No. 412.
Mr. Hubbard to Mr. Bayard.

No. 282.]

Sir: In connection with the trade of the United States with Japan, about which a good deal has been written officially as well as unofficially of late, I have the honor to transmit herewith a leading article from the Japan Daily Gazette, commenting on the admitted fact of the recent increased trade between our two countries. The significant portion of the Gazette’s article is the embodied quotation (being a translation) from a native journal—the Tokyo Keizai Zasshi—suggesting a reciprocity convention, mutually abolishing import duties on petroleum and manufactured silk.

I merely direct attention to this proposed policy to show what the native press of Japan (which, like the press in America, largely reflects public sentiment) are thinking and saying on the subject of our trade relations. As to “raw materials,” the quid pro quo argument for reciprocity might be practicable if the exchange of products was of even value. As it is, we already admit over sixteen million dollars’ worth “raw silk” duty free, while Japan only buys in toto from our people a little over two millions, two-thirds of which is kerosene—on which duty is paid.

I have, etc.,

Richard B. Hubbard.
[Inolosure in No. 282—From the Japan Gazette, Yokohama, January 26, 1887.]

The rapidity with which Japanese trade with the United States is increasing, and the future importance of the American market to Japanese industries, are highly appreciated by the Japanese people, who have lately shown much energy in promoting commercial relations with their great neighbor. In the latest issue of the Tokyo Keizai Zasshi a suggestion of a reciprocal nature is made, which, if adopted, is thought would be the means of further increasing the import and export trade with the United States. Japan is urged to ask America to abolish the import duty on silk manufactures entering the country from Japan, but in doing so the latter is first to show her good-will by exempting kerosene oil from the payment of duty altogether. This latter step is to be taken in order to induce the United States Government to concede to Japan’s desire by way of reciprocity. It says: The exportation of our manufactured silk goods to the United States has made marked progress of late; and it is a notable fact that the activity that now prevails at Ashikaga, Kiribu, Nishijin, and other weaving districts is mainly attributable to the increasing exportation of silk stuffs produced there. Our Government must not, therefore, miss the opportunity thus presented for cementing our commercial relations with America. The policy of the United States of imposing protective duties on imported European goods, which are of excellent quality, may, in a manner, be reasonable, though peculiar in the abstract, but no one can discover the reason why protective duties should be imposed on goods imported from an infant country like Japan. America can, in fact, produce better articles than Japan, Japanese-made handkerchiefs and neck-ties, for example, are only imitations of American goods, and as Japanese artisans have but imperfect skill, their manufactures are naturally inferior in brilliancy and color to American-made goods. It is strange, therefore, that a country commanding superior skill should impose protective duties on inferior goods produced in another country. America, however, already allow sour raw silk and tea to be imported without the payment of duty, and we must, in consequence, do something in return for the favor the United States will confer by exempting Japanese silk stuffs from the present import duty of 50 per cent. This can be best done by abolishing the duty on kerosene oil. This oil now constitutes one of the imported articles most generally used; therefore, by allowing it to be imported free of duty the people of Japan will be able to procure it at a reduced price, and will feel as grateful as if an article of food had been relieved from a Government tax. We need hardly say that the [Page 659] benefits to be derived from the step suggested will be enjoyed by both Americans and Japanese. the Government should, therefore, propose to the United States Government that as we are willing to abolish the duty on keresene oil imported from their country, they ought to reciprocate and abolish all duties on Japanese manufactured silks entering America. If the negotiations succeed in bringing about this end no small benefit will result to the two countries. Japan is a silk-producing country, and thoughtful people hope Ashikaga, Kiribu, or Noshijin will be the future Manchester or Lyons of Japan. Hitherto, the fluctuation in prices and the consequent disturbances in the market have prevented the development of the silk industry, but now matters have changed; the economical affairs of the country are in good order, and the industry has commenced to improve. It is therefore gratifying in the extreme to see at this juncture the exportation of manufactured silk goods increasing; and if the duty of 50 per cent. on this class of articles imported into America be abolished, a great impetus will be given and the future prosperity of the Japanese industry secured. The import duty in America does not, however, give so much trouble as the tedious formalities attending the levying of the tax, which are indeed almost unendurable to Japanese merchants, who often lose good opportunities of disposing of their goods by the delay occasioned. Moreover, if the United States wishes to stand as a commercial country in the world she had better count Japan as one of the producing districts supplying her market. Tokio freely admits raw and manufactured silk from Maebashi, Fukushima, etc., considering those places as the producing districts for her market, from which latter she distributes the goods throughout the Empire. The United States should be to Japan what Tokio is to Maebashi, Fukushima, etc. From the above observations it is needless to say that little consideration is required to perceive the mistake the United States Government makes in levying protective duties on Japanese imported goods.