New-York tribune., 1908-03-23
.J4PAN'S FINANCES.

No more Eliminating and certainly no more
authoritative exposition CT Japans fiscal status
could be desired than that which is afforded by
her budgets for the current and the coming
years. Perhaps the former is the more instruc-
tive of the two, since it sets forth the govern
ments answer to the three great questions OF
public fiscal policy which arose at the end of
and because of the war with Russia. Ihese
were how soon and to what extent the heavy
burdens of war taxation would be remitted; !;
what further expansion of military armaments
there would be- and what would be undertaken
toward the nationaizing end developing OF in
dustries. It would probably be no exaggeratloh
to say that the answers given to all of these
questions in the budget for the current year
were disappointing if not actually alarming TO
the public.
The national debt at the beginning Of the war
with Russia was S276,OO0,OOO. At the end or
the war it was S1,1O0.0OO,OOO. 1t had quad
rupled in two years. The Japanese understood
this and understood, too. that the debt must ne
pad But they expected that payment would
he extended over so long period that the war
taxes could be materially reduced Instead the
government decided to pay off the whole debt in
thirty years, and accordingly to begin at once
providing @ redemption fund of not less than
$50 100000 a year. That alone would have pre-
vented sweeping reduction of war taxes. But
the answers to the other two questions were of
similar effect The government adopted an elab-
crate scheme of army and navy expansion, IN
volving an expenditure to begin with of So3,oOO,-
600 year. and also one for certain vast indus
trial enterprises, calling for $37.5OO,O00 more.
Thus the country was committed to expenditures
on these accounts of S146 100000. to meet which
the war tax amounted to only $SOOOOOO0.
Therefore instead of remitting the war tax 1t
was necessary to retain it and to raise in addi-
ton S66OOOOOO. Moreover, this costly policy
was not makeshift for single year, but was
the beginning of consistent programme Tor
many wears to come Thus the total cost Of in
creased armaments was fixed at $211 100000 and
that of industrial enterprises at S152,OOO,OOO,
spread over a period Of thirteen years. but
chiefly massed in the first four years.
By various arbitrary eXpedientS the budget
for the present year-ending March 31-was
made TO balance without any great increase OF
taxation But business depression and other
circumstances compelled considerable change
of plans for 19OS-'O9. The programme of mil
itary and industrial expansion was not aban-
doned nor reduced, but its completion and lts
consequent demands upon the excheqner were
spread out over a longer term Of years, SO that
the burden would fall on eight years, instead Of
four. Even thus it was impossible to remit the
war taxes, and, in fact some Increases were
ordered, in taxes on spirits, TOBACCO. sugar anu
kerosene oil. By this means and by some e1er-
else of economy a gain of $27OOOOOO was eff
fected In the budget. The ordinary revenues
were estimated at S235. 100000 and the ordinary
expenditures at S213, 100000, leaving a surplus
of So. 100000. The extraordinary revenues of
S91, 100000 will be absorbed by the extraordi-
nary appropriations for armaments and indus
trial undertakings. National solvency is thus
maintained but at the expense of continuing and
even increasing in time of peace the burdens of
taxation which were resorted to under stress of
a great foreign war Against such policy there
is considerable and increasing spirit of pro-
test. which may make itself decsively felt in
the next elections.