JAPANESE FINANCE.

Otago Daily Times, Issue 13846, 8 March 1907, Page 5

JAPANESE FINANCE.

— ...«3» A LOAN OP £23,000,000, Press Association—By Telegraph—Copyright TOKIO, March 6. In order to substitute other bonds, tor her 6 per cents., Japan is issuing a loan of £23,000,000 at 5 per cent., with a minimum of 99£. Half of the loan will be offered iu London and half in Paris. Our Yokohama ' correspondent, writing on January 19, states:—The air is full of rumours concerning tho Budget which will be submitted to the Japanese Diet on its reassembling after tho New Year recess. So far as can bo gathered the Government will bo ablo to satisfy the demands of tho present year without much ecrious trouble, but there are breakers ahead. The Tokio Afahi says that the tota.l expenditure for the next fiscal year is calculated at abaut 620,000,000 yen, of which 400,000.000 yen is for ordinary expenditure, while Iho balance—22o.ooo,ooo J'' , ' , — refers to extraordinary expenditure; J- ho ordinary expenditure is now of a. permanent nature, and is not likely to decrease in the future. Although tho extraordinary expenditure is liable to fluctuations, the sum shown above also partakes almost of n. permanent nature, and is extremely unlikely to ho curtailed for at least four or five years to come. Tho permanent revenue for tho next fiscal year arising; from taxes and receipts from Government enterprises is estimated at about 400,000,000 yen, just sufficient to rover flip, appropriation for ordinary expenditure. The 'Government has no doubt found great difficulty in obtaining financial sources for defraying the- extraordinary expenditure amounting to 200,000,000 yen. Tho extraordinary expenditure comprises an appropriation of 35,000,000 yen for tllo extension of the railways, telephone service, steel foundries, etc. As this expenditure has for it; object future, profits, iho Government, has decided d> meet, the expenditure by floating fho national loans. The. t-mplus of the current year's Budget amounts 11> 56,000,000 yon. Inasmuch, however, as tho appropriation of ?.0,000,000 yon of the surplus is already fixed, the amount !« bo earned forward to the account of ilm next fiscal .rear does not cxrecd 36,000,000 yen. The extraordinary revenue from tho proceeds of the sale of Roverainent property for the 'next fiscal-year is estimated at about *™ y«n- These threo items make 110,000,000 yen, still showing a. deficit of 103,000,000 yen, against 220.000.000 yen for extraordinary expenditure. Under these eiromnstnnces the Government has deckled to transfer the surplus of tho war fund, estimated at 10R,000,000 yen, to make both ends meet. Excepting tho expenditure for tile extension of tho railways, the telephone service, etc., which is to'bo defrayed by national loans, the.ro docs not, apparently exist after next fiscal year any financial source to merit fho annual expenditure ■ amounting to alwuit 170.000,000 yen. Moreover, the surplus of the Budget for tho current fecal year arises from speoial circumstances of war finance, a«l therefore it is very clear that such surplus will -by no means be obtained under ordinary circumstances. The estimated proceeds' from the side of Government property, which aro ret at ?.6,000.000 yen, for tho next fiscal year, is also an exception, us it wholly arises from Iho late Bnsso-.Tananess war. As o. whole, the Government has I:cen able to Mo. over Ilio difficulty so fur as the Budttct for next you- i* concerned, but has apparently no uclimto Klea as to the finances for tho ciiemns years.