Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, With the Annual Message of the President, December 3, 1877

No. 189.
Mr. Bingham to Mr. Fish.

Legation of the United States,
Tokei, Japan, January 30, 1877. (Received March 9.)

No. 500.]

Sir: Herewith I have the honor to inclose for your information duplicate copies of the financial statement and estimated of the Government of Japan, from the 1st of July, 1876, to the 1st of July, 1877, as published in the Tokiô Times of the 27th instant, by order of his excellency Sanjô Saneyoshi, His Imperial Japanese Majesty’s prime minister.

It will be observed by reference to the third table of estimated revenues for the current fiscal year that the estimated revenue from import and export duties is only $1,762,554, and that the revenue from internal taxation is estimated for the same year at $61,000,000 in round numbers, of which $46,556,743, is levied and collected by a land-tax upon the people. It is proper that I should say that foreigners engaged in the various pursuits of trade in Japan pay no taxes upon their enormous gains or incomes, by virtue as they claim of the convention of 1866. You will observe that the estimated expenditure of the current fiscal year is $62,993,847, or within $2,000 of the estimated receipts.

When J consider that during all our history the ordinary expenditures of our own National Government have been collected from customs duties, to the great relief and advantage of our people, and that now, with all the extraordinary expenditures upon us resultant from the late rebellion, full one-half of our enormous revenue is derived from imposts, I am confirmed in the opinion heretofore communicated to the Department, that this government and its people should be released from the oppressive conditions of the convention of 1866, which deprives them of the privilege claimed by ourselves and by every other western power of collecting reasonable revenues from foreign imports.

I have, &c.,

JNO. A. BINGHAM.

[Inclosure.]

The financial statement and estimates.

[From the Tokiô Times, January 27, 1877.]

Notification No. 12.

To the In, Sho, Shi, Fu, Ken:

It is hereby notified that the following tables of the revenues and expenditures for the year between July of the 9th and June of the 10th year of Meiji, inclusive, have been presented by Okuma Shigenobu, minister of the finance department.

SANJOSANEYOSHI,
Daijo Daijin.

20th January, 10th year of Meiji.

According to annual custom, Okuma Shigenobu now presents the estimates for the year from July of the 9th to June of the 10th, year of Meiji. At the present time the working of the alteration of the land-tax reduces, more or less, the year’s revenues, while, on the other hand, the expenditures on the whole are much increased, some few items, only, showing a diminution. Indeed, in comparison with past years, the expenditures present a considerable augmentation, owing to large outlays for many hundred different purposes necessitated by the exigencies of the times. Our home productions are not yet sufficiently rich to meet these expenses, nor is trade in a prosperous condition. So it is impossible to levy new duties to provide for them. And when it is found that the revenues, which are necessarily limited, do not suffice to meet the expenditures, the difficulty must be solved by equalizing them in some way. To this end I have prepared comparative tables showing the increase and decrease, as the case may be, of the annual admitted expenses of every public office, and the increase or diminution, also as the case may be, of the revenues of the current and the last financial years. This has been done in order to show clearly the condition of the difference between our annual revenues and expenditures. I forward this statement with the accompanying tables for the purposes of public convenience; and I respectfully express the hope that you will give the subject your serious consideration.

OKUMA SHIGENOBU,
Minister of the Finance Department.

To Sanjô Saneyoshi,
Prime Minister.

introduction.

This budget for the 9th year of Meiji is compiled on information collated from minutely detailed accounts furnished by the various government offices. Before proceeding to the budget itself, I will briefly consider it in outline. The method formerly followed in keeping the accounts of this department has lately undergone reform, and the system of foreign bookkeeping has been introduced, so that accurate records of the national revenues and expenditures may be preserved. In pursuance of this reform, the accounts of the various taxes are separately kept in order to facilitate the transaction of business; and the entire estimates have been framed upon the new model.

The whole system of taxation throughout the empire has been thoroughly altered this year, and the holdings of land considerably modified. Hence, to what extent the land-tax is increased or diminished, is not yet apparent. But the estimates on this subject have been calculated on the information furnished to the government from every Fu and Ken.

The taxes to be paid by druggists only coming into operation this year, the revenue to be derived therefrom has been estimated very roughly.

The expenses of maintaining the imperial palace and providing pensions for members of the imperial family, have hitherto been supplied out of the sums set apart for the imperial household. But from this year forth they will be separately allowed for. Comparison of the expenditures of all departments for the current, with those of the previous, year, will easily show how the increase or decrease apparent may be accounted for. Thus, it is evident that the business of the home department (Naimusho) has been greatly extended; the number of people in the Rikugunsho, (war office), the vessels of war and the sailors at the disposal of the Kaigunsho (navy department) much increased, while the mines of the Kobusho, the stamp office of this department, the provincial Saibanshos, and the land-tax office have all required extensive additions to their staffs. Further, the police, public works, and the necessity of making new and repairing old dikes have involved much increased outlay.

