In exchange for the privilege of extra-territoriality granted to foreign residents in Japan, they were placed under restrictions. These included not being able to travel in the country outside a radius of 25 miles from the treaty ports unless provided with passports, which, I may remark, there was never any difficulty in obtaining, and not being permitted to live beyond the same radius. Foreigners engaged in trade in Japan had a great advantage in regard to a very low scale of customs duties, not more than 5 per cent. ad valorem, but they were strictly prohibited from owning land. This system of extra-territoriality was extremely unpopular with the whole of the Japanese people, and a constant movement was in force in the country for the abrogation of what the Japanese considered an invidious distinction and in the direction of making every person who voluntarily took up residence in Japan answerable to the law of the land and under the jurisdiction of the Japanese courts. The revenue of the country was also, of course, injuriously effected by the post-office privileges already referred to as well as by the differential treatment of foreigners in regard to import duties. As was to be expected, any proposal for the abolition of extra-territorial rights and the revision of the regulations in regard to import duties met with a strenuous opposition from the foreign residents in Japan. On the other hand, it must be confessed that the Japanese people opposed any compromise in the direction of granting foreigners facilities in return for the privileges that were asked to be waived. The proposal to allow foreigners to own land was vigorously inveighed against. So was a suggestion to establish mixed courts—the kind of compromise, by the way, which would probably have equally irritated foreigners and natives. It is, I think, satisfactory to be able to relate that in the end and after many years of agitation it was the British Government which took the initiative in the matter, and some ten or twelve years ago concluded a treaty with Japan wherein the privileges of English courts, European municipalities, and differential import duties were abandoned, while in return proprietary rights, except in regard to land, were granted to foreigners.

There are, mayhap, some persons at the present day who are not aware of the fact that for a good many years after Japan was to a limited extent opened to foreigners several of the Powers retained an armed force in that country for the protection of foreign residents. Great Britain, for instance, had a large number of marines at Yokohama. The presence of these troops was extremely unpalatable to the Japanese authorities, but of course pleasing to the foreign residents, who opposed their withdrawal just as they opposed the abrogation of extra-territoriality. I am afraid the reason for the removal of this armed force as far as Great Britain was concerned was economic rather than founded on any particular principle. Be that as it may, in 1873 Japan was successful in assuring the British Government that she was able and prepared to protect all foreigners residing in the country, and in that year the last foreign soldier was withdrawn from Japanese territory.

Those who remember the agitation—and a very fierce and noisy and provocative agitation it was—in opposition to the revision of Japan’s treaties with the foreign Powers with a view of getting rid of extra-territoriality will have a lively recollection of the pessimistic forebodings of the speakers and writers in reference to the future of the foreign community in that country were the exclusive privileges they then enjoyed taken away from them. The gentlemen who uttered these sentiments were no doubt sincerely convinced of their truth, but I am glad to be able to relate that time has shown them to have been false prophets. There may be, and no doubt are, foreigners in Japan who bemoan the good old days, but I am confident that the great mass of the foreign community now recognises the fact that the revision of the treaties and the withdrawal of extra-territorial privileges were inevitable and that no evil results have ensued in consequence. The Japanese courts of law have neither terrorised nor oppressed foreigners. They have, on the contrary, sought to hold the scales of justice evenly, and I believe that these courts now enjoy, as I am sure they deserve, the fullest confidence in their integrity and justice of every foreigner residing in the country.

I have noticed a tendency on the part of writers on Japan to refer to the foreign community in that Empire as if it were a community bound together by some particular principle and working in unison for some definite object. Of course such a view is nonsensical. The foreign community in Japan, in which for the purpose of my remarks I do not include the Chinese, is one composed of a large number of nationalities which have very little in common, and amongst whom a good deal of rivalry prevails. It may have been that when the question of revising the treaties was being keenly agitated, self-interest, or what was deemed to be self-interest, occasioned a sort of fictitious unity among foreigners, but at the present time, so far as my observation has gone, there is very little real unity among the foreigners in Japan. The English, of course, predominate in numbers, and they have also the major portion of the trade in their hands. Whether such a condition of things will much longer obtain is a moot question. I am of opinion, as I have elsewhere indicated, that the trade of Japan will very largely pass into the hands of the Japanese themselves, and that the foreign element in Japan is accordingly not only unlikely to increase in number but is almost certain to diminish.

In the early days when Japan was first opened to the Western world and English traders went there to push their commodities, we heard a good deal about the peculiar ethics of Japanese commercial morality. The European merchant either was, or affected to be, shocked at the loose commercial code of honour of those with whom he was brought into contact in Japan, and he expressed himself accordingly. However much or little ground there may have been for these accusations many years ago I am not in a position to judge. In forming any opinion in this matter, if that opinion is to be correct, it is, I think, essential to remember the conditions of society in Japan when it was first opened to European trade. In old Japan there were four recognised classes of society—the Samurai, the farmers, the artisans, and the merchants. The last two were somewhat looked down upon by the others. It is, accordingly, hardly to be wondered at that the condition of industry and commerce was the least satisfactory feature in the initial stages of national development. Despised alike by the gentry and the peasantry, the traders were in a somewhat sorry plight when Japan was thrown open. The low social status of the trading class in Japan was due to the feudal ideas which prevailed for so many centuries. The people were impressed with the productive power of the soil, and jumped at the conclusion that the merchant class must necessarily be immoral, since it purchased the produce of the soil at a low price and sold it at a profit. Very similar ideas have prevailed in countries other than Japan. It is not so very many years ago that in England a man of good family, much less a member of the aristocracy, going into trade was looked upon with no very favourable eyes. We know that the ideas that not so very many years ago obtained in this country in reference to this matter have entirely altered. Trade is now considered to furnish most excellent scope and opportunities for the energy and capital of all classes of the community. And the same ideas have been working in Japan. The merchant there is no longer a member of a despised class. The scions of the most ancient families in Japan, as in England, have embarked in trade and brought to their business those high ideals which they have derived from their ancestors. The criticisms of commercial morality in Japan which were so prevalent not very many years ago are now entirely obsolete. I fear, however, that the effect of them still to some extent remains, and that there are a large number of people in this country who even now believe that the Japanese, from a commercial point of view, are what is termed “tricky.” I hope my remarks on this head may serve to disabuse the minds of some of those persons who still entertain these extremely erroneous ideas.

