Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1904-12-03
WARS EFFECT ON JAPAN
Count Okuma Says His Country
Can Fight For Years.
ECONOMIC CONDITIONS FAVORABLE

to See Russia Free.
Ernest W. Clement, the Chicago
News correspondent ut Tokyo, was
favored the other day with a special
interview by Count Okuma, former
prime minister and minister Of finance
The subject discussed wus whether
Russia could wear out japan in the
present war. The gist of the inter
view with Count Okuma is as follows
1T is very important to remember
the fact that Japan is not an Industrial
or manufacturing nation like most OF
those Of Europe and America. 1t is
only just beginning to grow along those
lines. 1t is, In q strict sense an agri-
cultural country, therefore its capa-
bility and power to endure a long war
| must not be judged in the same way as
| in the case of England or the United
States. Even defeat now would not
be SO fatal as IT might be later when
the Industries OF Japan had developed
| to q much larger extent. In this re-
spect Russia is much In the same con-
dition. for her manufacturing indus
NIlcs uTc Qultc uuOeNtIOpeu.
"When the war begun the nation
may have had some feelings Of fear in
standing against one Of the strongest
powers of the world, but, as the war
proceeds. it has become apparent that
Japan will be always victorious. and
the national amazement and anxiety
have become less and less.
when the war began some indus
tries which were engaged in to meet
the internal demand were somewhat
checked on account Of economical rea-
sons. Manufacturers received some
encouragement, but now we need only
look around to discover new fields OF
activity. AS there is a large number
Of employees obtainable and labor is
thus cheap. more attention is paid to
the manufacture Of articles for ex-
port. In this most of the enterprises
have achieved success. Thus certain
industries are arising in place Of those
which suffer some decline.
when the economical world began
to see the war resulting favorabiy to
Japan it began to feel confident OF its
power The excitement aroused at the
beginning has entirely subsidized and
0COnOIultdl arc vet.
able.
THE general peace of mind Of the
nation over the effects of the war Is
another favoring cause. The silk in
dustry this year Is very successful. The
crops of rice and other grains are
larger than for many years. Last year
the food supply was insufficient; this
year there is more than enough. This
good fortune is quieting the minds Of
those in economical circles and giving
great encouragement to the people.
THE war expenses for this year
have been calculated ut $40, 000,0 600 yen
(t2S5, 900 OOO). During the seven
months since the war began the
amount actually spent is about 3OO.-
100000 yen ($15O. OOO.OOO,. SO that pos
sibly there will be a small surplus ut
the end Of the year. 1t must also be
remembered that the expenses at the
beginning Of the war would naturally
be exceptionally large. especially be
cause at that time It was necessary to
purchase cruisers. arms and ammuni-
ton, steel for battleships and other
things in preparation for actual war.
Now the preparations for even a long
war are pretty nearly completed and
the expenses will not be SO large as
formerly.
Moreover, as the Russian fleet Is
practically destroyed. there will be con-
siderable saving In that line. On the
other hand, II Is necessary to increase
the army at the front. 1t IS certain,
however, that expenses from now on
will not be so large proportionately.
Perhaps for next year 40O.OOO.OOO yen
($2OO OOO, O0O) will be sufficient.
1T is, Of course, difficult to prophecy
concerning the distant future. There
il a certainty that for the coming few
years the finances Of the country will
be able to endure the strain of war. In
April the diet voted a budget of war
expenses Of $4,000, 900 yen Cs2S5 .0Oo.-
OOO. This has been obtained as fol
lows: A foreign loan Of 100000
yen $50. 200 ,OOO), domestic loans OF
$50, OOO. 900 yen $4,000. OOO and the
remainder by other internal sources.
II. as is very likely. the war continues
another year and even the same
amount Is necessary, perhaps 100000
600 yen $4,000. 900 or so would be
raised abroad, in England or America.
and the REMAINDER De raiseu ny inter'
nal loans.
The method of raising a foreign
loan is adopted because the gold re-
serve in the Bank Of Japan goes out
from time to time and must be re-
stored. But, as stated before. probably
the amount needed next year will not
be as large as this year, because there
is no necessity Of buying arms and
battleships.
"A great deal Of money has been
sent to Korea and Manchuria. Thus
far the 100000 yen 100000, Of
silver and war notes floating at tho
front are received with great favor |
Russia. too needs silver. The result Is
that the price Of silver has risen lately. |
''Now, Japan can endure war for !
several years. because the annual saw.