Japan by the Japanese/Chapter 5

Ten years’ experience in constitutional government has not been unattended by some noteworthy results, but much still remains to be done in the way of so guiding and educating public opinion as to render it a help and assistance to the conduct of the affairs of the State. To speak frankly, it has for some years been a source of profound regret to me to observe a tendency on the part of the existing political parties to be betrayed into words and deeds which are at variance with the principles laid down in the Constitution, which indicate a proneness to sacrifice national for private interests, and which, moreover, are antagonistic to the fundamental national policy decided upon by His Imperial Majesty at the time of the glorious Restoration in unison with the requirements of the progress achieved. The lamentable consequence is, that the conduct of these parties leaves much to be desired in regard to the maintenance of the honour and good name of the empire abroad and to the acquirement of the confidence and trust of the people at home. Being now called upon to gather together men of similar views with myself, and to submit to the candid consideration of the public a general statement of the lines of policy which I intend to pursue in common with my friends, I avail myself of the present opportunity of briefly setting forth some of the principles which, in my opinion, ought to guide the actions of a political party.

The appointment or dismissal of Cabinet Ministers appertains, under the Constitution, to the prerogatives of the Sovereign, who consequently retains absolute freedom to select his advisers from whatever quarters he deems proper, be it from among political parties or from circles outside those parties. When once Ministers have been appointed and invested with their ​respective official functions, it is not under any circumstances whatever permissible for their fellow party-men or their other political friends to interfere in any manner with the discharge of their duties. Any failure to grasp this fundamental principle would be fatal to the proper and efficient management of the important affairs of State, and might lead to unseemly struggles for political power, thus engendering evils and abuses unspeakable. In inviting my political friends and sympathizers to rally around me, it is my earnest wish that we keep ourselves clear from these evils and abuses.

In view of the duties it owes to the State, a political party ought to make it its primary object to devote its whole energies to the public weal. In order to improve and infuse life and vigour into the administrative machinery of the country, so as to enable it to keep up with the general progress of the nation, it is necessary the administrative officials should be recruited, under a system of definite qualifications, from among capable men of proper attainments and experience, irrespective of whether they belong to a political party or not. It is absolutely necessary that caution should be taken to avoid falling into the fatal mistake of giving official posts to men of doubtful qualifications, simply because they belong to a particular political party. In considering questions affecting the interests of local or other corporate bodies, the decision must always be guided by considerations of the general good of the public, and of the relative importance of those questions. In no case should the support of a political party be given for the promotion of any particular interests, in response to considerations of local connections or under the corrupt influence of interested persons. It is my earnest wish to sweep away, with the help of my friends, all these evil practices.

If a political party aims, as it should aim, at being a guide to the people, it must first commence with maintaining strict discipline and order in its own ranks, and, above all, with shaping its own conduct with an absolute and sincere devotion to the public interests of the country. Convinced of this truth, I venture, unworthy as I feel myself for such an important task, to organize, in concert with my political friends, an association under the name of Rikken Seiyu-Kai (Constitutional Political Association), and offer to use my humble endeavours for the rectification of the standing abuses and evils connected with political parties; my only wish in so doing being to contribute what little is in my power to the future success of constitutional government in this empire, and this discharge I owe to my august Sovereign and to my country.

Having formed this resolution, I now appeal to such of my fellow-countrymen as may do me the honour of sharing my ​views and sentiments, and invite attention to the separate memorandum herewith presented, containing a statement of the general principles of the proposed association.

Actuated by a desire to discharge the duties which every loyal subject owes to the Imperial House and the State, I now propose to organize a political association under the name of ‘Rikken Seiyu-Kai’ (Constitutional Political Association), and hereby announce the general principles by which, in common with the other members of the association, I propose to shape our policy. These principles are as follows:

1. We propose to strictly observe the Constitution of the empire and, in accordance with its provisions, to secure the successful operation of the sovereign power, so that the important affairs of State may be properly conducted; and, further, that the rights and liberties of individual subjects may be sufficiently preserved and safeguarded.

