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36 Shanghai to Japan, owing to the difficulty of finding opportunities for gaining as large profits as formerly; and (2) their unfamiliarity with the Japanese law, which imposes undue restraint upon their movements. As a matter of fact, they have been surprised by the imposition of heavy taxes of various kinds, never dreamt of previously. Moreover, in consequence of the coming into operation of the new tariff, they have been deprived of their profits on certain kinds of goods, such as liquors, cigars, &c. This is shown by the circumstance that the foreign merchants who have given up or are going to give up business are mostly dealers in these goods. In future foreigners who may be induced to come to this part of the world can only be, in consequence of the operation of the new treaties, those who have other objects than business and who will take the place of the present residents, who will certainly leave in the near future."