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

252 ECONOMIC EFFECTS OF THE RUSSO-JAPANESE WAR

observation, it may be safely said that as a result of the war
industry in Japan progressed with leaps and bounds.
Therefore, the question as to what were the economic
effects of the war may be answered as follows: They were
adverse at the beginning of the war, but favorable at its close
and afterward. The war itself served to stimulate economic
activity and progress. It is not to be supposed, however,
that the war passed without leaving any signs of economic
disadvantage. Nothing is farther from the truth. In the
first place, the national indebtedness amazingly increased,
because of the war, from 600,000,000 yen to no less than
2,400,000,000 yen, with the interest to be paid annually
amounting to I IO,OOO,OO yen. In the second place, the
national expenditure swelled to an enormous amount. More
especially, the armament expenses suddenly increased; because the national defense works had to be extended after the
war, four new divisions were added to the Army, and the Navy
was also enlarged. In addition, there were many new enterprises promoted by the government, including the nationalization of railways. The ordinary expenditure alone for I906
doubled that for I903, and the total expenditure for I906 inclusive of extraordinary expenses amounted to 494,700,000 yen.
In consequence, the government decided to issue new bonds
and to continue the war-time special taxes indefinitely.
These burdens were by no means a light price for a victorious war, but they were not so heavy as to thwart our
economic progress, which received a sudden impetus from
the war. But to say this does not mean that the recent
progress of Japan in economic and other activities is due
entirely to the war with Russia. The national progress is
the development of the inherent power of the nation; the war
served as an opportunity to develop it. Had there been no
war at all the national development would have come, perhaps, without incurring any of the economic burdens from
which we still suffer. In conclusion, we must remember the
fact that nothing can comfort the sorrow and affliction of
bereaved families caused by the loss of life through war.