Page:Japan by the Japanese (1904).djvu/371

financial conditions of the Japanese Government are quite sound, there being always an excess of revenue over expenditure. The question in the Cabinet which has caused so much talk of financial peril simply resolves itself upon inspection into this—the immediate fulfilment or the postponement of the projected Governmental works, such as railway construction, river improvements, etc., and does not in any way demonstrate financial weakness.

I will explain here the exact position of our financial arrangements, as I believe it is not only essential for our own people, but equally important for those who are the holders of Japanese bonds. I might compare the Diet which sits to discuss Japanese financial affairs to a shareholders’ meeting, in which is discussed the financial position of a company. So I think it well to set forth the real situation as to Japanese finance for the benefit of our creditors at home and abroad. To clear away any misunderstandings is my duty. In the Diet of 1902 the land tax and financial and administrative reform questions were undoubtedly the two great subjects upon which the House was unable to agree with the Government. But these differences of opinion did not arise from any troubles in our finances, in which there were no difficulties whatever. The discussions chiefly confined themselves to the economic result of the land tax increase, and to what extent the reforms should be carried out. Foreigners, however, might have thought that the recent dissolution of the Diet pointed to the existence of something grave in our financial system. Briefly, all the Government sought to do was to provide funds for naval expansion. If, therefore, the Government had abandoned the scheme, there would have been no necessity to increase the land tax. The question of reform in administrative expenses can hardly be considered as one imperilling the safety of the national existence. As I have often repeated, such a thing as the struggle of political parties is not a matter of the slightest importance to those concerned in the management of our national finance, whose sole object is nothing but the sound development of it. There need be no difficulty in our finances if they are managed so as to guarantee a little surplus of revenue over expenditure by curtailing the sphere of national undertakings. It must, however, be kept in mind that the question of national development cannot always be viewed from the financial point of view alone. There are various important problems to be taken into consideration for the furtherance of national strength, and according to these our financial programme must be inevitably drawn up. If we regard the matter from the financial point of view only, there is, as a matter of fact, nothing more essential than strict