The governor made an address before the Tokei Chamber of Commerce on
yesterday, a copy of which, as published in the Japan Herald of the 16th
instant, I have the honor to inclose, together with the reply thereto of Mr.
Fukuchi, the vice-president of the chamber. I note that the governor in his
address spoke of the trade of Japan with Great Britain and with the United
States and China, and had the courage and justice to say that Japan’s trade
with China, as well as that with the United States, “was especially
favorable to producers in Japan and to exporters.” His excellency might have
said with equal justice that the United States buys more of the domestic
productions of Japan than any one of the Western States, while Great Britain
sells more largely to Japan, and draws from her almost exclusively the large
annual balances against Japan in coin.
It is also worthy of remark that Mr. Hennessy, speaking of the public debt of
Japan, took care to say, as the fact is, the debt of this empire is almost
exclusively a domestic loan, and that her foreign debt “is quite
insignificant”, and that he also warned the Chamber of Commerce of the
danger of a foreign debt, wisely citing for the instruction of his auditors,
the present deplorable condition of Egypt.
I beg leave to say that the reply of Mr. Fukuchi is significant in this, that
it suggests the need of Japan to encourage her own industries, and the
obstacles which prevent their encouragement, and that this government is so
hampered that it cannot command such revenues [Page 640] from imports “as are essential for the country,” and
that “the revenue derived therefrom does not materially benefit our
(Japan’s) finances to the extent that revenue of the same kind does in other
countries.”
The presence of Governor Hennessy here and his policy in Hong-Kong, have
excited unfavorable comment in some of the English journals in this quarter,
which do not favor fair play toward either China or Japan.
[Inclosure in No. 909.—Extract from the
Japan Daily Herald, June 16, 1879.]
Mr. Hennessy’s
address to the Tokei Chamber of
Commerce.
At the invitation of the chamber, his excellency John Pope Hennessy, C.
M. G., governor of Hong-Kong, delivered an address to the Tokei Chamber
of Commerce yesterday afternoon on the trade between Japan and China.
About one hundred and fifty persons were present, including their
excellencies Inouye, Okuma, and Matsugata, and Messrs. Iwasaki, Yataro,
Shibusawa, Masuda, Fukuchi (editor of the Nichi Nichi Shimbun), and some
foreigners.
Mr. Shibusawa, the chairman of the Chamber of Commerce, in a few words,
introduced Mr. Hennessy to the audience, who rose and bowed their
acknowledgment.
Mr. Hennessy said:
“Gentlemen, though I speak in a foreign language, yet I believe a good
many present understand it. I could not refuse your invitation to
address you to-day for several reasons. I am officially connected with
the largest depot of commerce in the British Empire abroad. Last year
there passed through the colony under my government shipping to the
extent of 1,700,090 tons, and the value of that tonnage could not have
been far short of $500,000,000. Now the commerce of Hong-Kong is great
because it is close to the two Empires of China and Japan; and when I
speak of the prosperous condition of commerce between Japan and
Hong-Kong, it means, to a great extent, the prosperous state of commerce
between Japan and China, and it also means the prosperous state of
commerce between my own country—the united countries of Great Britain
and Ireland—and Japan. It is well worth your while, as practical men of
business, to ascertain what is the amount of Japan’s trade with China;
in what way that trade can be developed, and how you can assist in its
development. The trade of Japan with Great Britain in one year amounted
to $25,650,000; with the United States $7,882,000, and the total trade
between France and Japan to $8,412,000; between Japan and Germany,
$1,087,000; that is, from June, 1877, to June, 1878. Now, what is your
annual trade with China? It amounts to $10,452,000, and is therefore
greater than the aggregate trade of France and Germany with Japan. There
is another interesting feature in connection with your trade with China.
Taking from June, 1878, to December of that year, your trade amounted to
$5,151,329. It must be a matter of interest to you all to know how that
trade is made up. You exported to China, during the six months I refer
to, goods to the value of $3,307,582, while your imports were less than
that sum by $1,843,747.
