Japan's Export Trade, 1859-1899, With Special Reference to Silk, Tea and Coal.

3APAN * S EXPORT TRADE, 1 8 5 9 -1 8 9 9 , WITH SPECIAL REFERENCE TO

S IL K , TEA AND COAL

by

S hinya Sugiyama

S u b m itte d f o r th e degree o f D octor o f P h ilo s o p h y School o f O r i e n t a l and A fr ic a n S tu d ie s

U n iv e r s it y o f London

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A B S T R A C T

My i n t e n t i o n i s to c o n tr ib u t e to an u n d e rs ta n d in g o f Jap an ’ s economic developm ent in th e c o n te x t o f changes in th e w o rld economic s t r u c t u r e d u rin g th e second h a l f o f th e n in e te e n th c e n t u r y , and to c l a r i f y th e r o le o f e x p o rts o f p rim a ry p ro d u c ts i n i n d u s t r i a l i ­ z a t i o n , I focus on J ap a n ’ s e x p o rt tr a d e w ith r e fe re n c e to h e r th r e e main e x p o rt a r t i c l e s o f raw s i l k , te a and c o a l, which p la y e d a

s t r a t e g ic r o le as th e main source o f fin a n c e f o r h e r i n d u s t r i a l i z a t i o n , I have re vie w ed th e i n t e r r e l a t i o n s h i p between th e o v ers e as m arket

and th e developm ent o f th e s e e x p o rt i n d u s t r i e s , in both i t s q u a n ti­

t a t i v e and q u a l i t a t i v e a s p e c ts , exam ining in p a r t i c u l a r th e q u e s tio n o f i n t e r n a t i o n a l c o m p e titiv e n e s s . E xp o rts o f raw s i l k and t e a ,

which were p ro d u c ts o f t r a d i t i o n a l i n d u s t r i e s , developed in co n n e ctio n w ith th e European and American m a rk e ts , where th e y competed w ith

C hinese p ro d u c ts ; c o a l was developed as a modern in d u s tr y by th e Z a ib a ts u f o r th e A sian m a rk e t, and s o ld in c o m p e titio n w ith e x p o rts from B r i t a i n and A u s t r a l ia , The developm ent o f th e s e in d u s t r ie s was encouraged by v a rio u s forms o f i n s t i t u t i o n a l s u p p o rt from th e M e i j i governm ent, I conclude t h a t success in e x p o rtin g depended on th e degree to which e x p o rts c o u ld compete in th e o v e rs e a s m a rk e t. T h is i n tu rn b a s i c a ll y depended on f a c to r s o f q u a l i t y , supply and p r i c e . In th e case o f s i l k and c o a l, Japan was a b le to in c r e a s e e x p o rts

through a d ju stm e n t to o v e rs e a s demand, m a in ly a d ju s tm e n ts in p ro d u c tio n c o s ts and te c h n o lo g y . She was a id e d by fa v o u ra b le i n t e r n a t i o n a l

economic f a c t o r s such as th e d e p r e c ia tio n in th e v a lu e o f s i l v e r . Tea p ro v id e s a c o n tr a s t in g example o f a case where Japan f a i l e d to m a in ta in c o m p e titiv e n e s s , due to u n fa v o u ra b le m arket c o n d itio n s .

P rim a ry m a t e r ia l has come m a in ly from B r i t i s h and U n ite d S ta te s c o n s u la r r e p o r t s , th e S a rd in e Matheson A r c h iv e , pap ers in th e P u b lic Record O f f i c e , Japanese and Chinese re c o rd s , and o f f i c i a l s t a t i s t i c s .

iii

CONTENTS

L i s t o f T a b le s ... i v L i s t o f F ig u r e s ...v i i

I n t r o d u c t io n ... 1

I . The F ar E ast in th e I n t e r n a t i o n a l E c o n o m y , . , . . . , . , . . . 3 I I . J ap a n ’ s T ra d e P o lic y and H er I n d u s t r i a l i z a t i o n

1 . T r e a t ie s and T a r i f f s . . . ... 10 2 . Bakufu T rad e P o lic y : R e s t r ic t io n and C o n t r o l . . 11 3 . The Economic and T rad e P o l ic i e s o f th e M e i j i

G o vern m en t.. . . ... ... 15 4 . T r e a ty P o rt T r a d e ... 26 I I I . The Development o f F o re ig n T ra d e ... 39

I V . The Development o f S i lk E xp o rts

1. The Development o f Raw S i lk E xp o rts 1 8 5 9 -1 8 9 9 :

A Q u a n t it a t iv e S u r v e y ... 54

2 . S i lk E x p o rts and th e European M a r k e t ... 67 3 . S i lk E xp o rts and th e U n ite d S ta te s M a r k e t . . . ... 87 4 . The Development o f th e S i lk In d u s tr y in Japan... . 1 0 5 5 . The S i lk B usiness and T r a n s p o r t a t io n ... . . 1 2 3 V. The Development o f Tea E xp o rts

1 . The Development o f Tea E xp o rts 1 8 6 1 -1 8 9 9 :

A Q u a n t it a t iv e S u rv e y ... 132 2 . C o m p e titio n in th e U n ite d S ta te s M a rk e t... • • • • • • • 1 4 0 3 . The Development o f th e Tea In d u s tr y i n J a p a n *. . . 1 4 6 4 . The Tea Business and T r a n s p o r t a t io n ...157 V I , The Development o f C oal E xp o rts

1* Coal and th e F a r E a s t . . . ... 163 2 , The S tr u c tu r e o f th e Shanghai Coal M a rk e t...• • • • 1 6 8 3 , The S tr u c tu r e o f th e Hongkong Coal M a r k e t . ... . . . . 1 7 8 4 , The S tr u c tu r e o f th e S in g ap o re Coal M a rk e t..., . . . 1 8 6 5 , Coal and B r i t i s h C o lo n ia l D efen ce... . . . , 1 9 5 6 , C oal E xp o rts and th e Development o f th e Coal

In d u s tr y i n Japan...203 7 , J ap a n ’ s Coal E x p o rts and th e E a s te rn C oal

M a r k e t , ... 221 V I I , C o n c lu s io n ... . . 2 2 6

F o o tn o te s ... .2 3 6

B ib lio g r a p h y ... 310

LIS T OF TABLES

1 , S i l k and Tea E xp o rts from Japan and China 1 8 7 0 -1 9 0 0 ..., 9 2 , Volume o f Raw S i lk h a n d led by th e S i lk G u ild in Edo

1 8 5 6 -1 8 6 3 12

3 , J a p a n 's T o t a l Trade 1 8 6 8 - 1 9 3 0 ,, ... 18 4 , Number and Tonnage o f F o re ig n V es s els e n te r in g

th e Open P o r ts o f Japan 1 8 7 0 -1 8 9 0 ... 24 5 , Number o f Firm s and R e s id e n ts a t th e T re a ty P o rts

by N a t i o n a l i t y 1 8 7 0 - 1 8 9 0 , , , , . ... 28 6 , Number o f W estern Firm s a t th e T r e a ty P o rts by

N a t i o n a l i t y i n 1870 and 1880... 29 7 , E xp o rts and Im p o rts by Japanese and F o re ig n M erchants

