The Washington herald., 1908-05-06
By FREDERIC ]. HASKIN.

Correspondence Of The Washington Herald
Tokyo, March 23--Poverty- ia
pan is spending money as II there was
never a day or reckoning It's people
sroan under heavy taxes and its indus
tries are suffering the reaction which
follows artificial stimulation. The ques-
ton one is forced to ask Of this prodigal
young spsndthrift of the nations Is, Will
Japan go broke? Many of the ablest and
wisest Of japanese statesmen and busi-
ness men have counseled caution, but the
military clique is in the saddle and
drunk with sight Of power" seems de-
termined 10 spend and spend until the
last cash is gone.
The burden of taxation in Japan per
capita is sA05. considerably less than the
per capita burden OF S6.95 in the United
States, which includes national. State.
and city taxation. But it must be re
E1embered that in Japan the average in
come per capita is only ST a year, while
in the United States il is 500. If the
American people were TO pay taxes for
one year at the rate imposed now upon
the Japanese the result would be q sur
plus in the Treasury of over six billion
dollars. enough tc pay of the national
debt, the State, city, and municipal debts
and have q balance sufficient to pay the
running expenses Of the national govern
mont for four more years without calling
on Congress for another cent
Tho details OF this taxation would drive
the ordinary American citizen to distrac-
ton. Everything is taxed, and In dozen
ways. The land tax. which is the largest
Eiagla item Of revenue, is based on an
assessment system which appyaises the
value OF the land at the amount for
which Il would rent for one year. on
city property the national land tax is %
per cent and the city tax 10 per cent per
annum. suppose IN an American city a
man had a house which would rent for
Sl00 a month. Under the japanese sys-
TEN Of taxation he would be required to
pay $3.50 Of his S12o0 income for land tax.
in addition to the tax imposed upon him
as business man, upon his tenant as a
tenant. and upon the income which re-
mains after the first set Of taxes is taken
Cut.
The graduated income tax is imposed
upon all incomes OF more than $50 a
year. If the same rule applied in Amer
lea a bookkeeper who gets 500 a month
would be required 20 pay SIS q year in
come tax. Any person so fortunate as to
enjoy an income Of S50000 q year must
pay N,425 tax each year. or nearly u per
cent annually. A street railway is re-
quired TO pay % per cent OF its gross re-
ceipts into the treasury is limited 10 J.
cent and 2-cent fares. and yet manages
10 pay a u per cent dividend. II any
member Of any city council IN the Unit
ed States would dare To suggest that the
street railway in his city cut fares 20 .
cents and in addition thereto pay a tax of
% per cent Of its gross receipts, the whole
town would say he was crazy. But that
is what they do IN Japan and nobody
complains. One street railway having
some sixty miles Of line, suffered all this
and then made SO much money in dlyi-
dends that the city government decided
10 take IL over al the City's price and pay
for II in city bonds AT par regardless Of
their market value. This is the system q
business man In japan has to contend
with.
Tobacco, salt. and camphor are gov
ernment mOnOpoies. and al profit 20 be
made in those lines IS converted directly
into the national treasury. The railways
are owned by the government, and while
the passenger service is excellent and
cheap, the freight traffic is said 10 suf-
AEA 6At4tte- AT any RATE the tENtLllr
from the roads Is going into the general
funds and not for Improvements, The
taxes on the sale of sake. the national
beverage, and other everyday necessi-
ties % the people were already enormous.
but the Diet has recently raised them
There is q consumption tax on eating
sugar and wearing clothes Nothing un-
der the sun that can be taxed is left un-
taxed, and yet this is a country where
the farmers cannot eat the high quality
Of rice which they grow, bat must export
1t to other and more fc.0red lands, while
they import inferior rice from China for
their own use. Imagine the American
farmer being forced TO sell everything he
raises and buying inferior stuff TO eat!
How long would he stand Il?
Japan has about half as many people
as the United States and about one-twen-
tieth its wealth. Yet the Japanese nation
spent last year sSl5, 000, CO. as against the
United States national expenditure Of
SOS, 000,000, or more than half of the
American outlay. These figures do not
take into account the prefectural and
municipal expenditures in Japan nor the
state and city expenses in the United
States
The money spent by the United States
for army and navy expenses and i'm
prOvements amount TO Slg3 C01 Geo Japan
spent in the same year SOS, coo for its
army and navy, or just about one-half Of
that spent by America. These figures
show that Japan is spending money at
about half the rate the United States is
spending It, which is in proportion to the
fact that Japan has half the population,
but It is not at all in proportion to the far
moro important fact that the United
States has twenty times the wealth ia
pans national debt IS also in the same
proportion being almost as much per
capita as that Of the United States, not
withstanding its greatly inferior resources
and ability TO pay.
While the japanese government has
been prodigal with subsidies and has
spent q great deal of money for educa-
tion and for internal improvements, by
far the greater part Of the taxes gath
cred and money expended has been along
military lines The war with Russia In
creased the national debt from a quarter
OF billion to nearly a billion, and at the
same time taxes were increased almost
fouTfold The heavy increase OF taxes
was made for war purposes, and Il was
promised that when the war was over the
taxes would be reduced. But this prom
ise was not fulfilled. On the contrary,
the Diet decided to continue the war
taxes In full force until 1911, and the
present programme Of the ruling dig
arohy contemplates even greater m
creases.
The men who control the government
Of Japan are few In number but their
ability has been proven by the fact that
Japan has emerged from a state OF civil
-