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much more uncertain and much more costly than at present. This new law was experimented with at the election of 1902.

I have always recognised the vital importance of a supremely efficient navy and army. The former is made the more important by our insular position. Our programme of naval expansion laid down after the Chinese War in 1895 is practically completed, and Japan possesses now a homogeneous and powerful modern fleet. In its numbers are included several of the largest and best-armed battleships and cruisers, and I have the satisfaction of knowing that the Japanese sailors and officers are fully as efficient in every respect as the ships they man. Our navy is largely of British construction, and we have made that country our model in this department, although, following the principles that have enabled us to make our progress in the past, we are always anxious and ready to take advantage of improvements from any source.

Although it has been necessary first of all to develop our fleet, the army, too, has not been neglected. It has been more than doubled of late, and has now a war footing of over 500,000 men. The bold experiment of conscription, tried at the beginning of the New Era, has proved itself on many occasions—notably, the Satsuma Rebellion, the Chinese War, and the Boxer outbreak. On the last occasion the Japanese army was enabled to play a very great part in the relief of Peking, and showed to the other allies a striking illustration of organization, morale, personnel, and equipment; and this efficiency and thoroughness are to be found through and through our army system. First based on French, and later on German models, with foreign instructors, the Japanese army has since developed a model of its own, and has proved its capability of training and further developing itself.

Although so much has already been done in respect to the army, I believe we shall not remain idle, and even if no great increase in numbers should be made in the near future, great efforts will continue towards the further improvement of the training and efficiency of the soldiers. In Japan we have the advantage that, although the soldiers are raised by conscription, every conscript is animated by the highest sense of patriotism and pride in his country.

In commercial and industrial matters Japan is becoming well established, and is making secure her hold upon the markets of the Far East. The resources of the country are very good, the coal-supply especially being abundant. Although many of the beds are not of first-class quality, still, the fact that there is an abundance of coal is a very important factor in the national economy and strength. Besides coal, there are considerable oil deposits in the northern provinces of Japan, and these are now