'Just as the training and social precedence of his ancestors for hundreds of years and of himself have made the Japanese soldier a model without flaw of loyalty, devotion, and courage, ready to sacrifice at any time life or property for his sovereign and his country, so have oppression and social degradation combined to make the merchant a no less striking model of dishonesty and timidity, unwilling and unable to make the smallest monetary sacrifice for his own or his country's fair fame.'
Surely this is sweeping assertion. If we take individual cases into account, striking characters in the ranks of merchants are abundant in records and in memory. Even in the movement which resulted in the restoration of the present Imperial régime, countless men whose origin belonged to mercantile circles may lay their claim of participation to it. True, they were men who generally cast off their original occupation and enrolled themselves in the ranks of patriots, so that they may be considered as exceptions. But even as a class in the ordinary sense of merchants they scarcely deserve that kind of condemnation. Osaka in former days had some resemblance to free cities of the West, and every one well acquainted with things Japanese knows what a well-developed mercantile system it possessed. So also the so-called Omi merchants. Even with regard to merchants and tradesmen of all parts of the country there was little room for them to be so dishonest as the writer describes. Under the feudal system commercial occupations were almost hereditary. They had almost no freedom of removal from their accustomed abode. Their customers were the children or grandchildren of those who were customers of their fathers or grandfathers. If a merchant under such circumstances made dishonesty his customary trade, and expected prosperity, he would surely be totally disappointed, and would suffer a deserving penalty. Besides, in those days social sanction, from the very nature of the conditions under which they found themselves situated, was most severe. Yes! Merchants and traders of those days were honest, far beyond one can imagine. If any dishonesty or any shortcomings in respect to commercial probity have become observable, it is necessary evil produced by the changed circumstances of the time, chiefly on account of foreign intercourse.
Mr. Longford speaks of the early Japanese traders who flocked to the newly opened ports as being 'without exception adventurers with neither name nor money to lose, with keen wits and the determination to exploit to the utmost.' This is, in a measure, undoubtedly true, and accounts for the lamentable condition which for a long time existed in the trades at the open ports. But this is not the only cause. On the parts of foreign merchants who came out there to trade, there was much to be criticised; I mean to say, they were also mostly adventurers in a measure; they were also inconsiderate, even arrogant. A Western merchant who, leaving China, was passing through Japan, violated intentionally time-honoured etiquette against one of the most powerful 'Daimio,' saying, 'I know how to manage these Orientals,' and was murdered in consequence. It is a good illustration of the kind of conduct of the Europeans of those days towards us; hence no sympathy existed between them and our traders—the dealings were viewed, naturally, very differently from those which they were wont to carry on with their native customers of several generations' standing. Business is business, so the common saying goes, but even in business mutual respect and friendly feeling go a long way. How can a model trade be expected to be created under such circumstances?