1 8 7 7 -1 9 0 0 31

8 , A pproxim ate P e rc e n ta g e o f th e P r in c i p a l A r t i c l e s o f Im p o rt and E x p o rt a t Yokohama in 1889 by N a t i o n a l it y

o f F irm s ... 32

9 , J a p a n 's F o re ig n Trade 1 8 6 0 -1 8 8 0 ... 40 10, Annual Average o f J a p a n 's F o re ig n T ra d e by Commodity

C ateg o ry 1 8 6 8 -1 9 3 5 ... 42

11, Annual Avarage o f J a p a n 's F o re ig n Trade by Region

1 8 7 3 -1 9 3 5 ... 45

1 2, P r in c i p a l A r t i c l e s o f E x p o rt and Im p o rt 1 8 6 8 -1 9 3 0 , ... • • • 51 1 3, Annual A verage o f W orld Raw S i lk P ro d u c tio n 1 8 7 1 - 1 9 0 0 , , . , . , , , 55 1 4, Raw S i lk E x p o rts from Japan 1 8 6 0 / 6 1 - 1 8 7 5 / 7 6 , , . . . ... 57 1 5, D i s t r i b u t i o n o f Raw S i l k E x p o rts from Japan

by Country 1 8 6 0 /6 1 -1 8 7 2 /7 3 ... 58 16, Annual Average o f S i l k E x p o rts from Shanghai 1 8 6 0 -1 8 9 9 ... 60 1 7, S i l k E xp o rts from Japan 1 8 6 8 -1 8 9 9 ,... 62 1 8, D i s t r i b u t i o n o f Raw S i l k E x p o rts from Japan

by C ountry 1 8 7 3 -1 9 3 0 ... 65 19, A r r i v a l s o f Rau S i lk a t M a r s e ille s 1 8 5 9 -1 8 7 2 ... 68 2 0 , Im p o rts o f S i l k in t o France 1 8 6 7 -1 8 6 9 ... 70 2 1 , Im p o rts and R e -e x p o rts o f Raw S i lk i n t o and from

B r i t a i n 1 8 5 9 - 1 8 9 4 . . . ... 71 2 2 , Annual Average Im p o rts o f Rau S i lk in t o B r i t a i n

1 8 3 1 -1 8 5 6 ... 73 2 3 , Raw S i lk Im p o rts in t o B r i t a i n by Country 1857—1872 • • • 74 2 4 , Rau S i lk Im p o rts in t o B r i t a i n by Country 1 8 7 3 - 1 8 9 4 .. ... 75

V

2 5 . Developm ent o f th e S i lk In d u s tr y i n th e U n ite d

S ta te s 1 8 5 0 -1 9 1 0 ... 88 2 6 . D i s t r i b u t i o n o f th e V alu e o f P ro d u c ts in th e

U n ite d S ta te s S i lk In d u s tr y 1 8 7 5 -1 9 1 0 ... 89 2 7 . Number o f Looms in th e U n ite d S ta te s 1 8 7 0 -1 9 0 0 ... 91 2 8 . Im p o rts o f S i lk Goods and Domestic S i lk P ro d u c tio n

i n th e U n ite d S ta te s 1850—1900... 92 2 9 . Rau S i l k Im p o rts i n t o th e U n ite d S ta te s 1 8 7 3 -1 8 9 9 ... 97 3 0 . P ro d u c tio n and E x p o rts o f Rau S i l k from Japan 1 8 7 8 - 1 8 9 9 . . . . 114 3 1. P r o p o r tio n o f Each S i lk D e s c r ip tio n o f th e T o ta l

Rau S i l k E x p o rts 1 8 7 3 /7 4 -1 8 7 6 /7 7 ...114 3 2. D i s t r i b u t i o n o f Rau S i lk D e liv e r ie s to Yokohama

1 8 7 6 -1 8 9 2 ...116 3 3 . Rau S i lk E x p o rts by W estern and Japanese M erchants

1 8 7 5 -1 9 2 0 ...120 3 4 . E x p e n d itu re i n Rau S i l k P r o d u c t i o n .. ...122 3 5 . S i l k E x p o rts from Yokohama by Firm f o r th e Season

1 8 6 6 -6 7 ... ...124 3 6 . L i s t o f S i l k E x p o rtin g Firm s from Shanghai f o r

th e Season 1 8 6 6 -6 7 ... .. 1 2 6 3 7 . Summary o f Accounts o f th e S i lk Trade by S a r d in e ,

M atheson, 4 Co. 1 8 6 7 /6 8 -1 8 7 1 /7 2 ... 127 3 8 . S i l k E x p o rts by Firm f o r th e Seasons 1 8 7 7 /7 8 and 1 8 9 0 / 9 1 . . . 129 3 9. Rau S i l k F r e ig h ts from Japan in th e 1 8 6 0 s ... . . 1 3 1 4 0 . Rau S i lk F r e ig h ts from Japan i n 1 8 8 0 . . . ...1 3 1 4 1 . Tea E x p o rts from Japan 1 8 6 2 /6 3 - 1 8 7 2 /7 3 . ... * . . 1 3 3 4 2 . Tea E x p o rts and P ro d u c tio n from and i n Japan 1 8 6 8 - 1 8 9 9 . . . 1 3 4 4 3 . Green Tea E x p o rts from Japan by C ountry 1 8 7 3 - 1 8 9 9 . . . ... 136 4 4 . Tea E x p o rts from China 1 8 6 6 - 1 8 9 9 .. ... . . . 1 3 8 4 5 . D i s t r i b u t i o n o f Green Tea E x p o rts from China

by C ountry 1 8 6 8 -1 3 9 9 ... . . . 1 3 9 4 6 . Im p o rts o f T e a , C o f fe e , and Cocoa and C h o c o la te

i n t o th e U n ite d S ta te s 1 8 5 1 - 1 9 0 0 . . . ...141 4 7 . D ir e c t Tea E x p o rts from Japan 1 8 7 5 - 1 9 1 0 . . . ... 154 4 8 . Tea E x p o rts from Yokohama by D e s tin a tio n and Route

1 8 7 8 -1 8 9 1 160

4 9 . Annual Average Coal E x p o rts from B r i t a i n by Region

1 8 5 0 -1 8 9 9 ...167 5 0 . Number and Tonnage o f V e s s e ls e n te r in g th e P o r t o f

Shanghai 1 8 5 6 -1 8 9 5 ...168

5 1 . Im p o rts o f F o re ig n C oal to Shanghai 1 8 5 8 -1 8 6 4 ...169 5 2 . Im p o rts o f C oal to Shanghai 1 8 6 4 -1 8 9 9 ... 170 5 3 . D is ta n c e between Main Coal P roducing C o u n trie s

and th e E a s te rn C oal M a rk e t... • • • • • 1 7 4 5 4 . Number and Tonnage o f V e s s e ls e n te r in g th e P o rt o f

Hongkong 1 8 6 0 -1 9 0 0 ... • • • • • 1 7 9

5 5 . Im p o rts o f C oal to Hongkong 1 8 7 0 -1 8 7 5 ... .* 1 7 9 5 6 . Im p o rts o f C oal to Hongkong 1 8 7 7 -1 8 9 9 ... . . . 1 8 0 5 7 . Number and Tonnage o f V e s s e ls e n te r in g th e P o rt o f