2. We make it our aim to advance the prosperity and position of the country, and to promote its civilization, in strict obedience to and in whole-hearted support and furtherance of that grand imperial policy inaugurated at the time of the Restoration.

3. Desirous as we are to secure the harmonious working of the administrative machinery, and to preserve the equity and justice of its action, we propose to use scrupulous vigilance in the appointment of officials, and to avoid useless formalities in the transaction of official business; to clearly define and rigidly exact the performance of the duties and responsibilities attaching to the various official positions; to maintain strict discipline among public functionaries; and to secure such despatch and precision in the conduct of business as are required by the country.

4. Attaching, as we do, high importance to the foreign intercourse of the empire, we will use our best endeavours to cultivate good relations with the Treaty Powers, and guard the welfare of all foreigners sojourning within the empire, by extending to them the benefits of such enlightened government as is requisite for every well-regulated community.

5. Recognising as we do the necessity of completing the defence of the country in accordance with the march of events at home and abroad, we propose to secure, within limits sanctioned by the national resources, effectual protection for the national rights and interests.

6. Being desirous of placing the strength of the country on a sure and solid basis, we propose to encourage and promote education, and to foster the personal character of the people, so that their moral and intellectual qualities may be so developed as to enable them to fulfil satisfactorily the duties they owe to the State in their private and public capacities.

​7. We make it our object to strengthen the economic basis of national life by encouraging agricultural and industrial enterprises, by promoting navigation and commerce, and by completing the various means of communication.

8. We propose to direct our efforts towards the realization of the object of local self-government, so that the communal units may be knit together in such a way as to secure social and economic harmony among them.

9. Keenly aware as we are of the serious responsibilities which a political party owes to the State, we will strive to shape our actions in accordance with the requirements of public interests, and always endeavour, in the spirit of self-admonition, to guard ourselves against falling into the old evils and abuses.

In view of the growing sympathy and independence which unite the nations together in peaceful relations; in view of the increasing efforts of each civilized Power to excel its fellows in promoting the arts of peace and the cause of progress; and especially in view of the indisputable fact that the centre of international competition is steadily moving towards the Pacific, where, owing to her geographical position, Japan is destined to play an extremely important part—in view of all these facts, I consider it a matter of great and urgent moment for our statesmen to strive loyally and patriotically for the preservation of the prestige which our common country has won, and for her maintenance in the new position in which, owing to the turn events are now taking, she will soon find herself.

A healthy and judicious development of the body politic being the first requisite of national strength in this competitive march forward, our party must endeavour to secure progress based solidly on the terra-firma of intellectual and material resources.

All seeming progress, all progress which is incompatible with the actual economic means of the people, is sure to end in disease. Our party should therefore pay special attention, firstly, to the principles of economy and efficiency in the management of public affairs, and, secondly, to the augmentation of the material resources of the country. In the same way, the intellectual development of the country is not only in itself a very definite form of progress, but it is also a means wherewith to further the general progress. Our party, therefore, should devote special attention to the question of the education and the moral elevation of the people, and should in ​consequence make it a point to carefully study all plans of reform which are likely to improve the efficiency of our natural system of education. In short, intellectual civilization and moral strength are the only means by which we can insure the permanent attainment of our object, which is and has always been, ‘Peace with honour abroad, progress with honour at home.’ For the full meaning of our motto, I need only refer you to an address which I delivered to you at the time of the formation of our party, and to the programme which was issued on the same occasion.

As regards the coming General Election, I think it is hardly necessary for me to point out to you that our party should aim at returning to the Diet as many as possible of the candidates who pin their faith to the principles just alluded to, and who are at the same time of unimpeachable character, and gifted with courage and constancy enough to remain true to their convictions. With regard to the actual method of carrying on the election campaign, I shall shortly issue detailed instructions to our branch offices. Suffice it to say here that, our straightforward conduct, full freedom, and absolute good faith in all matters appertaining to the election being essential for the proper representation of the nation, our party should endeavour to avoid bringing any unlawful pressure or any improper influences to bear upon the electors, and that we should by our example try to prevent others from having recourse to such reprehensible means. A sound electoral body is essential to a sound Chamber of Deputies; and it is the plain duty of our party to take the initiative, and at the same time to set the public a good example in this respect.

