,000 _yen_ (13,823,000 _yen_) 7,958,000 _yen_ (8,460,000 _yen_)

1903 11,764,000 (18,207,000) 8,912,000 (9,472,000)

while the grains exported from Korea go almost entirely to Japan,

different ports of Korea present of course different characteristics in

their trade with Japan: as, for instance, at Chemulpo the Chinese

merchants still enjoy a considerable share in the import trade; at Seul

nearly all the export consists of gold bullion, which is almost

exclusively bought by the branch of the First Bank of Japan; while at

Fusan and Mokpo the Japanese monopoly of trade is almost complete. With

these variations, however, the Japanese merchants control the major part

of the trade of each port, and consequently of the entire trade of

Korea. They also carry a large amount of foreign goods to Korea, as seen

in the following table:—

Japanese goods Foreign goods

1902 9,344,859 _yen_ 1,209,332 _yen_

1901 10,410,563 961,897

1900 9,423,821 529,450[29]

The shipping also is largely in the hands of the Japanese. In 1903,

their share in the Korean shipping was as follows:[30]—

Vessels Tonnage

Korean 25 per cent. 9+ per cent.

Japanese 61+ 78+

Russian 2+ 9+

Others 11+ 4–

Turning to Manchuria, it is found that Japan controlled in 1902 more

than 44 per cent. of the shipping tonnage,[31] besides 40 per cent. of

the direct import trade and over 90 per cent. of the export trade, as is

shown below:[32]—

Exports (Japan) Imports (Japan)

1901 1,080,345_l._ ( 970,663_l._) 635,085_l._ (247,624_l._)

1902 1,130,429_l._ (1,041,395_l._) 695,020_l._ (280,843_l._)

Average five

years,

1896–99 and

1891 965,553_l._ ( 880,917_l._) 433,811_l._ (131,143_l._)

at Niu-chwang, which was then the only important port in Manchuria open

to foreign trade under the ordinary customs rules.[33]

In this connection, it should be remembered that both the Korean and

Manchurian trade are of recent origin. Niu-chwang was opened as a treaty

port in 1858, but its commercial importance may be said to date from

1899. Korea’s foreign trade did not begin till 1884, and it exceeded

10,000,000 _yen_ for the first time in 1895. The rapid growth of the

trade of these places has been largely due to the increasing trade

activity of Japan. In the case of Niu-chwang, it is true the development

of its import trade has been as much owing to the energy of the

Americans as to that of the Japanese, but its export business would be

meagre, and would consequently reduce the imports also, but for Japanese

activity. The recent increase in the production of millet in Manchuria,

for instance, may be said to be entirely due to Japanese trade at

Niu-chwang. Of the three staple products of Western Manchuria, tall

millet is consumed by the natives, and beans are partly consumed and

partly exported, while millet is cultivated purely for the purpose of

exportation. It began to be exported to Korea in August, 1901, and to

Japan in 1902. Since the latter year, Japan’s demand for millet has

steadily increased, and has caused a considerable rise in its price at

Niu-chwang. The cultivation of millet, therefore, is a pure gain that

has been created by the trade relations of Manchuria with Japan.[34] Far

more important than millet as articles for exportation are beans and

bean-cakes. The entire trade conditions at Niu-chwang may be said to

depend upon the amount of the sale of these articles. The more they are

sold, the greater is the importing capacity of the people of Manchuria.

The nation which buys beans and bean-cakes in the largest quantities

naturally commands the greatest facility in pushing their imports into

Niu-chwang. The exportation of these goods doubled during the ten years

between 1889 and 1898, while the amount of the bean production in

Manchuria for 1900 was estimated at between 1,930,000 and 2,450,000

_koku_. Both the production and the exportation must now be much

greater. The increase was due in the main to the growing demand in Japan

for beans and bean-cakes, as witness the following ratios of exports to

China and Japan from Niu-chwang:—

Beans Bean-cakes

To China To Japan To China To Japan

1889 98.0% 2.0% 95.8% 4.2%

1893 67.5% 32.5% 68.3% 31.7%

1897 60.7% 39.3% 50.2% 49.8%

In 1903, the ratios must have been much greater for Japan than for

China. The increasing demand for these products has induced many Chinese

to migrate from Shan-tung to Southern and Western Manchuria and

cultivate beans.[35] As regards the Korean trade, the following table

will speak for itself:—

Korean trade in Korean export Total Japan-Korea

merchandise of gold trade

1897 19,041,000 _yen_ 2,034,000 _yen_ 21,075,000 _yen_ 14,061,000 _yen_

1898 17,527,000 2,375,000 19,902,000 10,641,000

1899 15,225,000 2,933,000 18,158,000 11,972,000

1900 20,380,000 3,633,000 24,013,000 18,759,000

1901 23,158,000 4,993,000 28,151,000 21,425,000

1902 (22,280,000) 5,064,000 (27,344,000) 18,512,000

1903 27,679,000 5,456,000 33,135,000 20,676,000

If we examine the causes of the growth of individual open ports in

Korea, nothing can be plainer than that it has almost entirely resulted

from the increasing trade relations between Korea and Japan. It is

needless to mention Fusan, for its trade is nearly synonymous with its

Japanese trade. Kunsan was opened on May 1, 1899, and its population was

only 300 till two years ago, but the great demand by Japan for the rice

coming through this port has already tended to enlarge the number of its

inhabitants up to 2000 or more.[36] Similar remarks may be made of

Mokpo, Chinnampo, and other ports.[37] Most conspicuous, however, is the

case of Chemulpo. In 1883, when it was opened as a treaty port, it

contained only a few fishers’ houses, but now it holds a population of

15,000, and occupies a position in Korea similar to that of Shanghai in

China. Of the inhabitants of the ports, 8000, or more than a half, are

Japanese. Streams of Koreans also have flowed hither from inland towns,

for there the officials oppress people, while here they are so

constantly viewed by the foreigners that undue exactions are

impossible.[38] We have already noted the important fact that Korea and

Manchuria on the one hand and Japan on the other exchange, not wares of

luxury, but useful and necessary articles. We have now come to another

equally important fact, that the growth of the Manchurian and Korean

trade depends largely upon the commercial activity of Japan. From these

considerations, it would seem safe to say that the trade interests of

the three countries are largely _common_, for the more Korea and

Manchuria export to Japan, the greater will be their purchasing power of

Japanese goods, and, also, the larger the exportation from Japan to

Manchuria and Korea, the more readily they will dispose of their

products to her. On the one hand, Korea and Manchuria encourage the

growth of Japan’s manufacture, and supply her with food and manure; on

the other hand, the economic development and prosperity of Korea and

Manchuria must be largely determined by the increasing demand for their

products by Japan, and the easy supply of their wants from Japan. The

future growth of the three nations, then, must in a large measure depend

upon the intimate progress, of their trade interests, which, therefore,

not only are common, but should be increasingly common. If the history

of the past suggests the probable development in the future, there is

every reason to believe that, with reformed systems of currency and

improved and extended cultivation of land and means of transportation,

the trade of Manchuria and Korea will show a tremendous increase, and

then the community of interest between them and Japan will be most

profound.

This theme of the community of interest may further be elaborated.

Korea and Manchuria may with profit remain open, not only for the

trade, but also for the emigration and industrial enterprise, of the

Japanese people. Since 1902 no passports have been required for

travelers from Japan to Korea, whither, in spite of the occasional

obstacles placed in their way by Korean officials, the emigrants have

proceeded, now for years, in increasing numbers, until there resided

in 1903 nearly thirty thousand Japanese in the Peninsula.[39] It takes

only thirteen hours on sea from Bakan in Japan to Fusan in Korea, and

the cost is even less than that of sailing to the Japanese colony of

Formosa, the former being fifteen _yen_ and the latter twenty. It

seems easier to go from Bakan to Fusan than it is from Osaka to the

Hokkaidō within Japan proper.[40] The expense of living in Korea is

also as low as one third the corresponding figure in Japan, a monthly

income of ten or thirteen _yen_ being considered sufficient to support

a family of three persons in a rented house.[41] It is not strange,

under these conditions, that the Japanese migrate to Korea, not always

singly, like the Chinese, but often in families,[42] so that their

settlements assume there a normal and permanent character unseen even

in Japan’s own island of Formosa. Nor are all these colonists mere

laborers like their brethren in Manchuria and the Hawaiian Islands,

but many are independent men of business. They also naturally manifest

a stronger sense of kinship and coöperation in Korea than the

merchants and capitalists do in Japan. In several Korean towns these

Japanese settlers have established their own municipalities, with

modern improvements, chambers of commerce, police, and public schools,

all of which compare favorably with those of the larger cities in

Japan, and the advantages of which are enjoyed by native Koreans and

resident Chinese. It is said that in some places the influx of the

Japanese and their investments have caused a rise in the price of land

and house rent.[43] In Fusan, the port nearest to Japan, the 10,000

Japanese who live there own large tracts of land and occupy the main

sections of the city. Here and everywhere else the Japanese colonists

seem to hold a position similar to that of the foreigners living in

the so-called settlements in the larger treaty ports of China.

Tourists are wont to contrast the clean and well-ordered streets and

the general energetic appearance of the Japanese quarters in Korean

cities with the comparatively filthy and slothful Korean quarters. The

branches of the First Bank of Japan have been issuing recently one-,

five-, and ten-_yen_ bank-notes,[44] which have been of immense value

to the foreign trade in Korea, the native currency of which is in a

deplorable condition.[45] The coasting and river navigation, so far as

it concerns foreign trade, is largely controlled by the Japanese, who,

besides, own the only railway line in operation in Korea, twenty-six

miles long, running between the capital, Seul, and its port

Chemulpo.[46] They are also building,[47] under the management of

substantially the same company, another and longer line—two hundred

and eighty-seven miles—between Seul and the port of Fusan, which

passes through the richer and economically by far the more important

half of the Peninsula.[48] It is not impossible to suppose that the

Japanese people will succeed in their efforts to secure the right of

extending this line beyond Seul up to Wiju on the northern border,[49]

and thence ultimately connecting it with the Eastern Chinese and the

Peking-Shanghaikwan-Sinminting Railways, so as to render the

connection by rail between Fusan and China and Europe complete.[50]

The Mitsui Produce Company, another Japanese concern, monopolized the

export of Korean ginseng, and, in 1903, despite the competition of the

Russian Baron Gunzburg,[51] succeeded in extending the term of the

monopoly for five years. Twenty to forty thousand Japanese fishermen

along the Korean coast report an annual catch amounting sometimes to

large figures.

No part of Korea’s economic life, however, would seem to be of greater

importance to her own future, or to depend more closely upon the

enterprise of the Japanese settlers, than her agriculture. If it is

remembered that nearly all her exports consist of agricultural products,

and also that they largely supply the needs of Japan, we can readily

comprehend the great community of interest felt by both countries in the

agriculture of the Peninsula. It is remarkable to note, to take a single

instance, that the production of cereals and beans (respectively about

eight and four million _koku_) in Korea has grown to its present

dimensions largely owing to the stimulus given to it by the increased

demand for these articles in Japan.[52] We shall presently note also

that, owing to the peculiar circumstances prevailing in Korea, her

purchasing power and general commercial activity are so completely ruled

by the conditions of her weather and crops as is seldom the case with

other agricultural nations. The Koreans are comparatively happy in good

years, while in bad years they are reduced to great miseries and bandits

infest all parts of the country. Upon the state of her agriculture,

then, must depend the trade conditions of Korea, as well as most of her

material strength and much of that of Japan. From this it is plain that

the profound community of interest of the two nations calls for both the

extension and the improvement of the agriculture of Korea. It is

estimated that the extent of her land under cultivation is hardly more

than 3,185,000 acres, or about 6.3 per cent. of the 82,000 square miles

known as the total area of the country,[53] and that there exist at

least 3,500,000 more acres of arable land, which would be fully capable

of sustaining five or six millions of new population, and of increasing

the annual crops of the land by not less than 150,000,000 _yen_.[54]

Unfortunately, however, the Koreans lack energy to cultivate those three

and a half million acres of waste land. For it is well known that the

irregular but exhaustive exactions of the Korean officials have bred a

conviction in the mind of the peasant that it is unwise to bestir

himself and earn surplus wealth only to be fleeced by the officials. His

idleness has now for centuries been forced, until it has become an

agreeable habit. It is in this state of things that is has often been

suggested that the cultivation of the waste lands may most naturally be

begun by the superior energy of the Japanese settlers.[55] Not less

important than the cultivation of new land is the improvement of old

land in Korea, where the art of husbandry is far less advanced than in

either China or Japan. Lots are marked out carelessly, improvements are

crude, and the manure most universally used is dried grass. The great

rivers with all their numerous ramifications are hardly utilized for the

purpose of irrigation, and the forests have been mercilessly denuded for

fuel and in order to forestall the requisition of the government,—which

formerly used to order without compensation the cutting and transporting

of trees by their owners,—so that a slight drought or excess of rain

works frightful disasters upon agriculture. Another serious effect of

the absence of a good system of irrigation is the comparative want of

rice land, which always requires a most careful use of water.[56] These

conditions are all the more to be regretted, when it is seen that the

soil is generally fair and the climate favorable. The cultivation of

rice is said to have been first taught by the Japanese invaders toward

the end of the sixteenth century, and yet, with all their primitive

method, the Koreans are already exporting rice to the value of four

million _yen_ or more. Sericulture is still in its infancy, while tea,

cotton, hemp, sugar, and various fruits are all declared to be tolerably

well suited to the soil. The Japanese farmer finds here, particularly in

the south, a climate and general surroundings very similar to his own,

and otherwise eminently agreeable to his habits, and, along with the

application of his superior methods of cultivation, irrigation, and

forestry, the common interests of his country and Korea are bound to

develop with great rapidity. The progress of agriculture would also

gradually lead the Koreans into the beginnings of an industrial life,

while the expanding systems of railways and banking would be at once

cause and effect of the industrial growth of the nation. Another

inevitable result would be the development of the economic sense and the

saving capacity of the Korean, the latter of which has had little

opportunity to grow, not so much because of his small wage and high rent

and interest, as because of the onerous, irregular local dues and the

systematic exactions in various forms by the official.[57] An advanced

economic life, itself necessitating a reform of the official

organization, would at least make it possible for the peasant to work,

earn, and save. Simultaneously and in increasing degree would his wants,

as well as his purchasing power, increase. Around the progress of

Korea’s agriculture, then, must be built all other measures of her

growth and power, as, for instance, transportation, industries, trade

and commerce, finance, political reform, and military strength. In no

other way can we conceive of the possibility of her effective

independence, the cause of which has cost Japan, and is now costing her,

so dearly. In no other light can we interpret the Korean sovereignty

under the assistance of Japan.