S in g ap o re 1 8 7 0 - 1 9 0 0 .. ... .1 8 6 5 8 . Im p o rts o f C oal to S in g ap o re 1 8 8 0 -1 9 1 0 ... 187 5 9 . P r ic e S tr u c tu r e o f C oal im p o rte d in t o S in g ap o re

from B r i t a i n , A u s t r a lia and Japan 1 8 8 0 - 1 8 9 9 . • • • • ... . 1 9 2 6 0 . D i s t r i b u t i o n o f A u s t r a lia n ( N .S .W .) Coal E x p o rts

1 8 6 1 -1 9 0 0 ...194 6 1 . C oal Supply f o r th e Use o f B r i t i s h Navy in East A s ia

1 8 5 7 -5 9 * ... 195

6 2 . C oal Consumption f o r B r i t i s h N a v a l Use a t Nagasaki

and Yokohama 1 8 7 8 /7 9 -1 8 8 1 /8 2 . • • • • • • ... • • • . 2 0 0 6 3 . C oal E x p e n d itu re a t D i f f e r e n t Depots o f th e China

S t a t io n 1 8 9 8 /9 9 -1 9 0 2 /0 3 ... 200 6 4 . C oal Consumption a t th e China S ta tio n in 1900... . . . 2 0 2 6 5 . Japanese C oal O u tp u t and E x p o rts o f C oal from

Japan 1 8 6 8 -1 8 9 9 ... 204 6 6 . Number and Tonnage o f V e s s e ls e n te r in g th e P o rt o f

N ag asaki 1 S 6 0 -1 8 9 5 ... . . . 2 0 5 6 7 . D i s t r i b u t i o n o f C oal a t N agasaki i n 1 8 7 2 ...• . . . . 2 0 5 6 8 . Shipm ents and S a le s o f Takashim a C oal 1 8 7 2 -1 8 9 5 ... .2 1 0 6 9 . Pro forma S a le s o f 1 to n o f Takashima Lump Coal

a t Shanghai i n 188 2 ... .21 1 7 0 . Shipm ents and S a le s o f M iik e C oal 1877—1 8 9 9 . . ...• • • • • 2 1 4 7 1 . P ro d u c tio n Cost o f M iik e Coal 1 8 8 0 -1 8 8 7 ...2 1 5 7 2 . C oal Consumption i n Japan 1 8 8 4 - 1 9 0 0 . , . ... . . 2 1 9 7 3 . C oal E x p o rts from Japan by P o r t 1 8 9 4 -1 8 9 8 ... .2 2 0 7 4 . Coal E x p o rts by Japanese M erch an ts 1882—189 5 ... . . 2 2 2 7 5 . C oal E x p o rts by D e s tin a t io n and by Ship in 1 8 9 6 . • • • . . . • • • • . 2 2 2 7 6 . Jap a n *s C oal E x p o rts and th e E a s te rn C oal M a rk et

1 8 7 1 -1 8 9 9 ...223 7 7 . Japanese Raw S i lk i n th e U n ite d S ta te s M a r k e t . . ... .2 2 9 7 8 . Japanese C oal in th e E a s te rn M a rk e t... • • • • 2 3 2

LIST OF FIGURES

1. D e p r e c ia tio n i n S i l v e r V alu e 1 8 7 2 -1 9 0 0 ...• • • • • 7 2 . Jap a n *s T o t a l E x p o rts and S i lk E xp o rts 1 8 6 8 -1 9 0 0 ... . 63 3* Raw S i l k E x p o rts to th e U n ite d S t a t e s , France

and B r i t a i n 1 8 7 3 -1 9 0 0 .. ... 66 4 . P r ic e F lu c tu a t io n s o f Im p a rte d Raw S i lk in

th e London M a rk e t 1 8 6 0 -1 8 9 9 . ... 82 5 . P r ic e F lu c tu a t io n s o f Im p o rte d Raw S i lk in

th e Lyons M a rk e t 1860—1879... 84 6 . P r ic e F lu c tu a tio n s o f Im p o rte d Raw S ilk in

th e Lyons M a rk e t 1 8 8 2 -1 8 9 9 ... 85 7 . Annual A verage P r ic e s o f Im p o rte d Raw S i lk in t o

th e U n ite d S ta te s 1 8 7 3 - 1 8 9 9 . . . ... 98 8 . P r ic e s o f Japanese Tea a t Yokohama 1 8 6 7 -1 8 8 3 ... . . . 1 5 0 9 . P r ic e F lu c tu a tio n s o f Im p o rte d C oal i n th e

Shanghai M a rk e t 1 8 6 8 -1 8 9 9 ... . . . . 1 7 6 1 0. P r ic e F lu c tu a tio n s o f Im p o rte d C oal in th e

Hongkong M a rk e t 1 8 7 3 -1 8 9 9 ... . . . . 1 8 4 1 1 . P r ic e F lu c tu a tio n s o f Im p o rte d Coal in th e

S in g ap o re M a rket 1880—1900... . . . 1 9 1

ABBREVIATIONS

BPP. JAPAN; I r i s h U n iv e r s ity Area S tu d ie s S e r ie s , B r i t i s h P a r lia m e n ta r y P a p e rs . JAPAN. 10 v o ls . (Shannon:

I r i s h U n iv e r s it y P re s s , 1971)

BPP. CHINA: I r i s h U n iv e r s it y Area S tu d ie s S e r ie s , B r i t i s h P a r lia m e n ta r y P a p e rs . CHINA. 42 v o ls . (Shannon:

I r i s h U n iv e r s it y P re s s , 1971)

CR: B r i t i s h C o n s u la r R eport (C o m m ercial R e p o rt)

DCRTF: D ip lo m a tic and C o n s u la r R ep o rt on T rad e and F in an ce IMC: C h in a , Im p e r ia l M a ritim e Customs

JMA: J a r d in e Matheson A rc h iv e LTES: Choki K e iz a i T o k e i

MZSHS: M e i.ii Z e n ki Sanqyo H a tta ts u S h i S h iry o

NCH: The N o rth China H e ra ld and Supreme C o u rt and C o n s u la r G a z e tte

PCMR: P r ic e s C u rre n t and M a rk et R eports in th e J a r d in e Matheson A rc h iv e

MEASUREMENT

1 p i c u l = 100 k in = 6 0 .5 2 k g . = 1 3 3 .3 3 l b . 1 kan = 3 .7 5 k g . = B .27 l b .

1 b a le ( o f Japanese s i l k ) * about 100 l b . 1 cho = 9 9 .1 7 4 a c re s

Japanese names a re g iv e n i n th e custom ary Japanese o r d e r o f fa m ily name fo llo w e d by g iv e n n am e,except when g iv in g th e Japanese a u th o rs o f works p u b lis h e d i n E n g lis h .

CR i s c i t e d by y e a r and p la c e : f o r in s ta n c e , irCR 1 8 6 9 , Kanagawa"

in d ic a t e s "Com m ercial R ep o rt on th e Trade o f Kanagawa f o r th e Y e a r 1 8 6 9 ".

