The Birmingham age-herald., 1904-11-28
Katzufa Says Japan is Pre-
 pared for the Worst
MORE MONEY IS NEEDED
Japanese Diet VIII Ask for $3ea, a,ooo,- 900, Which Will be Granted With out Difficulty-DomestIc Con
 ditions Are Gratifying.

Tolkio, November 27.-Diseussing the war and domestic, financial and political conditions of Japan on the eve of as- sembling the diet with the correspondent of the Associated Press, Premier Kat zura said:
 ITO insure peace in the orient and to safeguard our national existence is the aim and purpose of our empire. and no sacrifice shall be too great for successfully effecting this purpose
 Russia. besides vibrating her pledges in Manchuria, crowned her overbearing and aggressive policy by extending her arms to the Korean peninsula.
 ''We were highly solicitious to preserve peace, but had no alternative, except that of war. which was forced upon us Throughout the negotiations Russia showed a naughty and overbearing atti- tude, which, has latterly been shown. was inadequately supported by military strength. Russia allowed herself to be deceived and sllghted our empire, for she never believed that Japan would draw the sword of war. Then, after suffering repeated defeats on land and on sea, Rus sia perceived the mistake she had made. and having discovered the seriousness of the situation. began to take adequate measures.
 "The case was different with us. We were alive to the seriousness of the situ- ation, and were prepared for exlgencies. Russia must see that the war cannot | be concluded by the issues of a few bat | ties. With us the war means life or death. and not one of our 45O0O,OO0 breth- ren remains ignorant of the vital issue | at stake.
 We are prepared to sacrifice our last man and our last cent for this war.
 Delay Gives Russia Hope.
 'rhe delay in the decisive result of our siege at Port Arthur gives Russia hope | of being able to retrieve the garrison. and for this purpose she has resolved to employ her naval defense at home while on land corps after corps has been mobil- ized and sent eastward
 "The military and naval plan of Russia seems to center In the relief of Port Arr | thur. and General Kuropatkin's south- | ward advance, which resulted in his seri- | ous defeat, had the relief of the garrison as its sole object. The Russian emperor's | instructions to Kuropatlkin not to retire | beyond Mukden were designed to raise the gloom that had been hanging over l the people of Russia since the defeat of | Russian arms at the battle of Liao Yang, | and Kuropatkin assumed the aggressive | perhaps against his own judgment. | "Everything seems to hinge on the fall | of Port Arthur, but l do not console my self with the thought that the capture of | that ill-fated fortress will bring the war l to a speedy termination. It's capture will l orfu fnr Wa rlana of fare by Russia, and l am watching keen ly for such new developments.
 The domestic conditions of Japan are highly satisfactory. The history of our diet may be summed up by saying that from the first 1t planted itself firmly in opposition tc the government on financial questions. After my appointment fric- ton became increasingly violent. The two great parties, the consttutonalists and the progressves, held combined front In opposition to my ministry De- spite administrative reforms effected on their demand, we failed to satify them.
 They criticized our financial measures as
 excessive, and refused to pass the bills
 Friction Entirel, Closed. Judging by those conditions, serious collisions between the governed and those | governing were predicted. but when the | war came this friction entirely ceased and the house of representatives, which once refused to pass budget Of Sl2o,- , 100000 as excessive and unbearable gave | a ready and willing assent to the first
 war budget of 2S8,W0,OOO
 4At this session of the diet the governs
 ment will be compelled 10 present ? budget calling for sSss, O0o.OO0, and indica- tions are that it will be passed without . the slightest difficulty.
 "This happy phenomenon is attributable
 to the happy characteristics of our peo-
 pie.
 "Before great national problem our
 people unite and friends and opponents join hands for the accomplishment of our national purposes. With the great prob- lem of the war before them the people of our nation have become as one man. We have no party and no peace | party, as Russia has, but on the com trary our nation is one and united with determination to fight to the last ex- tremity."
 "Our people-are showing ample capacity l to finance the war and despite the float | ing of domestic loans, our economic con l ditions have not been affected. while | banking conditions have actually expand | ed since the beginning of hostilitles.
 .'The war expenses reach ldrge sum monthly, but the government has man | aged their absorption in such man. | ner as to least affect the normal con | ditions of the money market. The de- crease in circulation has been very small. | and our people are cheerfully meeting I the advanced taxation, while every do- | nestle loan has been over subscribed. | "Our crops this year exceed their av- | craze value by 900. Our foreign trade shows an improvement over that | of 1903. and I expect it will reach a total | O. s35OOOOO OO0 The prices of commodities | have been slightly increased, but our financial and economic conditions remain unaffected"
 Felton Remanded.