Foreigners can thus establish industries in Japan, and it is therefore to the interests of the Japanese to encourage them so to do. Private individuals, as well as the Government, ought to do everything they can to attract foreign capital, but this can only be done in the case of industrial enterprises by allowing foreigners to take the direction of affairs. I have been asked whether it is not possible to induce foreign capitalists to lend their money on sharing terms to Japanese companies as they do to the American railways, without taking any part in the direction, but I am afraid this is a hope the Japanese would do well not to entertain. Whether it be through prejudice or otherwise, it is quite certain that Europeans will do nothing of the sort, and the Japanese seem to be aware of the fact, and several railway companies have modified their statutes in order to admit a clause whereby foreigners can become shareholders; but as the Japanese possess all the land over which the lines run as well as the stations, I do not think that this proposition can be legal. It is, therefore, to be regretted that public opinion has not insisted upon a concession of the right of proprietorship being bestowed upon foreigners. It is, however, not improbable that before long the Legislature may get over this difficulty by deciding that in companies constituted according to Japanese laws, and registered in Japan, the members, though they be foreigners, become thereby Japanese citizens, and can also be absolute land-owners. However, on all points the Japanese Government, supported by Parliament and public opinion, has taken the necessary precautions to apply the new treaties in the most liberal manner possible. If there have been some unfavourable verdicts pronounced in the Japanese tribunals in the short time they have been in existence, these have generally been revised on appeal. The greater experience gained by contact between the Japanese and Europeans, and the wish to see foreign capital collaborating in the development of the resources of the country, will doubtless suggest, little by little, new measures calculated to smooth down any feeling of irritation between the native and the foreign population. If there still exists a feeling of hatred of the foreigner among individual fanatics, a certain ill-will in the lower and more ignorant class of the people, some abuse of authority among inferior officials, the Government of the Mikado is too sagacious to allow any flagrant cause of annoyance to disturb European residents, which would soon be resented by their respective Governments and might even lead to the scattering of the fruits of thirty years’ progressive effort.