Navy classified as first and second class battleships, and first, second and third class cruisers. In the war of 1894-95, Japan had only one small battleship, which now stands at the very bottom of her list. The "Fuso" is now some two and twenty years of age; and, with her tonnage of 3,700, she makes a poor appearance alongside the four monsters of from 12,500 to 15,000 tons that now appear as the list of first-class battleships. Even alongside the other vessel in the second class, the "Chinyen," of 7,400 tons, captured from the Chinese at Wei-hai-wei, she looks diminutive. But in speed there is not much to choose between these two, both steaming about thirteen knots, and being a pair of veritable lame-ducks in comparison with the four new first-class battleships, which can accomplish eighteen or nineteen knots.

In 1895 Japan possessed none of the four first-class cruisers (of some 9,800 tons) now entered in the official list. The brunt of the strife at the battle of the Yalu fell upon six of the nine second-class cruisers now in the navy, three new ones-the "Takasago," the "Kasagi" and the "Chitose" having been built since then. In addition to that, the torpedo flotilla has been greatly augmented, while of the score of torpedo-destroyers included in the ship-building programme (twelve built or building in England, four in France and four in Germany), more than half are already in Japanese waters, and the others will soon arrive.

From this it will appear that the naval strength of the country in 1895 is only a fraction of what it will be early this summer, shortly after the time of the projected grand naval manœuvres. The addition of the captured Chinese battleship, "Chinyen," of 7,400 tons, does not count for very much, but the four new firstclass battleships (probably the "Asahi" will be here by midsummer), of a gross tonnage of close on 55,000, and a gross complement of 2,681 men, add immeasurably to the sea power of Japan. Two of these "Fuji" (12,450) and "Yashima" (12,140)-are almost exact reproductions of the British "Royal Sovereign,” while the "Shikishima" and the "Asahi," of about 15,000 tons each, are improved "Majestics." Besides these four, two other battleships of the same type as the "Shikishima" are building in England-the "Hatsuse" at Elswick, and an unnamed vessel at Barrow, but the "Hatsuse" was not to be handed over until March, 1900, and the other ship a good deal later on.

Four of the six new first-class cruisers included in the ship

building programme have either already arrived, or will arrive in summer. And in every respect these constitute a formidable increase to Japan's naval strength, for it is more than probable that they themselves could give a good account of the whole fleet possessed by Japan at the time of the late war, if pitted against it. Ranging from 9,400 to 9,875 tons, they are a trifle larger than the United States' "Brooklyn" (9,215 tons), and fully as powerful fighting machines. They have about the same speed as she, the "Asama," for example, at her trials doing 20.37 knots with natural and 22.07 with forced draught. The "Brooklyn" carries a heavier armament, having eight 8-inch against the "Asama's" four 8-inch guns, although against the "Brooklyn's" twelve 5-inch the Japanese cruiser carries fourteen 6-inch guns. As regards protection, the advantage is with the Japanese ships; for against the "Brooklyn's" belt of 3 inches, the "Asama" has one of 7 inches of Harveyized steel. The four Japanese cruisers are likewise protected in their gun positions by 6 inches of the same material, a fact which gives them a considerable advantage over the Russian "Rurik" (10,923 tons) and "Rossia" (12,130 tons), whose batteries have practically no protection. As the "Rossia" steams twenty and the "Rurik" only eighteen knots, against them the "Asama" and her consorts should show to advantage, in spite of the circumstance that these two Russian vessels have slightly stronger secondary batteries.

Even as regards second-class cruisers, the addition of three new vessels to the six that fought at the Yalu is no inconsiderable item. Of these the "Takasago" (4,160 tons), built at Elswick, has a speed of twenty-four knots, and an armament of two 8-inch, ten 4.7-inch, twelve 12-pounders, six 22-pounder quick-firers and five torpedo tubes. The two American-built vessels-the "Kasagi” at Philadelphia, and the "Chitose" at San Francisco-are slightly larger, but slightly slower, the tonnage of the former being 4,978 and of the latter 4,836, with a speed of nearly twenty-three knots.

Of smaller craft, the official list gives five third-class cruisers, ten coast-defense ships, two first-class and fifteen second-class gunboats, with four despatch vessels and a torpedo depot ship. Besides the destroyers already alluded to, other vessels below second-class cruiser rank are being constructed; but, as they will not be available by summer, there is no need to enter into particulars about them. By that date the Japanese navy will have a tonnage of

something between 210,000 and 220,000 tons, against the Russian of 85,000 to 90,000 (including the "Petropavlovsk"), unless, as will doubtless be the case, more Russian ships be sent to the East.

This expansion of the Japanese naval force is certainly a remarkable one. But what, perhaps, is equally noteworthy is the phenomenal development of her mercantile marine. In 1893, exclusive of native craft, Japan had a tonnage of 155,000 tons. At present she has between 600,000 and 650,000 tons of merchant shipping. This is to a great extent the result of substantial Government subsidies. In 1894-95, the country had to make considerable efforts to provide herself with a fleet of fifty-one transports. A fleet of twice as many vessels is now readily available.

