ler than that of our
state of California. The portentous aspect of the national obligation of
Japan is that it must absorb in interest charges fully a third of the
empire's income for many years of peace and prosperity to come.

A large part of the debt incurred before the war was for public works,
most of which are productive. Funds realized from early loans, both
foreign and domestic, as well as a portion of the income from the
indemnity earned by the war with China, were invested in commercial
enterprises owned or fostered by the empire, and the government receives
a considerable benefit from the public railways, tobacco monopoly,
woolen mills, and a few other industrial ventures. The railways are
extremely profitable, and the large sums spent in the creation of
post-offices, telephone and telegraph lines, port facilities, etc., have
proved wise investments.

Observers of national statistics have long known that a country without
heavy indebtedness amounts to little in a worldly and industrial sense.
Abundantly solvent, France has a debt averaging $151.70 per person, and
the United Kingdom (Great Britain and Ireland), a pro rata debt of
$91.80. Portugal owes $143.82 per subject, Holland $90.74, and Belgium
$75.63. The heaviest governmental obligation is that of Australia,
averaging $263.90 per inhabitant; and the lightest responsibility among
important nations is that of the United States, gradually lessening, now
standing at but $10.93. Our Cuban neighbors, owing $21.88 per capita,
make little complaint of fiscal burden. Whether a debt be burdensome or
otherwise depends as much upon the character of the people as upon
natural resources. Decaying Portugal could not by industry liberate
herself from pecuniary thraldom in a century, while the Japanese
probably could liquidate every obligation in fifteen years, were they
pressed to do so.

No country can present a better foundation for industrial and commercial
development at this time than Japan, and the signing at Portsmouth of
the peace agreement marked the beginning of an era of national growth
that may challenge the admiration of the world as did the feats of arms
of Oyama and Togo. The war cemented classes in Japan almost to a
condition of homogeneity--practically every subject of the Mikado
believed in the necessity for the conflict, and made sacrifices to
contribute to the cost thereof. Distinctions of class are now seldom
thought of, and it contributes might