1

INTRODUCTION

The o pening o f Japan to fo r e ig n tr a d e i n 1859 s t i p u l a t e d t h a t h e r consequent economic developm ent took p la c e i n th e changing

i n t e r n a t i o n a l economic s it u a t i o n o f th e second h a l f o f th e n in e te e n th

(

)

c e n tu r y ; A s tu d y o f Japanese modern economic developm ent must t h e r e f o r e ta k e i n t o c o n s id e r a tio n n o t o n ly dom estic f a c t o r s such as th e p re v io u s developm ent i n a g r ic u l t u r e and r u r a l i n d u s t r ie s

(

)

b u t a ls o i n t e r n a t i o n a l economic and p o l i t i c a l f a c t o r s ; A t th e s t a r t i n g p o in t o f h e r i n d u s t r i a l i z a t i o n Japan facBd an i n t e r n a t i o n a l en viro n m en t s i m i l a r to t h a t e n co u n tered by o th e r contem porary

d e v e lo p in g c o u n tr ie s ; h e r tr a d e th e r e f o r e had to b e g in on " c o l o n i a l ” o r " m o n o c u ltu ra l” l i n e s , e x p o r tin g th e p rim a ry p ro d u c ts o f t r a d i t i o n a l i n d u s t r ie s and im p o rtin g m an u factu red goods in accordance w ith th e

( 3 ) e x is t in g i n t e r n a t i o n a l d iv is io n o f la b o u r;

Many s tu d ie s have been made o f th e r o l e o f e x p o rts as a le a d in g ( 4 )

s e c to r o f economic d evelopm ent; E x p o rts p la y e d such a s t r a t e g i c and c r u c i a l r o l e i n J a p a n 's i n d u s t r i a l i z a t i o n t h a t th e main f i n a n c i a l source o f th e f o r e ig n c u r r e n c ie s needed f o r i n d u s t r i a l i z a t i o n came

( 5 )

from e x p o rts o f th e p ro d u c ts o f t r a d i t i o n a l in d u s t r i e s ; 7 The s t a t e fu n c tio n e d as a c o o r d in a t o r o r o r g a n iz e r o f th e w hole economy,

supplem en tin g th e low r a t e o f c a p i t a l a c c u m u la tio n i n th e p r i v a t e s e c to r and f a c i l i t a t i n g i n d u s t r i a l i z a t i o n by d i r e c t o r i n d i r e c t

v ( 6 ) s u p p o rt;

My p rim a ry concern i n t h i s th e s is i s to a n a ly s e J ap a n ’ s a t t a i n ­ ment o f modern economic developm ent i n th e c o n te x t o f a w o rld w id e

( 7 )

economic and h i s t o r i c a l p e r s p e c t iv e ; I w i l l fo c u s on th e e x p o r tin g o f s i l k , te a and c o a l, which p la y e d a d e c is iv e r a l e i n J a p a n 's e a r ly

i n d u s t r i a l i z a t i o n , c o n s id e rin g th e i n t e r r e l a t i o n s h i p between th e o v ers e as m a rk e t and th e developm ent o f th ese e x p o rt i n d u s t r i e s , from th e v ie w p o in ts o f both demand and s u p p ly , and c l a r i f y th e r o l e o f p rim a ry p ro d u c ts e x p o rts i n i n d u s t r i a l i z a t i o n . Raw s i l k and te a were p ro d u c ts o f t r a d i t i o n a l in d u s t r ie s and developed i n c o n n e c tio n w ith th e European and American m a rk e ts , w h ile c o a l was th e p ro d u c t o f an e x t r a c t i v e in d u s tr y developed by Z a ib a ts u ( f i n a n c i a l c liq u e s ) such as M its u b is h i and M it s u i f o r th e A sian m a rk e t.

The p e r io d which I w i l l c o v e r d e a ls w ith th e opening o f 3apan i n 1859 up u n t i l 1 8 9 9 , when 3apan o b ta in e d a t l e a s t p a r t i a l t a r i f f autonomy. T h is w i l l a llo w com parison o f 3apan w ith China because d u rin g t h i s p e r io d th e two c o u n tr ie s were i n a s i m i l a r economic s i t u a t i o n , both la c k in g t a r i f f autonomy, both respond ing to a

W estern c h a lle n g e and both e x p o r tin g th e same a r t i c l e s , raw s i l k and t e a .

C h a p te r 1 re v ie w s th e i n t e r n a t i o n a l economic s it u a t i o n fa c in g th e F a r E a s t d u rin g th e p e r io d under c o n s id e r a tio n , C h a p te r 2 th e economic and t r a d e p o l i c i e s o f th e Bakufu and th e H e i j i governm ent and th e n a tu re o f t r e a t y p o r t t r a d e , and C h a p te r 3 lo o k s a t th e g e n e ra l tr e n d o f 3 ap a n *s p re w a r fo r e ig n t r a d e . In C h a p te rs 4 , 5 and 6 , th e developm ent o f s i l k , te a and c o a l e x p o rts w i l l be q u a n t i t a t i v e l y and q u a l i t a t i v e l y a n a ly s e d ,p la c in g th e do m estic developm ent o f each in d u s tr y i n th e c o n te x t o f i n t e r n a t i o n a l compe~

t i t i o n on th e o v ers e as m a rk e t.

3

CHAPTER I

The F a r E a s t i n th e I n t e r n a t i o n a l Economy

B r i t a i n was th e p i v o t o f th e i n t e r n a t i o n a l economy th ro u g h o u t

(

)

th e n in e te e n th c e n tu r y ; In th e 1850s and 1860s w o rld tr a d e

expanded on th e b a s is o f B r i t a i n ’ s f r e e - t r a d e p o lic y w ith in c r e a s in g developm ents i n n o t o n ly t r a n s p o r t a t io n and te ch n o lo g y b u t a ls o

(

)

re s o u rc e s and m a rk e ts ; The t o t a l e s tim a te d v a lu e o f w o rld tr a d e r a p id ly in c re a s e d from £800 m i l li o n s i n 1850 to £ 1 ,4 5 0 m i l li o n s

i n 1 8 6 0 , £ 2 ,8 9 0 m i l li o n s i n 1 8 7 2 -7 3 and £ 3 ,9 0 0 m i l li o n s i n 1 8 9 5 -9 9 l3 ^ The an n u al ave ra g e growth r a t e o f w o rld tr a d e was 4 ,8 4 p e r c e n t f o r

( 4 ) th e p e r io d 1 8 4 0 -6 0 , re a c h in g 5 .5 3 p e r c e n t f o r th e p e r io d 1 8 6 0 -7 0 ; '

( 5 ) B r i t a i n r e ta in e d h e r p o s it io n as ’’ th e workshop o f th e w o rld ” , s p e c i a li z i n g h e r tr a d e p a t t e r n o f e x p o rtin g m an u factu red goods and im p o rtin g raw m a t e r ia ls and f o o d s t u f f s , and o r g a n iz in g le s s

i n d u s t r i a l i z e d and undeveloped c o u n tr ie s in t o th e i n t e r r e l a t e d i n t e r n a t i o n a l d i v is io n o f la b o u r . By 1 87 0 s, B r i t a i n had become dependent on e x t e r n a l t r a n s a c t io n s ^ ^ j u s t when h e r c o m p e titiv e

p o s it io n was b e in g made s t e a d i l y more d i f f i c u l t as new ly i n d u s t r i a l i z e d c o u n tr ie s such as Germany and th e U n ite d S ta te s developed w ith o u t