I would also recommend the electors belonging to our party to always bear in mind that they have not only a legal right to make their voices heard, but are under a moral obligation to contribute toward bringing to perfection the constitutional life of the State by conscientiously exercising that right. They should, further, try to avoid all unnecessary friction amongst themselves, or in their dealings with others, all such friction being likely to endanger the social fabric of our country. Above all, I exhort you to remember that we must always place the national interests before the transient interests of a political party.

In promulgating the Constitution, the Emperor decreed:

‘Considering that Our subjects are the descendants of the loyal and good subjects of Our Imperial ancestors, We doubt ​not but that Our subjects will be guided by Our views, and will sympathize with Our endeavours, and that, harmoniously co-operating together, they will share with us Our hope of making manifest the glory of Our country both at home and abroad, and of securing for ever the stability of the work bequeathed to Us by Our Imperial ancestors.’

Such being the Imperial decree in question, the people of Japan are bound to obey the spirit and the words of this decree. In other words, having been given a voice in the legislation of the country by virtue of the Constitution, they, in making use of this privilege, must always endeavour to be in consonance, and not at variance, with the purposes of the Constitution, which are the wishes of the Emperor.

I regret that, as it appears to me, things are not progressing as they ought to be as regards the economics of the country. This seems to be especially the case when one looks at the condition of the provincial finances. Here it is often evident that the parties concerned are conducting affairs with no calculation as to their resources. I think they often launch out on enterprises on the spur of the moment without stopping to ask whether or not their projects are within the means of the country, or of their prefecture, town or village; and they seem to completely lack any spirit of caution or any desire to increase their expenditure only to the extent of their power of meeting it.

Nobody who takes trouble to study the trend of affairs, both at home and abroad, will dare to say that our navy could remain for ten years as it is at present. There is a limit to the number of years for which all war-vessels retain their full efficiency, and the subsequent deterioration must be made good. Whether you call it replenishment or call it expansion, the fact is the same: it is a necessity. Or look at it from the point of maintaining the balance of power in the Far East: no one can possibly deny the necessity of extension.

I deem agriculture one of the most important factors in the economics of the country…. Seeing that various lines of industries and commercial enterprises scattered over the country are making fair progress, we must not neglect our agricultural interests. One may question if the levy on the farmer must never be increased in the future; I would by no means answer in the negative. In case of national need, the farmer should willingly bear his share of the burden. There is no reason in the world why a burden, once lightened, should never again be increased. When a burden is reimposed, it will be done so equally, on the farmer as on the merchant; and the farmer has no right to say that he alone must be exempted. With the privilege of participating in the administration of the country, ​no men of any education should ever forget the welfare of the country. On these points, however, my views are often at variance with those in official circles.

I think that the Japanese as a people are inclined to go about their business too recklessly; they squander their money with scarcely a thought as to their wealth. It was in 1880 that the prefectural assemblies were first established. Before putting this new scheme in operation, the Government convened a meeting of prefectural Governors, of which I was chairman. When I look over the course of events between that year and the year of the promulgation of the Constitution, I notice that the prefectural expenditure increased very considerably in that interval. True, many troublesome occurrences happened, and the resolution passed by the assemblies had often to be voted. On the whole, however, in so far as the question of public burdens was considered, instead of the Government having to ask for more, the people seemed to be bent on giving more. This was decidedly unexpected. In any other country the people would demur at being burdened; but in Japan they appeared to think more of the State than of their own pockets, and they never seemed to be chary of giving. This condition of things made me think that the Japanese were not a people to refuse any increase in their burdens, even though they were given to the National Assembly. In this respect my views differed at the time from those of others in the Government. People in official circles were imbued with the idea that the opening of a National Assembly would be the opening act of some awful drama.

