Again it was through the financial question that the struggle opened between the government and the diet. The accounts of the fiscal year 1901 showed a deficit of 44 millions, and the proposed war loan of 50 millions to be floated in the United States failing at the eleventh hour, the difficulty was tided over by ingenious manipulations. In the budget for the next year, however, it was proposed to transfer from the "extraordinary" to the "ordinary" class of accounts the works to be defrayed by public bonds, representing 18 millions, as well as the net income to the government from the Chinese indemnity, amounting to 38 millions. The Associationists opposed this budget on rather unimportant grounds, but, at Itō's advice, consented to its passage with the pledge of the cabinet to reorganize the official system of the government with a view to eliminating spurious posts and retrenching administrative expenditures. The marquis had, however, started, on September 18, on his tour round the world, leaving an advice to his party that a friendly neutrality should characterize its attitude toward the cabinet. He attended the bicentennial celebration of Yale University, where he was honored with the degree of Doctor of Laws. Thence he sailed to Europe, receiving warm greetings from the governments of the countries through which he passed. Shortly before he returned home on February 25, 1902, however, an event took place which for the time being arrested the attention of the whole world--the Anglo-Japanese alliance, agreed on January 30 and published February 11.