The cost of construction of the new imperial palace is estimated at about one million yen. The work will be commenced this year and finished within five years. The amount required this year for this special purpose is shown in its proper place in the table of expenditures.

An amount provided for contingencies, some other items, and especially one providing for loans to the people will be found in the table. The reason of the reduction in the amount paid on the debt owing to the country is, that pensions returned, and moneys to defray domestic debts owing to the government, are funded. An increased sum has been paid toward the reduction of the foreign debt of the country. I now hasten to submit the following estimates showing the increase and decrease in the several items of the annual revenues and expenditures.

Comparative tables of the revenues and expenditures for the eighth and ninth years of Meiji, showing the increase or decrease in the several items.

Table I.—Revenues.

Source.	Ninth year.	Eighth year.	Difference.
			Increase.	Decrease.
	Yen.	Yen.	Yen.	Yen.
Customs	1,762,554	1,744,837	17,717
Land-tax	46,556,743	51,505,967		4,949,224
Mining-tax	11,055	10,464	591
Tax on official incomes	93,575	108,285		14,710
Tax on hereditary and other pensions	2,198,914	2,267,810		68,896
Tax on productions of the northern provinces	370,592	437,485		66,893
Taxes collected in the Riu Kiu Han	34,925	50,744		15,819
Tax on sake	2,373,859	1,613,083	760,776
Tax on tobacco	539,948	100,000	439,948
Stamp-tax on legal documents	531,881	534,917		3,036
Postage-stamps	652,884	570,000	82,884
Other stamp-taxes	523,583	571,418		47,830
Miscellaneous	804,366	482,905	321,461
Income derived from minus	1,212,825	548,314	664,511
Income derived from railways	692,967	691,019	1,948
Income derived from telegraphs	163,858	152,143	11,715
Income derived from various manufactures	385,710	450,277		64,567
Income derived from mint	770,800	675,240	95,560
Sales of government property	692,772	968,956		276,184
Rent of government lands and buildings	139,713	145,668		5,955
Income derived from forests	129,769	367,270		237,501
Miscellaneous revenues not derived from taxes	1,026,849	1,553,736		526,887
Repayment of debts due to government	1,325,496	3,037,728		1,712,232
Total estimated revenues	62,995,643	68,588,266		5,592,623

Table II.—Expenditures.

object.
Reduction of national debt	5,551,447	4,345,655	1,205,792
Imperial expenditure and payments to the Emperor’s relations	827,500	727,500	100,000
Pensions for meritorious services, shrines and temples	17,705,377	17,805,366		99,989
Sei In	494,000	400,000	94,000
Genro In	207,000	200,000	7,000
Kuaigi In	30,000	30,000
Foreign department	185,600	170,000	15,600
Home department	3,699,812	2,300,000	1,399,812
Finance department	1,798,600	1,604,600	194,000
War department	7,250,000	6,950,000	300,000
Navy department	3,549,700	2,700,000	849,700
Educational department	1,704,800	1,700,000	4,800
Department of religion	73,000	70,000	3,000
Public works department	4,900,000	4,750,000	150,000
Judiciary department	1,420,500	1,250,000	170,500
Imperial household	316,000	222,500	93,500
Colonization department	1,905,660	1,799,716	105,944
Land-tax bureau	471,000	48,000	423,000
The three Fu	552,520	553,608		101,088
The Ken	3,709,980	3,746,392		36,413
Police department	1,195,000	1,000,000	195,000
Local police	750,000	600,000	150,000
Shrines	220,000	220,000
Repairs and constructions in Fu and Ken	1,639,000	1,370,000	269,000
Legations and consulates in foreign countries	548,300	515,000	33,300
Miscellaneous expenditures	559,051	6,920,169		6,361,118
Loans by the government	500,000	1,500,000		1,000,000
Reserved fund for contingencies	1,330,000	5,000,000		3,670,000
Total estimated expenses	62,993,847	68,498,506		5,504,659

In the foregoing table the revenues and expenditures for the eighth and ninth years of Meiji are compared and the amounts are arrived at by careful calculation. In some particulars the ninth year shows an increase over the preceding year, and in others the reverse is the case. In both revenues and expenditures we have a perceptible decrease. With reference to the amount lent to the people (described in the table as loans by the government) I have given an explanation in my introduction, and the large decrease in other items of expenditure is also explained, as is the very large increase in the expenditures for the local governments. As already said, in this table the eighth and ninth years of Meiji are compared. The reason why the seventh year is not included in the comparison is, that its accounts have not yet been accurately compiled. In future years I will show the estimates for the then current year in comparison with the revenues and expenditures of former years, indicating the increase and decrease in the various items.

Table III.—Estimated revenues of the year, from the 7th month of the 9th, to the 6th month of the 10th, year of Meiji.

