The herald., 1896-06-10
COMPETITION WITH JAPAN
A Threatened Invasion of Cheap
Labor Products
THE BROWN MANS WAGES
Would Mean Starvation to an American
Workingman
Ihe Remedy Suggested Is Duty High Enough
TO Prohibit the I'm mportation Of Japan
csc Manufactures
Associated Press Special Wire.

Associated Press Special Wire.
WASHINGTON, June S.AChairman
Dingley. of the house ways and means
committee. made a report on the men,
ace to American manufacturers by the
threatened invasion of cheap products
OF oriental labor, and upon the effects of
the difference of exchange between gold
standard and silver standard countries
upon United States manufacturing and
agriculture, these questions having been
investigated by the committee. The re-
| port says the sudden awakening of ia
pan from the oriental slumber of CEN
turtles is being followed by an equally
| rapid westernizing of her methods of
industry; that while the Japanese do not
have the inventive faculty of Americans
or even Europeans their initiative fac
ulties are wonderful. Their standard
OF living would be regarded as practical
starvation by the workingmen of the
| United States and their hours Of labor
average twelve day. Such working
men as blacksmiths, carpenters, ma
sons. .compositors, tailors and plasterers
! receive in Japanese cities only from 26
to S3 cents per day, and factory opera
tives to 20 cents per day in our money,
and nearly double these sums in Japan
ese silver money. while farm hands re-
ceive $1.44 per month Europeans and
Americans. says Mr.. Dingley, recognize
| the profitable field afforded for invest
ments and factories, and he adds:
| SiXty-one cotton mills, controlled os-
tensibly by japanese companies, but
promoted by Europeans, and several
small SILK factories, are in operation
with something over half a million spin
dies. Japan is making most of the cot
| ton GOODS required to supply the mar
row wants of her own people, and is be-
ginning to export cheap silk fabrics and
handkerchiefs
Recently watch factory with Amer
ican machinery was established by
Americans, although the stock is held
IN the names OF Japanese, as foreigners
VIII not be permitted to carry on manu-
factories in their own names until 1899
ana the progress made indicates that
the enterprises will prove a success.
Wnile your committee has not found
tnat any articles of importance made
py the factory methods in Japan, outside
OF cheap silks, handkerchiefs, mating,
rugs ETC.. have as yet invaded the mar
kets of the United States, it is probable
the rapid introduction of machinery
into Japan will within few years make
Japanese factory products and proba-
ply nne cottons. silks and other articles
IN which the labor cost here is an element
~ production, more serious compete
TOT IN our markets than the products of
Great Britain, France and Germany
nave peen simply for the reason the jap
anese wages are lower than European
wages, and Japanese labor is likely soon
10 become as effective with machinery
as European labor.
Ihis result will be counteracted some
what by the inevitable tendencv of con
tact with civilization, to improve the
standard OF living and consequently the
wages of the Japanese workmen."
according to Mr.. Dingley the compe-
tltlon VIII dlner, not in kind, but In de-
grees, from European competition. The
committee reports that it knowsno rem
eoy outside of the absolute prohibition
enforced against convict labor goods. ex-
cept the imposition of duties on COM
peting goods equivalent to the difference
OF cost and~distribution. An argument
Tor this policy is made, it being said to
accomplish double purpose, the COL
lection OF revenue to stpport the govern
ment and the placing of competition in
our markets on the basis of higher wages.
This Is sail to be not for the benefit of the
manufacturers in this country, for the
manufacturer,h has only to go to England
or Japan to place himself ON the same
basis as he is placed here under duties
on competing ports equivalent to the
diHerence of wages here and there, but
10 secure TO all the people the benefits
which come from home, rather than
from foreign production. AS to whether
the fact that one dollar Of this country
for the silver purchased by this dollar
VIII exchange for nearly two JapAnese
yen (dollars) gives the manufacturer
OF cotton, for example. in Japan, an ad-
vantage additional to that caused by he
conditions already discussed in the mar
kets OF this country. Mr.. Dingley says:
clearly the manufacturer in Japan
IS IN this respect at a disadvantage
Ior MS cotton comes largely from the
united states and he must pay not only
the freight, but additional charge. risks
OF the fluctuations of exchange, result
Ing from the fact that that japan does
not have the monetary standard of the
commercial world. He obtains no ad-
vantage by the sale of his goods in the
terms OF more valuable currency. but.
on the contrary, loses something by this
brokerage.
THE only way in which he can OBJ
tain any advantage must be. through
the failure of the wages of labor in ia
pan to rise as much as the ycI has do.
preciated in its relative value to gold
since 1873; while wages in the United
states since 1873 have doubled as esti-
mated in silver and have even risen is
per cent as estimated in gold. Manufac-
turing wages in the United States are 25
than a quarter of century ago in con-
sequence of which the labor cost Of pro-
duction in Japan is largely diminished |
while the labor cost of production in the
United States has been increased ex- |
cept. as counteracted by a larger use of |
labor-saving devices. 1t is claimed |
that, however, notwithstanding the |
wages of the Japanese laborer have not |
risen as the silver yen of Japan has de- |
preciated as compared with the gold vet |
that his wages will still buy as MANY
Japanese products as they would |
twenty-three years ago. 1t is evident |
that so far as the Japanese people con- |
sumo foreign products they must nav |
nearly twice as much for them either in
their own production or in their own
money as they would pay IL they were |
not on a silver basis--a fact which
clearly diminishes the purchasing power
OF Japanese wages one-half so far Is the
Japanese consume foreign products"
The report continues:
"Silver standard countries like .tanan
and Mexico In which, it is claimed. the
prices OF domestic products estimated in
silver remain the same as in 1873, are nut
to disadvantage in their trade with
foreign countries on a gold standard in
that the latter countries are able to use
silver, which costs nearly so per cent |
less than 1t did in 1873, in payment for
the products of silver standard coun-
tries. practically paying only half as