(7)

fo llo w in g B r i t a i n ’ s f r e e - t r a d e p o l i c i e s . These c o u n tr ie s in c re a s e d t h e i r i n t e r e s t i n th e non-European w o rld both as an e x p o r t m arket

( 8 )

and as an e s s e n t ia l source o f p rim a ry p ro d u c ts . I n th e 1 8 7 0 s , t h e r e f o r e , th e demand f o r p rim a ry p ro d u c ts r a p id ly grew due to th e sp read o f i n d u s t r i a l i z a t i o n i n Europe and th e U n ite d S t a t e s . T h is fo rc e d th e w o rld w id e su p p ly and demand r e la t io n s h ip betw een th e p rim a ry p ro d u cin g and th e develo p ed c o u n tr ie s in t o a d i f f e r e n t and

( g )

more c o m p lic a te d p a t t e r n ; The share o f p rim a ry p ro d u c ts i n w o rld tr a d e was 6 2 . 3 - 6 4 . 4 p e r c e n t on averag e f o r th e p e r io d 1 8 7 6 -8 0 to

1 89 6 -1 90 0 ta k e n I n q u in q u e n n ia l te rm s^ 1 0 ^; i n t e r n a t i o n a l t r a d e i n p rim a ry p ro d u c ts in c re a s e d i n volume a t a r a t e o f about 17 p e r c e n t

( 11

)

p e r quinquennium from th e m id -1 88 0 s to W orld War I ; The r a t i o o f p rim a ry p ro d u c ts as e x p o rts o f u n d erd evelo p ed c o u n tr ie s was as h ig h as 9 7 ,6 p e r c e n t f o r th e p e r io d 187 6 -8 0 and 9 1 .6 p e r c e n t f o r th e p e r io d 1 8 9 6 -1 9 G o !1 2 ^

I n th e fa c e o f i n t e n s i f i e d c o m p e titio n from new ly i n d u s t r i a l i z e d c o u n t r ie s , B r i t a i n g r a d u a lly l o s t h e r c o m p e titiv e n e s s i n th e

( 1 3 )

e s ta b lis h e d m arket and was com pelled to m o d ify h e r t r a d e p a t t e r n (1 4 )

both in term s o f com m odities and a re a s ; B r i t a i n responded i n th e s h o rt term by s h i f t i n g h e r m a jo r e x p o rt m arkets from Europe and N o rth Am erica to o th e r m a rk e ts , p a r t i c u l a r l y to In d ia and th e F a r

(1 5 )

E a s t, w h ile in c r e a s in g e x p o rts o f c a p i t a l to N o rth and South

(

}

Am erica and h e r c o lo n ie s . By th e f i r s t decade o f th e t w e n tie th c e n t u r y , I n d ia and th e F a r E as t were becoming key e lem en ts i n th e

( 1 7 ) B r i t i s h t r a d in g system and th e m u l t i l a t e r a l s e ttle m e n t;

The d e c lin e i n e x p o rts o f m an u factu red goods le d B r i t a i n * s v i s i b l e m erchandise tr a d e in t o co n tin u o u s d e f i c i t . The d e f i c i t reach ed an a n n u a l a ve ra g e o f £ 1 2 4 ,5 6 0 ,0 0 0 o v e r th e p e r io d 1876—8 0 , b u t t h i s in c r e a s in g tr a d e d e f i c i t was more th an compensated f o r by th e i n v i s i b l e e a rn in g s from i n t e r e s t r e c e ip t s and b u sin ess s e r v ic e s

(

)

such as b a n k in g , in s u ra n c e and s h ip p in g ; ' B r i t a i n was a b le to a d ju s t h e r r o le i n th e i n t e r n a t i o n a l economy by changing h e r tr a d e p a t t e r n s and in c r e a s in g th e s tr e n g th o f h e r i n t e r n a t i o n a l f i n a n c i a l p o s i t i o n . The re m a rk a b le developm ent o f lo n g -d is ta n c e com m unication by te le g r a p h and c a b le and th e fo rm a tio n o f a netw ork o f m a rin e tr a n s p o r t a t io n by B r i t i s h s h ip p in g companies en ab led B r i t a i n to m a in ta in h e r im p o rta n ce 'to th e mechanisms o f i n t e r n a t i o n a l tr a d e

and fin a n c e i n t o th e l a t s n in e te e n th c e n tu ry ; (19)' London became

" th e w o r ld ’ s main c e n tr e o f i n t e r n a t i o n a l b a n k in g , fin a n c e and i n s u r a n c i n g " ^ ^ and th e g r e a t e r p a r t o f i n t e r n a t i o n a l t r a d e was

(2 1)

conducted i n s t e r l i n g ; By th e 1 8 9 0 s , nth e netw ork o f m u l t i l a t e r a l tr a d e was w e ll advanced a lo n g th e l i n e s o f developm ent which were

(

)

tu r n in g i t i n t o a s in g le complex i n t e r - l o c k i n g p a t t e r n . "

W h ile h e r dependence on heavy im p o rts o f fo o d s tu f fs and raw m a t e r ia ls ( 2 3 )

c o n tin u e d to in c re a s e a f t e r 1 8 8 0 , t h i s p o s it io n i n th e i n t e r n a t i o n a l economy was changing B r i t a i n ’ s tr a d e p a t t e r n s . In th e 1890s th e

s t r u c t u r e o f h e r e x p o rt tr a d e changed i n th e d i r e c t i o n o f f u r t h e r r e lia n c e on e x p o rts o f a few in d u s t r i e s such as t e x t i l e s , ir o n and

( 2 4 ) s t e e l , and c o a l, r e s t r i c t i n g h e r t r a d in g o p p o r t u n it ie s ;

F u rth e rm o re , a g g ra v a tin g term s o f tr a d e f o r p rim a ry p ro d u c in g c o u n tr ie s from 1870 caused a d e c lin e i n p u rc h a s in g power i n th e s e

( 2 5 ) c o u n tr ie s and a f f e c t e d th e growth o f m an u factu red goods e x p o r ts ;

T h is le d to a r e t a r d a t io n i n B r i t a i n ' s i n d u s t r i a l growth and com p eti—

( 2 6 ) t i v e power;

The developm ent o f te le g r a p h ic com m unication and o f means o f tr a n s p o r t a t io n la y b eh in d B r i t a i n ’ s change o f r o l e i n th e l a t e

(2 7 )

n in e te e n th c e n tu r y ; These developm ents c o m p le te ly a l t e r e d th e p a t t e r n o f F a r E a s te rn tr a d e by c r e a t in g d i r e c t l i n k s w ith th e

( 28 )

European and Am erican m a rk e ts . In p a r t i c u l a r , as we s h a l l see l a t e r , th e opening o f th e Suez C an al and th e c o m p le tio n o f th e T r a n s - C o n tin e n ta l R a ilw a y i n th e U n ite d S t a t e s , b oth i n 1 8 6 9 , had a

( 2 9 ) c r u c i a l in f lu e n c e on th e exp an sio n o f Dapan’ s f o r e ig n t r a d e .

