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After four months in the Orient I have decided to write down some of my observations and conclusions, hoping the same will receive careful consideration by my fellow Americans in the States. In'this period I have covered over twenty thousand miles and spent a portion of four months in the cities of Honolulu, Manila, Nagasaki, Yokohama, Tokyo, Kyoto, Osaka, Kobe, Shanghai, Nanking, Hankow, Wuchang and Pekin. Have visited many industrial plants in China and Japan, and in Pekin had an interview with the great President of the new Republic, General Yuan Shih Kai, and also met some of the members of his cabinet. I am going to write first about the Philippines and later take up the Hawaiian Islands, China and Japan. I found in the Philippines depression in business, general dissatisfaction on the part of the business element and a condition of doubt and uncertainty as to the future, and unanimous sentiment among Americans of the non-office-holding element and Europeans against the governmental policy of the Wilson administration as being carried out by Governor Harrison, under instructions from Washington. Trained, competent and experienced Americans have been summarily dismissed from a service their energy, ability and unceasing devotion had made a success and their places when filled given to a few "good Democrats" from the States but largely to inexperienced Filipinos. Many of these men who have been displaced came to the Islands carrying guns in their hands in order to aid the immortal Dewey in finishing his work of redeeming the Islands from Spanish misrule. Later on these men rendered valiant service in defeating the insurrection against the United States led by Aguinaldo. They helped put the Spaniards out of the Islands, help put down a local rebellion, and now, after having faithfully served the United States Government in war and in peace, they are unceremoniously kicked out and their places largely given to those who were endorsed by Filipino politicians, some of whom held Commissions in the revolutionary army. At the time this was done the natives were holding not less than 71 per cent. of the government positions in the islands. I found the Spanish American veterans, and there are several thousand in the Islands with a number of their Posts or organizations, justly indignant at this unfair treatment of their former comrades-in-arms. The present administration is the first to introduce politics in the selection of appointees, though two or three Democrats preceded Mr. Harrison in the Governor General's office. In going over the matter with a prominent Democratic attorney in Manila, he expressed the opinion that a majority of those who had been appointed under previous administrations were of Democratic faith, and in the selections made, character, fitness and ability to do the work had been the only consideration. The splendid achievements accomplished in the Islands since the American occupation are the best proof of the wisdom of such a policy. But Governor Harrison served many years in Congress from New York City and hence was brought up in the Tammany School of politics, which teaches and practices the Jacksonian theory, "to the victors belong the spoils," even at the expense of maintaining the best, the most progressive government in all the Orient and one from which Tammany could learn much to the advantage of the taxpayers of New York City. There is perhaps another reason why the new Governor should follow such a policy. He has publicly stated his indebtedness to Manuel Quezon for the position he now holds. Quezon is one of the Commisisoners from the Islands to the American Congress, is very much in politics and naturally anxious to place as many of his partisans on the government payroll as possible. Having served in the revolutionary army against the United States we can imagine he is not shedding tears when the political guillotine decapitates former American soldiers in the interest of his political supporters or former comrades in the Filipino revolution. Such a Wilsonian policy may delight the Manila politicians, but I doubt if it will appeal to the sense of fairness of the American people who have always believed in fair and honorable treatment of those who have bravely and patriotically come to the Nation's aid in times of stress and storm. The Americans whose courage and fidelity contributed to the establishment of our sovereignty in the Islands, whose 292882 -4 - energy and capital have been freely used in developing the mining, commercial and manufacturing interests of the Philippines and who are amongst the largest taxpayers, have no voice in the Government, no influence with the present administration-are not consulted, and are, in fact, absolutely ignored. One noticeable effect of such a policy is shown in the action of the Commanding General in not permitting the band to play America's national anthem-the Star Spangled Banner-on the Luneta or Public Park. He very properly declines to give the natives opportunity to continue to show their disrespect in refusing or neglecting to salute our flag. How Progress Is Halted. Now what has injured business? What is holding up progress? What is delaying development and keeping prosperity out of sight in the Philippines-the richest undeveloped country on the shores of the great Pacific? The true answer is the Jones bill-the attempt in Congress to carry out the foolish and unpatriotic teaching of William Jennings Bryan to turn the Islands adrift without guide or compass-to turn 8,000,000 people, 90 per cent. of the adults illiterate and 1,000,000 wild, over for the time being to the political firm of Quezon, Osmena & Co. to try out their kindergarten governmental notions and pipe dreams of a great national Philippine Republic until they are taken over by Japan and relegated to the vassal class along with Korea and Formosa. In that event the Filipinos would not only lose all voice in their government, but the very name of their country would be changed as in the case of Korea and Formosa and a Japanese name substituted. For ten days I industriously interviewed Americans in all walks of life and engaged in every line of human endeavor, Democrats, Republicans, Progressives, soldiers, sailors, civil officials, merchants, professional men, lawyers, physicians, clergymen, editors, bankers,, clerks, policemen, scout and constabulary officials, etc., and upon my honor not a single one, and mark you a majority of them have been in the Islands for more than ten years, many fifteen and sixteen years, thought the natives prepared, able or strong enough to maintain law and order, and continue the excellent government created and maintained under American guidance, supervision and control. I quote the following from one of those interviewed: "If the United States should withdraw, it would result in a duplication of the situation and conditions in Mexico, Hayti and San Domingo multiplied many times over." A native government would be powerless to control and govern the many tribes, with fifteen or sixteen different dialects, pagan, heathen, and Christian, warlike and savage, with bitter and long-standing grievances between them, a million out of a total of 8,000,000 non-Christians, wild and uncivilized, and of the 7,000,000 Christians less than 10 per cent. of the adults educated. In addition to these serious and complicated local problems, without the aid of the United States the natives would be wholly unable to protect and defend themselves from without-from foreign selfishness, covetousness and aggrandizement. The total government income is less than the cost of a single up-to-date battleship. This means that an army and navy for defensive purposes would be impossible. The Manila native editors and politicians who shout "independence" night and day are so simple that they believe the people of the United States will tax themselves till "Kingdom come" to maintain an army and navy in the Philippines for the benefit and protection of a people whose selfish politicians insist upon severing American control and setting up for themselves. Every intelligent American and European engaged in business in the Islands-and I do not hesitate to include the Chinese merchants, who control $160,000,000 of the $267,000,000 wholesale and retail trade -knows and realizes that so long as they have American protection their lives and business interests are absolutely safe, and in the event our flag should come down and another flag of the socalled Philippine Republic appear, it would mean confusion, chaos, and, in a very short time, ruin, pure and simple. So long as there is doubt and uncertainty as to whether the United States or the Manila politicians are to govern, there will be stagnation in business-a suspension of growth and development -so long will capital be timid and men refuse to develop the resources of the Islands, build factories, and continue the marvelous work so auspiciously begun and continued during the administrations of Governors Taft, Wright, Ide Smith, Forbes and Gilbert. Bryanism in the Philippines. Ex-Secretary Bryan, three years ago at Baltimore, committed the Democratic party and the present Administration to the folly of turning the Philippine Islands adrift. In his first campaign against McKinley, Mr. Bryan declared -5 - the best thing for America was "free silver." Had his advice been followed, would it have blessed or cursed our country? There is only one answer. The defeat of Free Silver and the abolition of slavery are two of our greatest blessings, and the names of Lincoln and McKinley will always be remembered in connection with these two great deeds. Dr. Bryan, in his second campaign against President McKinley, had another prescription for the American people labelled "Anti-Imperialism," or turn the Philippines and other island possessions loose. On that, as on the free silver issue, he was overwhelmingly defeated, and the people at the ballot box decided to retain the Philippine and Hawaiian Islands, Porto Rico and Guam. After this decision, our government went forward in spending millions in constructing fortifications-$12,000,000 in the bay of Manila, army posts and barracks, transporting troops to and from the Philippines for fifteen years, and in many ways improving the Islands from a military and naval standpoint. Counting this cost, the $20,000,000 originally paid Spain, and the amount necessary to capture and expell the soldiers of Spain and crush the incipient Filipino revolution, we have taken from the National treasury-the people's money-countless millions in the nature of our country's investment in the Islands. The pending proposition-the Jones bill-the Bryan idea-is to throw this immense investment away-present it first to the noisy, selfish and ungrateful Filipino politicians, and later to Japan, an unfriendly nation and a strong military and commercial rival in the Pacific. The latter would fully develop the Islands, and the wealth they would bring, with Japan's other aggrandizements in the Orient. would easily enable that ambitious nation to drive our commerce out of the Orient-the region of the world's greatest future commercial and industrial development-the great awakening of 500,000 000 people to modern or western ways, methods and civilization. The American people having decreed in 1900 that they would retain the Philippines as a part of the United States, several thousands of our citizens who obeyed the country's call in going to Dewey's aid and later in putting down the rebellion led by Aguinaldo, decided to remain in the Islands, make it their home, and engage in business, which they