The Montgomery advertiser., 1908-09-06
NEWSTATESMEN ARISE JN JAPAN Gamagata Party Now in
 Control. SHIP SUBSIDIES DISCUSSED Financial Condition of Empire Not
 Satisfactory. cbs.ese Government Takes over the Telegraph Service and Already the system Is Being criti-
 cised Sharply.

Shanghai, Sept. 5.-Though they con- tinue to exercise great weight in po- litical affairs in Japan there are abun' dant proofs that the age Of the eider statesmen has gone.
 The present age may be called the Katsura and SaionjI era. Marquises Katsura and saionji respectively rep . resent the so-called Yamagata and Ito parties. The new Katsura cabinet chiefly consists of prominent figures of the Yamagata party. but 1t will come to an understanding with Mar duis Saionji, who leads the Seiyu- kaf Constitutional party). founded by Prince Ito. Without the Seiyu-kaf 5 support, no measure can be passed through the House of Representatives. In other words, this means the rever- sion to the arrangement in existence during the late war with Russia. when fhe Katsura cabinet had the whole hearted support of the Seiyu-wai with out any direct representation of the latter in the administration.
 While Marquis Saionji was in pow CT, he always relied upon the assist ance Of Marquis Katsura. The former also had to include in his cabinet Mir. l. Yamagata, the heir of Marshal Ya- magata, and also another representa- tive Of the Yagamata party, without whose assistance no measure could be passed through the House of Peers.
 To Investigate Subsidies.
 It is reported that the Japanese De- partment of Communications has in contemplation the appointment of a commission for the Investigation of shipping subsidies. The idea fs to inquire into the results obtained by the laws Tor the encouragement of shipbuilding and navigation now in force. and the necessity or otherwise rsf haf raufafan
 At the same time. the director Of the Shipping Bureau will be despatch ed to Europe and America for the ln- vestigation of the practice in vogue in the West in similar matters.
 Writing with reference to the sub- 5sct, the "Jiji Shimpo" remarks that an amendment to the two laws refer red to has more than once become the subject of discussion in the Diet. and as the term of contract for the subsidy of the European and American steamship lines will expire at the end of the next fiscal year, 1t is not unnatural that the attention of the authorities should be directed to the matter.
 Generally speaking. the "Jiifr states, Japan's efforts in this direction have been successful, and while, as a result of thA investigations to be undertaken the government may, perhaps. find 1t necessity to readjust the amount of subsidies, 1t would be unwise to en- danger by a parsimonious policy, the foundation of an industry which has been nurtured with much care.
 It may be mentioned that the amount of the special bounties paid by the Japanese government during the past nine years reached $50, 10000, while the total shipping subsidies for the current year are estimated to reach the sum of $10.0Oo.oo0
 While the commercial condition of Japan Is improving, the financial po- sition of the Empire is not altogether satisfactory. An increase In the reve- nue of the current year is estimated at $22, ,500.0 900, a large portion of which increase comes from higher imposts on sake, sugar. kerosene and tobacco. The estimated ordinary revenue of the present year is $237. 300. 900, which contrasts with a revenue of S66.000,- 900 ten years ago. But meanwhile the ordinary expenditures has grown from &60,o0o. 900 to $215. .75O,O0O, and the extraordinary expenditure from $50,- o0O, 900 to $96, ,250. .000, mainly for debt charges and naval and military pur- poses It is true that the extraordi- mary expenditure in 1908-09 is budg eted at 31o.O00oOo less than in 1sO7- 08, but that reduction is only equal to barely one-half she expected in- crease in ordinary revenue. Yet 1t is officially stated thar if the program already made for 1sos-10 and subse- quent years Is carried out. large de- ficits will doubtless occur in the fu- fure. especially if the scheme of 1906 is acted on and all the war loans are redeemed within thirty years.
 Japanese Red Cross.
 Tn connection with the holding of the sixteenth general meeting of the ..Ianan Red Cross Society at Tokio