Within two decades from the founding of the settlements, those foreigners who once imagined it a mere question of time when the whole country would belong to them, began to understand how greatly they had underestimated the race. The Japanese had been learning wonderfully well—"nearly as well as the Chinese." They were supplanting the small foreign shopkeepers; and various establishments had been compelled to close because of Japanese competition. Even for large firms the era of easy fortune-making was over; the period of hard work was commencing. In early days all the personal wants of foreigners had necessarily been supplied by foreigners,—so that a large retail trade had grown up under the patronage of the wholesale trade. The retail trade of the settlements was evidently doomed. Some of its branches had disappeared; the rest were visibly diminishing.

To-day the economic foreign clerk or assistant in a business house cannot well afford to live at the local hotels. He can hire a Japanese cook at a very small sum per month, or can have his meals sent him from a Japanese restaurant at five to seven sen per plate. He lives in a house constructed in "semi-foreign style," and owned by a Japanese. The carpets or mattings on his floor are of Japanese manufacture. His furniture is supplied by a Japanese cabinet-maker. His suits, shirts, shoes, walking-cane, umbrella, are "Japanese make": even the soap on his washstand is stamped with Japanese ideographs. If a smoker, he buys his Manila cigars from a Japanese tobacconist half a dollar cheaper per box than any foreign house would charge him for the same quality. If he wants books he can buy them at much lower prices from a Japanese than from a foreign book dealer,—and select his purchases from a much larger and better-selected stock. If he wants a photograph taken he goes to a Japanese gallery: no foreign photographer could make a living in Japan. If he wants curios he visits a Japanese house;—the foreign dealer would charge him a hundred per cent. dearer.

On the other hand, if he be a man of family, his daily marketing is supplied by Japanese butchers, fishmongers, dairymen, fruit-sellers, vegetable dealers. He may continue for a time to buy English or American hams, bacon, canned goods, etc., from some foreign provision dealer; but he has discovered that Japanese stores now offer the same class of goods at lower prices. If he drinks good beer, it probably comes from a Japanese brewery; and if he wants a good quality of ordinary wine or liquor, Japanese storekeepers can supply it at rates below those of the foreign importer. Indeed, the only things he cannot buy from the Japanese houses are just those things which he cannot afford,—high-priced goods such as only rich men are likely to purchase. And finally, if any of his family become sick, he can consult a Japanese physician who will charge him a fee perhaps one tenth less than he would have had to pay a foreign physician in former times. Foreign doctors now find it very hard to live,—unless they have something more than their practice to rely upon. Even when the foreign doctor brings down his fee to a dollar a visit, the high-class Japanese doctor can charge two, and still crush competition; for, he furnishes the medicine himself at prices which would ruin a foreign apothecary. There are doctors and doctors, of course, as in all countries; but the German-speaking Japanese physician capable of directing a public or military hospital is not easily surpassed in his profession; and the average foreign physician cannot possibly compete with him. He furnishes no prescriptions to be taken to a drugstore: his drugstore is either at home or in a room of the hospital he directs.

These facts, taken at random out of a multitude, imply that foreign shops or as we call them in America, "stores," will soon cease to be. The existence of some has been prolonged only by needless and foolish trickery on the part of some petty Japanese dealers,—attempts to sell abominable decoctions in foreign bottles under foreign labels, to adulterate imported goods, or to imitate trade-marks. But the common sense of the Japanese dealers, as a mass, is strongly opposed to such immorality, and the evil will soon correct itself. The native storekeepers can honestly undersell the foreign ones, because able not only to underlive them, but to make fortunes during the competition.

This has been for some time well recognized in the concessions. But the delusion prevailed that the great exporting and importing firms were impregnable; that they could still control the whole volume of commerce with the West; and that no Japanese companies could find means to oppose the weight of foreign capital, or to acquire the business methods according to which it was employed. Certainly the retail trade would go. But that signified little. The great firms would remain and multiply, and would increase their capacities.

(1) See Japan Mail, July 21, 1895.