had a perfect right to do. Last year there were 207 Americans in the wholesale business in the Islands, 371 in the retail trade, and the amount of their annual joint sales was $17,777,330. These Americans had invested last year $3,695,377 in manufacturing lines;. If we add the additional amount in new railroads, street car lines, public utilities, saw mills, sugar plantations, mitning and other operations, the sum total will run high up into the millions. A majority of these men have been from ten to fifteen years in creating, building up, and extending their business enterprises. In many cas.3s all they possess is invested in their business and in their new homes, and along with it, nLmay of the best years of their iives. SNould it be just, would it be honorable in the American people to abandon seven or eight thousand fellow Americans in the Philippines, cause them to lose their ail, haul down their flag-the one they fought to raise over the Islands-withdraw the army, ard turn them over to be absolutely governed by the very mnen they defeated in the trenches;around Manila and at the end of that long, cruel guerilla war inaugurated and prosecuted by a so-called Philippine Republic which gave abundant evidence in its mal-administration and conclusively proved, by its official records left behind, that it was unworthy of tle name it bore and utterly incapable of wisely governintg either white or brown men? I cannot believe the American people will, when the issue is brought home to them commit such an unjust, unpatriotic, such a contemptible, cowardly act, as to betray, desert and abandon the splendid American men and women who have made good in the Philippines h\ fx upheld high American ideals and principles in this far-away land in the Orient. Three years ago the apostle of free silver. Mr. Bryan, materially aided in writing the platform upon which President Wilson was elected, receiving 1,300,000 less votes than the combined Taft and Roosevelt vote. The VDemocratic platform carried a plank favoring "an immediate declaration by Congress of our intention to give the Philippines independence"-or, in other words, tur;i them adrift-but securing their neutralization. Since that declaration was made, we have witnessed the destruction of Belgium by Germany, one of the nations which signed the treaty guaranteeing the neutrality of Belgium. The United States, the Filipinos, and the rest of the world have at last learned that neutrality treaties are absolutely worthless-without force or effect, and devoid of protection. Following close unon the violation of the Belgium neutrality treaty, the world -6 - has witnessed the action of Japan, taking advantage of China's defenseless condition, demanding and by threats securing, invaluable rights and privileges, which action was in violation of a joint treaty, signed by Japan, agreeing to aid in upholding the territorial integrity of her nearest neighbor, China, and its open door commercial policy. If China's 4o0,000,000 people and Belgium's 8,000,000 brave, prosperous, and highly enlightened inhabitants were powerless to have neutrality treaties respected and enforced, what would become of the poor, weak and defenseless Filipinos, with annual government receipts of less than $17,000,000, and a million-or oneeighth of its population-made up of wild and ignorant tribesmen, many of whom, prior to American occupation, were head hunters and even now practice peonage, or slavery. Had Mr. Bryan defeated President McKinley on the "anti-imperial" issue in 1900, the United States would have abandoned the Philippine Islands fifteen years ago. Had the Bryan advice been followed, the world would not have witnessed the marvelous changes wrought in the Islands under the inspiration and guidance of the splendid patriotic men connected with the military and nonpartisan civil governments sent out by Presidents McKinley, Roosevelt and Taft. Brief Record of Fifteen Years of Constructive Work in Philippines. Now let's note what good fortune, great blessings, fell to the lot of the Filipinos in not being turned adrift fifteen years ago as advocated by Mr. Bryan-by not severing their relations with the people of the United States-by remaining beneath the Stars and Stripes. Free speech; free press; religious liberty; law and order; protection of life and property. Increase of railroad mileage from one hundred and twenty-two to six hundred and eleven miles. A much-needed, safe, sound and satisfactory currency system, the equal of the best in the Orient. The coming of numerous missionaries, with the establishment of new churches, schools and free hospitals. An expenditure for improved health conditions, sanitation, fighting deadly diseases, building modern hospitals of $9,630,000. The expenditures of the United States government of more than $15,000,000 for fortifying the Islands and providing barracks, army posts, etc. Four thousand four hundred miles of well-built roads, better than can be tound in a majority of the States, and one thousand three hundred miles of cart roads and trails in the mountain districts or provinces. An expenditure of $21,376,000 in the interest of education, including modern school and university buildings. The number of children in attendance showed an increase of 360,000-tuition and text-books free. Sanitary improvements, sewerage, pure water supply, banishment of cholera, plague and smallpox. Construction of new water works for Manila and eight hundred artesian wells for towns and rural districts, reduction of death rate, etc. Dredging of harbors, building of breakwaters, construction of wharves, lighthouses, telegraph and telephone lines, and the establishment of coast steamship lines, hundreds of new post offices, and a modern postal system, under which postal receipts have grown in fifteen years from $484,960 to $1,072,684 per annum, and, in the same time, money orders from $1,526,310 to $8,272,858 per year. Consider the amount paid out for labor and local material, higher and better wages than ever known in the Islands-$15,000,000 on fortifications, military defenses, $7,000,000 for harbor improvements, $6,100,000 constructing good roads, $750,000 for lighthouses, millions on new railroads, street car lines, government, provincial and municipal.buildings, water and sewerage systems, school houses, hotels, hospitals, telegraph and telephone lines, the opening and operation of lumber camps, sugar plantations and gold mines, the building of manufacturing plants, modern business and private houses, and finally the creation of the beautiful summer capitol at Baguio, located in the mountains of Luzon and one of the wonders resulting from the coming of progressive Americans. An examination of the record covering the Island's exports and imports at the time when Mr. Bryan first declared in favor of surrendering or giving them up is interesting. Then the Philippines sold to the world, produce, etc., to the value of $14,640,162. Last year (1914) they sold $48,689,634, an increase of $34,049,472. The record covering imports-the people's purchasing power abroad, for the same periods, shows $13,116,567, as against $48,588,653, or an increase of $35,472,086. In 1904 we sold in cotton goods to the Islands, $278,106, -7 - and last year (1914) the sales were $5,b26,333. For 1913 and 1914, the last two years, the amount was $12,911,000, and if we annually average last year's sale, $5,826,333, for the next ten years, which we will do and even better, if the Islands are retained, our total sale of cotton goods for the ten-year period will reach $58,263,330, and our total sales to the Islands covering the same period would be $253,881,926. The past sixteen years we have sold in the Islands goods to the value of $145,315,503. The Filipinos sold and bought abroad from all countries in 1899 a total of $27,756,729, while last year (1914) this total increased to $97,278,287, a difference of $69,521,558. From the time of our taking over Porto Rico, the Hawaiian, and the Philippine Islands, up to December 30, 1914, they have purchased from the American business men goods to the value of $760,773,785. In proportion to size and population, they are the best, the most valuable customers we have today. Is it to our interest to give them, or any one of them, up-surrender our trade and legislative control over them to some other authority or power? If the American business men, exporters, and manufacturers wish to retain this desirable trade, they should take the subject up at once with their Senators and Congressmen, for this question will be determined at the coming session of Congress in the consideration of final action upon the Jones bill. Have Filipinos Been Unfairly Treated? Now as to the claim that the Philippines need independence and have been unfairly treated in the distribution of the offices. More than 71 per cent. of the government positions were filled by natives when Governor Harrison took charge, and since the wholesale removal of Americans under the present administration to make room for Filipinos, the latter's percentage of office holding has greatly increased. The entire membership-eighty-one-of the low house of the Assembly, or Congress, is composed of natives, and at the present time the.;'pper house is made up of five natives and four Americans. The Governor-General, the other part of the lawmaking and appointing machine, has publicly proclaimed his indebtedness to Manuel Quezon for his appointment, and Quezon is the leader of the movement to throw off so-called American "oppression and tyranny," and is the accredited custodian of the Philippine campaign fund, said to reach many thousands of dollars, collected in the Islands for some time from the servants, clerks. office holders, merchants, and others to "influence Congress" to pass the Jones or any other old bill providing for "independence." Money cannot put legislation through Congress, and any statement that it is used to control senators or members is a slander to our national law-makers and an imposition upon the innocent and confiding ones who give up their hard-earned money for said purpose. The Congress would render a public service, vindicate its members, and protect hundreds of poor, needy and innocent people by putting an end to the collection of this fund to "influence Congress." An investigation should be made to ascertain all the facts, who originated the scheme, the names and occupations of all subscribers, whether voluntary or forced contributions, the amounts, method of collection, how the funds are distributed and names of persons to whom paid, etc. In addition to the native office holders mentioned as being in the government service and in the Assembly, there should be added the village, town, city, and provincial elective and appointive officers and 10,000 members of the native Scouts and Constabulary. When the Spanish were in control, there were perhaps ten or twelve Filipinos who served as Justice of the Peace -their highest rank in the Judicial office-holding line. Now, all the Justices of the Peace are Filipinos on yearly salaries running from $300.00 to $1,800.00 except those who serve as ex-officio. Three of the seven members of the Supreme Court, half of the district judges, half of the judges at large, and half of the land court judges are natives. The Attorney-General and seven assistants are Filipinos. The Prosecuting Attorney and the City Attorney of Manila are to the manner-born. It is hardly necessary to state that the two Resident Commissioners, representing the Islands in Washington, are natives. In the matter of salaries, a Filipino Justice of the Peace in Manila now draws a salary of $1,800 per annum, more