Then, subsequent to the inauguration of the Parliamentary régime, the people demanded of the Government the curtailment of administrative expenditures; and I think I remember to have been once or twice harassed on that same question by the representatives of the people. However, when I calmly reviewed the result of all those demands about financial retrenchment, I discovered them to have merely been a pretext for annoying the Government. For the facts that transpired subsequently to the Chino-Japanese War significantly demonstrate the expansion, not only of the expenditures of the central Government, but also prove how the expenditures of the provinces, where the members of the Diet hail from, have been trebled, or even quadrupled. Not that I absolutely approve of an increase of central and local administrative expenses. My position is simply this, namely, that the administrative expenses must be made commensurate with the resources of the country and the provinces.

Let me see how matters stand at present, and in doing so I must review the history of the national finances. When ​I was first installed in the chair of Premier, about sixteen years ago, the revenue stood at 76,400,000 yen. The appropriations demanded by the different departments of State had risen to 94,500,000 yen. The Treasury could not, even if it would, satisfy those demands. I myself undertook the task of arranging the Budget, and set myself to strike out all those items that I judged uncalled for, and to amend others that were intended to provide for new works. All those preliminary tasks having been completed, I convoked a Cabinet Council, and it sat till midnight. The result was that the Budget for the year was fixed at 76,400,000 yen, together with a surplus account of 1,000,000 yen. The revenue of that time was 76,400,000 yen, but to-day it stands at 240,000,000 yen. Such an expansion can by no means be considered light. In the matter of national wealth I must admit an enormous increase. I must admit that all the important affairs of State calculated to strengthen the bases of the national existence, such as matters of national defence, communications (both marine and overland), and such-like provisions, have been made to a considerable extent. However, in estimating the wealth of a country, we must consider this question from various standpoints, for according to the mode of computation a considerable difference will arise as to the amount of wealth. However, I will not dwell on this point any further, this being a matter of science and theory. At any rate, I can safely say that the wealth of Japan has markedly increased.

Now, in looking over the economic field of to-day, I do not think either manufacture or trade or agriculture is placed in a prosperous position. The explanation is that all the enterprises in those respective spheres have been launched with no adequate funds to back them. The result is that some of these enterprises have collapsed after having run for a few years. Lack of competent technical knowledge has also brought about the failure, and these two causes—lack of funds and lack of experience—must be regarded as having brought about the present economic failures. There is another point to be taken into consideration in reviewing the present economic inactivity, and that is lack of sincerity and sense of responsibility by all those who have charge of the work. For managers and experts, and even companies themselves, have often acted unfaithfully, and have tried to evade the obligation of paying debts contracted in various quarters. In fact, those managers and experts have not been worthy to take charge of such responsible businesses. All these points must be carefully attended to by all the members of the Diet, on whom rests the grave responsibility of arranging on a sound basis the finance of the State.

​For convenience in reviewing the history of the finances of Japan, I should like to divide it into three periods—one covering the period from the beginning of the Meiji era to the 20th year (1887); second, from the 20th year to the 27th year (1894); and, lastly, from the 27th year to the present. I should like, with your permission, to review here at this juncture the history of the finance of the Meiji Government, and I must remind you that what I have to tell you is far from being complete or perfect. With this premise, I may briefly state that the specie that Japan had during the pre-Restoration days amounted to something like 100,000,000 yen, and this volume remained nearly constant, as the country was practically shut out at that time from the rest of the world. Then each local clan issued its own currency, aggregating about 30,000,000 yen, which was converted into consolidated loan bonds when the Restoration had been consummated. With the lapse of time the volume of specie changed more or less, but even about the year 1875 it must have stood at 100,000,000 to 80,000,000 yen. This amount had to disappear from the country; and this exodus occurred rather too suddenly, for in a year or two the majority went out of the country, and whatever amount there remained was found in the vaults of the exchequer, and only paper money was in circulation at that time. Still, the paper stood at par. Meantime the finances of the State, as also the economic market at large, had been placed in an exceedingly embarrassing situation. The Government of the day taxed their brains hard to devise measures for rescuing the country from this trouble. Their deliverance appeared in the shape of an Imperial edict issued in the spring of 1877—an edict proclaiming the reduction of the rate of land tax. The truth is the Government had decided that the only sound remedy consisted in adopting a courageous plan of economy. I well remember what a drastic reform the Government decided to carry out as their remedial measure, for I was then occupying the chair of the Public Works Department. The original estimates of that department were about 3,900,000 yen for the year 1877, and the sum was cut down to 2,000,000. This programme would have ended in success had not the civil war of Satsuma, that broke out in that same year, thrown it out of all order. Economically and financially the war proved disastrous, and at one time paper money stood at 1.80 to 1 yen of gold. The war over, the Government revived the original programme of remedy with redoubled energy; still, the specie remaining in Japan did not exceed 8,000,000 about four or five years after. The Minister of Finance of the day, Count Matsukata, adopted various devices for preventing the outflow of specie and ​encouraging its inflow. The result was fairly reassuring, for in 1883 the volume of specie in the country increased to 19,000,000, till at last, coming to 1887, paper money could be restored to par.

