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

RESOURCES FOR DEFRAYING WAR EXPENSES

To recapitulate: The actual amount of domestic loans
issued for supplying the war expenses aggregated more than
783,450,000 yen, comprising over 473,030,000 yen of exchequer bonds and over 310,390,000 yen of emergency loans,
while the total income to the Treasury from these sources
exceeded 729,I30,000 yen, including over 434,880,000 yen
from the exchequer bonds and over 294,250,000 yen from the
emergency loans.
FOREIGN LOANS
The most important part of the war expenditures was supplied by the proceeds from foreign loans, which formed more
than half of all the war loans. The foreign loans consisted of
two kinds, namely, the first and second 6 per cent sterling
bonds, which were short-term loans and issued in May and
November, 1904, and the first and second 42 per cent sterling bonds, which were long-term loans and issued in March
and July, I905. These loans were placed on the markets in
Great Britain and America or Great Britain, America, and
Germany. They were floated by the indirect method of
issue, each of the loans being taken up by a syndicate of
banks. Between the two short-term loans and the two longterm loans there was a great difference in the conditions and
results of issue, because the former were floated in the first
half of the war, when the final issue of the conflict was yet
unknown, while the latter were issued in the second half of
the war, when the prospective victory of Japan became almost
certain. This was, however, ten years after the Sino-Japanese War, and the development of Japan's economic resources
during these years was not unknown to the world. Her
international position was still low; consequently the offering
of securities was a necessary condition for the loan issue, not
only in the first but in the second half of the war. The
conditions of issue for the four loans are set forth in Table A
at the end of this chapter.'
The first two sterling loans, ~Io,ooo,ooo and ~I2,000,000,
respectively, were floated in London and New York in equal
6 1 Post, p. 94.