than the Spanish paid the prosecuting attorneys and judges. There are native judges now being paid annual salaries of $4,500, $5,000, $5,500, and $10,000, which is in excess of those paid for like service throughout the United States. There are Filipinos serving on the Commission who draw $15,500 annually; the Speaker of the Assembly is paid $8,000; while Messrs. Quezon and Earnshaw, draw more money out of the United States Treasury than their colleagues -8 - in Congress, on account of the great amount of mileage (about $3,991.60), which, added to their individual salary of $7,500.00 each, makes a total of $11,491.60, and as travel on a government transport is only a dollar a day, this would leave a net balance of $11,281.00. But why prolong the story of how the poor down-trodden people of the l hilippine Islands have suffered, have been ground down, had oppression inflicted upon them, their wives and children, since the invasion, occupation, and control by the cruel American tyrants! V\ hat the Filipinos have gained in improv ements of every kind and character -rapid and substantial advancement along the pathway of good government, moral, intellectual and industrial development during the past fifteen years, in spite of Mr. Bryan's advice-if fully enumerated would fill two good-sized volumes, and this has been faithfully and accurately done by the Hon. Dean C. Worcester, who, with President Taft, Governor Forbes, associates and coworkers, should live forever in the grateful memory of every man, woman, and child in the Islands. If their great works and noble deeds are not remembered, then the Filipinos are utterly hopeless. Should United States Retain Islands? Now, let's consider the qeustion whether it is to the interests of the United States to retain the Islands-whether we should keep them or withdraw the Army and Navy, wipe off our losses, and let the Filipinos sink or swim. The great majority of the men in and out of Congress who favor surrendering the Philippines do so for two reasons; namely. on the alleged ground that 'they will always be a great expense, an unprofitable investment, to the United States," and, secondly, "they are now and will for all time be a menace to us." The answer to the first excuse is: The Islands are paying their own way so far as meeting the expense of running the municipal local and general governments is concerned. The only expense now borne by the American government is incident to the presence of our soldiers in the Islands. This expense can be greatly lessened, if not practically wiped out, in time, by reducing the number of American soldiers and increasing and substituting additional constabulary or the Native Scouts, paying for their services out of the Philippine Treasury, as is being done at this time with the Constabulary force of 5,000 men. To abandon the Islands for the reason that they are or may become a menace, virtually means that Uncle Sam, who never fought an unsuccessful war, is for the first time going to show the white feather, admit possessing a yellow streak, make a confession to all mankind-to all the world-that our noble ancestors signally failed to transmit to the men of this generation any of their indomitable courage, undimmed loyalty, unceasing bravery, unswerving determination to hold and forever defend our rightful possessions purchased not only with millions of the people's money under a treaty ratification Bryan favored, but, above all, with the priceless lives of our heroes, many of whom sleep in the very soil they now tell us we must give up for lack of courage, for fear we have a "menace on our hands." God forbid! With or without these Islands, there will be a menace to the United States until Congress performs its patriotic duty in providing an Army and Navy so big and strong no nation in the Orient or elsewhere will ever dare menace or attempt to do our country an injury or capture any of our possessions. By making it possible for Japan to succeed us in the Philippines-take over the great and expensive fortifications costing us upward of $15,000,000 and fully developing the rich possibilities of the Islands with countless thousands of Japanese laborers-will Japan as a nation be strengthened or weakened as our military, naval and commercial rival in the Pacific? Will not the absorption of the Philippines, along with Korea and Formosa and the ever-increasing concessions Japan is securing in China by threats and force, result in her immense commercial growth and power until she will soon be financially able to increase her army and navy to an extent where she will indeed and in fact be more than a menace to the United States in the Pacific? Today her navy is practically the equal of ours, and her standing army of seasoned and highly-trained men exceeds ours by 175,000 and has lately been ordered increased. Every man in the nation has received military training. Evidently anticipating our withdrawal from the Philippines, certain Japanese are now negotiating for the purchase of extensive sugar lands in the Islands and are quoted in the Manila press as stating that they plan to bring over 100,000 or 200,000 Japs to use in the sugar industry, every man of whom will be a trained soldier. Our Trade With Islands. Last year American merchants and manufacturers sold goods to the value — 9 -. of $27,204,587 to the Islands, as against $127,804 in 1898, or an increase of $27, 076,783 since we took them over. Our sales in the Philippines for 1914 exceeded our exports to China for the same period and are equal to half of the amount we disposed of in Japan and were greater by $2,000,000 than the amount we shipped to all of the following countries in South America during 1914: Venezuela, Peru, Columbia, Uruguay, Bolivia and Paraguay. Our trade in Chile and Peru combined fell a million and a half dollars behind the Philippines orders last year. Comparing our trade in the Islands with some of our exports to European markets, we have the following: Our Philippine trade last year (1914) exceeded by $3,000,000 all we sold to Greece, Portugal, Switzerland and Turkey in Europe, and fell short only $3,000,000 in equaling our exports to Russia. Of our exports to the Islands we sold in cotton goods in 1904, $2,827,106, and in 1913 the amount was $6,827,082, more than a million dollars in excess of our sale of cotton goods in China, where at one time-before the Japanese controlled Southern Manchuria and drove our trade out-we sold in one year cotton goods to the value of $29,814,000. We have the advantage of our competitors now in the Philippines, because Congress has enacted trade and tariff laws favorable to our exporters and manufacturers; but withdraw, give up the Islands, let others make the laws or make it possible for Japan to succeed us, and it will not be long before our business in the Islands will vanish as it did in Manchuria. Our competitors sold goods to the value of $24,568,258 in the Islands last year. I have examined the list covering these importations, and practically every article is manufactured in the United States, and with proper tariff legislation this additional business would come to us and double our trade in the Islands -increase it from $24,020,395 to $48,588,653 at the present time. If we are to care for the Islands, furnish an Army and Navy for their protection, and be responsible for them, our business men should have the market, and not foreign competitors whose countries do not share with us the expenditures, labors and responsibilities in connection with their administration. Here is a partial list of articles and their values sold in the Philippines last year by our competitors, which American business men ought to have furnished and can, in the future, if Congress will do its duty to our exporters, manufacturers and employes: Cotton goods, value $4,129,911; coal, $1,629,490; condensed milk, $740,996; silks and manufactures of, $724,'404; undershirts and drawers, $703,425; cement, $541,763; passenger and freight cars, $217,631; locomotives and parts of, $209,9t0; collars and shirts, $162,638; iron bars, rods of steel, etc., $154,027; steel rails, $146,831; enameled utensils, $100,262; handkerchiefs, $91,039; plushes, and velvets, $61,024; cheese, $56,870; umbrellas and parasols, $55,160; trunks and traveling bags, $51,097; toys, $44,190; electrical machinery, $39,301. There is no richer, more fertile, undeveloped country in the world than the Philippine Islands, and with the development of its agricultural and mineral wealth as will follow our continued occupation, in a short time our trade would increase from $27,000,000 to $200,000,000 or $300,000,000 per annum, and this would be far more than our present exports to all South America and the Orient combined. We annually purchase of South American and other countries more than $700,000,000 tropical fruits, goods, produce, etc., which can be produced in the Islands and sold to us in exchange for American goods and thus escape the present heavy balance of trade, $396,000,000, now against us in dealing with these countries, which place the great bulk of their purchasing orders with our European competitors. The live-awake Americans, have developed the agricultural wealth of the little Hawaiian Islands, about the size of the State of Connecticut, and as a result last year the 225,000 people of these Islands purchased in the United States goods to the value of $25,773,412. These prosperous people-225,000-own more automobiles than the 500,000,000 people in China and Japan. What has been accomplished in the Hawaiian Islands in agricultural development, wealth and trade, can be repeated in the Philippines on a much larger scale, for the Islands are as large as all New England and New York State combined, with a population of 8,000,000. Mr. Bryan urged us to give up our insular possessions, and yet the record proves that we found a desirable market for the surplus of our factories ard mills last year in Porto Rico, Hawai;, and the Philippines, to the extent of $85,646,367. At this rate, at the end of ten years our exports to these Islands will exceed $856,463,670. With our great industrial growth we are turning out more goods than our home market can consume. If we are to keep the mills ). * -10 - going and our working people fuliy employed, prosperous, contented and happy, we must have a market for the full out put of our mines, mills and factories. We must look ahead. We cannot turn back. We must hold our own and go forward. Congress will be faithless to the present and future interest of America if it surrenders control of the Philippines-will do a cruel and serious injury to the honest and deserving Americans now residing in the Islands; will undo one of the greatest works of the 20th century, the matchless acniereucnlts of American progress and civilization in the Philippines, and bring upon the natives of the Islands unending troubles and misfortunes-a greater calamity could not befall them. And, finally, by such action Congress wili virtually proclaim, in ordering the removal of our loved flag, that the brave men who w;ilingly gave up their lives to seo it triumphantly float over the walls of Manila-over conquered Spaniard and captured Filipino revolutionisc-have (lied in vain and our country hns ceased to remember and appreciate their igraeat sacrifice to maintain her honor and glory end make her a great world power. From such enduring shame, humiliation, ingratitude and disgrace may we as a people and an enlightened Nation be spared. If the administration in power suc ceeds in its attempt to haul down the American flag in the Philippines, an outraged people will inflict the same punishment upon