In regard to Manchuria, where the chances for development are far

vaster, the Japanese people do not possess there as large vested

interests, but entertain as great expectations for its future settlement

and industry as in Korea. It was estimated before the present war that

there resided more than ten thousand Japanese in Manchuria, who were

either under the employment of Russian authorities in public works along

the railway, or engaged in such small occupations as laundry work,

carpentry, restaurant-keeping, photographing, and hair-dressing,[58]

while many of the Japanese women, whose numbers in many a town

preponderated over those of men, had been allured by unscrupulous

parties, who consigned them to disreputable occupations. Merchants and

business men of greater capital and resources would be, as they often

have been, attracted to Manchuria, were it not for the exclusive, and in

the hands of some of their officials, arbitrary, measures of the

Russians.[59] Under normal conditions of peace and “open door,” the

immensely greater resources of Manchuria and the much greater

productiveness of its people[60] would seem to promise even a more

important economic future than in Korea.

In summing up our preceding discussion, it may be stated that the

natural growth or unnatural decay of the Japanese nation will greatly

depend—ever more greatly than it now does—upon whether Manchuria and

Korea remain open or are closed to its trade, colonization, and economic

enterprise; and that, in her imperative desire for the open door,

Japan’s wish largely coincides with that of the European and American

countries, except Russia, whose over-production calls for an open market

in the East.

Thus far we have discussed only Japan’s side of the economic problem in

Manchuria and Korea. Passing to Russia’s side, it is seen that her

vested interests in Manchuria are as enormous as her commercial success

there has been small. The building of the Eastern Chinese Railway has

cost the incredible sum of 270,000,000 rubles, making the average cost

per verst more than 113,000 rubles,[61] or over $87,000 per mile,

besides 70,000,000 rubles lost and expended during the Boxer outrages

and Manchuria campaign of 1900,[62] to say nothing of the normal annual

cost of guarding the railway by soldiers, estimated at 24,000,000

rubles.[63] The investments in permanent properties alone, besides the

railway, are moderately valued at 500,000,000 rubles.[64] In return for

these heavy outlays, the trade relations between Russia and Manchuria

have been most disappointing. Though it is not possible to obtain the

exact figures of the actual trade between Manchuria and European Russia,

we can establish approximate estimates in the following manner.

According to official returns, exports from Russia to her Far Eastern

Possessions were as follows:—

1900 56,000,000 rubles

1901 51,000,000

1902 38,000,000

The decline must be largely due to the decreased demand for military and

railway supplies, for it is seen that the falling-off has been most

conspicuous in iron and steel wares and machinery.[65] At the same time

there was little or no import trade from the Russian possessions in the

East into Russia, for the native products sent out from the former never

passed beyond Eastern Siberia. It would be interesting if we could find

out how much of these Russian exports went to Manchuria. The figures for

the Pacific ports are given as follows:[66]—

1900 51,157,000 rubles

1901 49,827,000

1902 37,704,000

If these figures are reliable, the difference between them and those

given above, namely:—

1900 less than 5,000,000 rubles

1901 more than 1,000,000

1902 less than 300,000

might be considered an approximate amount of the export trade from

Russia to Manchuria (and Mongolia, which imports very little from

Russia), for, of the Pacific ports, no other port but Vladivostok

reëxports Russian goods into Manchuria, which reëxportation seems to be

slight enough to be ignored. The approximate correctness of the figures

is further seen from the fact that of the total 8,193,000 rubles of the

Manchurian trade at Blagovestchensk, Habarofsk, and the South Ussuri

region—the three main points of transit trade with Manchuria—only one

half showed exports to Manchuria, and again, of this one half, only a

portion consisted of reëxported Russian goods. The South Ussuri

district, for instance, sent only 130,800 and 206,000 rubles’ worth of

Russian and foreign goods to Manchuria, out of the total export trade of

799,500 and 2,221,300 rubles, respectively, in 1898 and 1899.[67] On the

other hand, before the opening of the Manchurian Railway (which took

place in February, 1903), the _direct_ trade between Russia and the

interior of Manchuria must have been so slight as not to materially

affect the sum-total of the Russian-Manchurian trade.

This remarkably unfavorable trade between Manchuria and Russia was

probably due to a decreased demand for military supplies since 1900 (for

Russia has little to export from Manchuria, and Chinese teas have

largely gone through Kiakhta or by the Amur, rather than by the

Manchurian Railway), and also to the difficulty of further reducing the

freight rates on the railway,[68] and of competing successfully with the

American and Japanese traders in certain articles for importation.[69]

In spite of all the effort made by the late Finance Minister, M. Witte,

Russia is not yet primarily a manufacturing country, her exportation of

manufactured goods forming in fact only 2.5 per cent. of her entire

export trade, and at best remaining stationary during the three years

1900–2, as will be seen below:—

1900 1901 1902

Rubles Rubles Rubles

Total exports from Russia 688,435,000 729,815,000 825,277,000

Exports of manufacturers 19,553,000 21,039,000 19,263,000[70]

Russia’s commercial failure in Manchuria in the past would, however, in

no way justify the inference that the future will be as disappointing.

All competent observers seem to agree that the undeveloped resources of

the 364,000 square miles of Manchuria are enormous.[71] Its unknown

mineral wealth, its thousands of square miles of land now under the bean

and millet cultivation, but beginning to yield to the wheat culture and

producing wheat at a market price of not more than forty cents per

bushel, and its extensive lumber districts, as well as its millions of

cheap and most reliable Chinese laborers,[72] would before long enable

the Russians successfully to convert Manchuria into one of the richest

parts of China and one of the richest countries in the world. A success

of such magnitude must, however, largely depend upon a systematically

protective and exclusive policy on the part of Russia, or, in other

words, upon the completeness with which Russia transfers the bulk of the

Manchurian trade from the treaty port of Niu-chwang, and, so far as the

Russian import from China is concerned, even from the once important

Russian port of Vladivostok, to the commercial terminus of the

Manchurian Railway—Dalny. Particularly in order to capture the import

trade into Manchuria of cotton goods and kerosene oil, in the face of

the great advantages enjoyed by American and Japanese competitors,

Russia must at all costs make Dalny overshadow Niu-chwang, so as to

bring the trade under her complete control. Nothing but a highly

artificial system could accomplish such wonders, for, under normal

conditions, teas for Russia would go by the less costly routes through

Kiakhta, or up the Amur, or by sea to Odessa; the native products of

Manchuria for exportation to Japan would be sent to Niu-chwang by the

nearest, cheapest, and most natural channel, the Liao River, and, when

the latter freezes between the end of November and March, by the

Shan-hai-kwan Railway; and, finally, the smaller cost of production and

lower rates of freight of the American and Japanese cotton fabrics would

completely outdistance the Russian. Let us observe with what artificial

measures the Russians have been meeting this situation. With a view to

diverting the tea trade from Vladivostok to Dalny, Russia imposed an

import duty of 3 rubles per pood from August, 1902, and increased it in

May, 1903, to 25.50 rubles,[73] which with other measures dealt a

crushing blow to the prosperity of Vladivostok.[74] This must at least

have stifled the transportation of tea up the Amur, without, perhaps,

affecting the inroad of teas through the old Kiakhta and by sea.[75] As

regards the export trade at Niu-chwang, the Russians took advantage of

the important fact that the Shan-hai-kwan Railway did not penetrate

sufficiently north to reach some producing centres of Western Manchuria,

while the waters of the Liao were navigable only 200 miles from the

mouth, and were, together with the harbor itself, ice-bound from

November till March. Dalny was nearly ice-free, and the Manchurian

Railway was available through all seasons. The only competitors of the

railroad would seem to be the small bean-carrying junks plying down the

Liao, which were both owned and loaded by the same Chinese merchants.

This competition the Russians met by greatly reduced freight rates of

the railway, which made it possible for every 100 poods of Manchurian

grain and beans to be carried 600 miles between Harbin and Dalny for

about fifty-seven cents gold, or $10 per ton.[76] From Dalny, heavily

subsidized Russian boats transported Manchurian exports to Japan at a

freight rate which, in conjunction with railway rates, amounted to the

saving by the shipper of 4.50 _yen_ per ton, as compared with the

railway-rates _plus_ the freight-rates of non-Russian vessels.[77] When

the flour industry of the Russian towns in Manchuria is developed,

Russian steamers may be seen carrying flour from Dalny, not only to

Japan, but to Chinese and Eastern Siberian ports. As for the import

trade of Manchuria, the Russians, who have ousted American importers of

kerosene oil at Vladivostok, seem to be now by energetic methods slowly

driving away the same rivals from Chemulpo and from Dalny.[78] Vastly

more important as articles for importation than kerosene oil are cotton

yarn and textiles, which are annually supplied from abroad to the value

of over 12,000,000 _taels_. By far the greater part of sheetings,

drills, and jeans comes from America. The Russians were not unable to

produce cotton fabrics almost as good as the American goods, but the

trans-Siberian freight was twice as expensive as the Pacific

transportation, and could not be expected to be further reduced without

great difficulty.[79] It was not impossible to suppose that the Russian

Government might ultimately apply to Manchuria the system of granting a

premium and an additional drawback on textiles made from imported

cotton, which had been in successful operation in Persia. There was no

question but that, together with the development of Manchuria under

Russian control, foreigners would lose most of their import trade in

lumber, butter, and flour, and here again the Russian success must

depend on the exclusiveness of their policy.[80] Mr. H. B. Miller, the

United States Consul at Niu-chwang, seems to have made a delicate

reference to this point when he said, in his report dated December 5,

1903: “The United States trade in Manchuria with the Chinese amounted to

several millions of dollars per year, and was almost entirely imports.

It had grown very fast, and would have had an extended and most

substantial increase without the Russian development, for the country

was being improved and extensively developed with a continual

immigration from other provinces in China, before the railway

construction began.”[81] Much has been said regarding the oft-reiterated

wish of Russia to keep Dalny as a free port, but it is well known that

it has recently been placed under a protective tariff.[82] We are not in

possession of the details of this tariff, but its general significance

can hardly be mistaken when we see how the Russians have been reducing

freight rates to the utmost, subsidizing their own steamers, and pooling

together their great banking and railway facilities, all for the

purpose, on the one hand, of developing Russian industries in Manchuria,

and on the other, of monopolizing the bulk of its trade.

Not only in trade, but in colonization also, the Russians have been

building up new cities and developing old ones under their exclusive

policy with an unheard-of rapidity. Dalny is a good example of the

former class. Still more conspicuous is the city of Harbin, the

so-called Moscow of Asia, the geographical and commercial centre and

headquarters of the railway work in Manchuria, which is said to have

consisted of a single Chinese house in 1898,[83] but now contains 50,000

people.[84] Well might Count Cassini, as he did, refer, not only to the

colonization, but to the general civilizing influence of the Russians in

Manchuria in the following language:[85] “Through the pacific channels

of diplomacy my government acquired privileges which, accepted in good

faith, have been exercised in a spirit of true modern progressiveness,

until now the flower of enlightened civilization blooms throughout a

land that a few years ago was a wild, and in many parts a desolate,

seemingly unproductive waste. Before the signing of the treaty which I

had the honor to negotiate in behalf of my Sovereign, giving to Russia

railroad and other concessions in Manchuria, no white man could have

ventured into that province without danger to his life.... Upon the

basis of the rights to commercial exploitation thus peaceably obtained,

Russia built a railway into and through Manchuria. She built bridges,

roads, and canals. She has built cities whose rapid construction and

wonderful strides in population and industry have no parallel, certainly

in Europe and Asia, perhaps even in America. Harbin and Dalny are

monuments to Russian progressiveness and civilization. These great

undertakings, wonderful even in a day of marvelous human accomplishment,

have cost Russia more than 300,000,000 dollars.” Without stopping either

to dispute the historical accuracy of Count Cassini’s statement or to

deny the wonderful work the Russians have accomplished in Manchurian

cities, it seems pertinent to call our attention to the exclusive side

of the Russian enterprise in this vast territory. Harbin is one of the

so-called “depots,” over eighty in number, which are found along the

whole length of the Manchurian Railway, each one of which extends over

several square miles, within which none but the Russians and Chinese

have the right of permanent settlement.[86] Russia would not consent to

the opening of Harbin (and, presumably, all other cities within the

“depots” of the Manchurian Railway) to foreign trade. Even outside of

these cities, the Russian Government appeared to be opposed to the

opening of new ports, and when it was no longer politic to continue the

opposition, Russia informed other Powers in 1903 that she had no

intention of objecting to the opening of new treaty ports “without

foreign settlements” in Manchuria.[87]

The meaning of all these protective and exclusive measures becomes

plain, when it is seen that the complete control of the economic

resources of Manchuria would give Russia, not only sufficient means to

support Eastern Siberia, but also a great command over the trade of

China and Japan. The latter country Russia might be able to reduce to

dire distress, when necessary, by closing the supplies coming from

Manchuria, upon which Japan will have to depend every year more closely

than before.[88] The success of these great designs on the part of

Russia would depend upon how completely protective and exclusive her

Manchurian policy can be made.