“Your China trade, as well as that of the United States, is therefore not
only large but especially favorable to producers in Japan and to
exporters. It is also a trade favorable to the Government of Japan, for
by means of that trade you get specie imported into the country. And
having mentioned these facts, I am reminded of what occurred when I
introduced my friend Mr. Matsugata to the viceroy of Canton. The viceroy
of Canton, who rules 40,000,000 of people, said that the friendship of
China and Japan is more natural and will be of greater benefit to the
two empires than the friendship of China and Japan with any other power.
And when I reminded the viceroy that the trade of Great Britain with
Japan was about double the trade between Japan and China, the viceroy
said that in the future China would be the largest market for the
produce of Japan. I have estimated the trade of Hong-Kong last year at
$500,000,000. It is of interest to look at the authentic records
published by your government for the same period. Now what have you
exported to China? You have exported large quantities of rice, camphor
($177,000), large quantities of copper ($560,000), ginseng ($161,000),
coal, and dried fish. Nearly half a million of dollars’ worth of
cuttlefish alone has been exported from Japan; about $410,000 worth of
seaweed, and $130,000 worth of beche-de-mer. Now let me tell you that
the quantities of those articles consumed in China is enormous, and the
demand is so great that it is almost impossible for you to supply it. By
far the largest quantity of those articles come through Singapore under
the name of straits produce. The dried fins sharks, fish, different
kinds of seaweed, and various other articles come from Borneo, and the
straits produce [Page 641] travels 2,400
miles before it reaches Hong-Kong. Now you are 1,000 miles nearer to the
market than they; you produce the same articles, and why should you not
send more, having 1,000 miles in your favor, every practical gentleman
present ought to be able to answer. You send in one year 23,700,000
catties of wheat to China, and you send 735,000 catties of dour; so it
will be seen that the quantity of wheat greatly exceeded that quantity
of flour.
“I may now tell you, for your consideration as men of business, that the
Chinamen in Hong-Kong, for some years past, have imported great
quantities of flour instead of wheat from California. The great American
houses in Hong-Kong no longer import flour; it is imported by native
merchants who have the whole of that trade. Some of these merchants are
Chinese, born in Hong-Kong; in other words, Chinese British subjects.
But the advantage of Chinese importing is this, that they do business so
much cheaper, are so frugal and temperate, that they can sell the flour
at a cheaper rate than when it was in the hands of the American houses.
Now should not the traders in Japan, who send such large quantities of
wheat to China, send it in the form of flour? I need not point out to
you, there would be a saving of some 4,000 miles in in distance. The
British consul for Hakodate told me that Yezo will be able to supply the
whole of China—by the way of Hong-Kong or by any other way you
please—the whole of that populous empire with as much fruit as they may
require. And, he added, the government have done so much to develop the
fisheries in that island that the fish supplied to China from other
parts of the world will in futue be supplied from Yezo. And I may take
this opportunity of mentioning, for the benefit of some present, that
when Mr. Eusclen saw the report which was placed in my hands, he said
‘Those papers are perfectly true; there is no exaggeration in the
reports of the Japanese Government with regard to Yezo.’
“So much for what you are able to send to China and Hong-Kong for the
China market. I estimate that last year there were 50,000 tons of goods
transhipped from Hong-Kong to Japan. Now whoever promotes the prosperity
of Japan will add to those 50,000 tons of transhipped goods. Therefore,
I have, in what I am saying at this moment, a selfish interest. As the
governor of that important colony, I am bound to extend the commerce of
Great Britain with Japan and China. Therefore I maintain that every
subject of Queen Victoria is interested in the prosperity of this
empire. The English flag, as you know, flies in every sea, and British
ships carry by far the most produce from one country to another.