President Wilson and his party which was administered to President Cleveland for attempting to lower the flag and abandon the Hawaiian Islands in 1893. History will repeat itself. Final Word to Filipinos. Now, having had my say to the American people, I will close this lengthy communication by submitting a prediction to honest, sincere, and thoughtful Filipinos, devoted to the best interest; of their country and having its welfare close at heart. If you quietly and tamely permit the demagogues, excitable editors and unworthy politicians to drag your country from beneath the protecting folds of the American flag, you will at no distant day find yourselves compelled to acknowledge allegiance to another, offering less protection, fewer liberties, and exacting tribute for whatever may be given you. You will then live your remaining days in sackcloth and ashes, mourning over the supreme folly committed by those, who, betraying your best interests, inflicted lasting misery upon your beloved land by severing her relations from the best government on the face of the earth, which brought to you countless blessings you failed to understand or appreciate. RICHARD W. AUSTIN. HAWAIIAN ISLANDS A GREAT ASSET Honolulu, Hawaii. I have spent some time in the Hawaiian Islands gathering information from the citizens, officials, business men and commercial organizations, and have traveled over the islands inspecting sugar and pineapple factories and plantations, colleges, military camps and fortifications. This new American territory is composed of a group of eight inhabited islands, covering 6,449 square miles, or 4,109,000 acres, exceeding by 166 square miles the States of Connecticut and Rhode Island and the District of Columbia. The 1910 census gave the two states and the District of Columbia a combined population of 1,988,415, and the Hawaiian Islands 191,909. Annexed During McKinley's Term. The islands were annexed by the United States as a territory on July 7, 1898, during President McKinley's first term, and after his Democratic predecessor, Mr. Cleveland, had refused to accept them and, in fact, exhausted his influence to restore the monarchy. Of the many wise and beneficial pieces of legislation enacted during the administration of the martyred President there are two which stand at the head of the list-the taking over of the Hawaiian Islands and the substitution of the Dingley Protective Tariff measure for the Cleveland-Wilson destructive law, which had paralyzed and destroyed business prosperity in the United States in the same manner the Wilson-Underwood Tariff law has. been doing since its enactment. Abreast of Any Section in the United States. The inhabitants of the Hawaiian Islands cannot be compared with the natives of the Philippine Islands, as the former are more highly civilized, more progressive and thoroughly in sympathy with America. In agricultural, educational and business development the — 11 Hawaiian Islands are abreast of any section in the United States and far in the lead of many, and this is especially true of the American daily papers published in Honolulu. In 1820 the capital city, Honolulu, had a population of only 3,000. In 1866 it had increased to 12,000, with adobe and grass houses. Today it has;0,000, with every modern municipal improvement-gas, electric lights, street railroads, sewers, water works, telephones, telegraph, cable and wireless systems, efficient police and fire departments, parks, modern wholesale and retail stores and beautiful homes; an honest, progressive city government headed by a popular and able mayor, a native Hawaiian, Hon. John Lane. Its public buildings, churches, educational institutions, Y. M. C. A., civil and social organizations, business corporations, public utilities, banks, clubs, hotels, public and private buildings compare favorably with any city of twice its size in the United States or any other country. One of the leading hotels, the Alexander Young, was.recently completed at a cost -of $2,000,000, all the material coming from the States, Knoxville, Tenn., furnishing marble to the value of $150,000. There are many remarkable facts about the Hawaiian Islands. Let me mention two or three. There is no county or. municipal boinded indebtedness; more automobiles than can be found in all China and Japan, and out of $3,768,468 of annual territorial taxes collected, $1,026,594 is devoted to educational purposes, and $433,774 for the public health department. The citizens cannot be excelled in public spirit, in city and territorial team work, and in true, genuine hospitality. Efficiently Represented in Congress.The representative of the islands in the American Congress is a riative of royal descent, member of the last reigning family, the Hon. J. K. Kalanianaola, a modest, earnest, faithful representative of the people, who enjoys the good will and friendship of his colleagues in Congress. The new territorial officials Governor L. E. Pinkham and Hon. W. W. Thayer, are able, active and industrious officials, and in their work of promoting the interest of the islands have the enthusiastic co-operation of two real live business organizations, the Ad Club and the Chamber of Commerce of Honolulu. Delegate Kalanianaola and Mayor Lane are creditable representatives of the native Hawaiians, who, along with all the rest of their race, led by good Queen Liliuokalani, now 76 years of age, long ago became reconciled to being a part of the great American Republic, are contented, happy and rejoice at and appreciate the countless blessings the islands have received since becoming a part of the United States. Unlike the' noisy politicians of Manila, they are not clamoring for a restoration of the monarchy, or so-called 'independence." They are wise enough to know when they have a good thing and how to appreciate it. Cannot Understand Attitude of Wilson. However, it goes without saying that along with the rest of their fellow Americans-Democrats and Republicans -they are at a loss to understand the consistency of the Wilson administration in removing Americans from office in the Philippines and filling the vacancies with Filipinos, while in the Hawaiian Islands the policy is to fill vacancies by going to far-off South Carolina for a Honolulu postmaster, to Mississippi for a collector of the port, and to Tennessee for a United States district attorney. The natives in the Philippines must rule and have the offices, but the natives and other Americans in the Hawaiian Islands must be ignored and officials imported from the States. Liberal Contributors to Federal Treasury Upon the annexation, the United States government assumed and has since paid the then existing indebtedness incurred by the Republic of Hawaii, which succeeded the monarchy, the amount being $3,241,400. During the past fourteen years the people of the Islands have paid into the Treasury of the United States the following: Customs receipts --- —--- _$19,610,58& Internal revenue taxes ---- 1,709,78 Postal receipts --- — 20,000,000 Total ----------- $41,320,326 This financial showing proves that Uncle Sam made no mistake in unfurling and keeping his flag over the islands. The amount of internal revenue tax collected the first year under the jurisdiction of the United States was $7,450, while last year (1914) it was $246,754, or an increase of $239,304. Large Purchasers of American Products. During the same period the American business men have disposed of $240,857,122 of goods made in our mills, workshops, etc., to the people of the islands, out of a total importation of $301,369,196. The year prior to annexation the total imports and exports footed up to $23,704,000, and in 1914 they had risen to $77,144,339. -12 - Last year the amount purchased in the United States was $29,267,699, and $6,282,558 fr6m our foreign competitors. (f the last-named amount $2,496,000 covers purchases made in Japan, and the value of goods Japan bought last year in the Hawaiian Islands was only $45,269, leaving a trade balance against the islands and in favor of Japan, of $2,460,788. Japan's Increasing Exports to the Islands Japan's sales in the islands in 1900 were $647,395, while 1914 shows an increase of $1,803,390 over her imports fifteen years ago. Practically all of Japan's exports to the islands are made up of cotton goods. Though the United States produces raw cotton and is supposed to have a Tariff in the interest of its cotton manufacturers and operatives, here is Japan, an importer or raw cotton, with her cheap labor-ten cents to twentytwo cents per day, working ten to eleven hours per day-entering an American home market and underselling our cotton manufacturers, just as she has succeeded under the present low Tariff in disposing of goods in the Philippine Islands amounting in 1914 to $3,633,642, made up almost entirely of cotton goods. American Mills Should Have the Preference. The Northern and Southern cotton mills in America closed down or running on reduced time, and thousands of their employes idle and without work during the past two years, under the new Tariff law, and we see Japan entering two of our insular possessions and selling goods in twenty-four months to the value of more than $12,500,000, and practically all cotton goods; and covering the same period, cotton goods sold in the United States by our foreign competitors reached $105,211,210. There are members of Congress who voted for the present low duties on imported cotton goods, along with many writers in newspapers and magazines, now advising and urging our cotton manufacturers to seek a market in South America and elsewhere. Better Retain Our Market. Well, if we could not meet foreign competition at home on our own shores in the sale of cotton goods to the value of $105,211,210 in 1913 and 1914, how can we have any better success thousands of miles away, with extra brokerage, transportation and other charges, not to mention longer time in payment of the goods? Why not pass Tariff laws under which the amount, $70,000,000. we now send annually abroad for foreign-made cotton goods, can be spent in Americastarting up some of our closed mills and giving employment to thousands of idle men and women? Protection for Sugar Absolutely Essential. While on this subject of the Tariff and its importance to the cotton industry, and writing about the Hawaiian Islands, which have proven so far the most valuable asset the United States has secured in about half a century, it will not be amiss to state that a Tariff duty on sugar is absolutely essential to the prosperity and industrial life of the people of these islands. The following embraces the list of leading agricultural products: Sugar, pineapples, coffee and rice-sugar and pineapples constituting 91.79 per cent. of the crop output, 79.81 per cent sugar and 11.98 per cent. cantned pineapples. It requires from sixteen to twenty-four months to raise a crop of sugar, and the cost of irrigation and fertilization is essential, and exceedingly costly, the last item in 1914 amounting to $3,500,000. As to the cost of sugar or pineapple farm or plantation unskilled labor, it is not only high but greater than is paid for farm labor in a majority of the States of the American Union. Wages Higher Than in Cuba. The minimum wage is $20 per month; average wage, $26 per month. In addition, they are furnished a house, water, fuel and medical attendance, estimated to cost employers $6 per laborer. Then there is a bonus paid the laborers, which, for two years and ten months ending October 31, 1914, was 19 per cent. of their earnings. The bonus earned from November 1, 1914, to April 30, 1915, was 17 per cent. In 1910 Japanese farm workers inauguarated a strike for