At the same time, Japan has been doing something to suppress enemy trade, though so many Japanese merchants were mixed up with German business that it was very difficult to bring about the desirable result with expedition without permanently injuring, if not ruining, a considerable number of firms. No doubt China's break with Germany will facilitate Japan's efforts in this direction, as German merchants in China did all in their power to keep up trade with their Japanese connections. America's attitude to Germany will further tend to decrease German trade with Japan, as no doubt German agents in that country cultivated commercial as well as political relations with connections in this country.

Financially, Japan has been doing its bit in promoting the welfare of the allies. This policy it had been pursuing in various ways, but especially in purchasing bonds for cancellation in Britain and France and by accommodating the allies with loans. Of course, the benefit has been mutual, since the bonds were bought up at low rates, and the interest obtained on loans was in every case 5 percent, but this does not in any way lessen the generosity and goodwill shown by Japan. When the national specie began to accumulate as a result of the enormous and abnormal expansion of trade brought about by decline in output and export from the belligerent countries, the question arose in Japan as to how the surplus should be invested. 