Freight rates and tariffs are in some places as powerful as battleships and battalions in keeping out the commerce of a rival. When Japan and Russia rejected America’s proposition for an international control of Manchurian railways, so that the commerce of all nations would pay the same duty and receive the same car supply in Manchuria, Japan and Russia made a secret treaty regarding Manchuria on July 4, 1910, and another agreement in 1912. Among other points, it covered interchange rates. The Russian railways can by high rates keep out competitive Japanese goods, and the Japanese railways can retaliate. On non-competitive goods needed for local consumption, low through rates are accorded, Japan favoring the famous Harbin flour, timber, kaoliang spirits from the Harbin distilleries, and Amur salmon and fish. Russia accords low rates northward to Japanese (i. e., Fushun and Yentai) coal, cement, fresh food, etc. On export competitive soybeans, for instance, by low rates Japan tries to coax Russian shipments southward via Dairen, and Russia makes a similar effort to route Japanese-controlled beans via Vladivostok, but should a Russian shipper try to send ten miles in the direction of Japanese-owned Dairen he would find the soy rate higher than all the five hundred miles to Vladivostok. By indirect methods, such as loans at low interest, rebated godown charges, rebated rates, and what not (for where there’s a will there’s a way) Japan can militate against the competition of American and British cottons, woolens, machinery, etc., in Manchuria. When the Chinese junks on the Liao River compete in the open season for the soy-bean traffic for Newchwang, the Japanese railways quote as low a rate as five mills per ton mile to Dalny, as compared with the lowest rate in America of eight mills. Japan is a David when she goes out to slay! Japan was the whole cause of the denial by China of an American-financed and constructed railway from Chin Wang Tao through Manchuria northward to Aigun. Yet she says she doesn’t mean to stay in Manchuria! She did not broad-gage Kuroki’s difficult Antung-Mukden railway recently in such a permanent way as to suggest that she ever intended to retire or sell out, “treaties and conventions notwithstanding,” to use the apt phrase of the London _Times_. Though America would under no circumstances accept a square foot of land in China or Manchuria, except on lease in an international municipal settlement, America must protect her growing and potential trade in Manchuria and in China, and that trade will always be withstood in one way or another by Japan. There is nothing now to go to war about, but there will always be a good deal to argue about, and Japan, as well as the Manchus, knows a dozen ways of presenting a smiling evasion. Have you ever proposed a difficult question to a Japanese at a curio auction, and watched his face! We have all voted that he was a success in making language hide thought; a born diplomat.