The Spokane press. [volume] (Spokane, Wash.) 1902-1939, 1905-06-22
BY ellison Gardner.

WASHINGTON, C.2.-The war
indemnity which Japan will demand
of Russia, and which will amount to
upwards of $3.50, $1,000, will be used
largely to promote the industrial
greatness of the victorious nation.
So say leading Japanese.
This will be departure from the
precedent of the China-Japanesc war.
AS a result of that affair China was
forced to pay the victor 30O,00O,0OO
yen Ca yen being about equivalent
in value to the American dollar),
which sum was devoted almost ex-
clusively to the expense of building
up the navy and army with which
Russia has just been overwhelmed.
The Japanese public, which had sub
scribed loan of 150,O00,0o0 yen to
carry on the Chinese war, was disap-
pointed that the entire indemnity was
used for military expenditures. and
in 1898 the business of the country
was on the verge of money panic
owing to the stringency which this
course had produced.
The greater part Of the Russian
indemnity, it is predicted, will go to
the Japanese people. The need which
was felt at the close of the war with
China for stronger navy and a more
powerful army. does not now exist.
At that time the Japanese felt that
they were compelled to submit to
great injustice at the hands of Rus
STA, for no other reason than that
they were helpless to resist so pow
erful an adversary But the mikado
and his advisers determined to be-
gin at once the work of building up
the navy and the army, with view
to the time when Russia should be
taught equity. and the Chinese indem-
nifty served this purpose to perfec-
ton.
But Japan now has big public
debt. Before the war 1t was S261.-
S57,143. To this add $500, 900 bor-
rowed In London and New York. and
the $3.50, 900, 900 subscribed at home.
the total accordingly now being $751;
S57,143 When compared to Russia's
debt OF s5.O00.000.o0O this seems
small, but 1t swells the interest ac-
count, and will probably be regarded
as too large for permanent mainte-
nance. In the peace negotiations and
discussion the proposition to reduce
this debt, and to devote the Russian
indemnity to this end. will play an
important part.
The fact that China paid to Japan
an indemnity of $300,0o0.0o0 will be
an argument for the payment OF a
sum at least equal to this by Rus
sia. The pressure Of the foreign in
fiuences will be divided. Germany
and France will try to keep down
the Japanese demands. The bankers
OF Berlin and Paris will be called
upon to finance the loan which Rus
sia will have to pay whatever indem-
nifty is agreed to. and their interests
all lie in the direction of making the
Russian terms as easy as may be,
On the other hand England will back
Japan In making the demands large
enough to refund n large part OF the
war loan, and particularly that part
which the English bankers have sub
scribed.
Questions of territory. 1t is felt
in Washington. will almost settle
themselves. Korea becomes Japa-
nese territory. SO. TO all intents and
purposes. does .as province of Man
churia Nominally a part of China,
this country has been Russian ever
since the close OF the Chlna-Japa-
nese war. Russia has railroad inter-
ests there. but these will have to be
subordinated to tho Japanese domina-
ton, and the country opened up to
Japanese settlement and exploitation.