Frost Ove Own Tokyo, July 6.
Drastic retrenchment in every' possible field is the plan of the few Japanese Government. which, at its first Cabinet meeting, this morning, decided to reduce' next year's budget by ¥.110,000,000, All enterprises proposed, but not actually approved, by the pret inetry, are to be dropped, has also been decided definitely to abandon all loans for which flotation preparations have not been made as yet, 'A. species of consternation reigns in several Government departments and many an employee is in terror over the inevitable wielding of the retrenchment axe. The Finance Minister, addressing his colleagues the 'Cabinet, empha that curtailment of expenditure is absolutely essential. He pointed out that the present financial system of the country is unnatural, beau it-was formed during the' fat war, years and never readjusted to the hanged conditions which came when the bubble burst and depression set in, He declared that the country's finances are in a parlous condition and that, if another financial upheaval is to be averted, drastic cuts inv expenditare ore necessary. "There are those who belie if retrenchment becomes' the watchword ef'the Government, further depres will-set in," said the Finance Binister, "and ' perhaps they are right, but it is, far better to face forther depression for a while, if thereby the financial condition of the country can be brought back to normal, otherwise this.country will suffer from chronic and hopeless depression.
The Finance Minister urged the people to follow the example of the Government and to practise the utmost economy, declaring that, if such was not. undertaken forthwith, Japan's finances would suffer an Grretrievable blow. The gold ban, oimdded, can be removed only after retrenchment has been put into, practice for some time, Political Parties "Merge The Shinto Club, of which Mr. 'T. Tokonami, who till recently held a position similar to that of Mr. Lloyd George was the head, dis. appeared yesterday, having merged its identity with the Seiyukai, till recently "the Government tis have evolved, even though in an accidental manner, into a two-party system, the smaller parties the Diet being numerically The Government is not unduly up-sot by the amalgamation and ma tains a calm exterior, even expre ing satisfaction: that the "opportunigt" third party has disappeared, thereby bringing the two main part-face: to face.
Text read from the printed page and cleaned; old type leaves the occasional error.