9d., and a Hindu 3s. 9d. I have not selected these nationalities haphazard, but because each of them has some special characteristic in common with Japan, especially Egypt, essentially an agricultural country. I do not think that anybody can maintain that an Italian, as a rule, is five or six times richer than a Japanese, or an Egyptian three times, or that the 130,000,000 of Russians, 20,000,000 of whom are Asiatics, possess incomes double the average to be found in Japan, and there is no doubt an immense inverse difference between a Hindu and a Japanese. Bearing in mind these facts, one must certainly conclude that the amount which the Jap will pay to his Treasury is considerably lighter than that obtained from almost every people in the Old World. With regard to the National Debt, five-sixths of which is held by natives, at the present moment it does not exceed £40,000,000, but it will reach its maximum in 1901, when it will stand at £49,930,000. The annual repayment stands at present at £720,000, but will increase to £1,000,000 in 1903, and go on augmenting, so that by 1938, unless fresh obligations are incurred beyond those already in view, Japan will be free of debt. The financial difficulties confronting Japan at the present moment are therefore not so formidable as they appear. In 1899 the Chamber increased the land tax, which it had previously very persistently refused to do. At the same time it raised the tax on _saké_ and on the posts. The Budget of ordinary receipts was therefore advanced to £19,000,000. This figure may appear excessive, but it shows a surplus of £4,000,000 on the actual expenses, a fact which indicates the intention of the Government to pay off as soon as possible the extraordinary expenses of the Ito programme, which means that these increased taxations are to be considered merely as temporary. They may possibly impede commerce at first, a thing which, unfortunately, cannot be helped, but, at any rate, the future will be considerably benefited thereby. The finances of Japan have, happily, always been managed in a highly satisfactory and prudent manner, and if the Empire carries out the present plan of expansion, and does not embark on any fresh schemes involving further outlay, Japan seems to have found a clear way out of the transient difficulties which at one time weighed upon her finances. CHAPTER VIII THE DOMESTIC POLITICS AND PARLIAMENT OF JAPAN