The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-05-10
JAPAN'S
BIG BURDEN
The Truth About
Il Her Tottering
Credit.
PLAYING GAMES
WITH FATE
The Empires diversified Army
and Navy Are Source of
zz.ss. zs Damaging Expenditure.

WASHINGTON, May 1.-The news
that came by cable from Japan the
other day that twenty banks had clos
ed their doors in a single day as the
result cf panic, was not unexpected
by Washington officials, who have
been watching the progress of this lit
tie pigmy of the Far East, playing the
role of a newly awakened giant. Japan
| is simply gambling with fate. She has
taken upon herself burden that
nation twice her size and strength
might well hesitate to carry. The re-
suit must be a smash, and the period
of breakdown appears TO be at hand.
The only thing in the world that is
the matter with Japan is her diversified
| army and navy. When Marquis Ito
and Count Okuma came into power in
Japan they saw that the only way to
meet the foreigner was to meet him
with his own weapons. These two men
did not believe in the old Japanese no
bility. They were of the lower class
of folk, risen suddenly to great power
through force of circumstances. Both
had travelled in foreign countries, had
imbibed the foreign ideas of progress,
and at blow they turned Japan up
side down, cast away the old order OF
things and launched out upon new
and progressive plan of operation that
caused the entire nation to awaken
and respond. The old feudal system
went with the rest and an entirely new
order of society came to take it's place.
These changes threw out into the
world the old gentility in great num-
bers. The fighting men of Japan-who
never fought. but drew payment from
the government-found themselves
adrift without means. There were
and they formed the beginning of a
class of discontents that soon assumed
dangerous proportions. To give en-
ployment to this class the great police
force of Japan was formed, the army
was enlarged again beyond all reason
able or safe proportions, and the up
building of the navy was commenced.
The outside world believed that the
increase in the japanese army was de-
manded by the growth of the country.
but the japanese statesmen knew that
| the increase was almost entirely for
the purpose of taking care of the un-
employed population. The war with
China was the result of the expansion
| of the army.
When Japan found herself, some five
years ago, with the Chinese war fin
| ished, and with this great army and
navy upon her hands, she occupied
very dangerous position. She did not
dare to discharge her army, as the
| United States would have done, be-
he MOI
| to do. The industries of the country
were almost wholly undeveloped. Five
years ago the Japanese army called
| for an annual expenditure of less than
$50. 900. The appropriation Tor army
purposes this year will exceed S12o,OO6,-
/ 900. To meet this remarkable increase,
| the Japanese government has made
great efforts to develop the trade Of
| the country, but the increase in trade
, has come nowhere near meeting the
increase in government expenditure all
along the line. Under government spur
been expanded most remarkably-but
! they have not been developed. 1t is
| the German story of industrial inf1a-
ton over again, except that the smash
in Japan has only just started. Ger
many commenced more than five years
! ago to develop her home industries.
Manufacturing of all kinds was slim
ulated under the spur of the govern
ment. and the boom lasted about three
years, never having anything like a
! substantial foundation, and depending
/ at all times upon the continued ability
| of the government to take care of 1t.
The panic that resulted from the Ger
man experiment of the strenuous in
dustrial life is not quite over yet, al
| though it has run on internationally
| for the last two years, reaching its
most severe stage a year ago last win
ter, when the panic in Berlin was SO
great that its effects were felt in the
| money markets of the entire world.
| When Germany started on that panic,
for Illustration, she held a vast amount
of the stocks and bonds Of the North
ern Pacific Railroad, then selling at
less than half of the present price. To
save home securities the entire Ger
man holdings in the Northern Pacific
had to be dumped in New York and
in the American departments of the
London exchanges.
Japan has passed through the expan-
sion stage of her home industries, and
she had less foundation to build upon
than had the Germans. She finds her
self today waving the red flag defiant
ly at Russia, and with banks failing
at home Her taxation IS so heavy
that it simply cannot be increased. She
has reached the limit Of her imports
from which duties may be collected
because the buying power of her people
cannot be kept up with reactionary
movement on in her own ports. Her
issua of notes will not stand expa0sion