Evening star., 1932-11-25
JAPANESE CABINET
APPROVES BIGGEST
BUDGET IN HISTORY
Military Appropriations Ex-
ceed Entire Anticipated Rev.
enue of Nation in 1933-34.
FUNDS VOTED FOR YEARS
<MANCHURlA OCCUPANCY
$447, 100000 Expenditure Planned
Despite Warnings From 1nfuen-
tial Financial Interests.
Nv the Associated Press.

BY the ASSOClaItu EEtoS.
TOXIC, November 25.-The largest
national budget in the history of Japan
--2.2se 900 900 yen (s447, 7,800,oo0), was
approved by the cabinet today in the
face of persistent warnings from infiu-
entail financial interests.
The 1933-34 outlay, swollen py the
extraordinary demands of the army ana
the navy chiefly in connection with
Manchuria, involves a deficit for tne
wear beginning April /, 1888, OF ss7,-
100000 yen (s17s. 100000, for which
bonds must be issued.
Before the announcement OF the new
budget Baron Seinosuke Con, preSloen'
IF the Japan Chamber OF Commerce,
declared the governments policy OF de-
nendence upon bond issues was increaST
ing the national debt greatly ann
threatening currency imitation anu
further decline of the yen leading To-
ward something like Germanys post
war collapse.
Cabinet Members Present.
Baron Cob was speaking at dinner
of the Chamber of Commerce attenoeo
by Gen. Sadao Araki, minister OF war
and other cabinet MEMBERS
According to the vernacular press
Cen. Araki replied that only after con.
riitio,,s on the neighboring continent
have been stabilized should economic
questions be given primary consloera.
ton. In this connection Gen. Araki
recently said: "The economic ana
financial foundations of Japan VIII NOT
be weakened by temporary outlay ol
1000 .00o, 900 yen (s200, 600 ,o00) or more
which the army may require Ior an
emergency" -. =.
The new budget as it is expected 70
be presented to Parliament on Decem-
her % estimates revenue at 1912 600 900
ven (S268. 400 900. Financial experts
1ave the opinion today that the total
bond issues for the 1933-34 fiscal year
will probably exceed 1000, 600 900 yen,
making the two years increase In the
national debt exceed that involved IN
fFe Russo-Japanese War, which was
1900, ,ooo, 900 yen tss0o, ,o0o, ,O0o).
Refused Tax Increase.
Desutte the prospective deficit the
minister of finance, Korekiyo Takanasni,
refused 10 increase taxation, relying
solely on borrowing.
The budget for next year exceeds the
present wears record expenditure
which. IL is estimated, will reach 1,943,-
000. 900 ven $3.50, 1900, ,o00), requiring
deficIt covering bond issues amounting
To 6i4 600 900 yen tsI22, Doc, ,0o0l before
the books are closed on March 81, 1883
The army appropriation Tor the ne next
fiscal year is 448,000,000 yen lSSs,-
600 O00) and the navy approprlaIlon
373. 900 900 ($74,6oo .0oo). These were
considerably under the original oemamos am
of more than 500 900, 600 yen tsivo,
0Do O0O) for each of the services, pul
fer in excess Of the appropriations fol
the fiscal year of 1930-31, the last nor
NAL year.
In that year the army appropriation
was $4,000, 900 yen $4,000, ,00Ol ano
the navy 221, 100000 yen (s44,2 ,ooo.)
Provides Years Occupation.
The army and navy estimates were
trimmed to their present size only artei
q nrnlonped struggle between Finance
Minister Takahashi on the one hano
an1 cen Araki and Admiral Keisukc
Okada, minister of the navy, on tne
other.
propriations include le5000,ooo yer
1887 900. .00O) to defray another year
occupation of Manchuria. as well al
Ss7 ,ooo,oOO yen (s47, 400, ,ooo) for IRE,
nienishmer1t of arms" Of the flghtint
Services. A considerable portion OF thu
latter item is to be devoted to the ex'
pansion Of the air forces. A.
Typical OF frequent articles IN TN
vernacular press viewing with alarm
the prospect for national finances tn'
Osaka -asahi commented:
at is a shocking condition Wnen ln'
combined military appropriations ar ar
a2o 600 OOo ven (S164, ,000. .000), and tht
SotaI proceeds of taxation only 692, 600,
600 yen ($138, AGO. ,00e9"