Coming from Manchuria to Korea, we find the economic position of the

Russians in a totally different situation, for either their vested or

even their potential interests in the Peninsula were slight, excepting,

perhaps, their already acquired timber concessions[89] on the northern

frontier and the Kaiserling whale fishery on the northeastern coast.[90]

It has been pointed out, however, that the fact that Dalny was not

altogether ice-free made Russia covet Chemulpo or some other trade port

on the western coast of Korea.[91] However that may be, it is safe to

say that Russia’s interests in Korea are slightly economic, but almost

wholly strategic and political.

Let us sum up our discussion at this point, and compare the economic

interests of Russia and Japan in Manchuria and Korea. In Manchuria, both

Powers seek trade and colonization, with the important difference that

Japan’s interests are actually great and potentially greater, while

those of Russia are both actually and potentially preponderant. A

difference of greater moment lies, however, in the fact that, so far as

her trade and industry are concerned, Japan’s interests call for an

equal opportunity there for all industrial nations, while Russia’s

interests may be maintained and developed only by a highly exclusive

policy. In Korea, its opening for the trade, settlement, and enterprise

of the Japanese is not only the most natural method of strengthening

Korea herself, but also a primary condition for the life and growth of

Japan. Russia’s economic interests there, on the other hand, may be

measured by the number of her resident subjects and the extent of their

enterprise, which are, outside of Yong-am-po, next to nothing. Her

interests, being, as we shall soon see, mainly strategic and political,

demand here also a policy directly opposed to the open door. If we now

consider Manchuria and Korea together, it may be said that Russia’s

economic interests are, even in Manchuria, rather for her glory as a

great, expanding empire than for any imperative need of trade and

emigration in that particular part of her Asiatic dominion, while

similar interests of Japan, primarily in Korea and secondarily in

Manchuria, are vital, as they are essential for her own life and

development as a nation. The case for Russia can, perhaps, never be

understood until her _political_ issues are examined.

Politically, also, the interests of the two Powers are found to be

directly opposed to one another. It has been rightly said that Manchuria

is the keynote of the Eastern policy of Russia. Besides its immense

wealth still unexploited, Manchuria possesses the great Port Arthur,

which is the only nearly ice-free naval outlet for Russia in her vast

dominion in Asia, while the 1500 miles of the Manchurian Railway,

together with the Great Siberian Railway, connect this important naval

station with the army bases in Siberia and European Russia, so that

Manchuria alone would seem to be politically more valuable for Russia

than the rest of her Asiatic territories. Without Manchuria, Russia

would be left inclosed in the ice-bound Siberia, with no naval or

commercial outlet during nearly five months of each year. With

Manchuria, Russia’s traditional policy, which has repeatedly failed

since Peter the Great on the Baltic Sea and other European waters, as

also on the Persian Gulf,—the policy of becoming the dominant naval

power of the world,—would at last begin to be realized. The very

importance of Manchuria for Russia, however, constitutes a serious

menace to Japan and to the general peace of the Far East. In the first

place, the Russian control of Port Arthur gives her a large measure of

control over the water approaches to Peking, while the Mongolian Railway

now reported to be in contemplation would bring Russian land forces

directly upon the capital of the Chinese Empire. The very integrity of

China is threatened, and a more serious disturbance of the peace of the

world could hardly be imagined than the general partition and internal

outbreaks in China which would follow the fall of Peking under the

pressure of Russia from Manchuria and Mongolia. Not less grave is the

fact that Manchuria is geographically and historically connected with

the Peninsula of Korea,[92] which makes Russia’s occupation of Korea a

necessary adjunct of her possession of Manchuria. Geographically

considered, there exists no abrupt change from the eastern part of

Manchuria to the northern half of Korea,[93] which fact goes far to

explain the Russian solicitude to obtain railway and other concessions

between the frontier and Seul. Even more serious conditions exist on the

southern coast of Korea, which contains the magnificent harbor of

Masampo, which constitutes the Gibraltar between the Russian fleets at

the ice-bound and remote Vladivostok and the incommodious and not

altogether ice-free Port Arthur, with no effective means of connecting

them. By controlling this coast, Russia would not merely possess a truly

ice-free, and the best naval port to be found in East Asia,[94] but also

at last feel secure in Manchuria and complete her Far Eastern design of

absorbing Korea and China and pressing down toward India. If, on the

contrary, another Power should control Masampo, it would be able to

watch the movement of the Russian fleets in their attempts to unite with

one another, and also seriously impede the greatest hopes of Russia’s

Eastern expansion. From Japan’s standpoint, the Russian occupation of

this section of Korea would not only possibly close Korea against her

trade and enterprise, but also threaten her own integrity. Only fifty

miles away lie the Japanese islands of Tsushima, which Russia has always

coveted, and which would have been hers had it not been for the shrewd

diplomacy of the late Count Katsu.[95] From Tsushima the mainland of

Japan is visible on the eastern horizon, so that the presence of Russia

at Masampo would arouse in the heart of Japan the most profound feeling

of unrest. Russia must have Masampo, and Japan must not let her have it.

In concluding our discussion of the vital issues, both economical and

political, which are at stake, it would seem that Manchuria is for Japan

a great market as well as an increasingly important supply region of raw

and food products and a field for emigration, while for Russia it is the

keynote of her Eastern policy, and economically the most promising of

all her Asiatic possessions. On the other hand, Korea is essential for

Russia for the completion of her Manchurian policy,[96] and for

strengthening enormously her general position in the East. For Japan,

Korea is nothing short of one half of her vitality. By the opening or

closing, strength or weakness, independence or fall, of Korea, would

Japan’s fate as a nation be decided. On the contrary, Russia, with

Manchuria and ultimately Korea in her hands, would be able, on the one

hand, to build up under her exclusive policy a naval and commercial

influence strong enough to enable her to dominate the East, and, on the

other, to cripple forever Japan’s ambition as a nation, slowly drive her

to starvation and decay, and even politically annex her. From Japan’s

point of view, Korea and China must be left open freely to the economic

enterprise of herself and others alike, and, in order to effect that

end, they must remain independent and become stronger by their internal

development and reform.[97] Russia’s interests are intelligible, as are

Japan’s, but unfortunately their desires are antagonistic to each other,

so that a conflict between an open and an exclusive policy is rendered

inevitable. The series of events during the past decades, particularly

since 1895, which we shall narrate in this volume, has only served to

bring this conflict into a sharp clash in arms.

* * * * *

In closing, it may not be entirely out of place to attempt a speculation

upon the significance of the conflict, not to the belligerents, but to

the world at large. From the latter’s point of view, the contest may

fairly be regarded as a dramatic struggle between two civilizations, old

and new, Russia representing the old civilization and Japan the new. Two

dominant features, among others, seem to characterize the opposition of

the contending nations: namely, first, that Russia’s economics are

essentially agricultural, while those of Japan are largely and

increasingly industrial; and, secondly, that Japan’s strength lies more

on sea than on land, while Russia represents an enormous contiguous

expansion on land. It is evident that the wealth of a nation and its

earning capacity cannot grow fast under a trade system under which it

imports many and exports few manufactures.[98] The commercial prosperity

of Russia depended formerly upon its nearness, first to the trade route

with the Levant, and then to the free cities of Germany, but with the

fall of Constantinople and the decline of the Hansa towns the business

activity of Southern and Baltic Russia has in turn passed away. Then,

from the time of Ivan the Terrible, she unified her European territory,

and expanded eastward on land, until she had embraced within her

dominion much of Central and all of Northern Asia. For such an expansion

Russia seems to have been particularly fitted, for her primitive

economic organization suffers little from external disturbances, while

the autocratic form of her government enables her to maintain and

execute her traditional policy of expansion. But the real importance of

her expansion appears to be more territorial than commercial, for the

days of the land trade with the Orient are numbered. Even the great

Siberian Railway would not successfully divert the Eastern trade

landward.[99] If Russia would be prosperous she must control the Eastern

sea by occupying northeast China and Korea. Here she comes in conflict

with Japan, the champion in the East of the rising civilization. The

economic centre of the world has been fast passing to America, where

cotton, wheat, coal, and iron abound, the people excel in energy and

intelligence, and the government is servant to the welfare and progress

of the people. Japan has joined the circle of this civilization, ever

since the influence of the youthful nation of America was extended to

her through Commodore Perry[100] and Townsend Harris, and the spirit of

national progress through industry and education was eagerly adopted by

her. To-day, Japan stands within the range of the interests of the

British and American sea-power over the Pacific, Atlantic, and Indian

oceans, while Russia, on the other hand, represents a vast expansion on

land.

The historical bearing of the effects of the old civilization to the

world may, perhaps, be best characterized by the one word—_unnatural_.

Observe, first, the effect of the policy of land aggression on the

internal affairs of Russia. The policy is costly. Hence the great

incongruity between the economics of the people, which are agricultural,

and the finance of her government, which would be too expensive even for

the most highly advanced industrial nation. Hence, also, it is, perhaps,

that the richer and more powerful her government becomes, the poorer and

more discontented her people seem to grow. Her administration must

naturally be maintained by the suspicion of her people and the

suppression of their freedom,[101] and the suspicion and suppression

must become more exhaustive as the disparity widens between rulers and

ruled.[102] Under these circumstances, a constitutional régime would not

be possible, for a free expression of the popular will would be hardly

compatible with a form of government which seeks to strengthen the state

at the expense of the nation. Again, consider the unnatural situation of

an agricultural nation competing in the world’s market with industrial,

trading nations which command a higher and more effective economic

organization. If Russia would sell her goods, her markets abroad must be

created and maintained by artificial means:[103] protective and

exclusive measures must be pushed to such an extent as to distance all

foreign competition, the interests of the consumer must be

disregarded,[104] and those of the growing industrial nations must be

sacrificed,[105] all for the sake of artificially promoting the belated

manufactures in Russia.[106] From this unnatural state of things would

seem to follow the Russian policy of territorial occupation and

commercial exclusion in the East, and also her free use of the old-time

intrigue in diplomacy; for it is Russia’s fortune that she would not be

able to compete freely with the new, growing civilization, whose open

arts she cannot employ to her advantage, but to whose advanced standard

of international morals she must appear to conform. Her position forbids

her to have recourse to an open policy and fair play, and yet she cannot

afford to overtly uphold the opposite principles.[107] On the other

hand, the new civilization, represented in the present contest by Japan,

relies more largely upon the energy and resources of the individual

person, whose rights it respects, and upon an upright treatment by the

nations of one another.

What is the goal of the warfare of these two civilizations? It is, it

may be said, the immensely rich and yet undeveloped North China, of

which Manchuria is a part, and to which Korea is an appendix. Over this

territory, the interests of Russia and Japan have come to a clear and

sharp clash, those of the former demanding the subjection and closure of

this great portion of the earth’s surface, and those of the latter

imperatively calling for its independence and progress.

Whoever wins, the issues are momentous. If Russia should win, not only

Korea and Manchuria, but also Mongolia would be either annexed by Russia

or placed under her protection, and Japan’s progress would be checked

and her life would begin to fail. Russia would assume a commanding

position over all the Powers in the East, while the trading nations of

the world would be either largely or completely excluded from an

important economic section of Asia. The Siberian railway system might at

last be made to pay, and Russia’s exclusive policy would enable her and

her ally France to divide the profit of the Eastern trade with the more

active industrial nations. The old civilization would enjoy an

artificial revival, under the influence of which China and Korea would

be exploited by the victors and, for the most part,[108] closed against

reformatory influences from abroad. All these momentous results would be

in the interest of an exclusive policy incorporating principles which

are generally regarded as inimical to freedom and progress. If, on the

contrary, Japan should win, the doubtful importance of the Siberian

Railroad as a carrier of the Eastern trade would in the mean time be

further overshadowed by the Panama Canal, and it would be compelled to

perform its perhaps proper function of developing the vast resources of

Siberia and Manchuria. The Oriental commerce would be equally free and

open to all; the Empires of China and Korea would not only remain

independent, but, under the influence of the new civilization, their

enormous resources would be developed and their national institutions

reformed, the immense advantages of which would be enjoyed by all the

nations which are interested in the East. There would naturally result a

lasting peace in the East and the general uplifting of one third of the

human race. Japan’s growth and progress after the war would be even more

remarkable than in the past. In short, East Asia would be forcibly

brought under the influence of the new civilization, the effect of which

would not be without a profound reaction upon Russia herself. Humanity

at large, including the Russians, would thereby be the gainer. The

difference in the effects of the outcome of the war, according to who is

the victor, would be tremendous. Which will win, the old civilization or

the new? The world at this moment stands at the parting of the ways.