higher wages. According to a recent report issued by the Japanese Department of Finance for 1914, farm laborers are paid $6.90 a month, about one-fourth of what they receive for a month's work in the Hawaiian Islands. Under a decree of President Wilson, the Democrats in Congress-his recording machine-ordered sugar on the free list after May 1, 1916. After that date absolutely no legislative Protection is to be given that extensive industry in the United States or in Porto Rico, the Hawaiian or the Philippine Islands, where the industry means the very existence of agricultural life, for no other profitable crop can be substituted. Constant Employment Is Essential. There are at present receiving the -13 - wages mentioned on sugar plantations in the Hawaiian Islands, 44,950 laborers. You can fully understand how essential the constant employment of these people at good wages is to the continued peace, weiare, prosperity and happiness of this American territory, with a total population of only 225,000; a territory which, since annexation in 1890, has proven to be our best, most valuable customer in proportion to population we have in all the world. In addition to the annual business of $25,000.000 which they give the merchants and business men in the United States, the amount they annually contribute to our national Treasury in postal business, custom house duties and internal revenue taxes runs annually into millions. Last year Honolulu expended $100,000 for an armory for the use of a creditable and efficient force constituting a part of our National Guard, for service whenever needed by our Government. Cannot Compete With Cuban Planters. It is utterly impossible for the Hawaiian sugar planters, with American wages and standard of living, costly fertilization and irrigation, and distance from the American market to compete with the sugar planters of Cuba, who have cheap labor and a soil needing neither irrigation nor fertilizers, and where the cane matures in a shorter time and planting is not required so often. The cost of Hawaiian production of sugar laid down in the American market in 1914, New York, where Cuban sugar is met and the refineries are located, was $53.65 per ton, and the average cost per year for the last five years was $56.92 per ton. In addition to the advantages in the cost of labor. fertility, of soil and methods of cultivation the Cuban planters pay $6.25 per ton less to transport a ton of sugar to New York, where the raw sugar must be purified and refined before being placed on the market. Domestic Cane and Beet Growers Need Protection. It is just as impossible for the Louisiana sugar planters and beet sugar farmers of our Western States to compete with the producers of Cuban sugar without a Protective Tariff as it is for the Hawaiian sugar planters. Sugar on the free list means the destruction of this industry, not only in our insular possessions, but in the United States. After May 1, 1916, our country will be the only one without a tax on sugar. Even Free-Trade England levies a Tariff, or duty, on it. The Wilson idea about placing sugar on the free list was to reduce expenses and thereby keep that pledge in the Baltimore platform promising a reduction in the cost of living. Sugar Higher Than Before. The new Tariff law reduced the duty on sugar 25 per cent. on March 1, 1914, and yet sugar is higher today than it was before this 25 per cent. reduction be came effective. After sugar goes on the free list, May 1, 1916, the American' consumer will in a short time discover the price of sugar advanced. After the sugar refiners-large owners of Cuban sugar lands-who for years swindled the United States Government out of millions in Tariff duties, for which they were convicted, paralyze and destroy their competitors, the sugar planters in Louisiana, in our insular possessions, and the beet sugar producers in the Western States, the price of domestic sugar will be advanced and the Treasury of the United States will lose an annual sugar Tariff income of $50,000,000, at a time when there is a Government deficiency somewhere between $65,000,000 and $100,000,000. Sugar Trust the Only Beneficiary. The consumer not only did not profit by the 25 per cent. reduction on sugar last year, but the Treasury lost during the first month, when it was badly needed, in customs duties $2,479,358. Should we make the refiners a further present at the expense of a depleted Treasury amounting to the magnificent sum of $50,000,000 per annum, or make them continue to pay it to the United States to aid in meeting the enormous and everincreasing expenses of the Government of the United States and, at the same time, Protect and encourage the great sugar industry in the Hawaiian Islands and in the United States? Free Sugar Folly Should Be Repealed. Congress should lose no time in repealing the free sugar folly, which will not benefit the people, but will increase the great riches of the selfish Sugar Trust at the expense of the Treasury of the United States and at the cost of the industrial system of the honest farmers in Louisiana and the western States and the planters in the Hawaiian Islands, who have always contributed their full share in upbuilding and making prosperous a deserving people and furnishing a valuable increasing and ever-reliable market for American made goods. The European war has saved and kept alive our sugar industry from the first cut of 25 per cent. in the Tariff duty and the anticipation of the total abolition of the duty. Germany stands first and Aus tria third in the list of sugar-producing countries, and these at present are out of the sugar business. Domestic Sugar Makers Going Out of 14 -fearful penalty for the foIIy of electing a Free-Trade educated theorist to the Presidency, along with a subservient Congress ever ready to do his bidding. Business. Mark Twain's Beautiful Tribute. Prior to the war twelve sugar beet factories, on account of the action of Con- Desiring to close this letter with somegress, closed down, and the Louisiana thing pleasant and give the reader a true sugar farmers were seeking, if possible, picture of the Hawaiian Islands made the substitution of another less profit- with the pen of our own beloved and able crop. In Honolulu a few days ago never-to-be-forgotten Mark Twain, I I learned of the sale of a large local quote his just and beautiful tribute: sugar company and plantation to a party "No alien land in all the world has any of Japanese. The explanation was that deep, strong charm for me but that one; the owners knew after the close of the no other land could so longingly and bewar in Europe and the removal of all seechingly haunt me sleeping and wakduty-the placing of sugar on the free ing, through half a lifetime, as that one list on May 1, 1916-means bankruptcy has done. Other things leave me, but it to compete with the Cuban sugar plant- abides; other things change, but it reers. This first sale of a sugar plant is mains the same. For me its balmy airs but the foreruntier of what will happen are always blowing, its summer seas to this splendid American industry unless flashing in the sun; the pulsing of its Congress repeals the free sugar law. If surf beat is in my ear; I can see its garfree sugar permanently remains the in- landed crags, its leaping cascades, its dustry will in our insular possessions fall plumy palms drowsing by the shore; its into the hands of aliens, our deserving remote summits floating like islands people will be crowded out and our local above the cloud-rack; I can feel the spiror export trade to Porto Rico, the Ha- it of its woodland solitudes; I can hear waiian and the Philippine Islands will the splash of its brooks; in my nostrils be done by our foreign competitors. still lives the breath of flowers that perThe American people have certainly ished 20 years ago." been chastened, punished, have paid a RICHARD W. AUSTIN. JAPAN, A YELLOW INDUSTRIAL PERIL TOKYO, Japan. —Having given my 71,000,000. Japan has 147,655 square impressions on the Philippine and Ha- miles. In size California exceeds it'by waiian Islands and the duty of the Unit- 11,000 square miles. The population of ed States in reference to legislation and the Golden State in 1910 was 2,377,549. the future possibilities in case of their Japan and Mohtana are the same size. development, and a consequent increase The population of the latter when tiken of American trade and commerce, I am by the Government was 376,952, while now going to place before the public Japan's at that time was 50,984,844. In some information gathered in Japan. density of population per square mile the I traveled several thousand miles in following will show the overcrowded conthe Flowery Kingdom, visiting the capi- dition of Japan as compared with some tal city, Tokyo, Osaka, the Pittsburgh' other countries: i Russia, 20 persons per of Japan; the important shipping ports square mile; France, 21; England, 33; of Yokohama, Kobe and Nagasaki, the Italy, 51; Holland, 52, Germany, 60; latter located in the center of the great United States, 30; Japan, 284. The coal mining district, and Kyoto, the average density of population throughout former capital. In addition to visiting the world is 29 inhabitants. Japan's inthe cities named, I examined several cot- crease in population is 500,000 annually; ton, woolen and spinning mills, and 16 per cent. of its soil under cultivation, traveled through the agricultural sec- the rest in mountains, forest and untilltion. able lands. Seventy per cent. of the Density of Po n. people live by farming. Density of Population. The population of Japan proper is 53,-Country Is Overcrowded. 000,000, and if you add the dependencies, The statesmen of Japan fully realize Korea and Formosa, it gives a total of their country is overcrowded and must -15 --- have additional room. This explains its seizure of Korea, Formosa and recently a China province, control of southern Manchuria, and why it will be only too willing to take over the Philippine Islands whenever the United States commits the folly of turning them adrift. Japan is wild for more territory for the colonization of her congested population and the sale of the ever-increasing output of her mills and factories. Japan's Cheap Labor. Labor is cheaper today in Japan than any other country in the world except China, and the difference is exceedingly slight. Japan, having the decided lead in the manufacturing line, is now supplying China, and in doing this has successfully met the competition of all her American and European competitors. In the manufacture of cheap cotton goods she is rapidly taking the trade away from her ally, Great Britain, and while the United States, before Japan developed her cotton industry, sold cotton goods in China in one year to the value of $29,800,000, now, since Japan has gotten into the game, our trade in this line in China was between five and six million per annum in 1914. United States Will Lose Its Trade. When the Japanese go into the manufacture of the higher or more expensive grades of cotton goods the United States will lose the balance of its trade in cotton goods in the Celestial Empire. Twenty-four years ago Japan had less than 5 per cent. of the entire import trade in China; today she has over 17 per cent., and is increasing it right along. Great Britain's trade with China during this same period has fallen from 80 to 50 per cent losing it to Japan and Germany. The trade of the United States, 8 per cent., remains stationary, falling off in the sale of cotton goods, and making up to some extent in the sale of coal oil and sewing machines, iron and steel products. Japan's Exports of Cotton Goods. The United States