When, then, an invitation was received to be present at a banquet given by the “Economics Club,” of which Mr. Ichihara (manager of the _Dai-Ichi Ginko_ or branches of the First Bank of Japan in Seoul) is president, and to speak there, I was glad of the opportunity—not only to meet friends, but also to express certain cherished thoughts on the relations of ethics and economics. The Marquis Ito was present at this meeting of the club for the first time. In a lengthy address, spoken with his usual careful “picking of words,” the Marquis emphasized the need that the Japanese should set before the Koreans an example of honesty and fairness in their economic relations. He dwelt upon the thought that the one hundred and seventy who were present, and who represented the principal Japanese business interests in Korea, should show how the Japanese national policy is based upon the principle of unselfishness; and how Japan has declared for, and means to stand for, “the open door.” In welcoming me he repeated, on this public occasion, what he had said in the privacy of the interview at Kyoto, with the following words: “Taking advantage of his visit to Japan, I have invited Professor Ladd, whom I have the honor and the pleasure of considering as a friend of several years standing, to come over here and favor me with his frank and independent views on the situation. What I want is independent views. I trust he knows this very well. I trust his observations will be of great help to me.” In replying to the address of His Excellency, after apologizing to President Ichihara for criticising the school of economics in which he had been trained (Mr. Ichihara studied this subject in the United States), for failure to emphasize the important and unalterable relations which exist between moral principles and economical policy, I expressed my gratification at the triumph of the newer school which builds on history, psychology, and ethics. I then spoke of the importance of regarding _moral_ principles as fundamental in all practical ways, for the most successful handling of the delicate political and economical, as well as social interests, of both Japan and Korea. The observations of both speakers to the same effect were seriously listened to and heartily commended by this influential group of Japanese financiers in Korea. Between these gentlemen and the unscrupulous and mischievous rabble of their countrymen, who poured into Korea at the close of the war with Russia, a grave distinction must constantly be made by those who would understand the situation there.