03, vol. 2, p. 946.]

[Footnote FB: Mecker.]

CHAPTER XI

JAPAN--CHINA

While France is the bounty-giving nation _par excellence_, Japan is a
pressing second. The development of a modern merchant marine, together
with a modern navy, was among the first undertakings of the awakening
empire upon her assumption of Occidental civilization. Adopting what
seemed to her statesmen of the new regime, from their study of Western
methods, to be the speediest way to that end, she started out
energetically to attain it through lavish money-grants from the national
treasury for the establishment of steamship companies of her own people
in coastwise and ocean service, and of modernized ship-yards and
shipbuilders.

The initial venture resulted in the creation of a steamship monopoly.
This was the subsidizing, in 1877, of the pioneer concern, to supply
steam communication between various domestic ports, and also with
Siberia, China, and Corea. It was founded by a broad-visioned Japanese
merchant, Jwasaki Yataro,[FC] and controlled by him. To break his
monopoly the Government in 1882 set up a rival State-supported
company.[FC] After a period of "desperate competition" and warfare,
Jwasaki persuaded the new concern to unite with his. So was effected a
community of interests after the most approved Western pattern.[FC] By
this union was formed, in 1885, the powerful _Nippon Yusen Kaisha_
(Japan Mail Steamship Company), which remained the most powerful of
Japanese steamship establishments, with lines running to the same ports
to which the American steamers run.

Coincident with the State-aiding of steamship companies was the granting
of liberal postal subvention. Next followed the institution of a general
subsidy system, frankly designed to stimulate domestic shipbuilding and
to further navigation by Japanese ships.

This system was embodied in two acts promulgated in 1896, the year after
the finish of the Japan-China War (1894-95), when the merchant marine
was growing pretty rapidly, but not rapidly enough for the aspiring
nation. These were, a Shipbuilding Encouragement Law, the aim of which
was to stimulate the building of vessels above 700 tons; and a
Navigation Encouragement Law, to foster open-sea navigation. Their model
was the French system.

These laws offered construction and navigation subsidies, and also made
provision for a widely extended postal service with increased postal
subventions. The construction bo