The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER MONDAY, JANUARY 17, 1916. JAPAN’S FINANCE.

Stratford Evening Post, Volume XXVIV, Issue 35, 17 January 1916, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER MONDAY, JANUARY 17, 1916. JAPAN’S FINANCE.

A leading Tokio journal publishes an iliters ting commentary on Japan’s finance by Viscount Tajiri, which was made at a meeting of bankers ]ioi l l in the Japanese capital. The Count referred to the straitened state of Japan's finances, and says that in spite of repeated reforms effected, the people still suffer from the war taxes initiated at the time of the RussoJapanese war. The leading lilies of taxes, such as the business tax. the income tax. the registration tax, the stamp duties, and other levies, art kept to the highest rates and rarcd found anywhere in the world except in Japan. The payment of these taxes, too, is almost always called up at the end of the fiscal years, and a'. Hie outset of the year provisional loam-; are resorted to, thus causing the sharp fluctuations to be met with so often in th(> money market. As tar as the outward appearances are concerned, continues the Viscount. Japan s financial system Is splendidly planned out ; all ordinary defrayals are made out of ordinary revenue, and all extraordinary expenses out ol extraordinary receipts, according to the laiddowu system. Hut in reality part of the so-called ordinary revenue is merely transfer rod from war receipts and extraordinary income. 11 the system be followed rigorously it will ensue that ordinary expenses always exceed ordinary income by a large figure, for all these anomalies the imperfection in the taxation system may be taken as at least partly responsible, the Viscount scathingly comments, for unPiuncd increment 1 only lightly lunched on, while hard-won income re, propeities still in the making arc made

the princip.il objects ol taxation, Ihe rates of taxation in Japan, in tact, an not very much above the average level maintained overseas, but the people feel tbe weight of the burden wore acutely in Japan than is done because the system adopted is nut rightly drawn up. He then goes on to point out what measures should be taheu for the relief of the tax-ridden people, saying that there are plenty of good sources ot revenue, including a tax on the inci easing; value of land,

increase in tin- tax on sake, readjustment of the tobacco monopoly system, and reform in the Slate forests. If all these measures, were adopted rightly it would be quite easy to raise money. No matter bow much money may be squeezed out of the people's

purse in the form ol indirect: taxes, the (loverument will find revenue short as long as the present ill-advised, system of linance is adhered u>. \ iscount Tajiri considers the rehabilitation of Japan’s task must l'o undertaken at once, for, he says, post-war finance all over the world will he pi an extremely conservative nature. Hie world will inevitably be thrown into a vortex of reactional panic and disorder when industrial and commercial circles try to return to a state ot peaceful activities from the strain ,of war, and it will he long before it will recover from it. The hardest part in this act of the war drama will fall to America and Japan, because these countries are straining their industrial capabilities the most at present. A hard task is also ahead of the belligerent Powers, because of enormous sums of borrowed money to he repaid by some means, and presumably the chid of these must he taxation.