596
JAPAN
conditionally upon their loyalty to the Shogun; but their rank and power disappeared with the Shogunate. On the 7th July, 1884, however, His Majesty issued an Imperial Notification and Rescript rehabilitating the nobility, and admitting to its ranks the most distinguished civil and military officials who took part in the work of the Restoration. The old titles were abolished, and have been replaced by those of Prince (Ko), Marquis (Ko), Count (Haku), Viscount (Sh), and Baron (Dan).
REVENUE AND EXPENDITURE
The estimated revenue for the year 1910-11 is 534,303,861 yen, which shows an increase of 13,815,710 when compared with the estimates for the previous year. The ordinary revenue shows an increase of 16,339,740 yen, while extraordinary revenue is reduced by 2,524,030 yen. The total expenditure is estimated at 534,303,861 yen, and it is noteworthy that the ordinary revenue exceeds the ordinary expenditure by sixty-five million yen. Extraordinary expenditure is increased by nearly fourteen million yen. The total of the national debt amounts to about 2,664,385,538 yen (roughly, £267,000,000), nearly one half being foreign loans. The total of the public loans raised for the purpose of meeting extraordinary expenditures connected with the war exceed 1,700,000,000 yen (£174,180,327), which is three times the total amount of the loans prior to the outbreak of the war. The greater part of this huge sum was raised in Europe and America, and to effect the redemption of these loans a law was passed in 1906 establishing a national debt consolidation fund, to which a sum of not less than one hundred and ten million yen (£11,267,029) has to be transferred annually from the general account. It is calculated that all the public loans issued in connection with the war will be redeemed in thirty years. The grand total of the extraordinary expenses connected with the war with Russia was 1,982,000,000 yen (£203,073,770). Following on the restoration of peace there was a remarkable boom in commercial enterprise. During the two years 1926-7 the registered capital of joint stock companies showed an increase of 946,411,725 yen (ninety-seven million pounds sterling). A further increase of 110,0-3,330 yen was shown in 1908. At the end of 1908 there were 10,720 trading com- panies in existence in Japan, the combined paid up capital being yen 1,215,386,760 (approximately £122,000,0 0 sterling), and the reserves amounted to yen 326,853,571,
The first public loan in the financial history of Japan was raised in Londou in order to supply the funds required for constructing the first line of railway in the country. The sum raised was £4,880,000, and interest was paid at the rate of 9 per cent. The sterling foreign loans raised in 1904 and 1905 bear interest at the rate of 6, 41 and 4 per cent. Two six per cent. loans were raised in 1904 in London and New York, the first for £10,000,000 and the second for £12,000,000. The issue price of the first was £93 10s., and of the second £9010s. Both are redeemable in seven years and the Customs duties are pledged as security. A sterling loan of £30,000,000 at 45 per cent. interest was raised in London and New York in March, 1905, the issue price being £90, the period of redemption 20 years, and the security the net profits of the tobacco monopoly. Another sterling loan of £30,000,000 at 45 per cent. was raised in July, 1905, in London, New York and Germany, the terms and security being the same as in the preceding loan. These four loans were raised for the express purpose of meeting the extraordinary expenses of the war. In November, 1905, a 4 per cent, sterling loan of £50,000,000 for the purpose of consolidating the national debt was decided upon. Half of this was raised immediately in London, Paris, New York and Germany, the issue price being £90, and the period of redemption 25 years. A loan of £23,000,000 at 5 per cent. interest was raised in March, 1907, in London and Paris, the issue price being £99–10s., and the period of redemption 40 years These funds were applied to the redemption of the 6 per cent. sterling loan of £22,000,000.
ARMY AND NAVY
Until the war with China, the Army consisted of six divisions and the Imperial Guards, with a peace footing strength of 70,000 in round numbers, and a war footing of 268,000, exclusive of the Gendarmerie and the Yezo Militia; but on the conclusion of that war a large scheme of expansion was adopted, under which the number of divisions was raised to twelve, exclusive of the Guards. In 1904-5 Japan sent a million men into Manchuria, of whom more than 600,000 were combatants. At present the army consists of about 22 divisions. Every male Japanese is compelled to personal service from the age of 17 till the completion of his 40th year
At the conclusion of the war with China, Japan found herself in possession of a fighting fleet of forty-three serviceable vessels--independent of twenty-six torpedo- boats their aggregate displacement being 78,774 tons. Of these, ten, with an aggregate displacement of 15.055 tons, had been captured from China, namely, an armour-clad turret-ship of 7,335 tons, two steel cruisers, six steel gunboats, and one