produces 60 per cent. of the world's entire crop of raw cotton, and only uses one-third of it in the manufacture of cotton goods. Japan imports its raw cotton from the United States, Egypt, India and China, and while she has only entered upon the manufacture of cotton goods extensively in the last fifteen or twenty years-having only seven small mills as late as 1881 -yet today her foreign annual export of cotton goods is only $5,000,000 short of that of the United States, and gaining year by year. Has Driven Our Goods Out of China. She has not only driven our cheap cotton goods out of China, the greatest cotton goods market in the world, but enters our insular markets in the Philippine3 and Hawaiian Islands, and sells annually from five to six million dollars' worth of cotton goods. This is not all. Japan is demonstrating on our very shores what she is capable of doing. In 1907 the total amount of cotton goods from Japan sold in the United States under a Republican Protective Tariff was $333,989; in 1914, under the operations of the Democratic low Tariff, she had no trouble to pay the custom duties and unload cotton goods to the value of $1.041,632, a difference or an increase of $707,643. Japanese Mills Running Night and Day. At this very time, and during last year, when the American mills were unable to dispose of their output, and many of them either closed down or ran on reduced time, employes idle, etc., under the present Tariff law, the Japanese mills were running night and day, putting in from twenty to twenty-two hours in every twenty-four, the sales of Japanese goods in America, the Philippines and Hawaiian Islands and China showing an increase. Last year (1914), under the Wilson-Underwood Tariff, our foreign competitors sold in the United States cotton goods made in foreign mills and by foreign workmen, to the value of $70,704,823, being an increase over their sales in the United States the year before (1913) of $4,638,970. Over $75,000,000 in One Year. If we include the amount sold in, our insular possessions, where the same Tariff duties apply, then our foreign competitors unloaded on us in 1914. o0Vr $75,000,000 of cotton goods under, the Wilson administration. This was, in round numbers, $25,000,000 in excess of the amount we sold abroad during the same year. We produce 60 per cent. of the world's raw cotton; have 850 cotton mills in the South, where this cotton'is produced. We have millions of dollars invested in this industry, not only in the South, but especially in New England. Would Have Kept All Our Mills Going. Last year was one of the distressing periods in the manufacture and sale of American-made cotton goods. Operators were forced to close plants; many ran at a loss, and not a few ran on short time; thousands of men, women, boys and girls were thrown out of employment, or suf -16 fered in wages by a reduction in the hours of labor. Had the 75,000,000 of good American dollars sent abroad for foreign-made cotton goods been spent for American-made cotton goods, it would have kept all of our mills going last year and our mill operatives on the payroll every working day in the year. Perhaps, like Japan, we would have kept many of our mills going night and day with a double shift. In the next election the American cotton mill operators and those they employ can materially aid in changing this unAmerican policy, by voting out the men and party now in power responsible for laws that favor foreign manufacturers and employes over our own people. Will Flood the American Market. Japan is not only increasing her sales of cotton goods in China, Japan, the Philippines, and Hawaiian Islands and in the United States, but when she completes her industrial program she will flood the American market with cotton goods, iron, steel, etc. The construction of the Panama Canal opens a cheap water transportation route to our Eastern cities and States, and Japan is already arranging for lines of fast passenger and freight ships to connect her factory ports with one of the best sections of the greatest and best markets in all the world, the region between the Atlantic and the Mississippi River. Japan's Merchant Marine. In 1913 Japan had 12,525 vessels engaged in foreign trade, which sailed in and out of her ports to the distant markets of the world, while thee United States merchant vessels engaged in foreign trade numbered 1,279. The number of Japanese merchant vessels entering the harbor of Manila in 1914 was 66, American 27. The Japanese Government, like every up-to-date European country seeking to find a foreign market for the surplus of its mills and factories, has, out of Government funds, aided in building and in maintaining a creditable merchant marine, lines of vessels, cheap water transportation to the distant markets of the world. A Duty Delayed Too Long. The duty of the American Congress in this respect has been delayed too long. A first-class merchant marine is absolutely essential to the establishment and maintenance of foreign markets for American-made goods, for the ever-increasing surplus of our mills and factories, which cannot be disposed of at home. In time of war these merchant vessels could be utilized in connection with the navy in the transportation of troops, food and ammunition supplies, etc. Next winter when Congress considers and acts upon the all-important question of an enlarged and needed naval program, it should do something substantial toward providing the country with a merchant marine. Have the Best in the World. While in Japan I visited a number of mills-cotton, woolen, spinning mills, etc.-plants which will favorably compare with the best in America or Europe. Our manufacturers have absolutely no advantage in the way of mill machinery, buildings, equipment, labor-saving devices, etc. The Japanese have procured the best from all the rest of the world. Then compare wages, the hours of labor, etc., and you will understand how they can undersell us in our own home and insular markets under a low Tariff, and have been able to drive our trade out of China. When they establish their direct steamship lines by the way of the Panama Canal to Gulf and Atlantic ports, and increase the number of mills, and enlarge present plants, as they contemplate, then look out for cheap Japanese cotton goods and the closing down of additional American mills. Thh Japanese are using a cheaper grade of cotton than the American mills handle. Women Work for Eight Cents a Day. They will mix a little of American cotton with the cheaper Chinese or India cotton, and pay their employes the following wage3: Males 26 cents and females 15 cents per day for ten and eleven hours' work. I visited one mill at Tokyo, where I found a room full of women working for 8 cents a day. In another plant I saw at least a thousand women and girls working for 15 cents a day-eleven hours-boarded and roomed in quarters furnished by the company. Four and a half cents a day was deducted for their meals and lodging, leaving a balance of 101/2 cents net for their day's work. Fifteen of these women or girls occupy a single room 16 by 18 in size, sleeping on the floor, without a single piece of furniture in the room. A Noonday Meal. I saw their noonday meal on the table ready for them. It consisted of a saucer filled with rice and beans, a piece of fish a little larger than a silver dollar, a halt -17 - of a Japanese radish, and a cup of tea. The Japanese Government has issued an official report for 1914. It states that there are 66,904 males and 446,283 females employed in Japanese textile factories; in the weaving industries, 20,637 males and 124,654 females. Compare the above scale of wages and the hours of labor with the scale of wages and hours in American mills and you will have the secret of the ability of the Japanese to undersell American cotton manufacturers. Women Work in the Coal Mines. Japan is full of a fine quality of steam coal. The value of the output of their coal mines for last yeac was $35,706,418. In the mining industry coal diggers or miners are paid 25 and 301/2 cents a day; women (and many of them are worked in the operation of coal mines) are paid 18/2 cents a day, children 7 2 cents a day. So steam power is cheap in the cotton mills of Japan. However, a large number of mills are now driven by electricity derived from water power. The estimated water power in Japan, developed and undeveloped, is 5,000,000 horsepower. With modern machinery, cheap power, cheap labor and cheap water transportation to all the known ports and markets in the world, Japan has essential and controlling advantages over all of her foreign competitors. All Japan wants is a low Tariff law to overcome and she will successfully meet and undersell all her competitors in any manufacturing line she has entered upon or may hereafter decide to enter upon. Japan's Natural Resources. Many well-informed people are under the impression there are no mineral or natural resources in Japan. In addition to her great supply of water power and timber resources last year she produced from her mines the following: Gold, value --- _ $ --- — 3,399,536 Silver, value --------- 2,948,042 Copper, value ---------- 20,126,035 Coal, value _ --- —-_, _ — 35,706,418 Zinc and lead, value --- —---- 1,313,305 Besides these there are valuable min eral resources in Korea and southern Manchuria under her control. What Japan now lacks in the amount and extent of mineral wealth will be abundantly supplied if she succeeds in her attempt to get, by hook or crook, the enormous mineral wealth of China. She has already "gobbled up" a good deal, and unless prevented by other nations which signed the treaty with Japan guaranteeing the integrity of China, she will control, own and develop the great mineral resources of the Chinese Republic, erecting iron furnaces, rolling and steel mills, cutlery factories, etc. Will Be a Yellow Industrial Peril. With extensive deposits of every known mineral, the cheapest labor in the world, the most modern, up-to-date machinery and a large and increasing marine service, backed up by the Japanese Government, Japan will be in fact a peril, a yellow industrial peril, in the Orient, in South and Central America, Canada and the United States, under a low Tariff or non-Protective Tariff law. Last year Japan imported pig iron, steel rails, plate and galvanized iron, to the value of $25,882,454. She is going to not only save this-keep the money at home by going into the iron and steel business-but eenter the foreign markets extensively in this line, if her present plans materialize. Ought to Cure Any Free-Trader. With America's high standard of living and wages and short hours she cannot commercially stand up agair7t the Japanese and Chinese industrial systems on equal terms. A personal visit to the Orient, firsthand observation, study and information, would cure for all time the most rabid Free-Trader or low Tariff man in or out of the American Congress. In my next letter I shall write about my trip through China; a visit to some of its industrial plants, cotton mills, antimony works, iron and steel mills, etc. RICHARD W. AUSTIN. -18 -CHINA AWAKENING-FRIENDLY TO THE UNITED STATES Pekin, China. In my three previous articles I have written about the Philippine and Hawaiian Islands, and Japan. I am going to give some of my impressions of China, having visited Shanghai, its great commercial port; Nankin, the ancient capital; IHankow and Wuchang, its two interior manufacturing cities six hundred miles up the Yangste River from Shanghai, Pelin, the Capital; Tien Tsin, and other cities. I inspected at Shanghai the Heng Fong Cotton Manufacturing Mills, in company with Mr. J. H. Arnold, our