In order to show the extent of the leather trade in Japan, the following table is given, taken from the customs returns for 1897, those for 1898 not yet being published:

Nearly all the boots and shoes imported come from the United States, and, as ascertained from recent customs returns, a very noteworthy increase took place during the first nine months of 1898, as compared with that period in 1897, both in the importation and exportation of boots and shoes, as may be seen by the following table: Imports and exports of boots and shoes.

Should the proportion hold good during the balance of 1898, as it probably will, the relative imports and exports will stand thus:

Shoemaking machinery has not yet been introduced into Japan. *Monthly returns for the period between January 1 and October 1 last (nine months) show importations of sole leather during that time to have exceeded in value the total importation during the whole of the preceding year by more than $10,000, which makes it probable that the total imports of sole leather into Japan during 1898 will

exceed the year 1897 by at least $100,000, the greatest increase coming from the United States.

7,660

During 1897, Japan exported to other eastern countries 277,0 pounds of various leathers, valued at $94,472. Leather is used here also in manufacturing hand satchels, for furniture coverings, and for machine belting, the latter being made in Osaka and Tokyo from the best stock imported.

Japanese leathers of all kinds are cheaper than those imported, and the quality is correspondingly poorer.

As may be seen by foregoing table, rawhides more than double the quantity of those tanned are sent to the country. These come principally from China and Korea, and are buffalo and cow skins. They are used largely as soles for the straw sandals ("sekida”) so universally worn in this country. Rawhides are also made into harness and are used in many other ways as we use tanned leather.

TANNERIES.

There are but two tanneries of any magnitude in operation throughout Japan-one located in Osaka and the other in Tokyoand they are chiefly occupied in supplying the leather wants of the army and navy.

A large tanning establishment is located near Kobé. It was formerly under European management, but, after several unsuccessful attempts to operate it, it has been closed. There are, however, many small "home tanneries" in this country, and they are operated exclusively by the "Etas," a class of persons whose occupation is looked upon as unclean. The beggars "Kojiki" constitute the lowest class in Japan, and next above them are the "Eta," who monopolize the occupation of killing animals for food, the tanning and dressing of leather, grave digging, and similar work. The "Etas" are popularly supposed to be in possession of a secret method of tanning.

Tanning being looked upon in Japan as a degraded calling, it is not probable that the industry will materially improve here in the near future; and it is for that reason, together with the additional ones that cattle are scarce in this country, and that there is a growing demand in Japan for leather of all kinds, that the United States has a field in which it may largely increase its exportation of this article year by year. SAMUEL S. LYON,

OSAKA, February 6, 1899.

Consul.

IRON-NAIL TRADE IN JAPAN.

The following, dated Yokohama, March 4, 1899, has been received from Consul-General Gowey:

The inclosed clipping from the Japan Gazette of this date, being a translation from the Jiji Shimpo, a native newspaper, indicates. the progress of attempts to establish the manufacture of iron nails in Japan. The writer is not accurate in his statements concerning the growth and present condition of the import trade. The following figures, based upon the customs reports of the Japanese Government, show the quantities and values of iron nails imported during the years 1895 and 1898:

Many years ago, an attempt was made to establish an iron-nail factory in Japan, but it failed. Toward the close of 1897, Mr. Yasuda Zenjiro, of Tokyo, started the manufacture of nails by constructing a factory named Yasuda Nail Factory. The business of the factory has been expanded threefold since the beginning of the industry. It is said that considerable difficulties were experienced at the commencement, but that at present the workmen engaged are skilled in the work, though they can still only do one-third the labor done by American workmen. For example, in the case of physical power, an American workman can handle the material as heavy as 130 pounds, whereas it requires two Japanese to do the same. The present output of the Yasuda Nail Factory is about one-third of the quantity imported, and the nails produced are said to be not so much inferior to imported ones as might be expected. Whether the home-made article can beat the foreign one is a question. The quantity at present imported annually is about 320,000 kegs, nine-tenths of which are imported from America and the rest from Germany. One obstacle which the Japanese have to reckon with in competing with foreign nails is the change of the customs tariff. It is unfortunate for the home manufacturers that the authorities have, without reflection, raised the rate of tariff on the material for making nails. However, the cheap labor in Japan still leaves a certain margin which will enable the home manufacturers to compete with the imported article. If the import duty on the material is lowered in the future, not only will the importation

of foreign nails be stopped, but home-made nails will be exported to Korea and other countries in the Far East. Two or three years ago, nails were mostly imported from Germany; but since then, America has contrived to take and hold the lead. Last year, however, American business companies engaged in the iron trade held a meeting and decided to keep up the price of nails. The result is that Germany has taken advantage of this decision to export her goods to Japan more actively than before.

MOUSSELINE DE LAINE AND RIBBONS IN JAPAN.

