Mr. Buck to Mr. Hay.
Tokyo, Japan , January 9, 1899 .
Sir: I have the honor to inform you that on the 20th ultimo a bill increasing the land tax on rural property by 0.8 per cent and that on urban property by 2.5 per cent was passed by the lower house by a safe majority, thanks to the support of the Liberal party and of some independents. This makes the total tax on rural property 3.3 per cent (0.7 per cent less than proposed by the Government) and on urban property 5 per cent. The operation of this law is conditional upon the simultaneous reassessment of the taxable values of lands, where inequalities of incidence now occur, which reassessment is assured by a bill passed at the same time. The changes made by the committee of the lower house reduced by about half the revenues to have accrued from the bill as introduced by the Government, which provided for a general increase from 2.5 to 4 per cent on all lands. The period of operation of the law is set at five years.
A series of Government bills for increasing the revenue to be derived from the sake tax, which includes the increase of the tax on various kinds of sake from 6 and 7 to 12 yen per koku, and on alcohol and spirits from 8 to 13 yen per koku, the prohibition of private brewing for domestic use, and the limitation of the holders of licenses to brew to those manufacturing a considerable amount has also been passed. From this source additional revenue of at least 23,000,000 yen is expected.
These two important revenue measures being inadequate quite to meet the expenses of carrying out the post bellum programme, in order to make up the deficit, recourse is being had to a number of smaller means of swelling the national revenue, to wit, to a bill for empowering the Bank of Japan to increase its issue of notes, such issue to be taxed at 1.5 per cent, a bill amending the income tax, a bill amending the statutory tariff, so as to raise the duties on Chinese sake, alcohol, and tobacco, and a bill extending the tobacco monopoly to imported tobaccos, of which the Government would thus become the sole purchaser. These bills are now in various stages of passage.
Of legislation of interest to foreigners in Japan may be mentioned bills now in the hands of committees providing for changes in the press laws, by which the restriction upon nationality is removed, and any resident of the age of at least 21 may edit, publish, or print a paper in Japan, and also a modification of the business tax law (No. 33, issued 1896), in the sense that when there are stores or other business premises at several places in Japan and abroad, if the capital is not differentiated, the portion of it that is employed at each place of business in Japan shall be estimated and the tax shall be imposed upon that portion, though some of the business premises be in places where the law is not operative.
Early in the session of the present Diet a sum of 20,000,000 yen was voted to be transferred to the Crown property from the Chinese indemnity, and was formally accepted by the Emperor. The same spirit of solicitude for the welfare of the Imperial family is to be seen in a vote of funds for the repair and preservation of some of the ancestral imperial tombs.
[Page 434]The above sums up the important legislation thus far. It is undoubted that the Government is deeply indebted to the Liberal party for their stanch support, by which alone the necessary laws could be passed. While the present cabinet will in all probability remain in office until the end of the present session of the Diet, it is generally believed that thereafter a number of portfolios will be given to Liberals, and the premier’s portfolio, very likely, to Marquis Ito, who, though not yet actually a member of any party, has always had cordial relations with the Liberals.
I have, etc.,