SUPPLEMENTARY NOTE

ON THE SIBERIAN RAILWAY[109]

According to an estimate made by a Russian expert of the carrying

capacity of the great Siberian railway system,[110] the Siberian section

alone will carry at least 190 million poods, and the Manchurian section

from 100 to 150 million poods, making a total of 300 to 350 million

poods, approximately. It is contended, however, that, while the present

conditions of the inhabitants of Siberia and Manchuria make it possible

for the railway to carry only raw and crudely manufactured goods, these

are the very articles whose cost would easily be raised by the long

distance over which they have to be carried by rail. In Europe, it never

pays to carry these articles for a longer distance than 2000 miles. Nor

would it in Siberia, unless abnormal reductions are made in freight

rates, or unless commerce and manufacture are artificially fostered in

Siberia and Manchuria. It is supposed, therefore, that it would always

be unprofitable to carry bulky, cheap goods between Europe and the East

on the Siberian Railway. China’s exports to Russia consist of such

costly goods as teas and silks, which may be profitably transported by

rail, but thus far even teas have only begun to be so transported under

more or less artificial measures in favor of the railway traffic at the

expense of the routes through Kiakhta, up the Amur, and by sea to

Odessa. As to Russian imports into China, cotton and woolen goods and

metals would never be carried by rail under normal circumstances.[111]

The benefit of the eight thousand versts of the railway from Moscow to

Dalny may be safely said to be as slight to the carrying trade as it is

great to the travelers and postal service between Europe and the East.

The statistics for 1899 and 1900 show that the bulk of the Russian trade

with China was carried on land, but that the land trade was decreasing

and sea trade increasing. See the following table (unit 1000

rubles):[112]—

│ Export Import Total Ratio

1899│Land 7,522 30,007 37,520 74%

│Sea 4 13,508 13,512 26%

────┼────────────────────────────────

1900│Land 6,678 29,779 36,457 69%

│Sea 24 16,166 16,190 31%

It should be noted, however, that the period covered by the table is not

only too short, but also precedes the opening of the Manchurian Railroad

to trade, which took place only in 1903. Nor should it be overlooked

that the figures indicate the China trade of _Russia_ alone.

Regarding the _European_ trade with China in general, M. Sorokin,

Assistant Director of Customs at Niu-chwang, is reported to have

remarked that the freight per pood from Europe to the East was five

rubles on land and 1.50 on sea.[113] Certain articles, such as

glassware, tobacco, and the like, seem to be carried from Russia to

China at two rubles by rail and one ruble by ships.[114] The sea route

consumes nearly two months, but, for bulky merchandise, it would be

impossible for the railway to compete with it.

It is interesting, in this connection, to remember that, from _America_,

the freight between San Francisco and the Eastern ports has been reduced

repeatedly during the last year, owing to the competition among the

shipping companies, so that the charge for flour does not seem to be

more than one mill per ton-mile, or forty cents a hundred pounds for

8000 miles.

During 1901, according to the latest statistics available, the deficit

of the Ussuri branch of the Siberian Railway is said to have amounted to

$435,162, and that of the entire railway to $11,330,000.[115]

* * * * *

In this connection, it is interesting to note that this view is further

confirmed by no less authority than Count Cassini, the present Russian

Minister at Washington, who, in his statement given on April 9, and

published in the _North American Review_ for May, 1904, said:

“... Consider Russia’s position commercially toward Manchuria with that

of the United States. In this country [the United States] are made not

only the very materials that would find a sale among the people of the

province, but with American goods shipped by an all-water route, the

cost of transportation would be much lower than the cost of carrying on

the all-land routes to which Russia would be confined. Should Russia

ship by water to Manchuria from Odessa, the distance would still be too

great to make competition with the United States successful. From Moscow

to Port Arthur the distance by rail is 5000 miles. It is therefore easy

to realize the privileged position of the United States in competing

over an all-water route from the Pacific coast, with Russia over an

all-rail route.”[116]

-----

Footnote 1:

Official figures for December 31, 1903. The _Fourth Financial and

Economical Annual of Japan_, 1904 (hereafter abbreviated as the

_Fourth Annual_), published by the Department of Finance, Imperial

Government of Tokio, p. 5. The actual numbers may be even higher.

Footnote 2:

_The Monthly Return of the Foreign Trade of the Empire of Japan_ for

May, 1904, published by the Department of Finance, pp. 91–95.

Footnote 3:

_Japan in the Beginning of the 20th Century_ (hereafter abbreviated as

the _20th Century_), compiled by the Department of Agriculture and

Commerce, Tokio, 1903, pp. 53–58.

Footnote 4:

Or, 241,891,946 out of 285,971,623 _yen_. As the term manufacture is

expansive, the articles herein included should be enumerated. They

are: clothing, chemicals and drugs, metal wares, oil and wax, paper,

cotton yarn and fabrics, raw and woven silks, tobacco, and sundries.

Teas, grain, marine products and other food-stuffs, and furs, as well

as reëxported articles, are excluded. See the _Kwampō_ (Official

Gazette of Japan), No. 6199 (March 4, 1904), p. 77, table 7.

Footnote 5:

The crop of rice has increased since 1877 from 26.6 million to about

42,000,000 _koku_; that of barley, rye, and wheat from 9.6 million to

19 million _koku_. But the increase has been due more to an improved

cultivation than to an extension of acreage. Although the wheat,

barley, and rye land has grown from 2.35 million in 1877 to 4.43

million acres in 1901, the rice land has increased from 6,517,000 to

only 6,982,000 acres. The crops of hemp and rape are stationary, while

those of sugar, cotton, and indigo have largely fallen off. (These

figures have been converted from those in the _20th Century_, pp. 119

ff. One _koku_ dry is equivalent to 4.9629 bushels.)

Footnote 6:

These figures have been worked out from the _Kokumin Shimbun_

(National News, hereafter abbreviated as the _Kokumin_) of February 5,

10, and 19, 1904. Also see a table and comment in the _Tōyō Keizai

Shimpō_ (“Oriental Economist”), for May 5, 1903, pp. 17–19.

Footnote 7:

If sugar is added to the list, the figures will go up to more than 190

million _yen_, or 60 per cent. of the entire import trade.

Footnote 8:

289.2 million _yen_ in 1902–3. The _Fourth Annual_, pp. 4 and 9, and

plate 3. Also see the _Tōyō Keizai Shimpō_ (“Oriental Economist”) for

December 5, 1902, pp. 19–21 and chart.

Footnote 9:

Or, less than 7,000,000 acres of wet fields and less than 6,000,000 of

upland fields, the latter including mulberry and tea gardens, besides

fields for _mugi_, beans, and vegetables. Based on the _20th Century_,

pp. 95 ff.

Footnote 10:

This figure includes, however, all the land inclined at angles less

than 15°, so that, from the practical point of view, it may be

considered as highly exaggerated. The actual extent of the reclamation

of wild land advances at a slow pace outside of the still largely

undeveloped island of Hokkaidō. See _ibid._, pp. 95–96, 104.

Footnote 11:

Or, about 23,000,000 acres for nearly 47,000,000 people. If we take

only the land under cultivation, on the one hand, and only the farming

population, on the other, the ratio still remains the same, for then

we have 13,000,000 acres for 28,000,000 people. The aggregate of the

capital involved in the agriculture of Japan, including the value of

land, buildings, implements, and live stock, is estimated at

7,400,000,000 _yen_, while the annual crops return about 1,000,000,000

_yen_. See the _20th Century_, pp. 105–106.

Footnote 12:

The annual rainfall of Japan proper averages between 1300 mm. at

Awomori and 2040 mm. at Kagoshima. A fairly rich sedimentary formation

of soil is found everywhere, owing to the hilly nature of the country

and the short and rapid current of the rivers.

Footnote 13:

Wherever possible, the farmer contrives to raise more than one crop on

his land in different seasons during the year. In fact, more than 30

per cent. of rice land yields other crops besides rice, at places

_mugi_, indigo, beans, and rape being cultivated on the same piece of

land.

Footnote 14:

More than half of the wet fields of the country consist of lots

smaller than one-eighth acre, and nearly three fourths are each less

than one-quarter acre. The average size of the lots outside of Formosa

and Hokkaidō is put down as .1 acre for wet fields and .12 acre for

upland fields.

Footnote 15:

Compare the report of the U. S. Consul-General Bellows at Yokohama in

the U. S. _Consular Reports_, advance sheets, No. 1757 (September 24,

1903). In addition to the conditions here enumerated, it must be

remembered that there exists little or no pasture land in Japan, and

that nearly all the labor is done by hand, there being only 1,500,000

horses and 1,300,000 horned animals in the country. See the _20th

Century_, chapters on agriculture; the _Annual_, No. III, tables

x-xiii; J. J. Rein’s _Industries of Japan_, English translation, New

York, 1889, chapters on agriculture; and H. Dumolard’s _Le Japon

politique, économique et social_, Paris, 1903, pp. 109–121.

Footnote 16:

The _20th Century_, p. 117; Dumolard, pp. 112–113.

Footnote 17:

This ratio includes, however, in the tenant class those farmers who

are partly lessees and partly proprietors of small lots. In 1888, the

ratio between (1) independent farmers, (2) partly lessees, and (3)

entirely lessees, was 147:200:95. Since that time the ratio must have

grown in favor of the tenants. See the _20th Century_, p. 90.

Footnote 18:

See the U. S. _Consular Reports_, advance sheets, No. 1529 (December

26, 1902). In 1902 the total debts of the farming classes of Japan

were estimated at 400 million _yen_. Mr. S. Nakayama, in the _Tōyō

Keizai Shimpō_ (“Oriental Economist”) for July 15, 1902, p. 14.

Footnote 19:

In 1903, Japan’s American trade was much below that of 1902. The

latter showed an increase of 362 per cent. over 1890.

Footnote 20:

The actual figures were:—

European American Japanese

1890 57,200,000 _yen_ 36,700,000 _yen_ 45,700,000 _yen_

1903 166,900,000 _yen_ 95,900,000 _yen_ 295,900,000 _yen_

Footnote 21:

In East Asia are included Korea, China, Hong-kong, British India,

French Indo-China, Dutch East Indies, the Straits Settlements, Siam,

the Philippines, and Russian Eastern Asia. If Hong-kong, an

essentially transit-trade port, is excluded, the East Asiatic trade of

Japan amounts to 264,476,239 _yen_, or 43.6 per cent. of the entire

foreign trade of Japan. See the _Kwampō_ (Official Gazette of Japan),

No. 6199 (March 4, 1904), p. 74, table 4.

Of the three great divisions of Japan’s markets, Europe sells her

machineries and articles of general consumption, and buys in return

such peculiar products of her soil as silks and teas. East Asia,

including India and the southern islands, takes coal and manufactured

goods in general and furnishes cotton, food-stuffs, and other articles

of more direct need than the European goods. America occupies a unique

position in regard to Japan, as it combines to a large extent the

peculiarities of both Europe and East Asia: it exports to Japan cotton

and flour, besides machinery and goods of general consumption, and

imports from her, not only raw silk and tea, but also smaller

manufactured articles.

Footnote 22:

Oil-cakes are used as manure. As to rice, wheat, and flour, it is

unnecessary to say that their importation depends largely upon the

conditions of the crop at home.

Footnote 23:

The present author has often met persons who misinterpreted the “open

door” to mean the complete throwing open of a country to the ruthless

exploitation of the foreigner. The “open door,” it is needless to say,

merely negatives a differential treatment in favor of one or more

foreign nations at the expense of all the others. It does not

necessarily imply a wide opening, but an impartial, even if narrow,

opening for all nations.

Footnote 24:

Consult the British _Diplomatic and Consular Reports_, Annual Series,

Nos. 2995 and 2999; the U. S. _Monthly Summary of Commerce and

Finance_, January, 1904, pp. 2410–1; the _Kokumin_, September 19–21,

1901; Minister Kiyoura’s address before the Osaka Chamber of Commerce,

February, 1904.

Footnote 25:

The figures were taken from the _Monthly Summary of Commerce and

Finance of the United States_ for February, 1904, p. 3006.

Footnote 26:

From _ibid._, p. 3006. In 1903, rice imported amounted to 51,960,000

_yen_ in value. The _Fourth Annual_, p. 77.

Footnote 27:

See the U. S. _Monthly Summary_, February, 1904, pp. 3006 and 3013.

Footnote 28:

At present, Chinese merchants in Korea compete with the Japanese only

at the ports on the western coast, principally in the import trade of

silk. The number of the Chinese residents in Korea is one tenth that

of the Japanese, or about 4000.

Footnote 29:

The _Kokumin_, January 30, 1904.

Footnote 30:

Based on the figures in the _British Diplomatic and Consular Report:

Trade of Corea for the Year 1903_, pp. 11–13.

Footnote 31:

Of the 1430 vessels, aggregating 1,104,000 tons, entered at and

cleared from Niu-chwang in 1902, the Japanese had 710 vessels and

491,000 tons, the British, 374 vessels and 350,000 tons, the Germans,

88 vessels and 73,000 tons, and so forth.—The _Kokumin_, April 29,

1904, from the _Tai Shin-Kan Bōyeki Chōsa Hōkoku_ (report on the trade

with China and Korea), compiled by the Department of Agriculture and

Commerce, Tokio, 1904. The Russians could show only 3 vessels and

1,223 tons, which was below their record for 1901 and less than one

half of the average of the five years 1886, 1897, 1898, 1899, and

1901.—The British _Diplomatic and Consular Reports_, Annual Series,

No. 2999 (on Niu-chwang), p. 9.

Footnote 32:

_Ibid._, p. 8.

