The Providence news. (Providence [R.I.]) 1891-1906, 1896-06-10
WAGESM JAPAN
Japs May Injure Our In
duStrial Interests.
Awake tOPOSSibilities as Man
nfacturing Nation.
An Interesting Report by the Ways
and Means Committee.


committee, yesterday. made a report on
the menace TO American manufactures
by the threatened invasion OF the cheap
products OF Oriental labor, and upon the
effect of the difference of exchange be-
tween gold standard and silver standard
countries upon United States manufac-
turing and agricultural interests, these
questions having been investigated by
the. committee.
The report says the sudden awaken.
ing Of Japan from Oriental slumber OF
centuries is being followed by an equally
rapid westernizing of her methods OF
Industry; that, while the japanese do
not have the inventive faculty Of Amer
leans, or even of Europeans. their IN
itiative faculties are wonderful. Their
standard OF living would be regarded as
practical starvation by the workmen OF
the United States, and hours OF labor
average IL a day. Such skilled workmen
"a blacksmiths, carpenters, masons
compositors, tailors and plasterers re-
ceive in Japanese cities only from 70 10
80 cents, and factory operatives, to
20 cents a day in our money. and nearly
double those sums In japanese silver
money, while farm hands receive sl.44
month.
Europeans and Americans, says Mr.
Dingley, are recognizing the proftablo
field afforded for investments and fac
tories. and he adds: "Sixty-one cotton
mills, controlled ostensibly by japanese
companies. but promoted by Europeans,
and several small silk factories are in
operation, with something like 100000
spindles. Japan is making most OF the
cotton goods required to supply the
harrow wants Of her own people, and is
beginning to export cheap silk fabrics
and handkerchiefs. Recently d watch
factory with American machinery was
established by Americans, although the
stock is held in the names OF Japanese.
as foreigners will not be permitted to
carry on manufacturing in their own
names until 1899, and the progress made
indicates that the enterprise will prove
a success.
while your committee have not found
that any articles OF Importance made by
factory methods in Japan, outside OF
cheap silks, handkerchiefs, mattings.
rugs. etc, have as yet invaded the mar
kets OF the United States II is probable
that the rapid introduction of machinery
into. Japan will. within few years.
make Japanese factory products. cs-
pecially fine cottons. silks and other
articles In which the labor cost here Is
an important element in production.
more serious competitor I'm our markets
than products of Great Britain, France
and Germany have been, simply for the
reason that Japanese wages are lower
than European wages. and Japanese
labor is likely soon to become as effec-
tive with machinery as European labor.
The result will be counteracted some
what by the inevitable tendency 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-
titlon will differ, not in kind. but in
degree, from European competition.
The committee reports that II knows no
remedy. outside of the absolute prohibi-
tion enforced against convict labor
goods. except the imposition of duties
on completing goods, equivalent to the
difference in cost and distribution. An
argument for this policy is made that IL
will accomplish a double purpose. the
collection of revenue to support the gov
ernment and the placing of competition
I'm our markets on the basis of our wages.
Manufacturing wages in the United
States are 20 per cent higher in purchas-
ing power than quarter OF century
ogo, in consequence of which the labor
cost of production In Japan is largely
diminished, while the labor cost OF pro-
duction in the United States has been
increased. except as counteracted by
larger use of labor-saving devices.
IT is claimed, however. that notwith-
standing the wages of the Japanese
laborer have not risen as the silver yen
(dollar) of Japan has deprecated, as
compared with gold, yet his wages will
still buy as many Japanese products
as they would 23 years ago. Yet IL Is
evident that so far as the Japanese peo-
pie consume foreign products. they must
pay nearly twice as much for them.
either in their own production or In their
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 as
the japanese consume foreign products.
The report continues:
Silver standard countries like Japan
and Mexico, i'm which. as II is claimed,
the prices of domestic products esti-
mated I'm silver remain the same as in
1873. are put to a disadvantage in their
trade with foreign countries on gold
standard. In that the latter countries
are able to use silver which coats nearly
80 per cent less than II did In 1873, in pay
ment for the products OF silver standard
countries. practically paying burt half as
much I'm their money for products of sill
yer standard countries as they paid I'm
1873. while the silver standard countries
pay. or at least paid. I'm 1892, S5 per cent
more I'm silver and only Is per cent less
in gold for the products Of gold standard
countries than they did in 1873"
The advantages in foreign trade OF
an identical monetary standard are
shown. and including the probabilities
OF enlisting the countries OF Europe In
an international agreement for a flxed
coinage ratio between gold and silver.
Il is said that the leading European
countries. especially England. must be
the first 20 feel the competition OF japan
and other Oriental countries.