Office of the Historian

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 [Page 343] 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, [Page 344] 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.

[Page 345]
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.

[Page 346]

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
[Page 347]

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.
[Page 348]

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.↩