Moreover, the resources of Japan, which I will briefly analyze, appear sufficient to enable the country to meet without much difficulty the interest on the loans as well as the permanent expenditure resulting from its greater national importance. Let us, to begin with, review the principal items in the revenue as tabulated in the Budget of 1897–98: Land tax £3,870,000 Income tax 190,000 Tax on drinks 2,990,000 Tax on tobacco 310,000 Registration 750,000 Tax on sales, contracts, etc. 590,000 Customs 660,000 Various duties 490,000 Posts and telegraph 1,210,000 Profits of the State railways 540,000 Crown land products 290,000 Other items 250,000 Receipts from Formosa 810,000 ——————————— Total £12,950,000 =========== This Budget is higher by one-half than that of 1893–94, the total of which we have already given, and whose ordinary receipts did not quite reach £8,600,000. This increase results from four causes: (1) better returns from the public services—railways and posts; (2) a slight increase in the revenue from taxes whose rate has not changed, and also in the Crown lands; (3) the establishment of two new taxes on registrations and sales, contracts, and other commercial deeds, the aggregate value of which increased the revenue by about £1,200,000; (4) the reorganization of the tax on drink, increased by £1,150,000, and of that on tobacco, in consequence of this product having been converted into a monopoly, the effects, however, of which were not felt in 1897–98, for it only came into force in January, 1898. To these we must add the receipts from Formosa, which, unfortunately, are not net receipts. The total revenue for the fiscal year 1897–98 was £12,950,000, and exceeded ordinary expenses by £600,000; but these figures will undoubtedly be greatly augmented when the programme of expansion is completed. It is calculated that by the year 1904–5 the ordinary expenses will stand as high as £17,300,000, in order to meet which it will be necessary to raise another £4,400,000 by increased taxation.