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The three preceding chapters have been chiefly confirmed to a description of military and political events since September 18th, 1931. No survey of the Sino-Japanese conflict would be accurate or complete without some account of another important factor in the struggle—namely, the Chinese boycott of Japanese goods. To understand the methods employed in this boycott movement and their effect on Japanese trade, some indication must be given of the general economic position of Japan, of her economic and financial interests in China, and of the foreign trade of China. This is also necessary to understand the extent and character of the economic interests of both China and Japan in Manchuria, which will be discussed in the next chapter.

During the Meiji Restoration period in the sixties of the last century, Japan emerged from her isolation of over two centuries, and within less than fifty years developed into a world Power of the first rank. A population formerly almost stationary started to grow rapidly from 33,000,000 in 1872 until it reached a figure of 65,000,000 in 1930; and this tremendous growth still continues at the rate of about 900,000 per year.

The population of Japan compared with its total surface is approximately 437 persons per square mile, as against about 41 in the United States, 330 in Germany, 349 in Italy, 468 in the United Kingdom, 670 in Belgium and 254 in China.

Comparing the population of Japan per square mile of arable land with that of other countries, the ratio for Japan is exceptionally high, due to the particular geographical formation of the Island Empire:

Due to a highly concentrated population on agricultural land, the individual holdings are exceedingly small, 35 per cent of the farmers tilling less than one acre and 34 per cent less than two and a-half acres. The expansion limit of tillable land has been reached, as has also the limit of cultivation intensity—in short, the soil of Japan cannot be expected to produce much more than it does to-day, nor can it provide much additional employment.

Moreover, as a result of intensive cultivation and the widespread use of fertilisers, the cost of production is high.

The price of land is far higher than in any other part of Asia, and even in the most overcrowded parts of Europe. Much discontent seems to exist amongst the heavily indebted population, and conflicts between tenants and landowners are on the increase. Emigration has been considered a possible remedy, but, for reasons dealt with in the next chapter, it has not, up to the present time, proved to be a solution.