Page:Brinkley - Japan - Volume 5.djvu/34

 should be obtained by domestic loans, the programme to be carried completely into operation—with trifling exceptions—by the year 1905. In practice, however, it was found impossible to obtain money at home without paying a high rate of interest. The Government, therefore, had recourse to the London market in 1899, raising a loan of 100,000,000 yen at four per cent and selling the 100-yen bonds at 90. Evidently a further loan must be obtained abroad, for money commands such a high price in the domestic market that the State cannot afford to use home capital. This somewhat wearisome array of figures may be concluded by noting that, according to present arrangements, Japan's national indebtedness will reach its maximum, namely, 575,000,000 yen, in the year 1903, and will thenceforward diminish steadily.

It remains to consider briefly the annual revenues and expenditures of the State, and the manner of their growth during recent years.

The burden of taxation is small, especially compared with the career of vigorous progress upon which the country has embarked. Only 120,000,000 yen is raised by direct taxes, that is to say, something less than three yen (six shillings) per head of population. The sources are these:—