Therefore what I look to is the future prosperity of Japan through the
future development of British commerce and British manufactures; and
therefore, perhaps, I may be excused if I say one or two words upon what
I have seen in the few days I have been here as to the prosperity of
this empire. As a British subject I feel proud of the prosperity of
Japan, because I remember that at a great crisis in the history of your
country the British minister, Sir Harry Parkes, took an active part in
the restoration of that government which you now enjoy. Now one
remembers the state of this empire at the time when Sir Harry Parkes
labored so successfully in the restoration of the government; it is
impossible not to admit or see that Japan has made greater progress than
any other country in the world in the same space of time. There is much
to see, no doubt, and very much to learn of Japan. But I have seen what
has impressed me very much. I have seen an empire in which the court and
minister forming the government present a great contrast to Oriental
countries nearer Europe.
In Egypt, which is a small country when compared with the Empire of
Japan, I have noticed three differences between it and your empire. I
have seen the Khedive of Egypt and his ministers living in oriental
splendor and extravagance. I have seen the ministers of the Khedive
living in magnificent palaces, and with enormous and expensive retinues.
When I had the honor a few days ago of an interview with His Majesty the
Mikado, I saw a court in which true dignity was maintained, but about
which there was no extravagance. And you all know how the members of
your government, instead of squandering the finances, live the lives of
gentlemen, no doubt in proper style, without any extravagant outlay. And
another, and in an empire much smaller than yours, they raised a large
debt, but it was a foreign debt, a debt raised in foreign countries,
whereas I find that your public debt has been raised by your finance
minister, nearly all, by an internal loan, in which the people get the
interest; and the foreign debt is quite insignificant. I also noticed
what, of course, you are all more familiar with than I am, that there is
a remarkable difference in the way in which those debts were applied in
the two countries. In Egypt the debt was laid out in wild projects of
the Khedive, and in defraying the cost of his extravagances and the
extravagances of his ministers. Whereas I observe that your debt has
been expended in reproductive works, good for you and good for your
country.
“And as I have touched upon the foreign debt, I may as well tell you what
my observation as a governor has been relative to the difference between
the public debts, when compared with their populations, of different
countries. Your public debt, I calculate, is about 10 yen per head of the population. Well, I will just mention that
an important British colony, that of the Cape of Good Hope, has a debt
of £4,068,000, [Page 642] or 30 yen for each head of the population. Another
important British colony, the Dominion of Canada, has a public debt of
45 yen for each head of population. And I could
tell you of other flourishing British colonies, such as Australia, in
which the debt is far larger per head than the public debt of Japan. But
in all those British colonies the public debts are perfectly safe,
because, like Japan, they have been laid out in the promotion of
commerce and in the development of the resources of the colonies.
“And now for a final contrast between Egypt and this empire. At this
moment the great powers of England and France tell the Khedive that they
must appoint a minister of finance, because the debt is a foreign debt
due to Englishmen and Frenchmen; hence the danger of a foreign debt.
“In conclusion, I may tell you this, which makes a still more remarkable
contrast between your country and Egypt. It is not long since an
Englishman in charge of an eastern bank said, ‘I have entire confidence
in the finance minister of Japan and in the future-prospects of the
empire.’ But, gentlemen, whatever may be the undoubted financial ability
of Mr. O’Kuma, whatever may be the ability of the cabinet, it is really
your own enterprise and commercial skill that the ministers will have to
rely upon for the financial prosperity of the empire. Therefore,
gentlemen, in wishing success to the Tokei chamber of commerce, and in
wishing an increasing and profitable business to every merchant present,
I am wishing prosperity to the empire at large.”
Mr. Hennessy resumed his seat amid considerable applause, his discourse
having lasted about an hour.
Mr. Fukuchi, the vice-president, replied as follows:
“On behalf of the Tokei chamber of commerce, I have the honor to thank
your excellency for complying with our invitation. And we beg to express
our obligations for the valuable remarks and suggestions your excellency
has made with the object of promoting still more the commercial
relations between Japan, Hong-Kong, and Southern China. With your
excellency’s permission, I beg to say a few words in reply. Our country
is the immediate neighbor of China, separated only by a narrow channel
of sea, and its commerce is, as your excellency remarked, of special
interest and value to Japan. Hong-Kong occupies an important position
geographically and commercially, with respect to the two empires, and,
moreover, is, so to speak, a gateway of commerce also between Japan and
Great Britain, which latter country is the greatest nation engaged in
Oriental commerce. We, therefore, would ask your excellency to closely
observe the real position of commerce in Japan. Japan has two neighbors,
on the east the United States of America, on the west China; in the
commerce with both these neighbors, the balance of trade, as your
excellency pointed out, is in our favor, but I regret to say the balance
of trade between Japan and other foreign countries, in the aggregate, is
seriously against Japan, and, notwithstanding the gradual progress and
development of our industries, at present I cannot say our foreign
commerce is as advantageous or profitable to the nation as it should be,
and the revenue derived therefrom does not materially benefit our
finances to the extent that revenue of the same kind does in other
countries. This state of things continually causes the mercantile
community of Japan the greatest concern.