The inclosed clipping from the Japan Times of this date contains some interesting facts relative to the establishment of new industries in Japan in the manufacture of mousseline de laine and ribbons.

In connection therewith, it is worthy of note that sheep raising has not succeeded in Japan, and that all of the wool used here is, and must be for many years, imported from abroad. The market for ribbons, in my opinion, will not become very large, owing to peculiarity of fashions in the costumes of Japanese women.

YOKOHAMA, February 4, 1899.

JOHN F. GOWEY,

Consul-General.

MOUSSELINE DE LAINE,

Mousseline de laine is imported into Japan to quite a large extent, customs returns for 1897 and 1898 showing 7,000,000 and 6,000,000 yen ($3,486,000 and $2,988,ooo) worth, respectively. It was for the purpose of supplying this demand that three factories for the manufacture of this special fabric were established since the termination of the war. Of these, the one situated in a suburb of Tokyo is the largest, having been established in March, 1896, by 145 leading capitalists in Tokyo and Yokohama with a capital of 1,000,000 yen ($498,000). But it was on July 1 of last year that the business was actually initiated under the supervision of a French expert. The shops employ about 1,300 operatives, and during the last half year produced 666,241 yards of the fabric, besides 286,524 pounds of worsted. The fabric brought 142,000 yen ($70,716) approximately, the average selling price per tan being about 4.60 yen ($2.29 per 24 yards). The daily working rate of the company is said to be 650 tan (15,600 yards) of the fabric and 3,000 pounds of worsted.

RIBBON MAKING,

Extremely limited as the application of this art still is in Japan, and hence comparatively rudimentary, there exist none the less three ribbon-weaving establishments-one in Tokyo, another in Mayebashi, and the third in Hamamatsu. The industry owes its inception, not to direct foreign tutelage, but to imitation of goods of foreign make. Not possessing even the knowledge of properly handling the ribbon machines sent from abroad, it is not to be wondered at that the Japanese ribbons can not yet bear comparison with the imported article. Ignorance of skillfully employing gassed yarns, as is done by foreign ribbon weavers, involves the use of a larger quantity of silk, resulting in the comparatively larger cost of production.

However, the home-made goods satisfy ordinary requirements, and they are being employed for hat decoration, and so forth, in growing quantities. The average monthly output from the three shops is I gross rolls, or about 1,500 yards. We are told that foreign merchants residing in Japan consider the ribbon business here a hopeful one.

SPINNING INDUSTRY IN JAPAN.

Consul-General Gowey sends from Yokohama, under date of February 17, 1899, a newspaper article which states that the number of cotton-spinning mills in Japan in November, 1898, was 77, and the number of spindles 919,074. The quantity of raw cotton worked up during the year totaled 27,343,000 pounds, and the output of yarn was 23,773,000 pounds. The article quotes returns from eighteen companies during the last six months of 1898, showing that only three report an improvement in dividends as compared with the first half of the year, and only two have maintained or bettered the dividends paid by them in the second half of 1897. Eight out of the eighteen, or 44 per cent, paid no dividend at all. The writer continues:

It must be rather a miserable reflection for the shareholders that, if they had their money in Government bonds, it would be giving them a return of 5.37 per cent at present market rates, and that if they had it deposited in the banks, it would be producing 7 per cent; whereas, in the case of eight mills, it gives no return at all, and in four produces only 5 per cent or less. It is interesting to note that the adoption of gold monometallism is frankly blamed for these bad results. China, it is said, which is the chief customer for Japan's yarns, has become a constantly falling market from the point of view of a gold-using nation, and it is for that reason that the mill owners are so anxious to see a China-Japan bank established, working on a silver basis. We must confess that such an analysis of the situation seems very partial. Assuredly, exporters of goods from a gold monometallic country have considerable difficulties to contend against when their markets are among silver-using peoples, so long as the appreciation of gold continues. There never was the least uncertainty on that head among foreign observers of Japan's currency arrangements. Since Japan became gold monometallic, however, there have been no fluctuations of exchange at all comparable in severity to those of past years; yet British manufacturers managed to find their account in supplying silver-using nations throughout the whole period of the sharpest appreciation of gold. How can it be pretended that the same obstacle in a greatly reduced form is responsible for the recent failure of Japanese mills, especially when Japan's home market is of far more importance to her cotton spinners than the Chinese market, the latter taking what may be called her surplus produce only? The cause is to be sought in some conditions independent of exchange. Defective organization, unskillful methods in laying in raw material, increased cost of labor, and want of cheap working capital-these are the reasons assigned by foreign critics who should be competent to give an intelligent opinion.

Further reasons, adds the consul-general, are said to be the payment of inflated dividends from other than net profits, and the failure to set aside anything for depreciation of plant, sinking fund, etc.