The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1904-10-22
FAR EAST WAR LOANS.

The japanese government has decided to rails
"A new domestic loan of $400O0,000. In addition
New York and London bankers have been ap
preached recently as to the prosect of Japan beins
able to secure loan of anywhere from $1,000 ,00(
to $3.50, 900 within the course of another year
The replies to the proposition have not been salts
factory to the island empire. Neither in New York
nor in London does there seem to be any spasmodic
rush for Japanese government securities
The reason thereof is not strange. Japan is not
rich nation. 1t has made marvellous and commend
able progress industrially socially and otherwise
within the last 20 80 years. but the great mass of
its population still remains stepped in what, in this
country, would be regarded as abject poverty For
several years the people of that country have been
enormously taxed in order to perfect its military
system, and the fact that it is now forced to look
abroad for means to continue its present war with
Russia indicates that the limit of taxation that the
Japanese can endure has nearly been reached
This is borne out by the conditions under which
the foreign Japanese loan Of last spring was foated
Rates for money both in this country and in Eu-
Japan was unable to float per cent loan of $5O,-
OO0OW except at a discount Of about 6 percent be-
low par, and even then was compelled to mortgage
her customs receipts as collateral for the debt She
has other assets, such her aforementioned rail
Ways and her monopoly of the tobacco traffic which
me could put in pawn for additional borrowings
abroad; but should the present war continue for
urafa al of iC
gwen though Japan should be victorious over Rus
sia- whether the Japanese government, with all of
fhe enterprise and push of the japanese people
would be able to meet its national obligations
Count Qkmna former premier of Japan, estimates
that the cost Of the present war to that country
viii reach me billion dollars, and for country of
the limited resources of Japan, that necessarily
means tremendous strain and burden
Undoubtedly, these considerations have had
much to do with the recent decline in Japanese
securities In foreign markets. Although the new s
per cent bonds were foated last spring at about
"a, they have been sold this week in London at as
bw price as 80, northumberland that tOo al
though Japan's custom receipts pledged as c'l-
lateral for these bonds. What would happen to-
1hese securities, in case the japanese army in Man
shuria should meet with succession of reverses
easily be imagined Unquestionably this contin-
gency together with the narrow resources of Japan
and the heavy burden of taxation that is now i'm
posed upon the people of that empire, accounts
mainly for the way that foreign fnanciers look
zskanee at the proposition for japanese loan.
1t does not folsw, of course, that there is no
Bottom tn Russia's national purse. While Russia s
resources are vastly greater than Japans her ma
onat debt is nearly tenfold greater; and the fact
xhat the seat of the present war is near the ex-
areme eastern boundaries of her vast domnions has
probably made that conflict immensely more costly
10 Esr than it has been to her adversary. In adj
3tia all accounts agree that the great Of the
Russian people are sunk to almost the last degree
OF poverty and that their situation is such that it
IS next to impossible to wiring from them another.
FOpseE IN taxation In an article in the September
Review Of Reviews DIR. E. J. Dillon, who is familiar
With Russia, declares that the average Russian peas
ant 1aeSn spend generally, but not always, three
sents day for food for himself and his wife and
shifdrgn" So far as ability to stand the exactions
of WHr Is concerned therefore, it would seem that
Se Russian people are little better off than the Jap
mee
The fact, however, that foreign fnancers are
disposed to favor Russian securities without col
hterxF as against japanese securities backed by a
Een on Japanese revenues is significant This may
not IMPLY that they believe that Russia will emerge
FROM the present conflict a victor, but it does i'm
Ply apparently, that should Japan emerge as con
FEr she will do so at the cost Of shattered fnan-