The telephone in Japan is more common than in any other country in the world, except perhaps Norway. Besides the Government and public telephone offices, nearly every large commercial house, and most private homes, have telephones.

The establishment of the electric system of illumination has become most popular in the smallest villages, and forlorn hamlets are lighted by electricity.

Steam navigation companies are numerous. Besides local companies running small steamers in the larger bays and inland seas, there are several companies for international commerce. Among all these companies the most important is the Nippon Yusen Kaisha. It is the pride of modern Japan, and I quite agree that there are very few enterprises in the shipping line which could surpass it in size and excellence of organization. To quote from their annual report, which will be of interest as giving an idea of the success they have achieved: "With a capital of 22 million yen, establishing regular steamship services all over the world, and with a fleet of 70 steamers aggregating 200,000 tons gross, the majority of them new and provided with every resource for contributing to the comfort of passengers and every modern facility for the carrying trade, the Nippon Yusen Kaisha now ranks among the greatest enterprises of the kind in the world. The regular services maintained by it, independently of its lines between all the principal ports in Japan, are with China, Asiatic Russia, the Straits Settlements, India, the Red and Mediterranean Seas, Europe, Canada, America, and Australia. The Japanese Diet in 1899 resolved to grant subsidies to the company's European and American Lines, and thus all foreign and home lines, with but a few exceptions, have been ordered to run under the mail contract of the Imperial Japanese Government. The Head Office is in Tokio, and Branch Offices and Agencies to the number of over seventy, particulars of which are given elsewhere, are situated at all the ports of call and other important points. The total number of the Company's employés is about 1200, in addition to about 3500 of crews, firemen, etc."

This synopsis grows in interest, and is even more surprising when we consider that the first enterprise in steam navigation was started only in 1868 between Osaka and Tokio, and in 1880 the Company possessed a fleet comprising about fifty boats. Skippers, engineers, and all the chief officers, were Westerners, and nearly all Englishmen. But the Japanese proved to be apt pupils, and every year a greater number of foreigners were replaced by natives. To-day there are only the captains and a few other officers on the international lines who are still foreigners, but even their days are numbered.

During my lengthened stay in the Far East, I travelled a great deal on their lines, crossed the Yellow Sea in several directions, went down once to Shanghai and once to Hong Kong, made an expedition to the Philippines and the neighbouring islands, and, finally, made a journey in one of their largest boats to Australasia; and I can speak of them with high praise in every respect. Of course, a great many of the boats are built in England, with all the latest improvements. They have electric light and ventilators. And if people who are hard to please sometimes find fault with the chef's department, I think they are epicures who would make the same objections on all other lines. But every one unites in praising the general cleanliness on board.

One of the suburbs of Tokio is almost entirely devoted to shipbuilding, and on the strand of the large inner bay there are numberless boats in course of construction, though the most important shipbuilding yards are in Nagasaki. Tokio itself is the central point of all the most important commercial enterprises. The national and other banks, railway and shipping companies, all have their headquarters here. Next the modest, old-fashioned wooden houses, huge palaces of brick and steel tower aloft, built on the newest principles of American skyscrapers. I must confess I don't admire them, and I was sadly disappointed to find such commonplace and up-to-date erections in the Mikado's capital, where I expected to be delighted with mysterious pagodas of a romantic age.

Every day I passed several hours in these huge blocks, and steadily became more and more interested in Japan's commercial activity. In fact, since the reorganization of the country on Western principles the questions of education and commerce are the most pressing of all the problems with which they are confronted. Since the establishment of the new era, which opened their once secluded country to the outer world, transformed their patriarchal system of government into a parliamentary constitution, and reformed the whole army and effected a complete change in the juridical system, the national economics and the education of the rising generation are the riddles to be solved in the future. All the commercial life gave me a great opportunity of realizing the exceptional physical capabilities, diligence, and capacity for hard work, displayed by this people. The number of hours of work an average man can do in the fields or in the factories greatly exceeds that of the Western races. And what is even more striking is the great manual skill shown. The dexterity of a Japanese artisan is too well known to need description, but what I cannot omit to mention is the rapidity with which they execute their work; this faculty seems almost instinctive or innate, and one glance at a model is enough to enable the workman to reproduce the object with absolute accuracy. Another great advantage possessed by them is that the necessaries of life are so restricted. The frugal meals consist merely of a little rice or raw fish; for luxury they have half a cup of sakki or rice wine, and for recreation and pleasure an afternoon walk in the flowering orchards or cherry-groves. And if they have a superfluous coin, they can go to the theatres, where national epics are performed in the old-fashioned fascinating style, and where a penny gives admittance from morning to night. Their physical endurance and freshness of mind are two qualities which contribute to the great success they have achieved. How long will they be able to preserve them unspoilt? How long will they be able to guard them from corruption? It is evident that with a different manner of life they are bound to undergo a change; with an increase of daily needs, dissatisfaction is certain to grow.

Baron Ivasaki, one of Japan's principal financiers, and the leader of many social enterprises, after his return from a voyage of investigation round the world, wrote a most interesting paper, not only dealing with his personal experiences but pointing out possibilities, both of financial and moral crises that might occur if the country did not unite to promote, not only commercial and financial endeavour, but a high moral tone. All good patriots and friends of Japan agree with the author in this respect. Unquestionably, there is always a great danger when a nation's ideals become merely material. It is even more disastrous if its spiritual life threatens to become extinct. One of the causes of Japan's strength has been her firm belief in her religious, national, and domestic codes. The great rapidity with which she has adopted Western civilization might easily have resulted in her acceptance, not only of our good points, but also of our bad ones. Considering her marvellous gift of adaptation, the question arises whether this does not happen sometimes, to the detriment of better judgment. In her great zeal to advance and to use all Western means, some of her deeper thinkers begin to realize the dangers which might beset her. The rapid transformation of the old social order must develop by gradation to avoid fresh revolutions, and to spread over the whole country. It is not enough for her to accept merely the technical side of Western civilization, she must understand and be fully convinced by its moral and spiritual principles. The nations of Europe may belong to different denominations, but their mind and soul are imbued by the higher laws of Christianity. Baron Ivasaki, in his articles, points out with great foresight that it is not enough for his countrymen's future greatness and happiness to improve materially, if there is not a corresponding moral elevation.

It becomes evident that the most important question of the day is that of education. During my prolonged stay in the capital I visited a great many schools and colleges. Besides the well-equipped Government Primary Schools I saw many Grammar and High Schools, Public and Private Colleges, and Missionary Establishments. Public instruction, as a rule, is very satisfactory. The teaching of foreign languages, and especially of technical knowledge, is quite surprising, and the examinations in these subjects have the best results. Education, as such, is less successfully carried out; the chief defect of our Western system of devoting itself exclusively to the imparting of knowledge, to the detriment of the formation of character and the arming of the child for the battle of life, more from a moral than from a material standpoint, is also the drawback of this country. Among Tokio's scholastic foundations the University is the most important. To give an epitome of its history:—