2236 



COMMERCIAL JAPA^. 



[Decembeb, 



The wa-'OR generally paid do not compare favorably with those in the United States and Europe, and the standard of livinn; is also 

 not so hijrh as in tliosc coantries, the labor market being for the most part supplied by those who are satisfied to live mider conditions 

 which Ainoiicans would not accept. The wages are very low— there is not much margin left for the ordinary laborer— yet there is 

 Bomcthing left for wine, clothing, and other comforts. . ^ , . , 



Great amounts of rails, machinery, useful materials, sugar, liquors, tobacco, watches, and woolen goods were imported mto the 



country to the excess of 113,334,222 yen over export in 1899; 53,831,714 yen in 1897, against the excess of export over import of 6,831,714 



yen in ]895. At the same time the total foreign t.*-ade was increased enormously; 265,372,756 yen in 1895 was increased to 289,517,235 



ven in 1890, and in 1809 was rapidly increased to 440,558,820 yen, against only 96.711,933 yen in 1887, or an increase of 262 per cent in 



export and 294 per cent in import in 1895, and 418 per cent in export and 628 per cent in import in 1899, compared with 1837. But the 



indemnity of 300,000,000 ven from China, which the people thought was to be spent in incr.'-cising the productive facilities of th.c country, 



tlic Government used for the improvement of the army and the navy (the estimate for this purpose was increased to 60,000,000 yen in 



1897, against 16,000.000 yen before the war), the telegraphs, harbors, a subsidy for navigation, and the expenses of the new territory of 



05,000,000 yen annuallv. The extravagance which almost inevitably follows a successful war has led to a lavish expenditure of the 



public money, parti v due to the increase in price of commodities and labor. In consequence of the increase of national expenditure, the 



bv ■ ' " ^" '' " '-^-^ '-^- ' ' '""' ^'~- -' 



rais 



mc 



follows: 



Yen. 



Expenditure 253,062,841 



Ordinary 137,314,631 



Extraordinary 116, 348, 210 



Interest on debt 34,278,950 



War department -! 16,870,231 



J 14 57'' 038 

 Navy department 1 47* 06o! 790 



r. •.•!.. /14!93i;"751 



Communication department < 21 o^g 812 



Revenue 253, 0S2, 356 



Ordinary 176.749,819 



Extraordinary 76, 932, 5:i7 



All taxes 125,504,331 



Stamp taxes 11,935,531 



Quasi private 34,709,059 



Bonds 35,172,362 



Indemnity 32,638,630 



This increase of public expenditure caused a stringency of money, hindering new enterprises and stopping the free flow of capital 

 into promising ventures. Business began to suffer from a shortage of funds. The reaction from a too-rapid growth of the country came 

 as early as iS97, when prices of stocks began to decline. In 1898 the dispute about the return of the indemnity to the j^^ople who 

 contribatiiii to th(; war in the form of loans arose, and the Government redeemed 35,000,000 yen of the loan. Still the Gove.aa.v'ut waa 

 necessitated t..> sell war bonds of 43,000,000 yen in London. The income tax, the tax on sake, the customs dues, tonnage tax un ships 

 at jjorts, charges for postal and telegraph service, on railroads, freight and passenger traffic, and on tobacco were increased. The burden 

 on the people was, per capita: 



Germany took in direct taxes in 1896 7.50 yen per capita, more than double ours. 



Th(> GiivcriHueiit tried to rescue the people from the business trouble, which reached a climax in 1898, and in 1899 borrowed 

 100,001), 0(10 \cii in the London money market and loaned it to the business men. The public debt had al.«o increased sudd---' • •■■ the 

 war. In 1893 it was 283,519,024 yen. It had increased to 419,380,217 yen at the end of 1896, and still incroasel at the r ' to 



505, 16(),702 yen, most of it bearing interest at 5 per cent. Then the present Chinese trouble blocked the exivirt of < ^ Is, 



porcelain, etc., and added more disaster to business. Of course, it couht not be called a panic — it wa^* merely tightness of nnn^y — for 

 work was jilenty, factories were going at full blast, and wages were its high as they had ever been, if not higher. As was well said }»y Count 

 I\!a(Hugata, ex-i)remier and secretary of the treasury, "The present condition of the country's economics is just like a yonng boy who has 

 calen too mucli and is troubled with indigestion, but nevertheless growing day by day, finds himself weak after his sickness. He 

 will be all right when he takes a dose of industrial and trade development." Such enormous expenditures of the country snow the 

 improved ((oiiomic condition, and the people's power to meet those expenditures, as they become wealthier and the desire for a higher 

 etandaid of livin-r develops. 



However, the great achievement over China advanced the tran<aportation facilities and other important matters necessary to the 

 improvenionl of the commerce as a whole. IVIechanical appliances sni)plantcd slow proi'es.«es of production, and the railroad, navi -.ition, 

 and mail .•^crvicen were great helps to the d(>velopment. Now Baldwin locomotives are on our tracks, trolley cars, telephone's, electric 

 power, iiKidiinery; in fact, all the best and latest appliances are coming more and more into use. The banking system is one which can 

 easily be adapted to the demands of business. Statistics show the following figures of banks and loan ofliees: 