I do not think that there is a very large amount of social intercourse between the Europeans in Japan and the Japanese themselves. The European in the East, or at any rate the Englishman in the East, so far as I have been able to judge, always appears to me to assume an air—it may be an unconscious air—of superiority to the inhabitants of the country in which he resides. That this is frequently extremely galling to them there can be no question. Any one who has conversed with the intelligent native of India must be aware of that fact. Whether the greatness of the Anglo-Saxon race be in some degree or in a large measure due to the belief that the Anglo-Saxon has in himself is a question I need not consider. But I think there can be no doubt of the fact that this sense of superiority, however much or little justification there may be for it, is a characteristic not likely to be appreciated by foreigners, and especially Orientals, and I think I am justified in remarking that the Japanese do not at all appreciate it.

The European may impress the Oriental in one of several ways; he has for the most part done so by his great military or naval prowess. That is the way in which Great Britain has impressed the natives of India. The English are in that country as a conquering race. They have practically never been defeated, and the respect which they have obtained is the respect that the weak have for the strong. In Japan such a state of things is no longer possible. The results of the Russian War have rendered it impossible for all time. An Oriental nation has met a European Power on the field and on the high seas, and soundly thrashed it. There is, however, another way in which the European might impress the Oriental. The former professes to have a purer religion and a higher code of morals. He has sought to impose his religion upon every race with which he has been brought into contact, and if he has not sought to impose his moral system, he has, at any rate, severely criticised that of the people with whom he has been brought into contact, and compared it with his own to their disadvantage. In Japan, where there is a large foreign community, the thinking, logical Japanese has had abundant opportunities for studying not only the principles of Western religions and Western morality, but also the practice of them by Western residents in his own land.

The result has been to give him much food for reflection. He reads the criticisms of Europe upon the Yoshiwara and the Japanese attitude generally towards prostitution, while he has ample evidence of the fact that many of the patrons of the Yoshiwara are to be found among the European community in Japan. And so of religion. The various Christian denominations of the Western world aspire to convert Japan, and send missionaries there for that purpose. The Japanese gives them a fair field, and he has shown no aversion to investigate their dogmas. At the same time he sees that a large proportion, I might perhaps say the majority, of the European residents in Japan do not trouble to attend the Christian places of worship, while many of them make no disguise of their contempt for Christianity in general and the missionaries in particular. What conclusion, may I ask, can the logical, reasoning Japanese come to in these matters?

There can be no doubt whatever that the foreign residents in Japan have accomplished a great work in regard to the development of the country. The settlements established by them at the various treaty ports and the administration of those settlements as municipalities reflected great credit upon all those concerned, and was a splendid object-lesson for the Japanese people. Great Britain, too, may, I think, be congratulated on the men she has selected to represent her at the Japanese Court. There is no man to whom both Great Britain and Japan are more indebted than the late Sir Harry Parkes. I cannot remember during how many years he was the British Minister at Tokio, but during the whole of his term of office he used his best endeavours in the direction of showing Japan the way she ought to go in the path of progress, and in rendering her all the assistance possible in that direction by procuring for her the very best assistance of every description. I strongly advise every person interested in Japan and its development to peruse the Life of Sir Harry Parkes, by Mr. F. V. Dickins and Mr. Stanley L. Poole. One interesting feature in Sir Harry Parkes’s career I may record here, as I have had it on the authority of a gentleman conversant with the facts. Sir Harry was always a persona gratissima with the Japanese Government, and about the year 1877 he and the late Admiral Sir A. P. Ryder, then Commander-in-Chief on the China station, had a conversation respecting, in view of the aggressive policy of Russia in the Far East, obtaining a British coaling station much further north than Hong Kong. Admiral Ryder mentioned as an appropriate place the island of Tsu-shima, so famous in the recent war with Russia. Sir Harry Parkes promised to use his good offices with the Japanese Government to obtain permission to occupy this island with a view of its ultimate cession to Great Britain. The permission was duly obtained, and Admiral Ryder thereupon cabled home to the Admiralty for the necessary permission to take over the island. His request was promptly vetoed, and Great Britain, accordingly, lost for ever the opportunity of obtaining an admirable coaling station and a splendid strategical position in the Far East. It is quite certain that Japan does not now regret the refusal of Great Britain to accept her too generous offer.

Europeans have been in Japan, and very much in evidence, during the past half-century or so, but I do not think that the residents in the country have exercised much influence upon Japan. During that period there have been enormous changes; the whole life of the nation has, in fact, been revolutionised. But these changes have not been wrought, or indeed greatly affected, by the European residents in the country. The changes have emanated from Europe and America—not that portion of Europe and America which went to Japan for its own objects. I make, of course, a particular exception in regard to those naval and military and scientific men to whose exertions Japan owes so much of her advancement. But I do say of the ordinary trader or merchant that he has come to Japan, and left it without producing much effect, if any, on the development of the nation, or leaving behind him any influences of a useful nature.