JAPAN
fraction of the nation. All the other classes are earning more and possess much larger property. On the other hand, their taxes have not undergone any proportionate increase, and instead of saying that the nation is embarrassed by the payments it has to make to the State, the truth is that it pays relatively less than it did ten years ago.
Looking at the figures from another point of view, it is necessary to admit that excellent financial management is required in order that the nation of 43,500,000 inhabitants, which maintains an army of half a million men and a fleet of 258,000 tons, may pay its way at a cost of some 16,000,000 pounds sterling. Such a feat presents itself in a scarcely credible light to Occidental statesmen. Again, observing that the annual expense of maintaining the army and navy is only 55,000,000 yen, whereas the tax on sake (rice wine) alone yields 55,000,000, and noting that this tax — which falls on a luxury — grew from 4,000,000 yen in 1891 to 55,000,000 in 1900, it seems plain that if the country has greatly increased its armaments, there has been found, at the same time, a compensatory source of revenue which does not add seriously to the burdens of the people at large.
Another factor which has operated injuriously to Japan's credit is that her politicians, by assaults upon the budget in the Diet and by clamouring for a reduction of the land tax as well as of official salaries, greatly misled the foreign
20
