The navy is manned partly by conscripts and partly by volunteers. Personnel. About 5500 are taken every year, and the ratio is, approximately, 55% of volunteers and 45% of conscripts. The period of active service is 4 years and that of service with the reserve 7 years. On the average 200 cadets are admitted yearly, of whom 50 are engineers, and in 1906 the personnel of the navy consisted of the following:—
| Admirals, combative and non-combative | 77 |
| Officers, combative and non-combative, below the rank of admiral | 2,867 |
| Warrant officers | 9,075 |
| Bluejackets | 29,667 |
| Cadets | 721 |
| ——— | |
| Total | 42,407 |
The highest educational institution for the navy is the naval staff college, in which there are five courses for officers alone. The gunnery and torpedo schools are attended by officers, Naval Education. and also by selected warrant-officers and bluejackets, who consent to extend their service. There is also a mechanical school for junior engineers, warrant-officers and ordinary artificers.
At the naval cadet academy—originally situated in Tōkyō but now at Etajima near Kure—aspirants for service as naval officers receive a 3 years’ academical course and 1 year’s training at sea; and, finally, there is a naval engineering college collateral to the naval cadet academy.
Since 1882, foreign instruction has been wholly dispensed with in the Japanese navy; since 1886 she has manufactured her own prismatic powder; since 1891 she has been able to make quick-firing guns and Schwartzkopf torpedoes, and in 1892 one of her officers invented a particularly potent explosive, called (after its inventor) Shimose powder.
Finance.—Under the feudal system of the Tokugawa (1603-1871), all land in Japan was regarded as state property, and parcelled out into 276 fiefs, great and small, which were assigned to as many feudatories. These were empowered The Feudal Period. to raise revenue for the support of their households, for administrative purposes, and for the maintenance of troops. The basis of taxation varied greatly in different districts, but, at the time of the Restoration in 1867, the general principle was that four-tenths of the gross produce should go to the feudatory, six-tenths to the farmer. In practice this rule was applied to the rice crop only, the assessments for other kinds of produce being levied partly in money and partly in manufactured goods. Forced labour also was exacted, and artisans and tradesmen were subjected to pecuniary levies. The yield of rice in 1867 was about 154 million bushels,[21] of which the market value at prices then ruling was £24,000,000, or 240,000,000 yen.[22] Hence the grain tax represented, at the lowest calculation, 96,000,000 yen. When the administration reverted to the emperor in 1867 the central treasury was empty, and the funds hitherto employed for governmental purposes in the fiefs continued to be devoted to the support of the feudatories, to the payment of the samurai, and to defraying the expenses of local administration, the central treasury receiving only whatever might remain after these various outlays.
The shōgun himself, whose income amounted to about £3,500,000, did not, on abdicating, hand over to the sovereign either the contents of his treasury or the lands from which he derived his revenues. He contended that funds for the government of the nation as a whole should be levied from the people at large. Not until 1871 did the feudal system cease to exist. The fiefs being then converted into prefectures, their revenues became an asset of the central treasury, less 10% allotted for the support of the former feudatories.[23]
But during the interval between 1867 and 1871, the men on whom had devolved the direction of national affairs saw no relief from crippling impecuniosity except an issue of paper money. This was not a novelty in Japan. Paper Paper Money. money had been known to the people since the middle of the 17th century, and in the era of which we are now writing no less than 1694 varieties of notes were in circulation. There were gold notes, silver notes, cash-notes, rice-notes, umbrella-notes, ribbon-notes, lathe-article-notes, and so on through an interminable list, the circulation of each kind being limited to the issuing fief. Many of these notes had almost ceased to have any purchasing power, and nearly all were regarded by the people as evidences of official greed. The first duty of a centralized progressive administration should have been to reform the currency. The political leaders of the time appreciated that duty, but saw themselves compelled by stress of circumstances to adopt the very device which in the hands of the feudal chiefs had produced such deplorable results. The ordinary revenue amounted to only 3,000,000 yen, while the extraordinary aggregated 29,000,000, and was derived wholly from issues of paper money or other equally unsound sources.
Even on the abolition of feudalism in 1871 the situation was not immediately relieved. The land tax, which constituted nine-tenths of the feudal revenues, had been assessed by varying methods and at various rates by Land Tax. the different feudatories, and re-assessment of all the land became a preliminary essential to establishing a uniform system. Such a task, on the basis of accurate surveys, would have involved years of work, whereas the financial needs of the state had to be met immediately. Under the pressure of this imperative necessity a re-assessment was roughly made in two years, and being continued thereafter with greater accuracy, was completed in 1881. This survey, eminently liberal to the agriculturists, assigned a value of 1,200,000,000 yen to the whole of the arable land, and the treasury fixed the tax at 3% of the assessed value of the land, which was about one-half of the real market value. Moreover, the government contemplated a gradual reduction of this already low impost until it should ultimately fall to 1%. Circumstances prevented the consummation of that purpose. The rate underwent only one reduction of ½%, and thereafter had to be raised on account of war expenditures. On the whole, however, no class benefited more conspicuously from the change of administration than the peasants, since not only was their burden of taxation light, but also they were converted from mere tenants into actual proprietors. In brief, they acquired the fee-simple of their farms in consideration of paying an annual rent equal to about one sixty-sixth of the market value of the land.
In 1873, when these changes were effected, the ordinary revenue of the state rose from 24,500,000 yen to 70,500,000 yen. But seven millions sterling is a small income for a country confronted by such problems as Japan had to solve. State Revenue. She had to build railways; to create an army and a navy; to organize posts, telegraphs, prisons, police and education; to construct roads, improve harbours, light and buoy the coasts; to create a mercantile marine; to start under official auspices numerous industrial enterprises which should serve as object lessons to the people, as well as to lend to private persons large sums in aid of similar projects. Thus, living of necessity beyond its income, the government had recourse to further issues of fiduciary notes, and in proportion as the volume of the latter exceeded actual currency requirements their specie value depreciated.