To-day the house of Mitsui consists of eleven families under a system of joint liability bound together by the old rules drawn up close upon two centuries back. The wealth of the collective families is unquestionably great, and the confidence of the people of Japan in this great financial firm is shown by the immense amount of money it holds on deposit. In one or other branches of their varied businesses they give employment to a very large number of persons. They have initiated an exceedingly interesting system of insurance for their employees. Each is allowed 10 per cent. interest on his wages up to three years on condition of its being deposited in the Mitsui Bank, with the proviso that the sum shall be forfeited in case of the embezzlement of any of the Company's money. During the late war, as well as in that with China, the Mitsui house had immense transactions with the Government in providing war material, steamers for transport, supplies, &c., and their magnificent organisation enabled them to carry out their various undertakings without the slightest hitch. I may also add that the name of Mitsui headed the various charitable funds which were started in the country in connection with the war. I am sure that this necessarily imperfect sketch of this famous Japanese house will convince my readers of the fact that in finance, as in other respects, Japan has already shown a capacity for holding her own with Western nations. I have headed this chapter "Japan's Financial Burdens and Resources," but I am not quite sure that the word "burdens" is not a misnomer. Japan appears to me--and I may claim to have studied the matter with some little attention--to have no financial burdens, if burdens be taken to mean something that is inconveniently felt, that is difficult to carry. There is here no people weighed down under the crushing incubus of debt. There is a springiness and alertness, a go-ahead energy about the nation--symptoms not usually connected with the carrying of burdens. Japan seems to me to be in somewhat the same position in regard to finance as France was after the close of the war with Germany when the former nation found itself saddled with a tremendous debt incurred for war expenditure and the indemnity which had to be paid to the conquering nation. The fact, however, as we all know, instead of depressing the French people seems to have put the whole country on its mettle, with the result that the heavy interest of the enormous debt was easily met and effective steps taken to reduce the principal. The borrowings of Japan in Europe in the future are likely to be small, because she will be able to obtain what she needs at home, and provided she is not drawn into any war she will find her expanding revenue sufficient not only for the current expenses of administration as well as for the interest on her debt, but over and above all this enabling her year by year to provide a