148 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.
but for American and European consumption with machines. This
results in constant collision between old and new methods, and seriously
 hampers technical progress in general! These difficulties
have been overcome very largely by the systematic cooperation of
the Japanese Government with the industrial and financial leaders
of the country in aiding and promoting industry and trade. With
respect to Government initiative and participation in trade and industrial
 expansion by means of legislation, subsidies, model factories,
trade investigations, commercial training, etc., the Government of
Japan has taken a leading réle among the commercial nations of
the world.?
From considerations of administrative expediency, or to furnish a
model for a new industry, or for both purposes, the Japanese Government
 is operating a number of undertakings. In 1895-1897 it established
 a steel plant. Tobacco, salt, and camphor are State monopolies,
 and the State also owns nearly all the railways and a woolen
factory.®
Government encouragement and protection of industry and
trade.—Many of Japan’s new industries owe their inception to encouragement
 and protection by the Government. The spinning, shipbuilding,
 cement, glass, match, weaving, and other industries are all
traceable to Government initiative. Most of the factories originally
owned by the Government were sold later to private individuals.*
In an address made in 1912 the Minister of Agriculture and Commerce
 stated that the expenditure of the Government for the encouragement
 of local industry had increased from 8,200,000 yen in 1902
to 9,400,000 yen in 1912, and that the Department of Agriculture and
Commerce had in view the granting of subsidies to the manufacturers
of staple commodities for export and planned other work calculated
to encourage foreign trade, particularly the export trade. Besides,
he stated the Government encourages the use of homemade in preferance
 to imported articles so as to encourage domestic industry.
The higher council of agriculture, commerce, and industry. —Since
1896-97 the Government has set apart an item for foreign-trade
:xpansion in the budget. This includes the appropriation for the
newly created higher council of agriculture, commerce, and industry,
with the object of devising measures for encouraging foreign trade.
The council is composed largely of business men of note. Some of the
matters relating to foreign trade in which the council has been interested
 have been the following: (2) The dispatch of commissioners to

l Weltwirtschaftliches Archiv, 1915, I, pp. 72, 73.
*K. Rathgen, Die Japaner in der Weltwirtschaft, 1911, pp. 22, 28, 24, fol.
"The Japan Yearbook, 1914, pp. 393, 608; Japan As It Is. p. 377.
! The Japan Yearbook, 1914, p. 385.
The Japan Financial and Economie Monthly, Mav. 19812. n. 7.