live commercial attache in China, who served, prior to his present assignment for many years as an American Consul in the Orient. At Wuchang I examined the Hupet Republican Government Cotton Spinning Mills, through the courtesy of the superintendent, Mr. Wang Tatfootson, who acquired the use of the English language under the instruction of an American woman missionary. On the opposite side of the river I spent some time going through the Htanyang Iron and Steel Works at Hankow, the Pittsburgh of the Republic of China. At this plant I was accompanied by Edwin S. Cunningham, the American consul General, and one of the ablest and most efficient men in the service, and was shown every courtesy by Acting Superintendent T. Y. Shengcheng Lee and Mr. Haii Hsin Tai as the personal representative of the managing director. When these Chinese officials were so anxious and willing to show me through their plants, explain everything and freely answer my questions, I could not help contrasting their conduct with the Japanese cotton mill official at Yokohama and five others at Osaka, who declined to permit me to visit their plants, though my request was presented by our consular, naval and diplomatic representatives in Japan. When the Japanese are in our country seeking modern ideas and valuable information they are courteously treated, and given every opportunity to make full investigations. I trust this valuable privilege in the future will be granted to only those in Japan who are willing to reciprocate in matters of this kind. I found honorable exceptions in the person of a superintendent of a large cotton mill at Kobe, and of a cotton spinning mill near Tokio. These mill officials had visited in the United States, and gratefully remembering the kind treat ment they had been accorded in America, were perfectly willing to receive and show me every attention. Making Pig Iron. For more than three years I had a strong desire to visit Hankow for the purpose of seeing the Chinese make pig iron and steel rails, six hundred miles in the interior of China, on the banks of the famous Yangste River, the fourth longest river (3,400 miles) in the world. I had read in an American newspaper of a cargo of Chinese pig iron made in this place being sold in Brooklyn, N. Y., for a certain price per ton. This iron was loaded at furnaces on an ocean-going vessel which can ascend this great river to Hankow nine months in the year. The voyage was down this river, across the Pacific ocean, around South AmericaCape Horn,-up the Atlantic Ocean into the harbor of New York, and unloaded on a Brooklyn wharf. As the district I represent in Congress makes pig iron, in furnaces located within less than eight hundred miles of Brooklyn, I made an investigation and ascertained that this cargo of Chinese pig iron was sold for less than $2.00 per ton under the price the Tennessee furnaces could make and deliver it in Brooklyn. So a ton of this Chinese pig iron could be made and delivered at the end of a 15,000 mile ocean voyage, and pay our tariff duty, $2.50 per ton, for less than a ton of Southern pig iron could be manufactured and sold eight hundred miles distant in the United States-on the Atlantic seaboard. Now that the Panama Canal is completed, pig iron placed on the free list by the Wilson administration, transportation charges greatly reduced, the distance cut in half via Panama Canal, Chinese pig iron has free access to every important point or market in the United States. The Underwood-Wilson Tariff law has granted a great advantage to the Oriental and European iron makers at the expense of the United States Treasury and American iron furnaces and the men who work in them. When I found, on personal investigation, the American iron producers paid their men in the coal mines, coking plants, iron ore mines, and in the operation of the furnaces, more for one hour's work than is paid for twelve hours' work in these same lines or occupations in China, I fully understand how Chinese pig iron could be sold in Brooklyn for $2.00 less -19 - per ton than Tennessee pig iron. Contrast 18 to 30 cents for ten and twelve hours' work in an Oriental coal and iron mine, furnace and steel mill with the American scale of wages and shorter hours for similar work in our country and you have the story. There is practically no difference in the way the Japanese and Chinese workers in the cotton mill industry, iron and steel plants, coal mines, etc., live. I went into this subject in my letter on Japan, hence do not think it necessary to cover it again. However, will state I examined in China the noon day meal of a number of the operatives in a spinning mill. In a majority of cases it consisted of a small bowl of rice, occasionally a small fish the size of a sardine or rice and beans. The cost of maintaining a female mill worker in Japan is as low as 41/2 cents per day. Living is just as cheap and just as hard in China as in Japan. Prior to the present war, the American towns and cities on the Pacific coast were supplied with foreign pig iron, and our European competitors were underbidding us on structural steel in the same markets under the Underwood-Wilson tariff law. At present China is selling her entire output of pig iron and steel rails in the Orient. But we Tiave only to wait. The time is coming when the iron and steel industry of America will be face to face with serious Oriental competition in the Orient, in Russia, the Philippines, Mexico, South and Central America, and in the United States on both coasts. If let alone, under the wise and progressive President of China, Yuan Shih Kai. China will have this industry in time developed. The iron and coal of China is inexhaustible. Its mineral resources are not excelled, and it has the cheapest and most abundant labor in all the world. What Japan Will Do. Japan will seize and develop this colossal mineral wealth of the Republic of China if her cunning and avaricious hand is not stayed. If Japan's plots and schemes succeed, then the iron and steel development of the Orient will be carried out by Japan. Certain bankers of Japan have at present a large mortgage, running into the millions, on the iron and steel works located at Hankow, and Japan only recently attempted, by treaty manipulation and the sending of 60,000 soldiers into China, to intimidate and force China to surrender its mineral wealth. Japan has demonstrated what she can do in the manufacture of cotton goods. In this single line alone she has taken from America in China an annual business which in 1906 amounted to $28,900,000, and reduced it to $1,194,930 for the fiscal year ending June 30, 1915. There was a falling off of $4,901,478 last year over our sales in China as compared with the previous year, 1914. What Japan has accomplished in this line she can more than duplicate in the iron and steel business if she gets a chance. We have more to fear from Japan than China in the iron and steel industry. We have the honest, sincere friendship and good will of the people of China, and this cannot be said, in truth, about the Japanese. Wages in the Orient. While contrasting wages in the coal, iron and steel business, it will not be out of order in this article to give American manufacturers and their employes and the public generally a scale of wages in the Orient in various occupations. Here it is: Carpenters, 26 cents a day. Blacksmiths, 29 cents a day. Plasterers, 26 cents a day. Bricklayers, 35 cents a day. Farm laborers, 23 cents a day. Tailors, 25 cents a day. Male weavers, 21 cents a day. Female weavers, 20 cents a day. Cotton mills, males 20 cents a day; females from 8 to 15 cents a day; children, 8c. Coal miners, 30 cents a day. Women in coal mines, 18 cents a day; boys under 14, 71/2 cents a day. In the plants operated by the Government of Japan, the following is a scale of wages. In the ordnance department, 351/2 cents a day. Torpedo department, 36 cents a day. Steel works, 38 cents a day. Shipbuilding departments, etc., males, 361/ cents; females, 142 cents a day. Powder mill, males, 31 cents; females, 14 cents a day. Steel foundry, males, 34Y2 cents; females 15Y cents a day. In transportation by rail, river, canal, and ocearn which r;%eans low freight rates from the Orient to America, the same low standard of wages and long hours of service obtains. In legislating for the future welfare, prosperity and happiness of the American people, especially the working people, Congress will be derelict in its duty if it hesitates, fails or refuses to maintain our high standard of living and wages by the enactment of a tariff law which will keep -20 - out of our country competitive goods, not only from the Orient, but from Europe. Facts on China and Japan. In writing about China and Japan it will be interesting to state some facts in connection with these two countries from the latest available statistics: China's indebtedness_ -- $ 969,189,000 Japan's " --- 1,241,997,000 Japan's exceeds China's-__ 272,808,000 Japan's annual interest charge - _ --- —-- 71,189,000 China's annual interest charge — _ --- —---- 33,696,000 Japan's annual revenue_ — 292,230,000 China's " __ 193,261,000 China's square miles --- —- 4,287,000 Japan's i" " -- 147,655 China's population ---- - 421,000,000 Japan's " _ 53,000,000 Japan's indebtedness exceeds that of the United States by $211,333,000, while the annual revenue of the United States is $721,902,000 greater than that of Japan. The foreign population in China is 141,868, as follows: British, 10,140; Japanese, 65,434; Americans, 3,176; Russians, 49,395; Germans, 4,106; French, 1,925; Portugese, 3,377; Spaniards, 400; Italians, 274; Danes, 260; others, 3,381. The total foreign firms doing business in China is 3,239, and divided as follows: British, 601; Japanese, 1,601; Germans,.238; Americans, 100; French, 110; Portugese, 57; Spanish, 84. The perecentage of China's foreign trade is divided as follows: Great Britian, 51 per cent.; Japan, 17 per cent.; United States, 8 per cent.; Russia, 8 per cent. Rest of Europe and other countries, 16 per cent. The exports of the United States to Asia and Oceanica in 1915 was ____ $192,232,230 South America in 1915...