Page:Japan by the Japanese (1904).djvu/379

As regards this matter, it may be mentioned that the Powers have adopted the policy of accumulating gold in their chief banks. France has 1,400,000,000 francs in gold kept in the Bank of France, and Russia and Germany have as well an enormous amount of gold hoarded up in their banks. That the chief object of this step is to provide for emergencies is only too clear. In the case of Japan, there are 100,000,000 yen in gold held by the Bank of Japan as a specie reserve; and, besides this, there is a special war reserve amounting at present to 50,000,000 yen. This latter fund is solely devoted to the expenses of possible war. The only Power besides Japan which has a similar reserve is, if I rightly remember, Germany. In the manner above referred to, we had been preparing for the maintenance and mobilization of our army and navy, and the preparation had nearly reached the stage of completion when the necessity for again increasing our naval force became imminent, as already noticed. The total expenditure for this new expansion scheme is estimated at 115,000,000 yen, of which the cost of warships forms, as a matter of fact, by far the largest part. The sum includes, besides the cost of ships, expenses required for the enlargement of naval stations and additional maintenance and reserve funds, which are inevitable from the increase in our fleet. And when this expansion scheme is completed, the sum of 6,000,000 yen will be required annually for the purpose of maintaining the additional ships arranged for under this scheme. The reasons which induced us to spend such a huge sum on naval expansion are well known, and need no explanation from me. Briefly, however, the scheme was simply elaborated in accordance with the development of international politics, and from the fear that the predominance of Japan’s sea power would be in danger in the near future if things were left alone. In order to secure our national progress and safety, it was considered indispensable to extend our influence far into the Asiatic continent. We could not endure to sacrifice our interests already acquired beyond the sea. This was the reason for the third naval expansion scheme. As it was impossible to defray all the expenses of the scheme from the sources of revenue then existing, we had to look for another suitable source. After careful investigation, it was found that there was no better source of revenue available at that time than the land tax, which, if simply kept at the rate then in operation, instead of restoring it to the original lower rate, would be able to fulfil our objects excellently, without causing any unnecessary trouble and without putting any fresh burden on the people. However, it is not advisable to stop other useful undertakings contemplated by the Government simply on account of the naval expansion. Some say that it will be impossible to do both at the same time, and that to accomplish one the other must be abandoned. My