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