The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-06-10
JAPAN CHEAP LABOR
II Is Said 10 Be a Menace to the
American Manufacturer.
Mr.. DlNGLEY HAS REPORTED
The Chairman OF the House Ways
and means Committee Com
pares Conditions OF silver and
Gold Standard Countries.

Washington, June 9.-Chairman
Dingley OF the house ways and means
committee made a report on the menace
So the American manufacturer by the
threatened invasion OF the cheap pro-
ducts OF oriental abor, and upon tie
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 report says the
sudden awakening OF Japan from the
oriental slumber OF centuries Is being
followed by an equally rapid western
izing of her methods OF industry: that
while the Japanese do not have the in
ventive faculty Of Americans, or even
of Europeans, their initiative faculties
are wonderful. Their standard of liv-
ing would be regarded as practical
starvation by the worklngmen Of the
United States and their hours Of labor
average IL hours a day. Such work.
men as blacksmiths, carpenters. ma
sons. compositors, tailors and plaster
ers receive In Japanese cities only from
20 to s3 cents, and factory operatives
to 20 cents per day In our money.
and nearly double those sums in Jap
anese silver money. while farm hands
receive s1.A per month. Europeans
and Americans. says Mr. Dingley, rec
ogniZe the profitable field afforded for
investments and factories and he adds:
"Sixty-one cotton mills, controlled os-
tensibly by japanese companies. hut
promoted by Europeans. and several
small silk factories are In operation,
with something more than half a mill
| ion spindles. Japan Is making most
of the cotton goods required to supply
the narrow wants of her own people.
and is beginning to export cheap silk
fabrics and handkerchiefs. While
your committee has not found hat
| any articles of Importance made by
this factory methods In Japan, outside
of cheap silks, handkerchiefs, mattings,
rugs. etc. have as yet invaded the
markets OF the United States. II Is prob
able the rapid Introduction of machln-
/ cry into Japan will, within few years.
make Japanese factory products. and
probably fine cottons. silks and other
articles in which the labor cost here is
an important element In production, a
.uore serious competitor In our markets
fhan the products of Great Britain,
France and Germany have been. sim-
ply for the reason the japanese wages
are lower than European wages and
that Japan labor is likely soon to be-
come as effective with machinery as
European labor"
The committee reports that II knows
no remedy outside OF the absolute pro-
hibition enforced against convict labor
| goods, except the imposition Of duties
on competing goods equivalent to The
difference Of cost and distribution. An
argument for this policy Is being made,
1t Is said. to accomplish a double pur-
| pose-the collection of revenue ITO sup
! port the government and the placing
of competition in our markets on the
basis of higher wages. As TO whether
the fact that 81 of this country or the
silver purchased by this dollor will ex-
change for nearly two Japanese yen
(dollars). gives the manufacturer OF
cotton, for instance, In Japan. an ad-
vantage additional to that caused by
the conditions already discussed In the
markets Of this country, Mr.. Dingley
says: CLEARLY. the manufacturer In
Japan Is, In this respect. at dlsad-
vantage, for his cotton comes largely
| from the United States. and he must
pay not only the additional freight
| charge, but risks the fluctuation result
ing from the fact that Japan does not
have a monetary standard Of the COM
mercial world. He obtains no Sdvan-
tage by the sale of his goods in the
terms of more valuable currency. hut
on the contrary, loses something by
this brokerage The only way in
which he can obtain any adyancnge
must be through the failure of the
wages of labor in Japan to rise hs much
az the yen has deprecated In Its relt-
tive value to gold since 1879: while
wages In the United States since lsI3
have doubled. as estimated In silver
and have even risen Is per cent. as
estimated in gold Manufacturing
wages in the United States are % Ter
cent. higher In purchasing power than
quarter OF a century ago, in eonse-
quence 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
except as countsracted by a larger use
OF labor-savIng devices. IL Is claimed
that, however Notwithstanding the
wages OF the japanese laborer have
not risen as the silver yen of japan
has been deprecated as compared with
gold. that his wages will s.lll buy as
many Japanese products as they would
2S years ago"
The report continues: "Silver stand
ard countries, like Japan and Mexico
in which. as II Is claimed. the prices
of domestic products, estimated In sill
yer, remain the same as in 1873, are put
to a disadvantage in their trade with
foreign countries on a gold standard
in that the latter countries are abb.
to use silver which costs nearly 80 pei
cent. less than IL did In 1873 in payment
for the products OF silver standard
countries, practically paying only hall
as much In their money for products
of silver standard countries as they
paid In 1873. while the silver standard
countries pay. or at least paid In 1892
SIS per cent. more In silver and Is pei
cent. less In gold for the products ol
gold standard countries than they did
in 1873"
The advantages in foreign trade o
an Identical monetary standard ar'
shown. and In considering the proha'
bilities OF enlisting the manufacturing
countries OF Europe in an international
agreement for fixed coinage ratio be-
tween gold and silver. II Is said tn,
leading European countries. especial,
Great Britain. MUST be the first 10 fee
the composition Of Japan and othel
oriental countries.
They saw the Fsradr.
i 49,. T,,,. typ, AaVa,