The deeper significance of the present dramatic struggle between Russia and Japan over territories belonging to neither of the contestants cannot perhaps be understood, until we examine some of the issues at stake between them. The more fundamental of these issues, however, as in many another international crisis, seem to be oftener understood than expressed, and hence understood only vaguely, although it may fairly be said that they constitute the very forces which have with irresistible certainty brought the belligerents into collision. For Japan, the issues appear to be only partly political, but mainly economical; and perhaps no better clue to the understanding, not only of the present situation, but also, in general, of the activities at home and abroad of the Japanese people, could be found than in the study of these profound material interests. Among the most remarkable tendencies of Japan’s economic life of recent years has been the enormous increase of her population, along with an immense growth of her trade and industries. The number of her inhabitants increased from 27,200,000, as estimated in 1828, to only 34,000,000 in 1875, but since that year it has risen so fast that it is to-day 46,305,000[1]—exclusive of the 3,082,404[1] in Formosa and the Pescadores—and is increasing now at the annual rate of nearly 600,000. At the same time, the foreign trade of Japan has grown from 49,742,831 _yen_ in 1873 to 606,637,959 _yen_ in 1903. Up to the end of May, 1904, the total amount showed 274,012,437 _yen_, as compared with the 248,506,103 _yen_ of the same period of 1903.[2] The significance of these figures must be seen in the light of the important fact that the bulk of the increase in population and trade has been due to the decisive change of the economic life of the nation from an agricultural to an industrial stage. The new population seems to increase far more rapidly in the urban than in the rural districts, for if we consider as urban the inhabitants of communities containing each more than three thousand people, the ratio of the urban population to the rural may be estimated as 1 to 3. If only towns of more than 10,000 inhabitants each are included in the urban class, it is seen that their population increases annually 5 or 6 per cent., while the corresponding rate with the rural communities never rises above 3 per cent. and is usually much lower.[3] This comparatively rapid growth of the cities also indicates that the new population must be mainly supported by commerce and manufacture.