Japanese steamship establishments, with lines running to the same ports
to which the American steamers run.

Coincident with the State-aiding of steamship companies was the granting
of liberal postal subvention. Next followed the institution of a general
subsidy system, frankly designed to stimulate domestic shipbuilding and
to further navigation by Japanese ships.

This system was embodied in two acts promulgated in 1896, the year after
the finish of the Japan-China War (1894-95), when the merchant marine
was growing pretty rapidly, but not rapidly enough for the aspiring
nation. These were, a Shipbuilding Encouragement Law, the aim of which
was to stimulate the building of vessels above 700 tons; and a
Navigation Encouragement Law, to foster open-sea navigation. Their model
was the French system.

These laws offered construction and navigation subsidies, and also made
provision for a widely extended postal service with increased postal
subventions. The construction bounties were available for "any company
composed of Japanese subjects exclusively as members and shareholders
which shall establish a ship-yard conforming to the requirements of the
Minister of State for Communications, and shall build ships." The rates
were fixed as follows: for ships of over 1000 tons, twenty yen ($9.96)
per gross ton; of over 700 and under 1000 tons, twelve yen; for engines
built with ships, or in any other domestic dock-yard, with the consent
of the Minister of Communications, five yen per horsepower. Japanese
materials only were to be used, unless the Minister of Communications
should give permission to use foreign materials. The navigation bounties
were granted only for iron and steel ships owned exclusively by Japanese
subjects, and plying between Japan and foreign ports. The rates in this