Expenditures of the Russo-Japanese war / by Gotaro Ogawa.

128 ECONOMIC EFFECTS OF THE RUSSO-JAPANESE WAR

the manufacture of arms and war supplies, manufacture of
iron and steel, printing, and the railway business; (2) industries not undertaken for profit, such as postal, telegraphic,
and telephone services and forestry; and (3) industries undertaken for the double end of profit and taxation, such as the
tobacco and salt monopolies. However, as the industries
belonging to the second group are primarily intended for public benefit, they should be regarded as affairs of the developmental adminstration, while the businesses of the third group,
which are organized primarily for revenue, should be treated
as belonging to the financial administration. So the government industries that have connection with the expenditures
to be discussed below are those in the narrow sense and worked
for profit only.
In considering the effects of the war upon these expenditures for government industries, it will be convenient to divide
them into four classes: (I) the manufacture of arms and war
supplies undertaken to meet military requirements; (2) the
manufacture of iron and steel for assisting in the development
of industries; (3) the railway for the advancement of national
economies; and (4) other government industries. After the
outbreak of the war, the demand for arms and war supplies
suddenly increased, as a matter of course, and the government
industries connected with their manufacture were rapidly extended and worked to the fullest capacity to supply the needs
of the war. The busy manufacture of arms caused at once a
sharp rise in the demand for iron and steel, with the result that
the government iron foundry was extended. Moreover, the
printing business, which is the most important of government
industries other than those of munitions and irons, had to be
extended with the increasing volume of state affairs on account of the war. As for government railways, the speedy construction of short sections necessary for war-time communications, the construction and improvement of lines had to be
curtailed to a considerable extent, under the stress of raising
the necessary money for war. The consequence was that while
the expenditures for government industries showed a consid