The Washington herald., 1921-11-20

system silver basis The victory over
China, six later. gave Japanese hnanciers the
long-wated opportunity to accumulate the neces-
sary gold reserve. Japan required China to pay
the indemnity of 7ooooo,ooo treasury taels--this
unit being 58r grains of sver-in London ex-
change, drawn in pounds sterling. With its credit
thus established, the Toxic government passed to
gold standard in 1897 and has remained thereon.
THE ever-increasing expenditures, subsequent
to this monetary reform, have brought CORE
spending increase in taxation: The fiscal year ends
on March 81. Premier (Baron) Takahashi admits
that the estimate of adopted last year, for
the period ending March 81 next, will fall short by
SI5oooooo. This deficit is due to lessened returns,
which had been estimated at $78I the larger
part to come from taxes. Receipts from taxes run
to the following sources in the order named; in
comes liquor traffic land customs, business, textile
fabrics and sugar, stamp tax yields about as
much as the customs duties. Public undertakings
and state property bring in onehth of the national
revenue. Posts and telegraphs forests monopolies,
and extraordinary revenue make up the balance
The finance minister-now premier-whose
statement comes after a four-days' battle within
the cabinet, will ask the Diet for 100000 for the
year ending March 81 1925 to cover all govern
mental expenses. This estmate-which is $4,000,
900 less than the current budgets cut of $780,
900 900 from the that the ministries requested.
Takahashi, who is famed for his frankness, says
that he anticipates further deficit in Io22-23, OF
s3sooo,ooo.
TT is probable these cuts have been made in all
departments alike. Japan charges about half the
outgo to ordinary expenditures and the other half
under the head OF Extraordinary Naval estimates
in the new budget are said to be Sao4ooo,ooo. OF
this, 100000 is required for upkeep and pay,
leaving $Is4ooo,ooo for construction Of ships and
dockyards, manufacture of guns and similar pur-
poses. Thus, 26 per of the national expendi-
tire will go for naval purposes, under present
plans
"Of course, Washington conference agreements
will make this scheme undergo many changes. Mr..
Nakabashi, in charge of the ministry of education,
would be glad to increase in his average ap-
propriaton-SI2 100000 Mr.. Yamamoto, minister
of agriculture and commerce is allotted but $780,
ooo Other civil ministries receive only slightly
larger sums. The finance ministry is granted $780,
100000 annually, average. Japan's public
debt approximates sIs57,oooyooo of which S7I4,ooo-
900 is in foreign loans and the rest in domestic OBJ
legations. On both these classes of loans the gov
eminent pays either per cent, according to
the time the bonds
Baron Takahash thus canddly Acknowledges
that this country must slow down little, in the
so-called laval for Supremacy on the Pacific.
Japan must take stock of its resources at present
value Its after-the-war spree has lasted some
what longer than those of other countries, but the
financial head aches just as sorely
at is gratifying that such expert physician
and surgeon in national finance the new premier,
is also in the finance ministry. He has had long
experience and some painful disillusions and will
not lead the country into adventures which would
blind it to its condition. The several government
departments will have to bear his carving as best
they may"