Then, again, in Japan commercial goods were, and are still, to a great extent made by hand on small scales. No big industrial factories existed where one could order a large number of articles identical in every respect as one could do in Europe. Foreign traders, not taking these conditions into their serious consideration, often gave similar orders as they were used to do in Europe, and when articles delivered to them were found to be not perfectly identical, they often took advantage of that fact, and gave much trouble to the native contractors, who did not expect to meet with so much severity. There existed also very bad customs among foreign traders; the essence of those customs was known by the name of 'Haiken,' or 'Kankan.' These terms, literally meaning 'to see,' were used to veil the facts of detaining goods at their storehouses, often for an unreasonable length of time; in the meantime ascertaining the commercial conditions of their home, and returning the goods when they found the transaction was not likely to be beneficial to them. Native traders had serious grounds of complaint against those customs. As a matter of fact, at one time the matter was brought to a very acute state, and the native traders began to try to get rid of them by combination, but with little success. I imagine Mr. Longford will remember the incidents which occurred in connection with that matter in Yokohama years ago. I can also state on good authority that there were even some cases wherein foreign traders themselves practised, toward their compatriot at home, some actions which appear not to have been in unison with Western honesty, and taking advantage of our unfortunate reputation attributed the fault to the Japanese when matters were discovered. The notorious case wherein a large foreign firm dealing in silk, who took off the labels of native manufacturers and changed them into a single kind which he liked, was boycotted by them when the matter came to broad daylight, may also be recollected by him. Another thing which foreign traders were wont to do was that they often ordered things direct from small manufacturers at a cost far less than their real value. Japanese merchants often said that they could not compete with foreign traders, inasmuch as foreign merchants often got things at less expense than they themselves could. This is surely an extraordinary phenomenon. But the fact was that those foreign traders often succeeded in making that kind of contract either by giving some tempting inducement at the beginning or canvassing several manufacturers one after another, always showing the last most advantageous offer, and bringing down the price by bargaining in a skilful and cunning manner. Under such circumstances it was not surprising if those contracts were often unfulfilled, simply on account of the inability of fulfilment by the contractors. There was also another circumstance which caused commotion and disorder in all commercial dealing in Japan. It is to be remembered that the new order under the new system of government, especially the abolition of the feudal system, widely changed the accustomed occupations of the Japanese at large. Chances for making wealth and for entering upon various enterprises almost entirely changed their hand. Besides, four hundred thousand families (2,000,000 capita) of Samurai, who gave up their hereditary allowances, now had to make their earnings chiefly by becoming traders or sometimes agriculturists, occupations to which they were entirely unaccustomed. They naturally experienced failure after failure. It was then that a new term, 'Trades of Samurai,' meaning thereby an undertaking which is precarious or even doomed to failure, came into existence. In one sense it was sad to think about, but the fact was so. Under such circumstances one can well imagine that dishonesty, or rather failure of fulfilment of promise, although against one's conscience, it maybe presumed, was often experienced even among our own community. This also might have had some indirect effects upon foreign trade.
Critics say that commercial probity in China is better than in Japan. It may be true; I shall not dispute. The Chinese are excellent traders, and besides, as every one knows, no such social revolution, as was the case with us Japanese, has ever taken place. That accounts for the difference between Chinese and Japanese traders in the first place, but that is not all. The Chinese are, individually speaking, very docile; they would not think of quarrelling with foreign traders, under whatever humiliating circumstances they might find themselves placed, so long as they could make some profit. But this is very different with us Japanese. Take, for instance, the case of a 'Rikisha' man; if he were a Japanese, and suppose a foreign rider whipped him, as they often do, because he did not run quick enough, the probability is, he would ask to be excused carrying the rider any further, or turn round to the rider and ask for an explanation. He would do so no matter whether or not he would get his fare; but if it were a Chinaman, the probability is that he would calmly suffer the treatment, and proceed just at the rate he could run, his thoughts being concentrated on obtaining as good a fee as he could get, and would be looked upon as an honest man in consequence. This state of things exists in the matter of trade at large. Chinese tradesmen would suffer without anger, any arrogance or unreasonableness of foreign traders, and exert such wonderful patience in order ultimately to attain their objects, whilst Japanese merchants would sooner break the contract than suffer such treatment with such patience. The consequence is that Japanese merchants are viewed in rather a bad light.
The effects of the Great Change, both political and social, have been subsiding already for some time, and the order of things at large has also begun to settle down. The condition of our mercantile circle is, in consequence, much changed; so also the attitude and characters of foreign traders have begun to alter considerably. I am, therefore, most sanguine that all complaints of foreigners against our commercial probity will soon become a thing of the past.
I am sorry to speak about foreigners in this manner, but I am sure impartial observers will admit that what I say is not far from fact. At all events, their conditions were not so bright as Mr. Longford pleases to represent them to have been. Unfair criticisms are not calculated to promote the friendly feeling of nations, and my statements, which I believe no other than those of true fact, are hereby made more for promoting in future the goodwill which has already begun to exist between us and the Western traders of late years.[2]
[1] The Magazine of Commerce, August 1905.
[2] See the note at the end of the volume.