Handicapped as she is in agriculture, and holding on the other hand a vast and ever-increasing population, the best, in fact the only, policy for Japan to follow has been to utilize her vast man-power for the development of industry. Firmly convinced that the future of Japan depends solely on her ability to stand in the world as an industrial nation, the far-sighted statesmen of Japan long ago formulated plans for a steady industrial expansion. These plans were furthered by Government subsidy and have been faithfully carried out step by step by the authorities. The creation of a vast merchant marine; the building of railroads throughout the country, closely knitting all parts of the empire together; the enactment of a carefully drafted protective tariff; the national and municipal monopolization of public utilities and important industries; the establishment of a stable financial system with facilities for financing healthy enterprises; the establishment of technical schools throughout the empire for the training of experts and skilled workmen, and thousands of other remarkable undertakings were accomplished within a very short time by the direct and indirect efforts of the State.
The people, too, were not behind in their devotion to the cause of making Japan an industrial power. They toiled most willingly under all kinds of disadvantages and hardships; they shouldered extortionate taxes with smiling faces; they worked in unison, disregarding for the time being petty private interests; they calmly and bravely met all privations and adversities. There is little wonder indeed that Japan established herself within only a few decades as an industrial nation of the first rank.
In order to get a general idea of Japan's industrial strides, a few figures will perhaps suffice. Take, for instance, the number of factories. There was not one factory, properly so-called, in the country at the time of the Restoration in 1868; as late as 1885 there were but 496 industrial companies, joint stock or partnership, with a total capital of seven million yen. In the year 1900, however, there were 7000 typically modern factories, and this number rapidly multiplied, subsequently reaching over 25,000, with billions of paid-up capital. The number of factory operatives, too, correspondingly multiplied during that period. Less than 500,000 twenty years ago, they now total 1,500,000. The increase in the output of production and multiplication of various kinds of industries has been particularly phenomenal. In the textile industry the production has increased more than 300 per cent. during the past twenty years, cotton yarn having increased from 30,000,000 kan (one kan is approximately equal to 8.27 pounds avoirdupois) in 1900 to 100,000,000 kan; and in the silk textiles from 2,500,000 kan to 7,500,000 kan. In cloth fabrics, similarly the value turned out in silk weaving increased from $42,000,000 to $100,000,000; in cotton weaving from $30,000,000 to $200,000,000 between the years mentioned. The corresponding increase of output has been realized in almost all established industries, and the same ratio obtains in the many new industries which have sprung up in recent years. Generally speaking, the industry of Japan, which was established on a firm footing by the year 1900, has trebled during the last twenty years.