The San Francisco call., 1896-07-04

now staying at the Palace. Next month
ne Will be in London directing the dis
bursement of the $100, 00O, 900 now on de-
poslt IN the Bank OF England by China to
the credit OF Japan. He intends to remain
there year and will then return to his
financial departmental duties of state in
Toxic. The $75, 600, 900 balance of the war
indemnity due from China to japan is
payable In six installments IN the month
OF May OF the next succeeding years, but
In addition to this sum there are the inter-
est upon the principal. the annual 500, 600
taels for the expenses of the Japanese
troops while they remain at Wai-hai-wei
and the 100000 taels allowed for the
surrender of the peninsula of Liau-Tong,
the payments of which have to be seen to
by the accredited representatives of the
two Governments.
THE national debt of japan - said the
Secretary, sis now about $40 600, 900 yen,
bearing interest, generally, at per cent
per annum. The expenses of the late war
with China were some 2l0, 10000 ven and
the result will be an enormous increase in
the expenditures of the state. Before the
war our finances were conducted on a very
uniform scale, but now, since its cessation,
all is changed, and Viscount Watanabe is
compelled to adopt new and broader pol
icy to meet the requirements of existing
conditions.
'The damage to our army and navy
must be repaired imm mediately. and a vast
sum OF money must also be appropriated
10 the encouragement of our home indus
tries and manufactures and to foreign trade
and commerce. To carry out these ideas
successfully the first step necessary was to
devise ways and means for increasing our
national revenue. For the ACCOMPLISH
ment of this purpose we have taken the
following measures:
Il. A monopoly has been declared upon
tobacco leaves.
"2 The tax upon sake has been in
creased 30 per cent.
''3 A stamp tax has been levied upon the
record of all sales and transfers of real
estate, etc.
"a A uniform license tax is exacted from
leading business and professional men.
-"All tobacco planters have to send their
leaves to the Government warehouses
whence the raw material is supplied to
manufacturers. sake, or rice wine is in
common use in our country, and the reye-
nue. derived from this source is CORE
spondingly large. The tax on real estate
transactions, ETC., is regulated according
to values, and in the business and pro-
fessional licenses it is only the wealthier
people who are taxed. With these new
sources the Government secures net in
crease of 100000 yen year over that of
preceding years.
''For ell this money, not to mention the
war indemnity, Japan has many uses
The interest on Government bonds must
be met, also the increased pension claims.
The army and navy must be put in a
condition which will insure the safety of
the nation, railroads, telegraph and tele-
phone lines must be constructed, embank-
ments must be built along our rivers to
prevent foundations, iron factories must
be erected, new banking system must be
established to loan money on real estate.
subsidies must be granted to navigation
companies, harbors must be constructed.
our civil and military system of education
must be improved, the lately acquired
island OF Formosa must be settled, etc.
I'm our estimated expenses for the
present fiscal year we allow 400, 600 600 ven
for the construction of railroads; for the
principal anu interest on Government
bonds, 100000 yen; foi the army, 42, ,OOO,-
600 yen; for the navy, 1900 600 yen; for
pensions, 5000. 900 yen; for telegraph and
telephone lines, 5000, 900 yen; for naviga-
ton subsidies, ships, etc., 100000 yen; for
the establishment of iron factories, SOC, 600
yeni for public education, 500, 900 yen.''