'Not many years after the restoration we began the construction of the railways. The line between Yokohama and Tokio was the first and most expensive of any of the railways constructed in Japan, for, owing to the lack of experience, we had to pay whatever price we were asked by foreigners for the materials. The next line was one between Kobe and Osaka, and the system has been gradually extended as the finances of the Government have allowed. But finding that the rapid extension to every part of the country was beyond the financial expediency of the Government, private enterprises were encouraged, and many private railway companies were established one after another. Thus we have two kinds of railways, one belonging to the Government, the other belonging to private companies. When I was Minister of Communications eight years ago, the whole length of the railways, state and private, reached three thousand miles. There was some talk of celebrating the occasion, but both Matsumoto, Director of the Board of Railways, and I discountenanced the idea, because three thousand miles of railway were nothing compared with other advanced countries. The extension at present is between four and five thousand miles, I think. The length is not much, but because the country is narrow, every part of it is within easy reach of the train. The telegraph lines belong to the Government entirely, and are managed in conjunction with the general postal system. Soon after the inauguration of the Imperial Government, we began to remodel the postal system which had existed previously, and it has been gradually expanded and improved on the European method. I can say without much diffidence that our postal and telegraph systems may be compared in efficiency with any country, even the most advanced in those matters. The telephone system is comparatively new, but most of the populous towns have it, and large towns are connected by distant telephones. Needless to say that we have managed from the beginning to maintain the system in the hands of the Government.' --'The Imperial Government seems to have required much money,' said one, 'for winding up the feudal Governments, and for introducing, side by side, many reforms. You also mentioned that the Government had to issue paper money. I should like to know more about how you got through it all.'