Moreover, the army and navy could use the Special Account at their discretion.
Further, the army and navy only had to provide an outline of expected expenditures for the fiscal year, and the Special Account allowed for additional budgets when necessary. World War I broke out in Europe in July Japan declared war on Germany on 23 August of the same year. National Treasury revenue and National Treasury budget surpluses, both the result of previous administrative and financial reforms, provided the initial sources of funding for the Special Account.
And a further 1. In the following years the Imperial Diet approved every additional budget request to cover temporary military expenses — from providing an additional 16,, yen at the thirty-sixth Imperial Diet in to approving the eleventh additional budget of 75,, yen at the forty-fifth Imperial Diet in Overall war costs rose dramatically with the Siberian Intervention, so those costs were met through the very same Special Account that had been established four years earlier.
It ceased to exist on 1 April , after the full withdrawal of Japanese troops from Siberia. From the standpoint of accounting for war costs, then, World War I and the Siberian Intervention should be seen as a virtually continuous war. During this period, the Special Account operated for a total of consecutive months.
This constituted the longest of the four periods in which the Special Account was active in pre-war Japan. This section identifies the war expenditures of World War I and the Siberian Intervention and their place in modern Japanese history. This total sum is 2. This far surpasses the This low monthly spending stands despite the fact that military expenditures surged from to with the Siberian Intervention see figure.
Next, let us show the total breakdown of war expenditures during World War I. This amounted to 1. It includes army and navy expenses, strategy costs, and the relative percentage spent by both the army and navy during this period. First, the army spent a total of ,, yen And the navy spent Third, navy spending only amounted to Moreover, navy spending rose to an even greater percentage of war costs during World War II, reaching The equipment costs were dominated primarily by weapons, transportation, and provisions and fodder.
The distribution of such funds to relevant ministries included the following:. Table 1: Distribution of Funds to Ministries . The Japanese military made use of military tickets and military currency in its areas of activity to pay for war expenditures. In general, paying war costs in coin requires large sums of money for transportation, safekeeping, and disbursements. Therefore it was necessary to curb, to the extent possible, the spending of large amounts of specie.
Further, military tickets and military currency were influenced greatly by the local monetary systems. The Japanese military found itself, without exception, bound by these conditions during World War I and the Siberian Intervention. Consequently, during its campaign to capture the German territory of Qingdao and, later, during its occupation, Japan used military tickets worth a total of 11,, yen that were convertible into silver yen.
Further, in areas of operation in which the gold standard had been adopted during the Siberian Intervention, Japan issued 30 million yen in military currency notes that were convertible into gold. While the Russian ruble depreciated in the wake of the failure of the counter-revolutionary movement in Russia , Japan used military currency together with bank notes from the Bank of Korea, which were also convertible into gold.
This amount included transfers of ,, yen Further, the selling off of government-owned property provided the Special Account with 24,, yen approximately 2. World War I later brought Japan an economic boom of special procurements, which fortunately led to a natural increase in tax revenue. Terauchi Masatake's cabinet October to September carried out a tax reform that established a wartime excess profits tax it also revised the income tax and liquor tax. This excise tax, along with the treasury surplus, formed a primary source of revenue to pay for wartime costs. The wartime excess profits tax was imposed on the income of both corporations and private individuals.
In the case of corporations, Japan imposed a tax rate of 20 percent on excess profits, or any earnings 20 percent greater than the average net income during peacetime years. In the case of individuals, the government applied a 15 percent tax rate on surplus income, which was defined as any earnings 20 percent more than their average income during the two years of and Profits of less than 3, yen, however, were exempt from taxation.
Thus as expenses skyrocketed with the Siberian Intervention, the Nikolayevsk Incident, and the dispatch of troops to Karafuto see figure , Japan advanced policies that had the Special Account for Emergency War Expenditures rely on government bonds for annual revenue. Japan publicly offered war bonds domestic bonds , which had an annual interest rate of 5 percent and a maturity of between one and eight years, eleven times from Through these bond offerings, Japan raised a net total of ,, yen. Although the Battle of Mukden was a major defeat for the Russians and was the most decisive land battle ever fought by the Japanese, the final victory still depended on the navy.
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The logistics of such an undertaking in the age of coal power was astounding. The weight of the ships' stores needed for such a long journey was to be another major problem. Admiral Rozhestvensky's only hope now was to reach the port of Vladivostok. There were three routes to Vladivostok, with the shortest and most direct passing through Tsushima Strait between Korea and Japan.
However, this was also the most dangerous route as it passed between the Japanese home islands and the Japanese naval bases in Korea. Battle plans were laid down and ships were repaired and refitted to intercept the Russian fleet. The Japanese Combined Fleet , which had originally consisted of six battleships, was now down to four two had been lost to mines , but still retained its cruisers, destroyers, and torpedo boats.
The Russian Second Pacific Squadron contained eight battleships, including four new battleships of the Borodino class , as well as cruisers, destroyers and other auxiliaries for a total of 38 ships. By the end of May, the Second Pacific Squadron was on the last leg of its journey to Vladivostok, taking the shorter, riskier route between Korea and Japan, and travelling at night to avoid discovery. Unfortunately for the Russians, while in compliance with the rules of war , the two trailing hospital ships had continued to burn their lights,  which were spotted by the Japanese armed merchant cruiser Shinano Maru.