The F a r E a s t was d i r e c t l y lin k e d to th e European m a rk e t by th e e x te n s io n o f t e le g r a p h ic com m unication i n th e e a r ly 1 8 7 0 s . A c a b le between S in g ap o re and Hongkong was c o n s tru c te d i n 1871 by th e E a s te rn

E x te n s io n A u s tr a la s ia and China T e le g ra p h C o . ( B r i t i s h ) ; th e G re a t N o rth e rn T e le g ra p h C o .(D a n is h ) extended a l i n e acro ss S ib e r ia to N ag asaki and thence to Shanghai and H o n g k o n g ! T h i s e x te n s io n o f

th e te le g r a p h netw ork changed th e e s t a b lis h e d com m ercial p a t t e r n and th e n a tu re o f f i n a n c i a l p ro c ed u re s through a llo w in g th e use o f t e le g r a p h ic t r a n s f e r s and th e r e c e p tio n o f im m ediate in fo r m a tio n

(

)

about c u r r e n t p r ic e s on th e European m a rk e t. 1

The E ar E as t was a ls o b ro u g h t c lo s e r to th e European and Am erican ( 3 2 )

m a rke ts by th e developm ent o f ocean s h ip p in g r o u te s ; The P en in su ­ l a r and O r i e n t a l Steam N a v ig a tio n Co. began a f o r t n i g h t l y s e r v ic e to China in 1853 and s t a r t e d a r e g u la r s e r v ic e between Shanghai and

( 3 3 ) N agasaki i n 1859 which was extended f u r t h e r to Yokohama i n 1864;

M e s sa g e rie s Im p e r ia le s opened a r e g u la r m onthly s e r v ic e between Shanghai and Yokohama as an e x te n s io n o f th e M a r s e ille s -S h a n g h a i

(3 4 )

l i n e i n 1865; ' The P a c i f i c M a il Steam ship Co. began a r e g u la r (3 5 )

s e r v ic e between San F ra n c is c o and Hongkong in 1867; O th e r s h ip p in g companies such as th e B lue F u n n e l, C a s tle ,a n d Glen l i n e s e n te r e d th e

( 36 )

sphere o f F a r E a s te rn t r a d e i n th e 1860s and 1870s. L a t e r , i n 1 8 8 7 , Canadian P a c i f i c s t a r t e d a re g u la r- m onthly s e r v ic e betw een

( 3 7 )

Vancouver and Hongkong v ia Yokohama and S han ghai; F r e ig h t r a t e s r a p id ly f e l l i n th e 1860s and 1 8 7 0 s , in g e n e ra l as a r e s u l t o f th e in c r e a s in g c o m p e titio n among s h ip p in g com panies. T h is damaging and

f i e r c e c o m p e titio n le d to th e e s ta b lis h m e n t o f s h ip p in g c o n fe re n c e s as a d e v ic e ” to r e g u la t e c o m p e titio n i n o r d e r to m a in ta in r a t e s o f f r e i g h t 1* and *'to c o n c e rt measures to meet c o m p e titio n from s h ip —

( 3 8 ) owners o u ts id e th e C o n fe re n c e .”

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o f s t e r l i n g p e r yen* T h is d e c lin e o c c u rre d as a r e s u l t o f th e a d o p tio n o f th e g o ld s ta n d a rd by Germany i n 1871 and by th e U n ite d

(

)

S ta te s in 1872; T h is d e c lin e in s i l v e r v a lu e , p a r t i c u l a r l y in th e f i r s t h a l f o f th e 1 8 9 0 s , combined w ith a d e c lin e i n ocean f r e i g h t r a t e s , made i t p o s s ib le f o r th o se A sian c o u n tr ie s w hich were on th e s i l v e r s ta n d a rd to in c re a s e e x p o rts to th e g o ld s ta n d a rd c o u n t r ie s , w h ile d is c o u ra g in g an in c re a s e i n im ports from th e m i^ ^ The averag e v a lu e o f s i l v e r p e r ounce f e l l from 6 0 *3 pence i n 1872 to 4 2 .7 pence i n 1889 and d r a s t i c a l l y d e c lin e d in th e e a r ly 1890s to 2 8 .9 pence i n 1 8 9 4 . T h is made i t p o s s ib le f o r Oapan to in c r e a s e h e r e x p o rts to g o ld s ta n d a rd c o u n tr ie s and to compete on e a s ie r term s w ith t h e i r p ro d u c ts in c lu d in g s i l k from France and I t a l y ,

( 4 1 ) and c o a l from B r i t a i n , as we s h a l l see l a t e r ;

China and 3apan were c o n s id e re d n o t o n ly as m arkets f o r e x p o rts b u t a ls o as sources o f p rim a ry p ro d u c ts in th e changing i n t e r n a t i o n a l

( 4 2 )

economy; T a b le 1 shows c o m p a ra tiv e f ig u r e s f o r Japan and China o f two main e x p o rt a r t i c l e s , s i l k and t e a . J a p a n 's e x p o rts had t h e r e f o r e f i r s t to c h a lle n g e C hinese predom inance i n th e w o rld s i l k

(4 3 )

and te a t r a d e ; T h e ir im p o rta n c e g r a d u a lly d e c lin e d w ith re g a rd to th e t o t a l e x p o rts o f both c o u n t r ie s , b u t even i n 1895 s i l k and te a e x p o rts combined amounted to 44 p e r c e n t o f t o t a l e x p o r ts i n th e case o f Japan and 50 p e r c e n t i n th e case o f C h in a .

9

T a b le 1 . S i l k and Tea E x p o rts from 3apan and China 1 8 7 0 -1 9 0 0 .

3APAN ( i n *000 yen)

T o t a l E x p o rts (A ) S i lk ( B ) B/A T e a (C ) C/A

1870 1 4 ,5 4 3 7 ,2 4 6 (4 9 ? 8 ) 4 ,5 1 2 (3 1 ? 0 )

1875 1 8 ,6 1 1 6 ,4 6 9 ( 3 4 . 8 ) 6 ,8 6 3 ( 3 6 . 9 )

1880 2 8 ,3 9 5 1 1 ,0 6 5 ( 3 9 . 0 ) 7 ,4 3 8 ( 2 6 . 2 ) 1885 3 7 ,1 4 7 1 4 ,4 7 3 ( 3 9 . 0 ) 6 ,8 5 4 ( 1 8 . 5 ) 1890 5 6 ,6 0 4 1 6 ,3 7 7 ( 2 8 . 9 ) 6 ,3 2 7 ( 1 1 . 2 ) 1895 1 3 6 ,1 1 2 5 0 ,9 2 8 ( 3 7 . 4 ) 8 ,8 7 9 ( 6 . 5 ) 1900 2 0 4 ,4 3 0 4 8 ,8 1 8 ( 2 3 . 9 ) 9 ,0 3 6 ( 4 . 4 )

CHINA ( i n 1000 Haikuian t a e l )