When we turn to the matter of her land forces, we find that since 1894 Japan has been far from idle. At the beginning of that year, the Japanese army on a peace footing consisted of 69,000 officers and men. After the war with China, a programme of army expansion was laid down, in terms of which the Japanese land forces were ultimately to amount to 145,000 men on a peace footing, and between 530,000 and 540,000 men on a war footing. What progress has been made with that programme may be inferred from the fact that, at the end of 1898, there were 120,800 men with the colors, besides 4,520 students in the military schools, while the first reserve numbered over 115,000 and the second 75,000 men. Now, of course, these figures have been very considerably increased, and even at present on a war footing the army may be safely placed at not less than 360,000 men of all arms.

It is by no means uninteresting to note some of the details of this expansion programme. In 1894, besides the Imperial Guards and Yezo militia, the Japanese army consisted of six divisions. The headquarters of these were at (from north to south) Sendai, Tokyo, Nagoya, Osaka, Hiroshima (all in the main island) and at Kumamoto in Kiushiu. With the exception of the last, all these places are on the Pacific or inland sea littoral-facing away from Siberia, that is. Now the Yezo militia has been abolished and a seventh division has been formed in the Hokkaido, while five more are being established at Marugame in Shikoku, at Kokura near the Straits of Shimonoseki, at Fukuchiyama, at Kanazawa and at Hirosaki-all on the coast of the Sea of Japan. That is, five of the new divisions directly front Korea or Siberia. dently made up her mind to make her back door secure. Her

Japan has evi

Pacific Ocean and Inland Sea approaches are so strongly fortified that any invasion from these quarters is impossible. At the time of the war with China her weak point was at Tsuruga, on the Japan Sea, almost directly behind Osaka and Kioto, the second and third cities in the Empire, and the chief seats of her nascent manufactures. With Tsuruga Bay fortified as it now is, and flanked by army divisions at Fukuchiyama on the west and at Kanazawa on the east (now with railway communication), any hostile landing at that point is effectually provided against.

In view of all this, it will be readily conceded that, to revert to our figure of speech, in their efforts to provide the national structure with a sound and thoroughly weather-proof roof, Japanese statesmen have been phenomenally successful. That an ordinary nation of 44,000,000 inhabitants should have accomplished so much should not perhaps afford any great matter for surprise. But, as already pointed out, although having the population of a first-class Power, Japan, as regards wealth and resources, is not so very much ahead of the small Kingdom of the Netherlands, or of Scotland-if, indeed, she be ahead of the latter at all. Naturally enough, then, this effort has taxed her very severely, and it is only the consummate ability of her rulers and certain exceptional circumstances that have enabled her to accomplish it.

By a certain authority the Japanese have been characterized as "artistic and all that, but muddle-pated in the matter of business." Doubtless, the criticism is not without point, for in his transactions the average Japanese trader gives very few indications of the possession of any considerable financial capacity. But the management of the National Treasury has all along been in the hands of no mere average men. Under its successive ministers-Okuma, Matsugata and Watanabe-the Department of Finance has been exceedingly well administered. Lately, it is true, certain of its minor measures have evoked a good deal of adverse criticism, but these are but petty blemishes in a sound twenty years' record. In 1887 the national debt stood at yen 307,000,000; seven years later '(just before the outbreak of the Chinese war in 1894) it had been reduced to yen 283,500,000. Besides, at that date there was an accumulated surplus of yen 23,439,000 (say $11,700,000) in the Treasury. It was to this accumulated surplus that the Government first had recourse at the opening of hostilities. As they progressed, domestic loans to the amount of $58,400,000 were raised,

and as these loans have not been refunded, and as other small liabilities have been incurred, Japan's national debt (without including the £10,000,000 English loan) stands at some $207,000,000, with annual charges of $11,400,000, or some 25 cents per head of the population.

Out of the war with China, Japan netted a very large sum of money. Including the money spent in the reduction of Formosa, down to March 31, 1896, the total cost of the hostilities with China amounted to almost exactly $100,000,000. (This amount, it may be remarked, included $3,500,000 for rewards, and some $2,800,000 for the expenses of the Formosan Government, for arsenal construction and for a submarine cable to Formosa.) Together with the $22,500,000 received for the retrocession of the Liautung Peninsula, the Chinese indemnity brought into the national purse a total of $182,500,000. Thus, Japan's direct monetary gain was as much as $82,500,000. Of this total of $182,500,000, only about $40,000,000 were employed to defray the actual expenses of the war. Between $28,000,000 and $29,000,000 have been devoted to army expansion, of which about $24,000,000 will have been expended by the end of this year. No less a sum than $69,600,000 has been apportioned for the development of the navy, of which over $50,000,000 has already been disbursed. In addition, $15,000,000 have been set aside for the maintenance of warships. As regards the disposal of the remainder of the indemnity, the main items are $10,000,000 presented to the Emperor, $6,000,000 spent on Japan's white elephant, Formosa, $5,000,000 as a fund to provide against the disasters of nature, and $5,000,000 as an educational fund. In reality, these last two sums constitute a war reserve, for it is only the interest accruing from their investment that is devoted to the purposes specified.

It thus appears that, including the $15,000,000 set apart for the maintenance of warships, Japan has a war reserve of $25,000,000. Besides, in the event of an early outbreak of hostilities, the late London loan of (nominally) £10,000,000 would be available. However, as the flotation of that loan was not attended with the measure of success that might have been expected, that sum of £10,000,000 represents no more than $43,000,000 or $44,000,000. Then the unexpended portion of the amount devoted to army and navy expansion could also be utilized, while the Budget for the next year shows an estimated surplus of about $23,000,000 in the