An event in the political world has recently occurred which illustrates pointedly the statements just made in regard to the enthusiastic loyalty of the people toward the Emperor. In spite of the fact that the national finances are in a distressing state of confusion, and notwithstanding the struggle which has been going on between successive cabinets and political parties, the former insisting on, and the latter refusing, any increase in the land tax, no sooner was it suggested by a small political party, to make a thank-offering to the Emperor of 20,000,000 yen out of the final payment of the war indemnity lately received, than the proposal was taken up with zeal by both of the great and utterly hostile political parties, and immediately by both houses of the Diet. The two reasons assigned were, “First, that the victory over China would never have been won, nor the indemnity obtained, had not the Emperor been the victorious, sagacious Sovereign that he is, and that, therefore, it is only right that a portion of the indemnity should be offered to him; secondly, that His Majesty is in need of money, the allowance granted by the state for the maintenance of the Imperial Household being insufficient, in view of the greatly enhanced prices of commodities and the large donations constantly made by His Majesty for charitable purposes."[Q] This act of the Diet appeals to the sentiment of the people as the prosaic, business-like method of the Occident would not do. The significance of the appropriation made by the Diet will be better realized if it is borne in mind that the post-bellum programme for naval and military expansion which was adopted in view of the large indemnity (being, by the way, 50,000,000 yen), already calls for an expenditure in excess of the indemnity. Either the grand programme must be reduced, or new funds be raised, yet the leading political parties have been absolutely opposed to any substantial increase of the land tax, which seems to be the only available source of increase even to meet the current expenses of the government, to say nothing of the post-bellum programme. So has a burst of sentiment buried all prudential considerations. This is a species of loyalty that Westerners find hard to appreciate. To them it would seem that the first manifestation of loyalty would be to provide the Emperor’s Cabinet and executive officers with the necessary funds for current expenses; that the second would be to