Shirtings £59,069 Shirtings £1,731 Indian Yarn £3,056 Yarn £11,329 Sheetings and other Sheetings £40,422 pieces Small decrease Other piece goods £25,676 In time, the markets of Japan will produce everything which at present comes from America in the shape of canned goods, and from Europe, in the form of textiles or food-stuffs. Japanese woven fabrics, and canned foods of inferior quality are driving the wholesale manufacturing houses of England and America from the markets. At present, therefore, the trade of Korea is limited as much by the capacity of the Japanese markets as by the wants of the Korean. In face of the opposition of the Japanese, their determination to retain the Korean markets for themselves, and the absence of effective attempts by Western houses to beat up such trade as may exist, it is difficult to believe that the future will show any material expansion in the capacity of the foreign trade. Nevertheless, Korea provides a fair field for capital. It would be quite possible to improve the condition of foreign trade, if merchants could arrange to protect their interests by establishing their own agencies in the country, under competent and energetic European management. When British merchants depart from their apathetic indifference and organise an exhaustive expert inquiry into the capabilities of the Korean trade, their trouble will be quickly rewarded. New markets require new commodities, the demand for which any technical inspection of the requirements of the people will disclose. Until this examination takes place, however, the stagnation in British trade must continue. Korea offers to British interests an interesting field in which the development of new industries must be conducted upon practical lines. Briefly, the imports in demand are those which are necessary to meet the requirements of an agricultural country whose mining resources are in process of development and whose railway system is as yet in its early stages. The increase in the importation of mining supplies supports this contention. Bags and ropes for packing, machinery for agricultural and mining purposes, and sewing machines are in greater demand. Railway material is, of course, wanted. The new industries may not be upon a large scale. Primitive methods doubtless will continue for the most part to govern native manufactures such as grass cloth, straw mats, ropes, &c. Excellent paper has been made since the replacement of the use of native lye by caustic soda and soda-ash, while the innovation is one to which the people have taken kindly enough. Again, while the paper industry is capable of expansion, a brisk business in leather could be built up in the country. Hides, which are exported to Japan in their raw state, are abundant, and might be converted into leather so easily on the spot. The