The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-03-31
Friday, March 81, 1905
JAPAN.s FINANCIAL STANDING.

JAPAN.S FINANCIAL STANDING.
The fact that Japan DIS engaged IN
an expensive al n that she has
already had two loans from foreign
capitalists does not seem to affect Der
standing financially in the least bit.
There is quite a contrast between the
attitude of financiers toward her and
toward Russia. The latter has reach
ed her limit of borrowing in the out
side world. Her best f~riends--tEe
French bankers-have declined to take
more of her bonds issued for the pur-
pose Of carrying ON the war. Her ap-
plicatiOn for a loan was not granted;
but the matter was postponed" the
Russians say, and not refused; but il
is well known that Russia must show
that peace is near at hand before she
can get any more money on the for
eign markets.
On the other hand Japan seems 10
be able to borrow all she desires. The
one hundred and fifty million dollar
loan which has just been announced
in London and the circumstances at
tending it show that her credit has
improved. The market price Of Tie
sixty million dollar loan made last
fall was 80 ID for bonds bearing 6
per cent. interest while the pending
issue drawing 4 - per cent. will be
taken up at 90. A significant fact
connected with this third loan is that
French f~inanciers have asked to be
allowed to take a block of the bonds,
sympathy for Japan and her
brilliant success thus far in the war
may have something to do with the
readiness with which foreign capital
lists take her bonds, but this is not
believe the bonds to be a good invest.
ment. The world is beginning to End
out something about Japan's CONNER
cial strength, her resources and her
steady progress and industrial devel-
Opment in spite of the drain the war
has made upon her To show
that Notwithstanding the war she is
forging ahead the New York Evening
Post gives this summary Of a letter
from it's Toxic correspondent as to
Japan's financial and industrial ad.
vancement in the last year or two.
No doubt. belief in an early peace
has something to do with this rise in
japanese credit: h sentimental infiu-
: .ence of the Japanese victories possibly
has still more. But it is also possible
hat the %financia: world has learned
something during the year as to the
real of Japan. A letter from
our Toxic correspondent, published in
The Evening Posts financial supple
nent IN Saturday, throws interesting
light Iron the much-mooted question
Whether apa was at any time really
in danger of being crushed by the
burden Of carrying o n the war. Not
only is testimony borne to the fact
that JaDanese industry has p]rospered
in the face of this enormous drain
OF men and treasure. but the tests by
which we are wont to measure our
own prosperity are applied with en-
cGuraging results. December ex-
change Of bank checks at the prin-
'Ipdl ootoiSSS SlSEtl Il1S HouSSS,s loI
instance. footed up $1S2.0 600, 900.
against STA. 900, 900 in 100 and
1924. 700, 900 in 1902. Volume of bus
mess at laSr years close On japanese
stock exchanges, though smaller than
at the similar period Il Year before,
was larger than in 1902. Still more
striking IS the report of postofice sav-
ingS bank deposits. which in Decem-
Der reached some rs 800, 600. COM
pairing with s15,60O. OOG one year be-
fore and $14.f00,000 t.Ho years back.
These results are achieved at the end
of a year in which Japan's own peo-
PIE have subscribed to $40, 600. 900
war bonds of the government.
London perS. taking some
other figures. are calling attention IL
the striking fac that Japan's export
trad in 1904. increased $4,000, 600,
or 10 per cent. over 1908. shipment of
Japanese manufactures notably silk
having risen nearly SO, 600. 600. Such
q trade situation certainly suggests
the query whether the theory-preva-
lent 2 vear agO--that Japan would
fail from financial exhaustion. was
not a triie premature. AS with the
Russian finance minister's declaration
that tile way will be won at this
desk" whereas the latest sign nj
check to Russian war plans was ap-
phed precisely there. we are begin
ming to see the difference between
theory and fact