III

During all this time of outward changes the real feeling between the races—the mutual dislike of Oriental and Occidental—had continued to grow. Of the nine or ten English papers published in the open ports, the majority expressed, day after day, one side of this dislike, in the language of ridicule or contempt; and a powerful native press retorted in kind, with dangerous effectiveness. If the "anti-Japanese" newspapers did not actually represent—as I believe they did—an absolute majority in sentiment, they represented at least the weight of foreign capital, and the preponderant influences of the settlements. The English "pro-Japanese" newspapers, though conducted by shrewd men, and distinguished by journalistic abilities of no common order, could not appease the powerful resentment provoked by the language of their contemporaries. The charges of barbarism or immorality printed in English were promptly answered by the publication in Japanese dailies of the scandals of the open ports,—for all the millions of the empire to know. The race question was carried into Japanese politics by a strong anti-foreign league; the foreign concessions were openly denounced as hotbeds of vice; and the national anger became so formidable that only the most determined action on the part of the government could have prevented disastrous happenings. Nevertheless oil was still poured on the smothered fire by foreign editors, who at the outbreak of the war with China openly took the part of China. This policy was pursued throughout the campaign. Reports of imaginary reverses were printed recklessly, undeniable victories were unjustly belittled, and after the war had been decided, the cry was raised that the Japanese "had been allowed to become dangerous" Later on, the interference of Russia was applauded and the sympathy of England condemned by men of English blood. The effect of such utterances at such a time was that of insult never to be forgiven upon a people who never forgive. Utterances of hate they were, but also utterances of alarm,—alarm excited by the signing of those new treaties, bringing all aliens under Japanese jurisdiction,—and fear, not unfounded, of another anti-foreign agitation with the formidable new sense of national power behind it. Premonitory symptoms of such agitation were really apparent in a general tendency to insult or jeer at foreigners, and in some rare but exemplary acts of violence. The government again found it necessary to issue proclamations and warnings against such demonstrations of national anger; and they ceased almost as quickly as they began. But there is no doubt that their cessation was due largely to recognition of the friendly attitude of England as a naval power, and the worth of her policy to Japan in a moment of danger to the world's peace. England, too, had first rendered treaty-revision possible,—in spite of the passionate outcries of her own subjects in the Far East; and the leaders of the people were grateful. Otherwise the hatred between settlers and Japanese might have resulted quite as badly as had been feared.

In the beginning, of course, this mutual antagonism was racial, and therefore natural; and the irrational violence of prejudice and malignity developed at a later day was inevitable with the ever-increasing conflict of interests. No foreigner really capable of estimating the conditions could have seriously entertained any hope of a rapprochement. The barriers of racial feeling, of emotional differentiation, of language, of manners and beliefs, are likely to remain insurmountable for centuries. Though instances of warm friendship, due to the mutual attraction of exceptional natures able to divine each other intuitively, might be cited, the foreigner, as a general rule, understands the Japanese quite as little as the Japanese understands him. What is worse for the alien than miscomprehension is the simple fact that he is in the position of an invader. Under no ordinary circumstances need he expect to be treated like a Japanese, and this not merely because he has more money at his command, but because of his race. One price for the foreigner, another for the Japanese, is the common regulation,—except in those Japanese stores which depend almost exclusively upon foreign trade. If you wish to enter a Japanese theatre, a figure-show, any place of amusement, or even an inn, you must pay a virtual tax upon your nationality. Japanese artisans, laborers, clerks, will not work for you at Japanese rates—unless they have some other object in view than wages. Japanese hotel-keepers—except in those hotels built and furnished especially for European or American travelers—will not make out your bill at regular prices. Large hotel-companies have been formed which maintain this rule,— companies controlling scores of establishments throughout the country, and able to dictate terms to local storekeepers and to the smaller hostelries. It has been generously confessed that foreigners ought to pay higher than Japanese for accommodation, since they give more trouble; and this is true. But under even these facts race-feeling is manifest. Those innkeepers who build for Japanese custom only, in the great centres, care nothing for foreign custom, and often lose by it,—partly because well-paying native guests do not like hotels patronized by foreigners, and partly because the Western guest wants all to himself the room which can be rented more profitably to a Japanese party of five or eight. Another fact not generally understood in connection with this is that in Old Japan the question of recompense for service was left to honor. The Japanese innkeeper always supplied (and in the country often still supplies) food at scarcely more than cost; and his real profit depended upon the conscience of the customer. Hence the importance of the chadai, or present of tea-money, to the hotel. From the poor a very small sum, from the rich a larger sum, was expected,—according to services rendered. In like manner the hired servant expected to be remunerated according to his master's ability to pay, even more than according to the value of the work done; the artist preferred, when working for a good patron, never to name a price: only the merchant tried to get the better of his customers by bargaining, —the immoral privilege of his class. It may be readily imagined that the habit of trusting to honor for payment produced no good results in dealing with Occidentals. All matters of buying and selling we think of as "business"; and business in the West is not conducted under purely abstract ideas of morality, but at best under relative and partial ideas of morality. A generous man extremely dislikes to have the price of an article which he wants to buy left to his conscience; for, unless he knows exactly the value of the material and the worth of the labor, he feels obliged to make such over-payment as will assure him that he has done more than right; while the selfish man takes advantage of the situation to give as nearly next to nothing as he can. Special rates have to be made, therefore, by the Japanese in all dealings with foreigners. But the dealing itself is made more or less aggressive, according to circumstance, because of race antagonism. The foreigner has not only to pay higher rates for every kind of skilled labor; but must sign costlier leases, and submit to higher rents. Only the lowest class of Japanese servants can be hired even at high wages by a foreign household; and their stay is usually brief, as they dislike the service required of them. Even the apparent eagerness of educated Japanese to enter foreign employ is generally misunderstood; their veritable purpose being simply, in most cases, to fit themselves for the same sort of work in Japanese business houses, stores, and hotels. The average Japanese would prefer to work fifteen hours a day for one of his own countrymen than eight hours a day for a foreigner paying higher wages. I have seen graduates of the university working as servants; but they were working only to learn special things.

IV