Footnote 33:

The direct import trade of any trading nation at Niu-chwang does not

represent the actual amount of the articles imported from the country

of that nation, for most of the foreign goods come to Niu-chwang

through some other distributing centres in China, such as Hong-kong or

Shanghai. The Japanese goods, however, are nearly all carried by

Japanese vessels. On the contrary, the American imports, besides

jeans, drills, sheetings, kerosenes, and flour, are not specified in

the customs returns of Niu-chwang, and consequently their nominal

figures are insignificant (7396 _l._ in 1901 and 4089 _l._ in 1902),

while Hong-kong, through which most of the American goods are imported

into Niu-chwang, showed, in 1902, 385,302 _l._, or 55 per cent. of the

entire direct trade. On the other hand, the estimate made by the

Bureau of Statistics, Department of Commerce and Labor, Washington,

showing 18,000,000 haikwan taels for the _real_ import of American

goods into Niu-chwang, seems to be pretty liberal. See British _D. and

C. Reports_, annual series, No. 2999, p. 8, and the U. S. _Monthly

Summary of Commerce and Finance_, January, 1904, p. 2328.

Footnote 34:

See the _Tsūshō Isan_ for January 22, 1903, pp. 10–11.

Footnote 35:

See the _Tōyō Keizai Shimpō_ (“Oriental Economist”), No. 165 (July 15,

1900), and No. 244 (September 25, 1902).

Footnote 36:

The _Kokumin_, November 26, 1903.

Footnote 37:

The _Annai_, pp. 58–61.

Footnote 38:

Mr. Shiga’s letter, in the _Kokumin_, July 5, 1904.

Footnote 39:

In July, 1903, there were, besides soldiers, 26,705 Japanese in the

eight treaty ports and Seul and Ping-yang. To these must be added

about 4000 who lived on some islands and places outside of the treaty

ports. See the _Dōbun-kwai Hōkoku_ (Report of the Dōbun Association),

No. 41, pp. 95–96, and the _Tsūshō Isan_ for October 18, 1903, pp.

29–47; April 8, 1904, pp. 28–52. Mr. Yamamoto places the number of the

Japanese residents in Korea at 40,000. See his _Saishin Chōsen Ijū

Annai_ (latest guide for emigration to Korea; hereafter abbreviated as

the _Annai_), Tokio, 1904, p. 14.

Footnote 40:

The _Annai_, pp. 8–9, 19–20.

Footnote 41:

_Ibid._, p. 81.

Footnote 42:

In July, 1903, of the 26,645 Japanese in Korea, 15,442 were men and

11,263 women. It may be noted, in passing, that, in the case of

Manchuria, a great majority of the Japanese women residing there are

not the wives of the male settlers, and hence the comparative numbers

of men and women there should not lead us to a similar conclusion as

to Korea. This part of the problem of Japanese emigration opens up an

interesting social question, which it is hardly necessary for us to

discuss here.

Footnote 43:

From the legal standpoint, the Japanese had no right, outside of the

treaty settlements, to live or buy land.

Footnote 44:

On March 31, 1904, there were about 1,234,000 _yen_ of these notes in

circulation against a reserve of 944,000 _yen_. From the British _C.

and D. Reports_; _Trade of Korea for the Year 1903_, pp. 7–8.

The Russians and their sympathizers at Seul have more than once tried,

though unsuccessfully, to induce the Korean Government to suppress the

issue of the notes. See pp. 281–284, below.

Footnote 45:

The nickel coins of Korea have been so debased and so much

counterfeited that they are at a discount of much more than 100 per

cent.

Footnote 46:

The right of building this line was originally granted by the Korean

Government to Mr. Morse, an American citizen, in March, 1896, who,

however, sold it to a Japanese syndicate in November, 1898, and handed

the line over to the latter before it was completed. The whole line

was in working order in July, 1899. See p. 286 (Article 3), below.

Footnote 47:

Actual work was begun in August, 1901, but Japan’s want of capital was

such that by the first of December, 1903, only thirty-one miles from

both ends had been built. In view of the immense economic and

strategic importance of the line, the Japanese Government, which had

for a certain period of time guaranteed 6 per cent. annual interest on

25,000,000 _yen_, which was fixed as the minimum capital of the

company, now further promoted its work by liberal measures, so as to

make it possible for the company to complete the line before the end

of the present year. Both the Korean and Japanese Imperial Houses own

shares of the company.

Footnote 48:

The line passes through the richest and most populous four provinces

of Korea, which comprise nearly seven tenths of all the houses in the

Empire, and cover more than five sevenths of the cultivated area of

the country, with considerable capacity for future cultivation and

improvement. The road also connects places to which the Koreans flock

from neighboring regions for the periodical fairs held there. These

fairs occur six times each month, held alternately in different

places, besides great annual fairs in large cities. Among the

thirty-nine stations of this railroad, six will be daily seen holding

fairs, for which the traffic of passengers and merchandise through the

road will be considerable. It is safe to say that five sevenths of the

entire Korean foreign trade belong to the sphere controlled by this

line, and also that nearly all of this trade is in reality the fast

growing Japan-Korea trade. The effect of the completion of the line

upon this trade will be tremendous. See Mr. J. Shinobu’s _Kan Hantō_

(“The Korean Peninsula”), Tokio, 1901.

Footnote 49:

The French have an agreement with the Korean Government regarding a

Seul-Fusan railway. The Seul Government is to build it with its own

money, and the French to furnish engineers and material. Not a mile of

rail has been laid by the impecunious Government, and the present war

is rapidly changing the entire situation. A Japanese railway for

strategic purposes has already been started from Seul northward.

Another line, between Seul and Wonsan (Gensan), will also be built by

the Japanese in the near future.

Footnote 50:

It was one of the first propositions from Japan to Russia during the

long negotiations between them which have ended in the present war,

that Russia should not impede Japan’s possible attempt in the future

to extend the Fusan-Seul Railway in the manner above described. See p.

286 (Article 3), below.

Footnote 51:

A promoter of Russian interests in Korea, and to all intents and

purposes a semi-official diplomat for Russia, living at Seul and

observing the political barometer of the Court at close range. Another

person, perhaps less known to the outside world, but far more

influential at Court, is a woman, Fräulein Sonntag, a relative of the

wife of the ex-Russian Minister Waeber at Seul. See p. 280, below.

Footnote 52:

The _Kokumin_, January 15, 1904.

Footnote 53:

From an address by Mr. Suerō Katō, of the Department of Agriculture

and Commerce, who had studied the agriculture of Korea on the ground

three times in succession.—_Ibid._, May 27, 1904.

Footnote 54:

Calculated from the data given in the _Kokumin_ for January 8, 1904.

The official census of Korea for 1902 gives a population of 5,782,806,

but assuming that there live 145 people per square mile, which is one

half the density of the population in China, the Korean population

cannot be much below 12,000,000. The official record of the land under

cultivation is also untrustworthy for institutional reasons not

necessary to mention here.

Footnote 55:

The question of cultivating the waste land in Korea by Japanese

enterprise, however, has called forth a very delicate situation which

still awaits the most careful solution. The progress of this situation

will be a matter of great interest, but it is still too early to

discuss it. Cf. the _Korea Review_ for July and August, 1904, and

follow its subsequent numbers.

Footnote 56:

See the _Tsūshō Isan_ for August 3, 1903, and the _Kokumin_ for

January 7, 15, and 16, 1904.

Footnote 57:

The rent is of two kinds: either to be decided anew each year after

the harvest, or to deliver to the proprietor 50 per cent. of the crop.

It should always be remembered that a large majority of actual

cultivators are tenants, the proprietors being limited to a small

class of rich men, officers, and nobles. The daily wage of the laborer

on the farm averages 20 _sen_, but it is usually paid in kind, as are

debts and repayments in many cases. The standard of life of the Korean

farmer is perhaps lower than that of the Japanese, but apparently not

less comfortable. The national land tax is said to be mild and largely

discarded, but the house tax, special tax, local tax, and the like,

bring up the dues of the farmer sometimes to an unendurable extent.

The tenant, after paying his rent and other charges, is obliged to

sell what little rice is left to him at the earliest opportunity, so

that he henceforth becomes a buyer of rice, and consequently has

little to buy other articles with, and still less to save, until his

spring harvest of wheat comes in. Woe betide him when both the rice

and the wheat crops fail! See the _Kokumin_, January 13 and 14, 1904,

and the _Tsūshō Isan_ for August 3, 1903, p. 21.

Footnote 58:

An address by Mr. G. Hirose, a competent eye-witness, in the

_Dōbun-kwai Hōkoku_, No. 48, November, 1903, pp. 15 ff. Official

census, however, gives only 2806 Japanese in Manchuria (December 30,

1903). See the _Tsūshō Isan_ for April 13, 1904, pp. 33–38.

Footnote 59:

Mr. Hirose, already mentioned, refers to a Japanese capitalist who

started a lumber business in Kirin Province and another who discovered

coal deposits near Harbin and began to mine them, both of whom, in

spite of the permits they had received from the Chinese authorities by

regular process, were driven away arbitrarily under threats of the

Russian military. The _Dōbun-kwai_, No. 48, pp. 21–22.

Footnote 60:

The so-called Manchus, the original inhabitants of Manchuria, have

migrated to China proper, which they conquered during the seventeenth

century. The present inhabitants of Manchuria are immigrant Chinese,

whose greater economic capacity has been rapidly developing this

immensely rich territory.

Footnote 61:

An official report of the Province of Amur, dated June 22, 1903,

denies that the actual cost of construction per verst was, as had been

alleged, 150,000 rubles, but 113,183 rubles. The _Tsūshō Isan_ for

August 8, 1903, p. 46. A ruble is equivalent to about 51.5 cents.

In this connection, it is interesting to note in M. Witte’s report to

the Czar after the former’s tour in the Far East in 1902, that the

Siberian Railway had cost 758,955,907 rubles, but, with the

Circum-Baikal section, would cost not less than 1,000,000,000 rubles,

excluding the salaries of officers, expenses for soldiers, the Pacific

fleet, harbor work, and the like. The _Dōbun-kwai Hōkoku_, No. 42, p.

30.

Footnote 62:

According to the “Past and Present of the Siberian Railway,” compiled

in 1903 by the government committee in charge of the railway, as

quoted in the _Dōbun-kwai Hōkoku_, No. 51, pp. 58–60.

Footnote 63:

M. Witte’s report of September, 1901, quoted in the _Kokumin_ for

October 1, 1904.

Footnote 64:

Consul Miller at Niu-chwang, in the U. S. daily _Consular Reports_,

February 15, 1904 (No. 1877), p. 8.

Footnote 65:

The _Tsūshō Isan_, November 25, 1903, pp. 16–18.

Footnote 66:

The U. S. daily _Consular Reports_, July 30, 1903.

Footnote 67:

See the _Shiberiya oyobi Manshū_ (“Siberia and Manchuria”) Tokio,

1904, compiled by T. Kawakami, special agent of the Foreign Office of

Japan, who was sent to Siberia and Northern Manchuria to investigate

economic and military conditions there, pp. 94, 119–121, 124, 138.

Footnote 68:

For the relative advantages of the Manchurian Railway and the Amur

River, see the U. S. daily _Consular Reports_, August 5 and October 5,

1903, and January 19, 1904.

Footnote 69:

The Russia-China trade began more than 250 years ago. Before 1860, it

was carried wholly on land, and its balance was nearly even. Since

1860, when sea trade from Odessa was opened, the progress of this

trade has been slower than the general foreign trade of China, and its

balance has been heavily against Russia (6,702,000 against 45,945,000

rubles in 1900). More than half of the Russian imports into China

consists of cotton fabrics, and over 80 per cent. of the exports from

China to Russia are teas. Russia’s share in the entire foreign trade

of China has also fallen from 4.6 per cent. in 1899 to 4.4 per cent.

in 1900, 2.6 per cent. in 1901, and 2.3 per cent. in 1902, as compared

with the growing share of the trade by Japan amounting to 14.2 per

cent., 15.9 per cent., 15.7 per cent., and 18.4 per cent., in those

respective years. Of the Russian share of 2.6 per cent. in 1901,

Russian Manchuria occupied only 0.6 per cent. See the _Tsūshō Isan_,

July 8, 1903, pp. 1–4; T. Yoshida’s _Shina Bōyeki Jijō_ (Trade

Conditions in China), Tokio, 1902, pp. 128–129, etc. For the gold

values of the figures up to 1903, see the British _D. and C. Reports_,

annual series, No. 3280.

Footnote 70:

From Russian official figures quoted in the _Tsūshō Isan_, November

25, 1903.

Footnote 71:

The reader is recommended to the reports of the United States Consul

Miller at Niu-chwang, particularly those which appeared in the daily

_Consular Reports_ for January 21 and 24, and February 5, 1904 (Nos.

1856, 1858, and 1869). Reference should also be made to the ex-British

Consul at Niu-chwang, Alexander Hosie’s _Manchuria_, London, 1901 (new

edition, New York, 1904).

The resources of Eastern Manchuria are well described in the _Tsūshō

Isan_, October 13, 1903, and those of Northern Manchuria in the

_Shiberiya oyobi Manshū_, Tokio, 1904, compiled by the Foreign Office

of Japan, pp. 427–485.

Footnote 72:

The present population of Manchuria is differently estimated between

the limits of 6.5 and 15 millions. Probably there are more than 10

millions. Immigration was said to have been progressing rapidly under

the Chinese rule.

It is noteworthy that Siberia, with a larger area than Manchuria,

contains only about 8,000,000 inhabitants. The productive capacity of

the Manchurian population must be measured, however, not only by their

larger numbers, but also by their far superior economic training.

Footnote 73:

The _Tsūshō Isan_ for June 23, 1903, pp. 34–35. Pood = 36.112 lbs.;

ruble = 51.5 cents.

