Although the expenses of the Chino-Japanese War, which were partly covered by the indemnity obtained from China and partly by a public loan, undoubtedly checked the progressive prosperity of the country, they had nothing whatever to do with the present financial problem, which has been created by the magnitude of the military, naval, industrial, and commercial enterprises undertaken by the Japanese Government since the close of the war. Between 1895 and 1896 the Government decided to double the strength of the army, by raising the number of divisions from six to twelve (exclusive of the Imperial Guard), and it will now thus muster 150,000, as against 70,000 to 75,000 on a peace footing, and 500,000, instead of from 270,000 to 280,000, in time of war. The fleet is to be increased from 43 vessels of 78,000 tons, _plus_ 26 torpedo-boats, without a single cruiser, to 67 men-of-war, of which 7 are first-class battleships, with a displacement of 258,000 tons, besides 11 torpedo-boat destroyers and 115 torpedo-boats. The creation of numerous arsenals and fortifications will eventually complete the programme, but beyond these War Office expenses, very considerable sums have been spent in the construction of railways, extension of telegraph lines, creation of new ports, subventions to the mercantile marine, and in the establishment of a second University at Kioto. The plan of railway extension which was decided upon in 1893 by the Diet must be completed according to contract in 1910. The other measures for the augmentation of the army and navy were included in the programme of the Ito Cabinet, which the Chambers accepted immediately after the signing of peace. This extra expenditure is to be disbursed in ten instalments from 1896 to 1906, and some further amendments and additions were made during the Parliamentary Session of 1896–97. The expenses entailed by these extensive schemes, together with the railways, are tabulated below:—