JAPAN'S ARMAMENTS.

Dominion, Volume 1, Issue 290, 1 September 1908, Page 7

JAPAN'S ARMAMENTS.

RETRENCHMENT. ARMY AND NAVY ESTIMATES. BIG REDUCTIONS. (DT TELEGRAPH—PRESS ASSOCIATION—COMItIGIIT.) London, August. 30. ' Router's Agency states that tho Japanese Government has decided to curtail expenditure by twenty millions sterling. Thirty por cent, will bo taken off tho army and ton per cent, off tho navy estimates. RATE OF REDEMPTION OF LOANS. For tho year 1907-08, Japan estimated her revenue at w£61,G45,531 and. her expenditure at ,£01,644,101. It was announced last Juno that tho estimated revenuo had been exceeded by i 6,200,000. A correspondent of "Tho Times" points out that what taxes the country's strength is her heroic loan-redemption programme, rather than her outlays on armaments. Ho writes:—"When she (Japan) entered the lists against Russia her national liabilities aggregated only 50 millions sterling, in .round numbers, and when she emerged from the conflict they totalled 220 millions, to which liavo to be added 50 millions for tho nationalisation of private railways, making a grand nggregato of 270 millions. On tho other hand, taxes imposed during tho war were bringing an increase of 16 millions storling to tho annual revenue. The Empire's finanoiers had thus to choose one of two courses—either to remit these additional taxes, leaving the national debt comparatively unprovided for; or to continue the taxes, devoting a large part of their proceeds to tho extinction of the' debt. They selected tho latter policy, and decided to set aside a sum of 11 millions sterling annually as'interest and sinking 'fund for the war debt, thus providing for the complete repayment of the debt in 34 years, and a further sum of four millions for the service of the ante-bellum debt, which will thiis be redeemed in 30 years." This heroio redemption programme should havo freer scopo now that Japan is applying tho pruning knife to both army and navy.