Wireless communication was used to inform Togo's headquarters, where the Combined Fleet was immediately ordered to sortie. Still receiving naval intelligence from scouting forces, the Japanese were able to position their fleet so that they would "cross the T " of the Russian fleet.
The Russian fleet was virtually annihilated, losing eight battleships, numerous smaller vessels, and more than 5, men, while the Japanese lost three torpedo boats and men. Only three Russian vessels escaped to Vladivostok. The defeats of the Russian Army and Navy shook up Russian confidence.
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Throughout , the Imperial Russian government was rocked by revolution. The population was against escalation of the war. The empire was certainly capable of sending more troops but this would make little difference in the outcome due to the poor state of the economy, the embarrassing defeats of the Russian Army and Navy by the Japanese, and the relative unimportance to Russia of the disputed land made the war extremely unpopular.
Both sides accepted the offer of Theodore Roosevelt , the President of the United States , to mediate; meetings were held in Portsmouth, New Hampshire , with Sergei Witte leading the Russian delegation and Baron Komura , a graduate of Harvard, leading the Japanese delegation. After courting the Japanese, Roosevelt decided to support the Tsar's refusal to pay indemnities, a move that policymakers in Tokyo interpreted as signifying that the United States had more than a passing interest in Asian affairs. Russia recognized Korea as part of the Japanese sphere of influence after all, the Treaty of Portsmouth had established Japan's exclusive domination over the Korean Peninsula  and agreed to evacuate Manchuria.
Japan would annex Korea in Japan—Korea Treaty of , with scant protest from other powers. Russia also signed over its year leasehold rights to Port Arthur, including the naval base and the peninsula around it, and ceded the southern half of Sakhalin Island to Japan. Roosevelt earned the Nobel Peace Prize for his effort. George E. Mowry concludes that Roosevelt handled the arbitration well, doing an "excellent job of balancing Russian and Japanese power in the Orient, where the supremacy of either constituted a threat to growing America. On 5 September the Hibiya incendiary incident as the anti-American riots were euphemistically described erupted in Tokyo, and lasted for three days, forcing the government to declare martial law.
Sources do not agree on a precise number of deaths from the war because of a lack of body counts for confirmation. The number of Japanese Army dead in combat or died of wounds is put at around 59, with around 27, additional casualties from disease, and between 6, and 12, wounded.
The Russo-Japanese War 1904-1905
Estimates of Russian Army dead range from around 34, to around 53, men with a further 9,—19, dying of disease and around 75, captured. The total number of dead for both sides is generally stated as around , to , During many of the battles at sea, several thousand soldiers being transported drowned after their ships went down. There was no consensus about what to do with transported soldiers at sea, and as a result, many of the ships failed or refused to rescue soldiers that were left shipwrecked.
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This led to the creation of the second Geneva Convention in , which gave protection and care for shipwrecked soldiers in armed conflict. This was the first major military victory in the modern era of an Asian power over a European nation. Russia's defeat was met with shock in the West and across the Far East.
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Japan's prestige rose greatly as it came to be seen as a modern nation. Concurrently, Russia lost virtually its entire Pacific and Baltic fleets, and also much international esteem. Russia was France's and Serbia 's ally, and that loss of prestige had a significant effect on Germany's future when planning for war with France, and in supporting Austria-Hungary's war with Serbia. Though there had been popular support for the war among the Russian public following the Japanese attack at Port Arthur in , that popular support soon turned to discontent after suffering multiple defeats at the hands of the Japanese forces.
For many Russians, the immediate shock of unexpected humiliation at the hands of Japan caused the conflict to be viewed as a metaphor for the shortcomings of the Romanov autocracy. Twelve years later, that discontent boiled over into the February Revolution of In Poland, which Russia partitioned in the late 18th century , and where Russian rule already caused two major uprisings , the population was so restless that an army of ,—,—larger than the one facing the Japanese—had to be stationed to put down the unrest.
In Russia, the defeat of led in the short term to a reform of the Russian military that allowed it to face Germany in World War I. However, the revolts at home following the war planted seeds that presaged the Russian Revolution of This was because Tsar Nicholas II issued the October Manifesto , which included only limited reforms such as the Duma and failed to address the societal problems of Russia at the time. Japan had become the rising Asian power and had proven that its military could combat the major powers in Europe with success.
Most Western powers were stunned that the Japanese not only prevailed but decisively defeated Russia. In the Russo-Japanese War, Japan had also portrayed a sense of readiness in taking a more active and leading role in Asian affairs, which in turn had led to widespread nationalism throughout the region.
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Although the war had ended in a victory for Japan, Japanese public opinion was shocked by the very restrained peace terms which were negotiated at the war's end. Riots erupted in major cities in Japan. Two specific requirements, expected after such a costly victory, were especially lacking: territorial gains and monetary reparations to Japan. The peace accord led to feelings of distrust, as the Japanese had intended to retain all of Sakhalin Island , but were forced to settle for half of it after being pressured by the United States, with President Roosevelt opting to support Nicholas II's stance on not ceding territory or paying reparations.
The Japanese had wanted reparations to help families recover from lost fathers and sons as well as heavy taxation from the government. The U.