- 99,323,957 Difference -—. --- —---- $ 92,908,273 Lost in value of exports to South America last year ---- _ --- —- $ 25,215,952 Lost in Asia and Oceanica__ 4,761,803 Difference ---------- $ 20,454,149 Last year our leading exports to China were: Oils, $5,178,336; iron and steel, tin, plates, templates and taggers tin, $682,460; tobacco, $612,296; cigarettes, $1,181,327; cotton goods, $1,194,930; machinery and parts of machinery, $148,895. In 1914 our imports from China amounted to $39,382,978, and our exports to China $24,698,734, or a balance of trade against us of $14,684,244. During this same year we bought of Japan $107,355,897, and sold Japan $51,205,520, leaving a trade balance in Japan's favor of $56,949,377. The total trade balance against America in favor of China and Japan for the year 1914 was $70,724,621. The principal articles purchased in China and Japan were unmanufactured silk, carpet wool, goat skins, matting, tea, soy beans, etc. How Protective Tariff Works. As an evidence that a protective tariff works in the interest of the American workshops and mills, let me give some convincing facts: In China, Japan and India, with a combined population of over 800,000,000, and where we compete with the low wages of the rest of the world, we sold in 1914 American made goods to the value of $86,758,845. Now, with a low tariff-the Underwood-Wilson law-which applies to Porto Rico, the Hawaiian and Philippine Islands, with a total population of 9,353,000, last year we sold $85,546,367. Had the present tariff law been higher-a real protective law-our exports to these American Islands for last year would have exceeded $115,000,000. Before our American tariff law applied to these Islands, we sold them in twelve months, $7,540,905, and in 1914 we had increased our sales to $85,546.367, or an annual gain of $78,005,462. For the year ending June 30, 1915, we exported to all the world cotton cloths to the value of $22,048,925. During this same period we exported cotton cloths to the Philippine Islands amounting to $6,633,560. In the face of these facts the Wilson administration favors giving away the Philippine Islands, where our trade last year exceeded the year's record before we took them over by over $26,000,000. I found China a wonderful country, rich in undeveloped mineral wealth, and its agricultural resources will compare favorably with the best in America. This vast country, with its teeming millions of patient, law-abiding and industrious people, is "seeking the light." The men who have been educated in America and Europe are thoroughly modernized -they know and understand so-called Western ways and methods. They are fully acquainted with progressive ideas. What is needed to place China in the ranks with modern, up-to-date countries, to make her prosperous to the highest degree, and to bring the greatest good to all her people, is financial assistance. China looks with confident hope to the United States to help -21 - solve her great problems. She believes in our country's sincerity and friendship She not only beckons us to come over and help her, but she is willing and anxious for us to have more than our share of her trade, which is going to increase enormously with her sure and certain development. China Under the New Order. China under the new order of things is going to build additional railroads, industrial plants, good roads, a modern army and navy, and develop her mineral wealth. The country which aids in providing the needed capital in whole or in part-in floating the necessary bond issue-will furnish the material, the steel rails, locomotives, mill and mining machinery, submarines, arms, amunition, etc., which in dollars will go far into the millions and give employment to countless thousands of mechanics. European countries in view of the costly war will be unable financially to take China's securities, and hence America is the hope of the Republic of China. If this hope is realized it means an enormous trade for the United States. America has never had such an opportunity in the far east. She should not hesitate to take advantage of it. I formed a very high opinion of not only the President of China, but the able and progressive men he has associated with him in the administration of affairs. I found excellent order throughout the country. There was every evidence of peace, contentment and satisfaction with the new order of things. The President of China is a strong man, able, incorruptible and patriotic. His ambition is to wisely govern, and to bring about the industrial and commercial development of China. He is leaving nothing undone to abolish old and long-established abuses and ancient methods of administration. He is ex tremely friendly to America, and expressed his great appreciation of the friendship of the people of the United States. He is anxious to increase American trade with his country, and will do everything possible to bring about closer and more friendly relations, and greater development of commerce between the two republics. I have every confidence, from what I learned in the Orient, what I saw and heard (and I met many well-informed Americans, Europeans and natives), that President Yaun Shi-ki will maintain a firm and stable government, and will wisely and justly administer the affairs of his country. The plans he has inaugurated and is pushing forward will, I am sure, result in the development of China similar to the manufacturing and industrial, commercial and educational development of the United States. The so-called boycott was on when I was in China, and the people of that country have just cause for feeling resentful and unforgiving over the unjust action of Japan in taking advantage of China's defenseless condition in demanding, and by threats securing, valuable rights and concessions to which she had absolutely no right. While the world was condemning Germany for a violation of Belgium's neutrality, Japan was attempting to despoil China, and yet Japan, with other nations, had signed a treaty guaranteeing the integrity of China and her commercial "open door" policy. If the United States does not protect her present and future interests in China, Japan will in time make it impossible for us to share in the trade of the new republic, and the treaty guaranteeing China's integrity and the open door will be absolutely worthless. RICHARD W. AUSTIN. Knoxville, Tenn., Nov. 10, 1915. -22 -PRESS COMMENTS (Washington City Herald.) Having recently returned from a long tour of the Orient, which included a visit to the Philippines, China, Japan and Honolulu, and after making an exhaustive study of the possessions of the United States in the Philipppines, Representative Richard W. Austin, republican, of the Second Congressional District of Tennessee, has written a remarkably brilliant and convincing article regarding the policy of the United States in the Philippines, which is now printed for the first time. Few men in Congress possess a larger power, wield a greater influence, and take a deeper interest in the vital affairs of the country than Representative Austin, and his opinion is consulted in legislative matters by leading politicians and statesmen of both parties. In every way, he has made a most enviable record. His illuminating article on conditions in the Philippines in particular, and the Orient in general, will be read with profound interest. (Scranton, Penn., Republican.) A striking lesson in the tariff has recently been made public by Congressman R. W. Austin, of Tennessee, as the result of his visit to Japan and China. He states that the people of the former country "are wild for more territory for the colonization of their congested population and the sale of the ever-increasing output of their mills and factories." He found Japan's cotton and woolen mills, and other manufacturing plants, as well equipped with machinery and labor saving devices as any in this country or Europe and says they have been brought to high standards of efficiency. It is the wage question, however, that tells the story and illustrates to the American worker the results of competition with the Japanese on a free trade basis. Congressman Austin says he saw in a Tokio mill "a room full of women who were working for eight cents a day,' and in other cities he saw women and girls working eleven hours a day for fifteen cents. As a result of her cheap production, due to such low wages, Japan is getting possession of the markets of China, the Philippines, the Hawaiian Islands, and is gradually invading the United States, backed by the policy of the Japanese Government in creating a merchant marine. (Rochester, N. Y., Post-Express.) Representative Austin of Tennessee, who has just returned from Japan, says that a personal visit to the Orient, firsthand observation and study, "would cure for all time the most rabid free trader or low tariff man in or out of the American congress." Probably he is mistaken, for there are persons, some of them in congress, who never learn, no matter how plain the lesson. But thoughtful men will draw definite conclusions from the report of his inspection of Japan's cotton and woolen mills. The Tennessee congressman found that these plants compared favorably both as to buildings and machinery with any in this country. Starting on equal terms with American manufacturers, so far as equipment is concerned, the Japanese cotton mill owners have a tremendous advantage in the matter of labor cost. Mr. Austin saw in one mill women working for eight cents a day and in another he found women and girls working for fifteen cents for a day of eleven hours. He does not find it difficult to account for the fact that Japan's exports to the Philippines and the Hawaiian Islands are growing, nor is he surprised to learn that our own sales of cotton products to China have declined from $30,000,000 to $6,000,000. Mr. Austin looks for sharper Japanese competition in this country. Saying that last year was one of the distressing periods in the manufacture of American cotton goods, he adds: "All Japan wants is a low tariff law to overcome and she will successfully meet and undersell all her competitors in any manufacturing line she has entered upon or may hereafter enter upon." The Japanese are efficient manufacturers, and in the production of cotton goods they employ all the approved labor-saving devices, but what makes their competition most formidable is the low wage scale. The men who framed the Underwood tariff law paid too little attention to the difference in cost of production at home and abroad. This difference is emphasized in Mr. Austin's story of his visit to the mills in Tokio and it will be considered very carefully when the tariff is revised by men who understand the importance of protecting American producers from ruinous foreign competition. (American Economist.) Industrial conditions, prospects and possibilities in Japan form the subject -23 - of this week's contribution to the American Economist by Representative R. W. Austin, of the Second District of Tennessee. Having made an extensive tour of Japan, and having been exceptionally favored with opportunities for thorough and accurate observation and inquiry, Congressmen Austin is able to present in detail what is probably the most comylete survey yet printed of Japan's present industrial potency, and what is still more important, Japan's ability to so develop her resources as to soon become in very truth an Industrial Yellow Peril to the Western world. In a country well equipped with the best of modern machinery, and where the wages range from 26 cents a day of eleven hours for skilled males and 8 to 15 cents a day of eleven hours for female operatives; a country with abundant natural resources of coal and water power, and with a bold and well-matured design upon China's coal and iron resources; a country whose merchant marine engaged in foreign trade is ten times that of the United States, and whose ships, manned by low-paid sailors and officers, can sail through the Panama Canal and deliver their cargoes to American and European ports at freight rates one-third to one-half the rates which the ships of other countries must exact; a country of unbounded energy, skill and business capacity; a country with the densest population in the world; a country whose work people are fed and lodged at one-twentieth the cost of feeding and lodging the equivalent workers in the United States; in such a country, as Congressman Austin so specifically points out, there is a menace to the labor and the industry of our own land that may well engage the serious attention of all thoughtful men. Mr. Austin well says: With America's high standard of living and wages and short hours we cannot commercially stand up against the Japarese and Chinese industrial systems on equal terms. A personal visit to the Orient, firsthand observations, study and information, would cure for all time the most rabid Free-Trader or low Tariff man in or out of the American Congress. It is a question which American Protectionists well understand, and a question with which our alien Free-Traders had best concern themselves. 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