I.	Duties of the first class					yen 1,762,554
		Customs imports and export dues			1,717,847
			Yokohama	yen 1,236,607
			Kobe	312,232
			Osaka	34,972
			Nagasaki	115,270
			Nügata	466
			Hakodate	18,300
		Miscellaneous customs revenues			44,707
			Yokohama	22,869
			Kobe	7,853
			Osaka	2,508
			Nagasaki	9,750
			Nügata	538
			Hakodate	1,189
II.	Duties of the second class					*49,265,804
		Land-tax			46,556,743
		Mining-tax			11,055
		Tax on official salaries			93,575
		Tax on incomes of nobles and gentry and pensions			2,198,914
		Tax on Hokkaido products			37,592
		Income derived from Riu Kiu			34,925
III.	Duties of the third class					5 426,526
		Duty on sake			2,373,859
		Duty on tobacco			539,948
		Stamp duty			531,881
		Postage-stamps			652,884
		Tax on ruled paper for petitions. &c			302,474
		Lawyer’s license-fees			79,500
		Stamps on silk-worm-egg cards, &c			118,356
		Stamps for raw and filature silk, &c			21,492
		Filature-licenses			1,766
		Ship-licenses			128,641
		Cart-licenses			200,000
		Trading-company licenses			200,000
		Shooting-licenses			47,573
		Horse and cattle licenses			62,024
		Weights and measures			8,174
		Copyright-fees			4,026
		Passports			3,928
		Druggists’ licenses			150,000
IV.	Duties of the fourth class:
		Revenue from public works				2,455,360
		Mining department			1,212,825
		Railways			692,967
		Telegraphs			163,858
		Iron-works			200,200
		Filatures			38,000
		Printing			20,510
		Dock-yards			127,000
V.	Mint					770,800
VI.	Revenue derived from government property					962,254
		Sales of government property			692,772
		Rents of government lands and houses			139,713
		Income derived from forests			129,769
VII.	Miscellaneous revenues					1,026,849
VIII.	Repayment of moneys due to the government					1,325,496
		Sundry debts			791,910
		Refund of loans made to Imperial Princes Kuwazoku and Shizoku			425,042
		Refund of loans to Daimios			108,544
	Total				62,995,643

Table IV—Estimated expenditures.

I.	Reduction of national debt				yen 5,551,447
		Domestic debt		yen 3,736,819
		Capital	1,833,152
		Interest	1,903,667
		Foreign debt		1,814,628
		Capital	756,180
		Interest	1,049,420
		Commission	9,028
II.	Income of the Mikado and his family				827,500
III.	Pensions to Kuwa-shizoku, shrines and temples				17,705,377
		Pensions to Kuwa-shizoku		17,517,453
		Shrines and temples		187,924
IV.	Expenditures of In, Sho, Shi, and Kioku				28,005,672
		Sei In		494,000
		Genro In		207,000
		Kuaigi In		30,000
		Foreign department		185,600
		Home department		3,699,812
		Finance department		1,798,600
		War department		7,250,000
		Navy department		3,549,700
		Educational department		1,704,800
		Religious department		73,000
		Public works department		4,900,000
		Judicial department		1,420,500
		Imperial household department		316,000
		Colonization department		1,905,660
		Land-office		471,000
V.	Fu and Ken				4,162,500
		The three Fu		452,520
		The thirty-five Ken		3,709,980
VI.	Prefecture of police				1,945,000
		Police department		1,195,000
		Two Fu and thirty-five Ken		750,000
VII.	Shrines				220,000
		Shinto priests		15,000
		Government and country shrines		205,000
VIII.	Erecting and repairing dikes in Fu and Ken				1,639,000
		Erecting		239,000
		Repairs		1,400,000
IX.	Legations and consulates in foreign countries				548,300
X.	Miscellaneous expenditures				1,059,051
		Annual proportion of total sum for building imperial palace		100,000
		Loans for relief and promotion of industry		500,000
		Sundries		459,051
XI.	Sum reserved for contingencies				1,330,000
	Total				62,993,847

Showing an excess of yen 1,796 of revenues over expenditures.

national liabilities.

Home debt.

Bearing interest			yen 30,682,150.00.00
	At 4 per cent, per annum	yen 11,801,750
	At 6 per cent, per annum	2,238,550
	At 8 per cent, per annum	16,641,850
Without interest			10,032,720.00.00
Paper-money in circulation			94,054,731.06.50
	Total		134,769,601.06.50
Showing an increase of yen 8,347,162.95.1 over the corresponding liabilities for the 8th year of Meiji.
The sum of yen 637,141.78 has been repaid during the current financial year, being yen 406,013.80.2 of new and yen 231,127.97.8 of old indebtedness. Paper-money to the extent of yen 749,088.17 has been withdrawn from circulation.

Foreign debt.

	Total		yen 14,155,123.20.00
Bearing interest at 9 per cent, per annum		yen 2,928,000.00
At 7 per cent. per annum		11,227,123.20
	Total domestic and foreign debts		148,924,724.26.50
Reserve fund for contingencies			28,341,416.00.00

Out of this latter sum, yen 72,775 is reserved for contingencies in government offices and yen 9,382,485 for possible loans.

1. There appears to be an error in the addition of this total. The several details amount, if correctly given, to yen 48,922,804.