“The day will come when Japan will compete with the powers already in the field on all lines of manufactured goods, but this time must necessarily be far distant. The trouble at present is that, while the Japanese can imitate everything, they cannot, at the same time, invent superior things. But the trade of the Oriental countries will come to be regarded as Japan’s natural share, and she is already well capable of supplying it. “The resources of Japan are very varied and very fair in quantity at present. Raw silk and tea are abundant, while coal is plentiful, as also copper and silver; gold is not so much so. I hope to see our plentiful water supply turned into good account and harnessed to produce electric energy. This would be a great saving of expense and would cheapen the cost of production very much. Oil has been found in several districts and will take the place of coal to a large extent, and it is possible that if fully developed its export trade may be made to the neighboring countries. In Hokkaidō we have rich coal and silver mines and oil wells, while in Formosa we have rich gold mines. The iron we use in our iron works in Kiūshiu comes partly from several mines of Japan and partly from China. “My hope for the future is that foreign capital may be brought into the country and that the economic position of the country may be made so secure as to leave no doubt possible in the mind of the world as to the stability of the Japanese Empire.” We also take pleasure in quoting the same high authority upon the subject of the present financial situation in Japan, as follows:[40]— “The present financial difficulty in Japan is only the natural sequence of the over-expansion of business of some years ago. In every country there are waves of prosperity followed by periods of depression. I have known, in the economic history of Japan since the Restoration, five or six such waves. They do not necessarily injure the real financial standing of the country. The peculiarities of the Japanese business character have much to answer for in the way of increasing the appearance of financial insecurity during the times of depression. After the prosperous times of 1893 came the war with China and the subsequent indemnity. Much of the money paid by China was spent in Japan, and the Japanese people came to the conclusion that this increased circulation of money would be permanent. They acted impulsively in many enterprises, and rushed into all kinds of business because the government had over-expanded its enterprises after the war. The depression reached its height in 1900 and 1901, and businesses were abandoned or reduced because it was not such easy work as formerly. By proper management our national income can be made still greater than our expenditure.” [Illustration: BARON SHIBUSAWA]