Glimpses of Japan and Formosa

Taiwan is not merely a military and commercial outpost of the empire; it is also very much of a closed corporation, a greatly exploited island, "both legally and illegally," an observing missionary puts it. In the slang of the day-unless the expression has died of old age since I left my inventive native land-"exploit is the middle name" of the modern Japanese. Perhaps he does it even unconsciously, as when he standardizes the existence of tourists passing through his country and sees to it that they pay and tip as much as the traffic will bear. All the important industries of Formosa are government monopolies, and the second-rate ones are strictly controlled by Japanese interests. Opium has been a monopoly of the government since 1896, camphor and salt since 1899, tobacco since 1905, and liquors since 1922. Even sugar is virtually so, though the Hakkas up in the foot-hills still operate crude sugar-mills of the iron-roller type, propelled by water-buffaloes. "All these monopolies," says a government organ, "are for the good of the public, to check speculation, and to maintain a high uniform quality. As a matter of fact these monopolies have made considerable revenue for the government of Taiwan, though that was not the main object in establishing them."

Fortunate accident, surely; for we read further on that during the first year of the newly established liquor monopoly the government lost 1,250,000 yen in liquor taxes-do not burst yet into tears of sympathy-but gained 5,500,000 yen on the monopoly. An improvident and impractical people, indeed, to have overlooked such an advantage until it was accidentally called to their attention! There are some things to be said in favor of government monopolies, as of most human or divine contraptions; but the trouble with them, as far as my inexpert experience goes, is not merely that they offer government officials strong temptation to peculation, but that each bureau burns with eagerness to push the sale of its product, however detrimental it may be to the consumer.