T o t a l E x p o rts (D ) S i l k ( E ) E /D T e a (F ) F /D 1870 5 5 ,2 9 5 2 1 ,9 7 6 (3 9 ? 7 ) 3 0 ,7 6 6 (5 5 ? 6 ) 1875 6 8 ,9 1 3 2 0 ,6 9 5 ( 3 0 . 0 ) 3 6 ,6 9 8 ( 5 3 . 3 ) 1880 7 7 ,8 8 4 2 4 ,1 7 6 ( 3 1 . 0 ) 3 5 ,7 2 8 ( 4 5 . 9 ) 1885 6 5 ,0 0 6 1 5 ,2 5 6 ( 2 3 . 5 ) 3 2 ,2 6 9 ( 4 9 . 6 ) 1890 8 7 ,1 4 4 2 4 ,4 9 1 ( 2 8 . 1 ) 2 6 ,6 6 3 ( 3 0 . 6 ) 1895 1 4 3 ,2 9 3 3 8 ,7 2 4 ( 2 7 . 0 ) 3 2 ,4 5 0 ( 2 2 . 6 ) 1900 1 5 8 ,9 9 7 3 9 ,7 3 2 ( 2 5 . 0 ) 2 5 ,4 4 5 ( 1 6 . 0 ) S ources: 1 ) The O r i e n t a l E co n o m ist, Nihon B oeki S e ira n (T o k y o :

Toyo K e iz a i S h in p o -s h a , 1 9 3 5 ), p p . 2 , 1 3 , 1 5 , 5 1 - 5 5 . 2 ) Hsiao L i a n g - l i n , C h in a 1s F o re ig n T rad e S t a t i s t i c s

1864—1949 (C a m b rid g e , M a s s.: E a s t A sian R esearch C e n te r , H a rv a rd U n i v e r s i t y , 1 9 7 4 ), p p . 22—2 3 , 1 0 9 , 1 1 7 -1 8 .

N o tes : 1 ) S i l k p ie c s goods and p ro d u c ts a r e e x c lu d e d .

2 ) A verage exchange r a t e d u rin g th e p e r io d 1874—1896 was 1 .5 3 t a e l s p e r yen .

CHAPTER I I

Jap an *s T rad e P o lic y and Her I n d u s t r i a l i z a t i o n

1# T r e a t ie s and T a r i f f s

Japan was in c o r p o r a te d in t o th e w o rld economy in m id -1 85 9 when th e th r e e t r e a t y p o r ts o f Kanagawa, N agasaki and Hakodate w ere opened to f o r e ig n t r a d e f o llo w in g th e com m ercial t r e a t i e s w ith th e U n ite d

(

)

S t a t e s , H o lla n d , R u s s ia , B r i t a i n and France o f th e p re v io u s y e a r;

These t r e a t i e s were based on th e p r i n c i p l e o f f r e e tr a d e and t h e i r main p r o v is io n s were fu n d a m e n ta lly 'u n e q u a l', co m p risin g e x t r a t e r r i ­ t o r i a l i t y , c o n v e n tio n a l t a r i f f r a t e s and th e m o s t-fa v o u re d n a tio n

(

)

c la u s e . T h is s e t a g e n e ra l framework f o r J a p a n 's subsequent economic developm ent.

A ccording to tr a d e r e g u la tio n s which s t i p u l a t e d t a r i f f r a te s by a r t i c l e , a l l e x p o rt d u tie s were s e t a t 5 p e r c en t ad valo rem and im p o rt d u tie s were in g e n e ra l a t 20 p e r c e n t , though ra n g in g from 5

( 3 ) p e r c en t f o r s h ip - b u ild in g m a te r ia ls e t c . to 35 p e r c e n t f o r a lc o h o l;

In 186 6 , in response to renewed fo r e ig n p r e s s u r e s , c h i e f l y c o n ce rn in g im p e r ia l r a t i f i c a t i o n o f th e 1858 t r e a t i e s and th e prom ised opening

( 4 )

o f Hyogo (K o b e ), Japan consented to t a r i f f r e v is io n ; Im p o rt d u tie s were reduced from 20 p e r c e n t to 5 p e r c e n t which encouraged

( 5 )

im p o rts ; Both e x p o rt and im p o rt d u tie s were f ix e d p r i n c i p a l l y a t 5 p e r c e n t ad v a lo re m ; t a r i f f r a t e s were e q u iv a le n t to th o s e

s t i p u l a t e d by th e 1858 T ie n t s in T re a ty w ith C h in a . Im p o rts o f m e t a ls , and c o tto n and w o o lle n m a n u fa ctu re goods were s u b je c t to s p e c i f i c d u t ie s , w h ile th o s e o f c o a l, c o in e d o r uncoined g o ld and s i l v e r , and g r a in were d u t y - f r e e , and opium was p r o h i b i t e d . E x p o rts o f s i l k , te a and c o a l were s u b je c t to s p e c i f i c d u t ie s , g o ld and s i l v e r c o in s were d u t y - f r e e , w h ile r i c e , p ad d y, wheat and b a r le y

11

were in c lu d e d i n p r o h ib it e d g o o d s !^ These e x p o rt and im p o rt d u tie s o f 5 p e r c e n t ad valorem were i n e f f e c t d e f la t e d to 2 - 2 . 5 p e r c e n t

(

)

by i n f l a t i o n i n th e e a r l y F l e i j i p e r io d ;

The a tta in m e n t o f t a r i f f autonomy and th e a b o l i t i o n o f e x t r a —

(

)

t e r r i t o r i a l i t y were th e main t a r g e t s o f t r e a t y r e v is io n ; 1 The t a r i f f r a t e s s t i p u l a t e d i n 1866 la s t e d up u n t i l 1 8 9 9 , when Japan o b ta in e d p a r t i a l t a r i f f autonomy th ro u g h th e coming in t o fo r c e o f th e F ix e d T a r i f f L a u fT e i r i t s u K a n ze i Ho) as a r e s u l t o f th e t r e a t y r e v is io n c a r r ie d o u t s u c c e s s fu lly w ith B r i t a i n i n 1894;

(g)

2. Bakufu T ra d e P o lic y : R e s t r i c t i o n and C o n tr o l

The opening o f t r a d e caused s t r u c t u r a l changes i n th e t r a d i t i o n a l economy, most r a p id ly and d r a s t i c a l l y i n th o se s e c to rs concerned w ith th e main e x p o rt and im p o rt i n d u s t r i e s . As s i l k e x p o rts in c r e a s e d , f o r in s t a n c e , l o c a l m erchants i n p ro d u c in g d i s t r i c t s began to p u rc h as e raw s i l k to s e l l a t g r e a t p r o f i t i n Yokohama, b yp assin g th e t r a d i t i o n a l d i s t r i b u t i o n system which had been c o n t r o lle d by p r i v i l e g e d g u ild m erchants i n Kyoto and Edo. T h is d i r e c t d e liv e r y o f s i l k from p ro d u c in g a re a s to th e t r e a t y p o r t s , m a in ly Yokohama, by l o c a l c o n sig n o rs o r p ro d u c e rs meant th e d is s o lu t io n o f th e t r a d i t i o n a l d i s t r i b u t i o n system . In consequence, s i l k g u ild m erchants i n K yoto and Edo l o s t t h e i r c o n t r o l o f d i s t r i b u t i o n , and s i l k m a n u fa c tu re rs i n K y o to , K ir y u and o th e r d i s t r i c t s were s e v e r e ly damaged by a s h o rta g e o f s i l k f o r d om estic use and a subsequent r a p id r i s e i n p r i c e ! 1 0 ^ T a b le 2 shows th e volume o f raw s i l k h a n d le d by th e s i l k g u ild in Edo f o r d om estic use and e x p o rt b e fo re and a f t e r th e o p en in g o f th e p o r t s . Raw s i l k f o r do m estic use r a p id ly d e c lin e d to w ard s