Footnote 74:

Under this and other differential measures the commercial importance

of Vladivostok is said to be fast passing away. Local merchants made a

strong plea of their case before M. Witte when he traveled in the East

in 1902, but on his return he reported to the Czar that the interests

of the Empire demanded a large sacrifice at Vladivostok for the sake

of Dalny.

Footnote 75:

The effect of the new duties levied on tea at other places than Dalny

is seen in the following comparative table. The figures for 1902 are

taken from the U. S. _Monthly Summary_ for January, 1904, p. 2420, and

those for 1903 have been converted from data given in the British _D.

and C. Reports_, Annual Series No. 3280.

In 1902, the Russian Empire took 882,893 out of the 1,519,211 _piculs_

of tea exported from China, while in 1903 the corresponding amounts

were 1,010,580 out of 1,677,530. The distribution of the imported teas

to the Russian Empire, according to the routes, was as follows:—

1902 1903

_Via_ Odessa and Batum 206,699 _piculs_ 200,391 _piculs_

_Via_ Kiakhta 403,648 244,668

To Russian Manchuria 272,546 191,679

To Port Arthur and Dalny 373,842

We presume that most of the teas exported to Russian Manchuria went

through Niu-chwang. The table plainly shows an increased importation

at Dalny at the expense of all other points. It is not known how much

of the 373,842 _piculs_ imported at Dalny and Port Arthur was

reshipped to other ports not mentioned here. (_Picul_ = 133⅓ lbs. av.)

Footnote 76:

See the _Tsūshō Isan_, April 18 and August 3, 1903, and the U. S.

daily _Consular Reports_, January 21, 1904 (No. 1856). Reduction

apparently had not reached its minimum point. It was unknown whether

Dalny handled much of the Manchurian export trade.

Footnote 77:

The _Kokumin_, March 7, 1903. The ex-Japanese Consul at Niu-chwang,

Mr. K. Tanabe, doubts that Dalny will completely displace Niu-chwang

as an exporting centre. The latter is geographically the nature outlet

for the grain from the Liao Valley, and, in winter, the handling of

this product is apt to be done more at Mukden than at Dalny, the

latter becoming in that case a mere port of transit. Moreover,

mercantile customs differ so much at Niu-chwang and Dalny that it is

not possible that the conservative Chinese merchants should readily

transfer their business from the one place to the other. See Tanabe’s

conversation in the _Tōyō Keizai Zasshi_ (“Oriental Economist”), No.

244 (September 25, 1902), p. 16.

Footnote 78:

The central distributing station at Vladivostok has a capacity of

600,000 poods, and the one to be built at Dalny will hold 1,500,000

poods, to which a special tank steamer will bring oil from Batum.—The

_Tsūshō Isan_, May 3, 1903. Americans tried to build warehouses at

Dalny, but were opposed by Russians. The importation of American

kerosenes at Niu-chwang decreased from 3,172,000 gallons ($410,500) in

1901 to 603,000 gallons ($77,000) in 1902, and the decrease was in no

small measure due to the Russian competition at Dalny.

Footnote 79:

The _Tsūshō Isan_, October 23, 1903, pp. 1–21; the U. S. daily

_Consular Reports_, May 7, July 16, and August 28, 1903, and February

23, 1904.

Footnote 80:

See Mr. Miller’s reports in the U. S. daily _Consular Reports_ for

January 21 and 24, and February 5 and 6, 1904 (Nos. 1856 1858, 1859,

and 1870).

Mr. James J. Hill, in a recent speech at Minneapolis, said that his

great system of transportation, by taking advantage of all conditions,

and by carrying full loads both ways, had been able to make a freight

rate of forty cents a hundred pounds of flour to the Orient, or one

mill per ton-mile. According to him, the effect of the growing

exportation of wheat from the Pacific coast to the East seems to have

caused an advance in its price at Minneapolis of five to seven cents

per bushel. In view of these facts, the possible exclusion of American

flour from Manchuria would not be without serious effects, especially

if we consider Mr. Hill’s opinion that the success of Mr.

Chamberlain’s financial scheme would result in enabling Manitoba to

supply all the wheat needed in Great Britain, thus leaving in the

United States a large surplus of grain, for which other markets would

have to be developed. See the American _Review of Reviews_ for

February, 1904.

Footnote 81:

The U. S. daily _Consular Reports_, February 15, 1904 (No. 877), p.

11.

Footnote 82:

The U. S. daily _Consular Reports_, January 19, 1904 (No. 1854). Also

see _ibid._, April 4, 1903.

Footnote 83:

British Consul Hosie’s report, the _British Parliamentary Papers_

(“Blue Books”), _China, No. 1 (1900)_, p. 154.

Footnote 84:

See U. S. daily _Consular Reports_, February 15, 1904 (No. 1877), and

the _Tsūshō Isan_, October 8, 1903, pp. 42–43.

Footnote 85:

The _North American Review_ for May, 1904, pp. 683–684.

Footnote 86:

For the laborious process of obtaining permits to carry on business

only for short terms in these great sites for future cities, see the

_Tsūshō Isan_, September 18 (pp. 40–41) and November 23 (pp. 39–40),

1903.

At Dalny, however, Russia has welcomed the coöperation of all

nationalities in its development, and has been rather disappointed at

their comparative indifference. See Mr. F. Nakasawa’s conversation in

the _Tōyō Keizai Zasshi_ (“Oriental Economist”), No. 262 (March 15,

1903), p. 13. The reasons for this modification at Dalny of the

customary Russian policy are plain, for the port must be developed as

rapidly as possible before the Russians can absolutely control its

trade. Thus the importance of Dalny as a trading port brings to

conspicuous prominence the universal contradiction of the Russian

commercial policy in East Asia. Russia would exclude other trading

nations from her possessions in order to control the trade, but is at

the same time unable to develop it without either the coöperation of

other people or some unnatural devices.

Footnote 87:

See pp. 313 ff., below.

Footnote 88:

On March 27, 1904, Russia declared that Niu-chwang was under her

martial law. This eventuality had been fully expected by Japan. The

gravity of the situation, however, may be understood, when we remember

that the Russian law of neutrality considers food as among contraband

goods, so that the supply of millet, beans, and bean-cakes from

Manchuria to Japan was henceforth completely closed, until the

Russians evacuated Niu-chwang in July.

Footnote 89:

These concessions were acquired by the Russians in 1896 when the

Korean King was still living in the Russian Legation in Seul. About

May, 1903, after more than seven years’ inactivity, the Russians began

to cut timber on a large scale along the Yalu River, and subsequently

made extensive improvements at Yongampu at the mouth of the river. The

political features of this event do not concern us here. See pp. 263,

289 ff., 318 ff., below.

Footnote 90:

Kaiserling is a successor to the two other Russians who, one after the

other, had been engaged in the whale fishery on the Japan Sea for a

long period of time. It was Kaiserling, however, who extended the

work, made an agreement with the Korean Government, and was turning

the business into an apparently successful enterprise. In 1901, his

two vessels caught about eighty whales, which number was in 1902

increased to 300.—The _Tsūshō Isan_, September 28, 1903, p. 34.

Footnote 91:

Mr. J. Sloat Fassett’s article in the American _Review of Reviews_,

for February, 1904, p. 174.

In the winter of 1902–3, ice at Dalny was six inches thick.—Mr. F.

Nakasawa in the _Tōyō Keizai Zasshi_ (“Oriental Economist”), No. 262

(March 15, 1903), p. 13.

Footnote 92:

It is well known that at several times in history kingdoms have been

built which extended over both sides of the present boundaries between

Korea and Manchuria.

Footnote 93:

It is noticeable that the Russian diplomatic historian already

referred to gives as a reason for the desirability of placing Korea

under Russian protection the need of safe-guarding the frontiers of

Russian territories adjacent to Korea.—The _Dōbun-kwai Hōkoku_, No.

49, p. 8.

Footnote 94:

The Bay of Masampo, generally so-called, which lies between the Island

of Koji and the Korean coast, is said to be deep and broad enough to

hold the largest fleet, sheltered from winds from all directions.

Several islands with sufficiently wide passages between them form a

splendid gate to the bay, while the western extremity of the latter

may be walked across, when the tide is low, from the Koji to the

coast.

As to the Masampo reach or inlet, specifically, which is the head of

the gulf, “its entrance, five cables wide, named the Gate, is

perfectly free from dangers, and is available for all classes of

vessels. On either side are treeless hills, bare in winter, but in

summer covered with grass; these hills, near the entrance, slope

steeply to the water’s edge. The general depth over the reach is seven

fathoms, but it shallows gradually as the town of Masampo is neared,

until at one mile from the town the depth is four fathoms....

Anchorage may be had anywhere in Masampo reach, according to draught;

a depth of three fathoms being found at half a mile from the town, and

six to seven fathoms at two miles below it.”—The _Sailing Directions

for Japan, Korea, and Adjacent Seas_, published by the British

Admiralty, London, 1904, pp. 114–115. Masampo is the best but not the

only good naval harbor on the southern coast of Korea.

Footnote 95:

In 1861, when some Russian marines landed here and took virtual

possession of the islands, Awa Katsu, who was then one of the officers

appointed by the Yedo government to study the possibility of

organizing military forces after the Western model, succeeded in

setting the British Minister against the Russian Minister about the

Tsushima affair. Russia was obliged to abandon the islands. See the

_Katsu Kaishū_ (a life of Katsu), Tokio, 1899, iii. pp. 57–59.

Footnote 96:

It is interesting to hear that Russian school text-books enumerate

Korea and Manchuria among the Russian spheres of influence.—A letter

from Tōsuisei, dated St. Petersburg, February 13, 1900, in the

_Kokumin_, April 1, 1900.

Footnote 97:

It is remarkable how little the spirit of Japan’s policy, which the

writer has attempted to express in this sentence, is understood among

the people here. A vast majority of people, not excluding recognized

writers and speakers on the East, seem to ascribe to Japan certain

territorial designs, particularly in Korea. It is not remembered that

Japan was the first country to recognize the independence of Korea,

the cause of which also cost Japan a war with China. The present war

with Russia is waged largely on the same issue, for it is to Japan’s

vital interest to keep Korea independent. From this it hardly follows

that Japan should occupy Korea in order not to allow her to fall into

the hands of another Power. If Korea is really unable to stand on her

feet, the solution of the difficulty does not, in Japan’s view,

consist in possessing her, but in making her independence real by

developing her resources and reorganizing and strengthening her

national institutions. It is in this work that Japan’s assistance was

offered and accepted. It would be as difficult for any impartial

student not to see the need of such assistance as to confuse it with

annexation. It would, however, be entirely legitimate to regard the

task as extremely difficult and dangerously prone to abuse. Further,

see pp. 366 ff., below.

Footnote 98:

Russian exports for 1900–2 are classified as follows (1000 rubles as

unit):—

Food-stuffs Raw material Animals Manufactures Total

1900 381,174 269,806 17,902 19,553 688,435

1901 430,955 256,697 20,224 21,939 729,815

1902 526,189 258,267 21,558 19,263 825,277

It is seen that the exportation of food-stuffs was the largest in

value and increasing, while that of manufactured articles was the

smallest (2.5 per cent.) and, to say the least, stationary. Imports

were as follows:—

Food-stuffs Raw material Animals Manufactures Total

1900 79,844 307,402 1,136 183,682 572,064

1901 84,349 288,107 1,495 158,993 532,944

1902 81,409 295,483 1,403 148,800 527,095

The importation of manufactures decreased, but also that of raw

material did not increase, while, as shown above, the exportation of

manufactures was slight and stationary. Figures have been taken from

the _Tsūshō Isan_ for November 25, 1903, which drew them from Russian

official sources.

It is interesting to note the unfavorable conditions of the foreign

trade of Russia’s ally, France, in U. S. Consul Atwell’s report in the

daily _Consular Reports_ for February 24, 1904 (No. 1884), who quotes

from Georges Blondel.

Footnote 99:

See the Supplementary Note to this chapter on pages 61–64.

Footnote 100:

Documents of that time clearly indicate that the discovery of gold in

California and the westward expansion of the American nation, as well

as the growing prospects of the China trade and the increasing

application of steam in navigation, were the motives which prompted

the United States Government to open negotiations with Japan in 1853.

Footnote 101:

To-day there seem to be about 84,500 public schools in Russia, of

which 40,000 are under the jurisdiction of the Ministry of Education

[compared with 30,157 public and private schools in Japan in 1902].

Toward the maintenance of the 40,000 schools, the ministry

appropriates only about $2,000,000, or a little over one eighth of the

annual cost. The teachers number 172,000 [in Japan, 126,703, in 1902],

and pupils and students, 4,568,763 [in Japan in 1902, 5,469,419].

7,250,000 children of school age are without any education [while in

Japan, in 1902, the ratio of attendance to the number of children of

school age was 95.80 per cent. for boys and 87.00 per cent. for girls,

or, on the average, 91.57 per cent.]. See the U. S. daily _Consular

Reports_ for February 8 and March 4, 1902 (Nos. 1871 and 1892), [and

the _Kwampō_, April 8, 1904].

Footnote 102:

As an evidence for this striking state of things the reader is

referred to Dr. E. J. Dillon’s article in the American _Review of

Reviews_ for October, 1904, pp. 449–454. The whole subject should be

more carefully studied than it seems to have been thus far.

