The Making of Modern Japan / An Account of the Progress of Japan from Pre-feudal Days to Constitutional Government & the Position of a Great Power, With Chapters on Religion, the Complex Family System, Education, &c.

by John Harington Gubbins

The main features of the new scheme show the importance of the changes proposed.

A new official survey of land throughout the country was to be carried out. Title-deeds were to be issued for all land, whether cultivated or not. Land everywhere was to be valued, and the value stated in the title-deed. In the case of cultivated land the land-tax was to be made payable in money, instead of in rice, as before, and was to be based on the selling value of the land, as declared in the title-deed, and not, as before, on the assessed yield of the holding. The proprietor—for this, in effect, the farmer became when the revision was accomplished—was to be free to cultivate his land in all respects as he pleased, and could sell or otherwise dispose of it as he chose.

The Sei-in—that curious body in the reorganized Government of 1869 which represented an attempt to combine in one branch of authority legislative, deliberative and executive powers—signified its approval of the scheme, and arrangements were made to give effect to some of its provisions. In January, 1872, as a tentative measure, title-deed regulations were issued. These were made operative at first only in the Tōkiō prefecture, but their operation was gradually extended to other places. Shortly afterwards further regulations providing for the annual payment of land-tax at the rate of 2 per cent on the value of land, as entered in the title-deed, were published. And in March of the same year the restrictions on the alienation of land, which had previously prevented all transfers of land between the military class and other classes of the people, as well as between members of the latter, were removed.

Before, however, this scheme for the revision of the land-tax assumed its final legislative shape it underwent various modifications. It was submitted early in 1873 to a conference of the chief administrative officials in the provinces which took place in the Capital. The necessity of reform on the lines suggested was admitted by all concerned. The main point on which opinions differed was whether the revision of the land-tax should be carried out as soon as possible, or gradually. The advocates of prompt action urged that the question should be dealt with quickly and decisively, arguing that whatever disadvantages might attend this course would be more than counterbalanced by the benefits resulting from a uniform system of taxation. The other side held that it would be unwise to do away suddenly with old customs and usages, and that it would be better to carry out the contemplated changes very gradually, taking care not to offend local prejudice. In the end the views of the advocates of prompt action prevailed, and a draft law was prepared. This, having received the sanction of the Throne, was notified to the country by Imperial Decree in July of the same year. No direct reference was made in the Decree either to the change of government, or to the abolition of feudalism, which were the real causes that had inspired the measure. It may have been thought inadvisable to refer to a past so full of dangerous memories, and so recent as to invite inconvenient comparisons.

The Decree itself merely stated the object of the measure, which was “to remedy the existing harsh and unequal incidence of taxation,” and the fact that local authorities, besides other officials, had been consulted in its preparation. In the notification accompanying it further information was given. It was explained that the old system of paying taxes on cultivated land in rice was abolished; that as soon as fresh title-deeds had been prepared land-tax would be paid at the rate of 3 per cent on the value of the land; and that the same course would be followed in the case of local land taxation, with the proviso that the local land rate should not exceed one-third of the Imperial land-tax.

By a looseness of wording, which may have escaped notice at the time, both the Decree and the Notification spoke of the land-tax as having been revised. It needed more than a stroke of the pen to do this. Neither those who in the conference objected to hasty measures, nor those who were in favour of prompt action, had foreseen the length of time that would be occupied in the execution of the reform. It was left to the practical exigencies of the situation to effect a compromise between the two parties which the conference had failed to bring about. The original estimate of the time needed to carry out the measure was found to be quite inadequate. Though the task was set about at once, several years elapsed before it was completed; and eventually it was decided to allow the new scheme to come into operation in each district, as soon as the requisite arrangements had been made, without waiting for its adoption in other places.

Voluminous regulations were appended to the Notification. In one of these a promise was given that the rate of land-tax would be reduced to 1 per cent whenever the total annual revenue from other sources should have reached the sum of Yen 2,000,000 (£400,000). This promise was never fulfilled. By the time the revenue from other sources had reached the amount stated the needs of the new Government had so outgrown its resources that reduction to the extent contemplated was not possible. A reduction from 3 to 2½ per cent was, however, made a few years later, while the work of revision was still proceeding.

Some other points may be noted in passing which throw light on the principles underlying the measure.

All holders of land were required to remeasure it, and furnish a statement of its value. These estimates were then to be checked by comparison with similar estimates made by official experts. In the case of a holder of land refusing to agree to the value fixed by the assessors, the land was to be sold.

The land-tax of 3 per cent was to be levied only on cultivated land, this category including both rice land and other arable land. The tax on house land was higher, while that on other classes of land, such as land covered by forests, pasture or moorland, was almost nominal.