New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-20
HOW JAPANESE
FINANCE HAS
REACTED TO WAR
Ex-Minister of Finance
Tells of Japan's Remark
able Recovery.

Baron sakatani, Japanese Minister OF
Finance In the Saionji Cabinet, l'oo'
and connected with the financial de-
partment continuously since 1884, writ
ing in 1.-THE London Times" OF recent
date on the effects OF the war on Jap
anese finance, lays special emphasis on
the remarkable recovery experienced
by japanese trade and industry after
the first shock Of the war panic had
passed of. He says:
at Is true that our finance and
trade were hit badly from the outbreak
Of hostilities up to the spring OF 1915
but since the summer of last year trade
has taken a most favorable turn, and
the government having used its best
efforts for the promotion Of national
production, many new enterprises have
arisen, for the manufacture OF dye
stuffs, carbolic acid, metallic radium
etc. A keen feeling Of the necessity
Of industrial independence and new
awakening of our chemical industries
which had formerly been neglected, are
the chief effects of the present war
But at time when all the other bel
ligerent nations are showing a falling
off in productive power and a remark
able excess of imports over exports
our country alone, on the contrary, is
showing an unexpected excess of ex-
ports over imports. This cannot but
be due entirely TO abnormal tendencies
II, however, the people should wish
that this tendency be maintained they
must Of necessity go through hard
struggle and extraordinary exertion.
While we recognize the necessity OF
accomplishing the object OF the present
war, we at the same time see that its
long continuance must bring forth
world depression, and would never al
low of any one or two nations alone
enjoying prosperity.
Financial Reform.
"Since the government had been for
years endeGvoring TO effect admins
trative reform, there is not the least
doubt that the revenues would have
shown a still greater surplus had there
not been an outbreak of war between
Germany and Japan. The result Of the
reform showed a curtaiment of expen-
diture during late years. In 1915 the
revenue amounted to yen 100000
and the expenditure to yen 587 100000.
The budget for the year 1916 decreased
in both the revenue and expenditure
to yen 553 900 900. When the ordinary
revenue is compared with the ordinary
expenditure, the excess of the former
over the latter amounts to yen 1885,
600 OOO-the supplementary budget
added to the above M the total
revenue over yen 100000 Although
such a decrease is an c>.eptional oc-
currence in the last decade, the amount
of expenditure at yen 6OO,00O,00O seems
comparatively larger. That is solely
due to the work undertaken for the
national defence and other new enter
prises. AS the effects of the European
war produced a great reduction in the
revenue for the year 1915, and gave no
promise Of recovery in the current
year (1916), the government adopted a
course whereby expenditure in all d.
rections could be reduced. And as a
first aid measure to prevent disturb
ing effects upon finance in general our
government decided upon reforms in
connection with the important raw silk
and cotton yarn industries, reduction
in the freight for cocoons, government
insurance in war time, and allowance of
special rebates in customs rates, each
Of which was severally instituted
Matters having thus gradually assumed
favorable aspect, at present the
amount Of our specie at home and
abroad has come to be estimated at
over yen 5O0,0OO,OOO.