Footnote 103:

“The whole northern part of _Asia Minor_, according to the treaty

between Russia and Turkey, is now placed under such conditions that

Russian capitalists have the area open to them, to the exclusion of

foreign enterprise. A situation analogous is found in _Persia_, where

the entire northern portion is acknowledged to be under the exclusive

economic influence of Russia.”—Consul Greener at Vladivostok, in the

U. S. daily _Consular Reports_, April 22, 1903 (No. 1627).

Footnote 104:

For example, the normal freight per ton from Russia to Eastern Siberia

would be about twenty-one rubles, while that from Japan or Shanghai is

three or four rubles. If Russian goods were sold to the artificial

exclusion of articles exported from nearer countries, the consumer’s

burden would be greatly increased.

Footnote 105:

Count Cassini, the present Russian Ambassador at Washington, wrote, in

the _North American Review_ for May, 1904: “... But let us suppose for

argument’s sake that Russia, triumphant in this war, finds herself

dominant in Manchuria. Japan, her enemy, could look for no favors; she

could not expect to find encouragement for the importation of her

manufactures” (p. 688).

Footnote 106:

Continuing, the Count stated: “But Manchuria would require many things

that Russia could not supply, or supply at figures reasonable enough

to create a market. In Russia, agriculture is, comparatively speaking,

more important than manufacturing, and those goods which are made in

my country are not such as Manchuria would need. Russia, too, would be

obliged to use the railway with its high freight tariffs....”—_Ibid._

Footnote 107:

One can seldom find a more outspoken confession of a diplomacy

consisting of a series of deliberate falsehoods than the chapters on

the Russian relations with China, Korea, and Japan, in a diplomatic

history by a Russian writer, as translated in the _Dōbun-kwai Hōkoku_,

Nos. 45, 46, 48, 49, and 50 (August, September, November, and

December, 1903, and January, 1904).

Footnote 108:

The Russian diplomatic historian to whom frequent reference has been

made frankly says that the feebleness and internal disorder of China

are welcome conditions for the expansion of Russian influence in the

Far East, and that it would be the height of folly to displace the

weak China with a colonial possession of a European power.—The

_Dōbun-kwai Hōkoku_, No. 48, p. 36.

Footnote 109:

See p. 55, note 1, above.

Footnote 110:

The _Shiberiya oyobi Manshū_, pp. 221–223.

Footnote 111:

The _Shiberiya oyobi Manshū_, pp. 223–225, 490–495.

Footnote 112:

The _Tsūshō Isan_, July 8, 1903, p. 4.

Footnote 113:

The New York _Evening Post_, January 20, 1903.

Footnote 114:

The U. S. daily _Consular Reports_, April 22, 1903 (No. 1627).

Footnote 115:

The U. S. daily _Consular Reports_, February 24, 1904 (No. 1884).

Footnote 116:

The _North American Review_, May, 1904, p. 688.

CHAPTER I

RETROCESSION OF THE LIAO-TUNG PENINSULA

The way in which the momentous _issues_ already discussed in the

introductory chapter have been at work and have steadily culminated in

the present conflict is with unusual clearness and in the most

instructive manner illustrated by the _historic events_ which led up to

the outbreak of the war. The study of these events also appears

essential for an intelligent understanding of the situation, for, in

this crisis, as in many another in history, the contestants do not seem

to be always conscious of even the more important issues at stake, while

the events, in their main outlines, are patent to every one. The former

may be found only by an analysis of facts, some of which are obscure,

but the latter are narrated dramatically, from time to time as they

occur or are published, in the press and in the diplomatic

correspondence, so that it is little wonder that the events are often

taken for the causes, even the significance, of the supreme fact to

which they seem to point. The student should investigate the issues if

he would know the meaning of the war, but, if he wishes to see something

of the conscious attitude which the belligerents take toward the

situation, perhaps no more profitable way can be found than in a study

of the events through which the issues have been writing history.

The conflict of Russia and Japan was foreshadowed already in the middle

of the past century, when the former began to claim some of the Kurile

Islands and the whole of Sakhalien, upon parts of which Japan had long

exercised vague sovereign rights.[117] Presently, in 1858, Muravieff

“Amurski” succeeded in creating a common proprietary right with China

over the vast territory lying between the Ussuri River and the sea.[118]

The same territory was, only two years later, definitively annexed[119]

to Russia through the skillful diplomacy of Ignatieff, Russian Minister

at Peking, who, taking advantage of China’s defeat at the hands of the

allied forces of England and France, had won the favor of the Chinese

Government by acting as mediator between it and the allies. The Eastern

naval headquarters of Russia, which had been transferred from

Peterpavlofsk in Kamchatka to Nicolaiefsk at the mouth of the Amur, was

now again moved further south to Vladivostok, founded in 1860, at the

southern end of the new territory. No sooner did the remote but certain

pressure from the expanding northern Power begin to be felt in Japan

than, in 1861, a Russian man-of-war took possession of the Japanese

islands of Tsushima in the Korean straits, from which it withdrew only

at the instance of the British Minister, Sir Rutherford Alcock.[120]

Half a dozen years after, the island of Sakhalien was placed under a

common possession between Russia and Japan, while, in 1875, the island

was surrendered to Russia, Japan receiving in return the chain of

sterile Chishima Islands (the Kuriles).[121] This brought the presence

of Russia still nearer home to Japan than before. On the other hand,

Russia seemed to have only begun her ambitious career in Eastern Asia,

for she could hardly be expected to be forever satisfied with her naval

headquarters at Vladivostok, a station which, situated as it was at the

southern extremity of her Oriental dominion, was so completely ice-bound

during a large part of each year that her fleet was obliged to winter in

Japanese harbors.

Then followed a comparatively long period of inactivity on the part of

Russia. When, however, in 1891, she finally resolved to build the

trans-Siberian Railway, the inadequacy of Vladivostok, not only as the

Pacific naval harbor of the Russian Empire, but also as the terminus of

the great railroad, became evident. To Russia a southern expansion

toward an ice-free outlet seemed now a necessity. For the realization of

this desire, an opportunity presented itself in a striking form, in

1895, at the end of the Chinese-Japanese war.

In order to obtain a clear understanding of this situation, it is

necessary to return to the outbreak of hostilities and thence trace the

evolution of Chinese diplomacy up to their close. At the unexpected

dispatch of large forces by Japan to Korea, in June, 1894, the Chinese

Government appealed to some foreign Ministers at Peking to bring

pressure to bear upon Japan to withdraw her troops from the Peninsula.

The Russian Minister is said to have observed that Russia would not be

prepared to organize an armed coercion until Japan endeavored to

exercise actual control over the Korean Kingdom, but might undertake to

tender friendly advice to Japan to withdraw. England was reluctant, but

as an appeal was again made to the Powers, she took the lead in

persuading others to join in a concert to stay Japan’s hand in Korea.

The plan was, however, frustrated by the emphatic refusal of Germany to

consider it. An ineffectual counsel was then made to Japan by a few of

the Powers individually, not to embark upon a war against China.[122] A

war, nevertheless, ensued, with a rare success on the part of Japan.

During the course of hostilities, China seems to have more than

once[123] avowed her impotence and requested the Powers to intervene,

until her repeated reverses on land and the well-nigh complete

annihilation of her northern squadron brought her to such straits that

the friendly Powers could no longer remain inactive. Japan also

intimated her willingness to negotiate for peace. After the envoys whom

China had sent with insufficient powers had been twice refused by Japan,

Li Hung-chang, later to be joined by his son-in-law, Li Ching-fang,

arrived with plenary powers at Shimonoseki, on March 19, 1895, where he

was received by the Japanese Plenipotentiaries, Count Itō, Premier, and

Viscount Mutsu, Foreign Minister. It appears, however, that China had

already signified to certain Powers her suspicion that Japan desired the

cession of a territory on the Chinese mainland. Before, therefore, Li

Hung-chang left the Chinese shores, the German Minister at Tokio was

instructed by his government to warn the Japanese Foreign Office that

certain Powers had been contemplating assent to China’s appeal to

interfere, and that the demand for a cession of territory on the

continent would be particularly calculated to provoke such an

intervention.[124]

It was under these circumstances that negotiations were opened between

the Chinese and Japanese Plenipotentiaries on March 20. It is

unnecessary here to recount the story of an abortive attempt made on

Li’s life by a fanatic, and of the consequent armistice for twenty days.

At Li’s recovery, the Japanese terms for peace were proposed on April 1,

which with amendments became the basis of the final Treaty[125] signed

at Shimonoseki on April 17. It provided, among other things, for the

absolute independence of Korea, the cession to Japan of the Liao-tung

Peninsula, Formosa, and the Pescadores, and an indemnity of two hundred

million _taels_. Of the ceded territories, the Liao-tung being situated,

as it were, in a position to hold a key at once to Peking, Manchuria,

and Korea, its cession to Japan was probably calculated, from the

latter’s point of view, first, to render any renewed attempt of China to

dominate Korea impossible, and, secondly, to establish an effective

barrier against the southern expansion of Russia.[126]

Naturally, the progress of the peace negotiations had been watched with

keen interest by the European Powers. Particularly alert was Russia,

whose press deprecated so early as March 31 the alleged intention of

Japan to secure territory on the mainland, and which, as soon as Li

Hung-chang communicated to her early in April the terms proposed by

Japan and appealed to her to interfere, discerned in those terms a great

turning-point of her own career in the East. She must at once have

realized the grave danger to the entire future of her Eastern policy

from Japan’s occupation of the Liao-tung Peninsula, as well as the

immense advantages which her own possession of the same territory would

confer upon herself. Nor did the Korean independence, which the new

treaty secured, fail to be interpreted by the Russian press as an

exclusive protectorate to be exercised by Japan over the Kingdom.

“Russia,” wrote the _Novoe Vremya_ about April 20, “cannot permit the

protectorate over Korea which Japan has secured for herself by the

conditions of the treaty. If the single port of Port Arthur remain in

possession of Japan, Russia will severely suffer in the material

interest and in the prestige of a Great Power.”[127] It was just the

time to intervene. China had shown herself impotent, and had appealed

for intervention, and Japan was an exhausted victor. By one clever

stroke Russia might coerce the latter and ingratiate herself with the

former. She would, however, perhaps have thought twice before she acted,

had it not been for the active assistance rendered to her by France and

Germany. At a council, it is said, Russian naval and military

authorities concluded that Russia alone could not successfully combat

Japan, which, however, might be coerced if Russia coöperated with

France. An active communication of views now ensued between the Foreign

Offices of St. Petersburg, Berlin, Paris, and London. The diplomatic

correspondence of the day is still withheld from the public view, but it

is well-known that France readily acceded to the Russian desire for a

joint intervention, and Germany suddenly changed her former attitude

toward Japan and allied herself with the two intervening Powers; while

Great Britain, which had more than once acted in favor of China, altered

her course to the opposite direction by declining to admit that Japan’s

terms of peace were prejudicial to her own interests. The reasons avowed

by Germany and France for their assistance to Russia would seem to be

rather unconvincing, unless one takes for granted the existence of

certain unexpressed motives for the act. Germany claimed to have found

in the terms of peace a future menace to the political and economical

interests of Europe, for those terms “would constitute a political

preponderance of Japan over China,” to use the language of “an evidently

inspired article” of the _Cologne Gazette_, “and would exercise a

determining influence on the development of China’s economic condition,

and of the sway of Japan in that country. From this it is concluded that

Japan is endeavoring to post herself as a sentry, as it were, before all

the chief important routes of China. As Japan commands, by Port Arthur

and Wei-hai-Wei, the approach to the Yellow Sea, and, by Formosa and the

Pescadores, the chief commercial route to China, it is taken to be

desirous of encircling her with a firm girdle, in order, if necessary,

to seclude her completely from the world. The European Powers,

therefore, wish to ward off in time any steps prejudicial to their

interests.”[128] Nor did the reasons brought forward by France seem to

be more germane to her own interests than those of Germany were to hers.

The _Débats_ wrote, on April 31, that all the clauses on the occupation

of continental territory were impossible for Europe to recognize.

Moreover, Port Arthur, with a strip of territory round it in the hands

of the Japanese, would be a menace for the independence of Korea, as

much as for the security of Peking. The _Temps_ also said that Japan’s

predominance over China, which would be the ultimate result of the

arrangement, was “a constant menace for the interests of Europe. It was

a serious blow dealt at the rights of the immediate adjacent Powers....

