The Montgomery advertiser., 1905-09-10
JAPANESE COLLATERAL
COUNTRIES BORROWING CAPACITY
 IS IN GOOD SHAPE.
Three Hundred and Forty Millions May Be Provided For--Funds Will Be
 Needed Next Year for

Needed Next Year for
 Expenses.
 New York Special to N. o. Times Dem
 ocrat.
 While Japan has been spared the necessity of placing another war loan, funds will nevertheless be reauired when she takes up again her extensive program of internal development. through the banking interests here and abroad that have taken care of the last four foreign loans. and inasmuch as the proceeds of loans already made were calculated to carry the Japanese fight Ing through the remaining four months of 1905, 1t Is safe to reckon that there will not be a call for money by Japan before that. time has expired. soon to engage in bringing home her victori- ous armies and repairing her no less successful fleet. Yet, bankers or no bankers. the support needed to make investing public. and the query is bound to arise: What has Japan got left which might possibly serve as security
 During the war with Russia, Japas was obliged to borrow some $60o.00o.. 900. there having been three internal per cent loans, aggregating $140.000.- sating ssGi u ,iio.o5o, ,oo6 in 1so4. and an in- ternaI per cent loan of $50,O00,000 and two 1-2 per cent loans of $150.o00,000 each in 1s05.. While the internal bor-
 
 imperial Government, 1t will be recalled that the customs receipts were pledged to secure the foreign loans of 1904. and that the revenues of the Government tobacco monopoly were put up as se- curity for the two foreign loans of this year.
 According to the budget estimates for 1soS-s the profits of the tobace9 oi cs9 yen. or about $16,o00.000. The interest requirements of the two { 1-2 per cent issues are $l3.500,000 annually. The interest, thus requiring ss.Soo.Ooo an nually, as against customs receipts ap- proximating $11,S6o,o0o, and 1t is inter estiflng to note that the amount, 23,- receipts from ordinary customs, 5,6io,- 36s from the first extraordinary cus- toms tax and 2.ss7.626 yen from the sec ond extra9rdinnary customs srtson,. tax In In ceipts. without either of the special war taxes, would have yielded something more than $7,50e,0o0, or more than of the loans for which the total was pledged.
 According to the budget estimates of the current year-and Japanese budget accurate-the expenses of the general Government, including interest on the national debt ante dating the war with Russia will bs 2i1.s7ssS4s ao yen a. to which
  interest on the internal loans. The diff ference between this total and the 266,- 456,722 yen free income is 3S.482,S24 yen. which appears to be a fairly close estimate of Japan's balance available for additional interest requirements on the same basis of receipts and expen- ditures that has prevailed during the past year. At per cent the balance would represent the interest on about $34O, 100000. That figure. therefore. leaving out of account a possible re- funding of, present loans at lower rates. may. therefore. be taken as indicating pacity with her extraordinary war taxes still in effect, but not increased, and her Government program, in so far as 1t may not be pushed through the proceeds of further borrowing, held to its present scale. %
 If 1t happened. as Is, darkly hinted as Portsmouth and elsewhere, that Russia, although yielding nothing by way of indemnity" had nevertheless made some tyrically secret financial arrange ment with her conqueror. various new elements would enter into. the case which need not be discussed at this time,