“Your excellency has rightly impressed upon us that we are ruled by a
good, patriotic emperor and most thoughtful and able ministers. Our
government supervise our finances, encourage our industries, and
promote, so far as it is in their power to do so, the commercial
development of the country; in short, they endeavor to leave nothing
undone to increase our welfare, and I believe the time is not far
distant when we shall occupy a commercial position second to none in the
East, if the efforts of the government are not thwarted. If, however,
the balance of trade continues against us in the future, then this time
will be almost indefinitely prolonged, not only to the detriment of
Japan, but to the detriment of the true commercial interests of foreign
nations. Still more, if our government is hampered in securing that just
and rational incidence of taxation, and that full measure of revenue
that we feel to be essential for the country and for facilitating
internal transit, by which the consumer and foreign producer may be
brought into closer commercial contact.
“There is no nation in the world which is sufficiently wealthy to supply
its wants entirely from foreign markets, and also no nation that can
entirely supply its own wants independently of foreign markets. So
commerce is nothing more than a barter of the products of each nation;
so it is in Japan; and, undoubtedly, your excellency is wise enough to
comprehend this far better than we can. Your excellency acknowledged to
be selfish in your desire to do the best you could for British commerce,
and if your excellency sincerely wishes to promote the real interests of
the great manufacturing and shipping industries of England, then they
must recognize the necessity of encouraging the industries and promoting
the exports of Japan’s products; in a word, must hope that the Japanese
may be prosperous enough to purchase in quantities the industries of
England. If Japanese industries are allowed to prosper, it follows the
import trade will increase in proportion; on the contrary, if the
industries of Japan [Page 643] are
repressed, the English manufacturers cannot expect to find a
satisfactory market for their goods in Japan. So it is that, either in
the immediate present or in the future, encouragement of our industries
and increase in the export of our products is not only the individual
interests of the people of Japan, hut the real advantage also of the
British manufacturers and ship-owners—more so, perhaps, than any other
foreign power, your excellency’s country having the greatest mercantile
marine in the world. There is an old Japanese maxim, that ‘if men wish
to profit themselves, they must allow others to profit;’ and I believe
the selfish object your excellency claims is no other than what is
contained in the moral of this maxim and is in reality unselfish.
“In conclusion, as regards the present commercial position of Japan, I
believe we are now approaching a point of development. I regret much
there are certain obstacles in the way—obstacles the removal of which I
maintain to be of vital national importance—they obstruct the
development of our finances, our commerce, and our industries, and it is
only natural for your excellency, interested as you are as the governor
of one of England’s most important commercial colonies, to distinguish
and to discern the nature of these obstacles and the course to adopt to
remove them. If these impediments are removed it is palpable that all
foreign commerce, but especially’s British commerce and shipping, in the
future will be promoted, and I think that no time should now be lost in
allowing full, fair play to the commercial development of this empire.
We have not failed to observe a depression in British shipping interests
of late—a depression due, we believe, not to any defect inherent in the
trade of England, but to the condition of the markets throughout the
world. That condition, as far as this empire is concerned, would be
reversed by our own legitimate development—a development which would
soon be traced in the increase of trade with your excellency’s
government and with Great Britain herself. I have only to add that we
gratefully appreciate the interest you have shown in the commercial
concerns of Japan with regard to the important British colony whose
government you administer so impartially and successfully.”—[Daily
Advertiser.]