About the time of the advent of the constitutional régime, in 1890, both the financial programme of the Government and the economic enterprises began to show an expansion somewhat out of due bounds, and this undue expansion was in danger of engendering a panic. The crisis was, however, tided over, and with the retrenchment programme subsequently adopted, in compliance with the demands of the Diet, the Treasury had at its disposal the sum of about 36,000,000 yen, when the Chino-Japanese War broke out. At the same time the Bank of Japan possessed over 90,000,000 yen as reserves against paper money, for the convertible system had been inaugurated in the meantime.

If I may compare the state of finances subsequent to the civil war of Satsuma to the state of things in a house where there is mourning and weakness, I think I may compare the post-bellum affairs of ten years ago to a fête in the same house after a period of mourning is over. The nation throughout made up its mind to practise the utmost economy in the one case, while on the other occasion the nation gave itself up to be lavish in all its doings—and with what result? Not only has the 300,000,000 yen indemnity exacted from China left the country, but the evil consequences which the thoughtless acts of the nation entailed so far upset the balance of trade in favour of imports that the money which has flowed out of the country during the last seven years aggregated as much as 700,000,000 yen. This is the point which has been causing me the greatest anxiety, and it is in view of that consideration that I have to urge upon you the necessity of arranging the State and private enterprises on a sound economic basis, and that I have to ask the question why Japan, in getting the supply of materials for her manifold works, should not reduce the supply she gets from abroad, and should not take steps to utilize home products? It must be admitted that Japan is placed in an exceedingly disadvantageous situation in all the important works she has had to undertake. Look, for instance, how the Powers are managing their own armament business. England, France, Germany, and others, are all providing their own armaments without depending upon others for help. In Japan, however, this is far from being the case, and the more works the Government undertakes the more will money leave the country. I admit that there are many measures that demand speedy attention from the Government, but I must declare at the same time that the relative degree of importance and the relative degree ​of urgency of those matters should be carefully weighed, so that if, as the Government maintain, and as I admit, the question of naval expansion does not allow of postponement for ten years, Japan should, on the other hand, cut down her other expenditures which entail money leaving the country. The balance of trade should in that way be kept up as much as possible. It is in pursuance of that policy that I must warn you against being swayed in your acts by local interests, as, for instance, in questions of railway construction. I do not warn you alone; I must warn both the Government and the public at large, for any indiscreet resolution in this connection and on questions of a similar nature would be disastrous in consequences—so disastrous that they might even be beyond the power of able men to remedy. It may sound a truism to you to state how in other countries great pains are taken for safeguarding the interests of the national finance, and how devices are made for preventing the outflow of specie. The amounts of the fund thus kept in reserve by the different countries are not, of course, the same, but the quantity of the amount hoarded is amazingly great. Nor is there any unity among them—as I found by inquiries—in their method of preventing the exodus of specie, but they are all one in so far as their object is concerned. Turning to Japan, what do we find? Do you not find doors ajar everywhere? If there be a man who is well satisfied with this state of things, I should think he is one who could afford to pass twenty-four hours of the day in easy slumber. We must wake up and do all we can in the future to attain the object I have dwelt upon. To do so is not the duty of the Government alone; the high and the low alike must not neglect to consider this matter. I may not refer here to the methods, but it is important that they should aim at the attainment of the object in question.