1863 and p r ic e s ro se s h a rp ly to th e l e v e l o f th o se i n th e i n t e r n a t i o n a l

Table 2,Volumeof RawSilkhandled bythe SilkGuildinEdo 1856-1863

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(

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m a rke t a f t e r th e opening o f 3apan; The Yokohama p r ic e s o f M aebashi and Shinshu s i l k , which were m a in ly f o r e x p o r t, ro se from 460 d o l l a r s p e r p i c u l i n 1862 to 520 d o l l a r s i n 1863 and 620 d o l l a r s

(

)

i n 1864; O th e r e x p o rt a r t i c l e s such as te a and m a rin e p ro d u c ts behaved i n a way s im i l a r to ra u s i l k . Commodity p r ic e s a ls o ro se

( 1 3 ) r a p id ly i n la r g e c i t i e s d u rin g th e y e a rs a f t e r 1857;

Faced w ith r a p id p r i c e r is e s and a s h o rta g e o f g e n e ra l

n e c e s s it ie s , i n 1860 th e Bakufu was co m p elled to is s u e a d ecree to th e e f f e c t t h a t f i v e s e le c t e d goods ( g r a i n , rapeseed o i l , wax, c lo t h and raw s i l k ) s h o u ld be passed to Edo w h o le s a le r s , p r o h i b i t i n g th e

(1 4 )

d i r e c t t r a n s f e r from p ro d u c in g a re a s to Yokohama; T h is was an a tte m p t to m a in ta in and s tre n g th e n th e t r a d i t i o n a l dom estic d i s t r i b u ­ t i o n system th ro u g h th e c o n t r o l o f th e g u ild s i n Edo. In th e case o f ra u s i l k , th e m ain t a r g e t o f t h i s d e c re e , i t had l i t t l e e f f e c t s in c e th e i n t e r e s t s o f th e g u ild m erchants i n Edo were opposed to th o s e o f th e e x p o rt m erch an ts i n Yokohama and o p in io n s o f th e Bakufu o f f i c i a l s r e s p o n s ib le f o r g o v e rn in g Edo c i t y ( Edo Plachi Buqyo) were m oreover

( 1 5 ) n o t shared by th o s e r e s p o n s ib le f o r fo r e ig n a f f a i r s ( G aikoku Buqyo) ; In p r a c t i c e , b u s in e s s was tr a n s a c te d by e x p o rt m erchants i n Yokohama o r d e r in g from l o c a l c o n s ig n o rs i n p ro d u c in g a r e a s , th e raw s i l k b e in g s e n t d i r e c t l y to Yokohama w ith an in v o ic e from th e g u ild

( 16 )

m erchants i n Edo. W ith re g a rd to ra u s i l k , t h e r e f o r e , th e B a k u fu *s i n t e n t i o n o f m a in ta in in g Edo c o n t r o l o f tr a d e r e s u lt e d i n o b v io u s f a i l u r e ! 1 7 ^

A f t e r t h i s f a i l u r e , th e Bakufu d id n o t ta k e f u r t h e r s u b s t a n t ia l measures to r e s t r a i n tr a d e u n t i l th e second h a l f o f 1 8 6 3 , when i t

( 1 8

)

once a g a in s t a r t e d s tro n g moves to r e s t r i c t raw s i l k e x p o r ts ;

B r i t i s h Consul L ie u te n a n t -C o lo n e l N e a le d e s c rib e d th e s i t u a t i o n as

f o llo w s :

Two m i l l i o n s o f d o l l a r s have been b ro u g h t h e re [Yokohama] f o r th e p u rc h as e o f s i l k , and a re l y i n g i d l e * Steam ers a r r i v e from C h in a to sh ip th e s i l k e xp ected to have been read y f o r e xp o r­

t a t i o n , and r e tu r n c o m p a ra tiv e ly em pty, th u s o c c a s io n in g g r e a t l o s s . ( 1 9 )

Japanese m erchants in Yokohama were menaced by a n t i - f o r e i g n e x tr e m is ts and some o f them c lo s e d t h e i r shops! In e a r ly 1864 th e Bakufu a d o p ted a new p o lic y on s i l k d e l i v e r i e s to Yokohama by which th e s i l k g u i l d i n Edo in te r v e n e d i n th e t r a n s f e r o f s i l k f o r e x p o rt by p u rc h a s in g i t from p ro d u c in g a re a s a t an a p p r o p r ia te p r i c e .

As a r e s u l t o f t h i s m easure, o n ly 468 b a le s , t h a t i s , 16 b a le s a d a y ,

(

)

were t r a n s f e r r e d to Yokohama f o r e x p o rt i n e a r ly 1864; The s tr e n g th e n in g r e s t r i c t i o n s on th e s i l k t r a d e came n o t o n ly from

a g e n e r a l t r a d i t i o n o f r e s t r i c t i v e p o l i c i e s b u t a ls o from d i f f i c u l t i e s i n th e r e la t i o n s h i p between th e Bakufu and th e Mikado which had

(

)

o c c u rre d w ith re g a rd to th e c lo s in g o f th e p o r t o f Yokohama;

The r e s t r i c t i o n s aimed n o t o n ly a t d i s t r i b u t i o n b u t a ls o a t raw s i l k p r o d u c tio n i t s e l f . In 1 8 6 4 , new p la n t a t io n s o f m u lb e rry t r e e s and

th e p r o d u c tio n o f raw s i l k and te a f o r e x p o rt were s t r i c t l y ( 2 3 )

p r o h i b i t e d ; Though raw s i l k c o n tin u e d to be e x p o rte d i n s m a ll (2 4 )

q u a n t i t i e s un d er th e p r o t e c t io n o f th e Satsuma c la n and sm uggling ( 2 5 )

was a ls o a c t i v e , J a p a n 's s i l k tr a d e as a whole s h a rp ly d e c lin e d . H ow ever, as a r e s u l t o f th e o p e r a tio n s o f th e a l l i e d squadrons a t Shim onoseki and th e s tro n g o p p o s itio n o f th e W estern p o w ers, th e Bakufu was fo rc e d to a b o lis h t h i s p u rc h a s in g system by th e s i l k

( 2 6 )

g u i l d i n Edo l a t e r i n th e same y e a r . T h is s i g n i f i e d th e co m p lete f a i l u r e o f th e B a k u fu *s a tte m p t to b u i l d i t s tr a d e p o lic y on th e

(2 7 )

t r a d i t i o n a l system ; ' T h is le d to a new p o lic y o f r e o r g a n is in g th e d o m e stic economy and s tr e n g th e n in g d i r e c t c o n t r o l i n p ro d u c in g