A European concert was now a duty toward civilization.” Perhaps it is

safe to say that, so far as France was concerned, her desire to oblige

her political ally was a more real ground for her coöperation with the

latter than any other presented in her press. As for Germany, her

Foreign Minister then remarked, it is said, that Japan had never

requited the favors Germany had done her during the war, but had, on the

contrary, deliberately concluded with China a treaty containing

provisions not only excessively favorable to Japan, but also prejudicial

to the political and economic interests of Europe. This remark, again,

hardly explains the suddenly changed attitude of Germany. Perhaps it is

well to surmise that there existed deeper and more complex diplomatic

reasons, upon which it would be idle here to speculate. The declination

of Great Britain to join in the concert may more easily be accounted

for. China, which she had at first favored, had not only been inclining

toward Russia, but had shown herself by her incompetency less worthy of

trust than the ambitious Japan. The latter had also secured in the

treaty certain commercial and industrial privileges in South China which

would be even more advantageous to Great Britain than to Japan, while,

on the other hand, the former had little reason to suppose that Japan’s

retention of the Liao-tung was designed to imperil China and Korea. On

the contrary, the presence of Japan at the strategic position on the

mainland might prove an effective check upon Russia, whose cause Great

Britain was the least inclined to advocate. She therefore stood aloof

from the joint intervention, and her conduct provoked a bitter

resentment in the Russian and French press.[129]

The plan of intervention seems to have matured between Russia, France,

and Germany by April 20, and, on April 23, their representatives at

Tokio separately presented brief notes at the Foreign Office. These

notes, accompanied as they were by the verbal profession of each of the

Governments, particularly the German, of its friendly motive in the act,

intimated that Japan’s retention of the territory was considered by them

as not only imperiling the Chinese Capital, but also making the Korean

independence illusory, and, consequently, prejudicial to the permanent

peace of the Far East.[130] The treaty of Shimonoseki had been signed on

April 17, and the exchange of its ratifications fixed for May 8. The

Japanese Government had to answer the three Powers within the fifteen

days between April 23 and May 8, for, whatever its decision regarding

the Liao-tung, it would be unwise to postpone the ratification of the

treaty with China.[131] In the mean time, the Eastern fleets of the

three Powers were augmented and concentrated, and made ready, if need

be, for an immediate and concerted action, Russia going even so far as

to prepare the army contingents in the Amur region for quick

mobilization. Unknown as it was how thoroughly the Powers were

determined, in case Japan should refuse to consider their counsel, to

appeal to force of arms, none the less real was their idea of coercion,

as well as the exhaustion of Japan’s resources. On the other hand, the

common interests of Japan, Great Britain, and the United States had not

developed to such an extent as to justify their united resistance

against the intervening Powers. Japan seems to have complied with the

Powers’ wishes so far as to agree to retrocede the Liao-tung save the

small peninsula of Kin-chow containing Port Arthur, but the Powers

declined for evident reasons to accede to the proposed compromise. The

British Foreign Minister also urged Japan to make to the

susceptibilities of Europe all concessions compatible with her dignity

and her permanent interests.[132] The Japanese Government, after holding

repeated conference before the Throne and with military councilors,[133]

definitely resolved, on May 4, to relinquish, for an additional monetary

consideration from China,[134] all of the Liao-tung. Evidently time was

too limited and the occasion too inopportune for Japan successfully to

induce China to pledge not to alienate in the future any part of the

retroceded territory to another Power. On May 10, the entire nation of

Japan beheld with deep emotions the simultaneous publication of the

treaty of Shimonoseki, which had been ratified in its original form, and

of a special Imperial decree countersigned by all the Ministers of the

Cabinet, announcing that a desire to insure a permanent repose of the

Orient had compelled Japan to go to war, and that the same desire had

now prompted the three Powers to tender to Japan their present friendly

counsel, which the Emperor, for the sake of peace, had accepted.[135]

The historical significance of this memorable incident deserves special

emphasis. It is not too much to say that with it Eastern Asiatic history

radically changed its character, for it marks the beginning of a new

era, in which the struggle is waged no longer among the Oriental nations

themselves, but between sets of interests and principles which

characterize human progress at its present stage, and which are

represented by the greatest Powers of the world. China’s position as a

dominant exclusive force was no sooner overthrown in Korea than it was

replaced by that of another power of a like policy and with aggressive

tendencies. Moreover, the area opened to the advance of Russia covered

not only Korea, but also Northern China and beyond, and the new

aggressor was the very power which had thirty years before created a

restless feeling among the Japanese, by extending toward them through

Primorsk and Sakhalien its already enormous contiguous dominion. The

influence of Russia was now brought face to face with that of Japan,

each with a promise to extend against, and perhaps to clash with, the

other. With the movement of Russia there traveled from Europe to East

Asia her sympathetic relations with France, while against this practical

alliance stood the increasing common interests and sympathies of Japan,

Great Britain, and the United States; Germany remaining as a free lance

between the two groups of Powers. This remarkable accession, in both

area and agents, of the new activity in the East was heralded in, to all

appearance, not gradually, but with a sudden sweep. And gravely ominous

was its opening scene, representing at once a pretended good-will toward

a feeble empire and an armed coercion of a proud nation whom coercion

would only stimulate to greater ambition.

It now remains for us to interpret the effects wrought upon Japan by the

intervention of the three Powers, for the sentiment of the nation seems

to be so universally and persistently misunderstood as to have caused

even some of the natives to misconstrue their own feelings. It is

generally supposed that the conduct of the Powers in depriving Japan of

her prize of victory excited in her breast a deep feeling of revenge,

but this view seems to evince too slight an understanding of the

characteristics of the nation. Also, the prevailing sense of pity

manifested by friendly foreigners toward Japan for her alleged

misfortune appears entirely misplaced, for, on the contrary, she has

derived an inestimable benefit from the experience. Let us explain. The

most obvious lesson drawn by the best minds of Japan, and unconsciously

but deeply shared by the entire nation, was neither that the Powers were

acting upon a principle altogether different from their professed

motive, for that was too plain to every one; nor that she must some day

humiliate the very Powers which had brought coercion upon her, because

it was well known that their self-interest had demanded it, as hers

would, were she in their place. Japan suddenly awoke to an absorbing

desire which left little room for the question of national revenge. It

became to her as clear as daylight that the new position she had

acquired in the Orient by her victory over China could be maintained,

and even her independence must be guarded, only by an armament powerful

enough to give her a voice among the first Powers of the world. If she

would not retire into herself, and finally cease to exist, she must

compete with the greatest nations, not only in the arts of peace,[136]

but also in those of war. Moreover, a far vaster conflict than she had

ever known in her history, excepting the Mongol invasion of the

thirteenth century, was seen to be awaiting her. It is perhaps

characteristic of modern Japan that she scarcely has time to breathe.

The only course to save her seemed to be, now as at any other recent

crisis of her life, to go forward and become equal to the new, expanding

situation. As soon as her supremacy in the East was assured, Japan thus

found herself confronted with a task hitherto almost unpremeditated, and

henceforth began an enormous extension of her military forces,[137] as

well as a redoubled activity in all other lines of national

progress.[138]

What is less obvious, but still more important, is—it is questionable if

there is in the entire range of Japan’s national life another point less

understood abroad but more essential for an insight into the present and

future of the Extreme Orient than this—the increased enthusiasm of Japan

in her ardent effort to strengthen her position in the world by basing

her international conduct upon the fairest and best-tried principles of

human progress. The effort is not free from occasional errors, but the

large issue grows ever clearer in Japan’s mind. A study of her past

would seem to convince one with overwhelming evidence that her historic

training has produced in Japan moral and material characteristics

eminently fit for the pursuit of such a policy. However that may be, the

subsequent evolution of her interests at home and abroad seems, by a

fortunate combination of circumstances, to have irrevocably committed

her to this course; for not only does a common policy along these lines

draw her and the Anglo-Saxon nations closer together, but it is therein

also that the vital promise of her future seems to lie.[139] And it may

be added, the consciousness of this powerful unity of moral and material

life seems to have infused a thrilling new force into that historic love

of country of the Japanese nation.[139] It is to the intervention of

1895 and the situation that ensued that Japan owes the hastening of all

these results.

-----

Footnote 117:

See the negotiations of 1852, 1859, and 1862, and the treaties of 1855

and 1867, between Russia and Japan, regarding the Kuriles and

Sakhalien. The _Tō-A Kwankei Tokushu Jōyaku Isan_ (a collection of

special treaties relating to Eastern Asia, compiled by the Tō-A

Dōbun-kivai, Tokio, 1904. Cloth, 4^o, xiv + xii + 812 + 70; hereafter

abbreviated as _Tokushu Jōyaku_), pp. 1–8. This work, which is in

Japanese and Chinese, is by far the most complete collection of the

treaties and conventions concluded between Japan, China, and Korea,

and other Powers. It also contains historical notes explaining the

origin and nature of many important agreements.

Footnote 118:

Treaty of Aigun, May 16, 1858, Article I.—_Ibid._, pp. 200–202

(Chinese); W. F. Mayers’s _Treaties between the Empire of China and

Foreign Powers_, 3d edition, Shanghai, 1901, p. 100 (French).

Footnote 119:

Treaty of Peking, November 14, 1860, Article I.—_Tokushu Jōyaku_, pp.

202–203 (Japanese); Mayers, p. 105 (French).

Footnote 120:

See p. 51, note 1, above.

Footnote 121:

See _Tokushu Jōyaku_, pp. 5–14. See a Russian view of these affairs in

the _Dōbun-kwai_, No. 50 (January, 1904), pp. 25–30. See also Z.

Nakamura, _Chishima Karafuto Shinryaku-shi_ (history of Russian

aggression in the Kuriles and Sakhalien), Tokio, 1904.

Footnote 122:

_Tokushu Jōyaku_, pp. 78–79, 719.

Footnote 123:

See, for instance, the London _Times_, November 7, 1894, p. 5.

Footnote 124:

_Tokushu Jōyaku_, pp. 79–80.

Footnote 125:

For the text of this treaty, see the _Treaties and Conventions between

the Empire of Japan and Other Powers_, compiled by the Foreign Office,

Tokio, 1899, pp. 377 ff.; Mayers, pp. 181–184; U. S. 54th Congress,

1st Session, _House Documents_, vol. i. pp. 200–203; etc.

Footnote 126:

_Tokushu Jōyaku_, pp. 43–45, 80.

Footnote 127:

The London _Times_, April 22, 1895, p. 5.

Footnote 128:

The London _Times_, April 22, 1895, p. 5.

Footnote 129:

_Tokushu Jōyaku_, pp. 81–82.

Footnote 130:

The German note, which was accompanied by a Romanized translation into

Japanese, is said to have contained a statement to the effect that

Japan was weak, Germany was powerful, and Japan would surely be

defeated in case she should go to war with Germany. This peculiar

sentence was, at the protest of the Japanese Foreign Office, expunged

from the note.—_Tokushu Jōyaku_, p. 86

Footnote 131:

To the last moment Russia, it is said, persisted in advising China to

postpone the ratification.

Footnote 132:

The London _Times_, May 3, 1895, p. 5; M. de Blowitz’s correspondence,

dated Paris, May 2.

Footnote 133:

The declaration made in November, 1903, by a person intimately

associated with Marquis Itō, who was the Premier during the war.—The

_Kokumin Shimbun_, November 10, 1903.

Footnote 134:

Germany is said to have undertaken, when her note was presented, to

guarantee a monetary consideration from China. By the treaty between

Japan and China, concluded on September 22, the sum was fixed at

30,000,000 _taels_.

Footnote 135:

_Tokushu Jōyaku_, pp. 81–87. As has been said, the diplomatic

correspondence of the day has not been published by any of the Powers

concerned. The information briefly given in the text has been culled

from, besides _Tokushu Jōyaku_, the leading articles of the _Tokio

Nichi-Nichi Shimbun_ (Tokio Daily News), a semi-official organ of the

Japanese Government at the time, as quoted in the _Nisshin Sen Shi_

(history of the Japan-China war, Tokio, 1894–5, 8 vols.), vol. viii.

pp. 141–171. These articles give a minute and careful account of the

diplomacy of the day, and may largely be relied upon as authentic.

Footnote 136:

It will be remembered that Japan had in 1894 revised her treaties with

the Powers, and thereby freed herself from the yoke of consular

jurisdiction and placed the foreign residents within her domain under

the jurisdiction of her own law, and also largely restored her tariff

autonomy.

Footnote 137:

The position which the military and naval expenditures have occupied

in the finance of the Japanese Government since the war of 1894–5 may

be gathered from the following table (unit, 1000 _yen_; _yen_ = 49.8

cents):—

Total revenue Total Army and navy Ratio of the

of the expenditures expenditures last two

Government of the

Government

1894–5[139] 98,170 78,128 20,662 26.4%

1895–6[139] 118,432 85,317 23,536 27.6%

1896–7[139] 187,019 168,856 73,248 43.4%

1897–8[139] 226,390 223,678 110,542 49.3%

1898–9[139] 220,054 219,757 112,427 51.1%

1899–1900[139] 254,254 254,165 114,212 44.9%

1900–1[140] 295,854 292,750 133,113 45.4%

1901–2[141] 274,359 266,856 102,360 38.3%

1902–3[141] 297,341 289,226 85,768 29.7%

1903–4[142] 251,681 244,752 71,368 31.7%

1904–5[143] 229,855 223,181 69,433 31.1%

Footnote 138:

To take only a few tangible instances, Japan’s national budget grew

more than three-fold during the ten years before 1903, her foreign

trade in 1903 was 263% as large as it was in 1894, her private

companies increased from less than 3000 in 1894 to 8600 in 1902, with

a corresponding growth of their authorized capital from less than 200

million to 1,226.7 million _yen_, and her population itself has

increased perhaps by 12%. A decisive development has also taken place

in both the internal politics and the international relations of

Japan.

Footnote 139:

An attempt has been universally made during the present war to explain

the apparent contempt of death of the Japanese soldier as due to his

low estimate of human life, or else to his fatalistic view of the

world. It may be seriously doubted whether these explanations are

tenable. At least it may be said that in no other case would the sons

of Japan so fearlessly and cheerfully face death. It is impossible to

discover in them a less fear of death than in other nations. Life is

dear, but it is sacrificed to a cause which is considered higher than

life. It was the primary lesson in the education of the _samurai_ to

choose death when it saved honor and when life was selfish. This view

of life has now been transferred from the narrow sphere of the

individual person or fief to the large field of the entire nation,

whose cause, it is believed, represents the best postulates of human

progress. It would, perhaps, be legitimate to criticise the incidental

abuse of this feeling, or to question whether the same loyalty might

not be transferred to a still higher region than the state, but the

subject must first be understood by the critic.

Footnote 140:

See our Introduction.

Footnote 141:

Actual account on October 31, 1903.

Footnote 142:

Settled accounts.

Footnote 143:

Estimates in the budget. All based on the Fourth Annual.

The Russo-Japanese Conflict: Its Causes and Issues · 第 1 / 20 章