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

EFFECTS ON MONETARY CIRCULATION

I67

of exchequer bonds, the transfer from the general accounts
based upon the revenues from tax increases, the transfer from
the special-accounts funds, as well as the contributions to war
funds, the proceeds from the sale of government properties,
the incomes from transportation, special and miscellaneous
incomes amounted to 1,721,212,256 yen. Of this figure,
983,845,592 yen were receipts from public loans; 434,885,638
yen, receipts from the exchequer bonds; 182,430,I29 yen,
transfer from the general accounts; 69,311,977 yen, accommodation from the special-accounts funds; 2,331,176 yen, contributions to the war funds; I8,875,115 yen, sale of government properties; 9,908,784 yen, income from transportation;
3,516,325 yen, special revenue; I6,107,52I yen, miscellaneous
revenue.
In addition to these revenues, there were 221,000,000 yen of
the war-time administrative funds (received into the general
accounts), which must be included in the war-expenditure
funds. Setting aside this item for the present, we shall see in
the table on page 168 the monthly receipts for the war funds
as a whole and the monthly disbursements of the war-time
military expenditures.
SUPPLY AND DEMAND OF CAPITAL
General survey
The absorption of an enormous amount of funds at home for
war expenditures naturally tended to cause a dearth of capital
among the people. The slump in the general economic activity due to the war, however, accompanied a fall in the
demands for capital, at least at the beginning of the hostilities,
which saved the money market from becoming stringent.
While the national capital was increasing as the war progressed,
through the encouraging of the habit of thrift, the great inflow
of foreign money began in May, 1904, to swell the funds at the
disposal of the country. Moreover, the issue of the exchequer
bonds could be repeated without any serious effect on the
market, because precautions were taken to lend sparingly and
thus to increase the available funds. Simultaneously, de