Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-23
GREAT BOOM IN JAPAN
Unprecedented Industrial Pros
perity in Mikado's Kingdom.
ERA OF THE SPECULATOR
Trades and Commerce of All Glasses
Are Looming Up.
ADVENT OF THE TRUST MAKER
Count Okuna Sounds a Note of Warn
ing, Fearing Reaction
Will Follow.
ADVENT OF THE TRUST MAKER

TOXIC. October 14.-If were to be asked
what is the material condition of japan
year after her war with Russia l should
answer Booming She is enjoying
period OF unprecedented industrial prosper
ity, which is as unexpected as it is remark
able. AS a consequence the country is wit
Messing a burst Of speculation somewhat
akin to the trust-breeding years following
1893 in the United States, although, CT
course, on a very much smaller scale, says
Henry George, jr., in the New York World.
A heavy industrial depression fell upon
Japan following the war with Lima a de-
cade ago. This is the usual effect of wars,
since they remove a very large proportion
of the workers from the field Of wealth-pro-
ducing to that of Notwithstanding. And
SO the danger of an industrial depression
following in the wake Of the w.r with Rus
STA was realized. Indeed, there were many
who, regarding themselves as competent
judges of Japanese conditions, predicted
that japanese finances. based upon Japa-
nese industrial conditions, would surely col
lapse if the struggle with Russia should be
protracted. 1t was said that the finances
would probably go to pieces anyway after
even short war. This belle. still abroad
is thought to explain why japanese i'm
perial bonds although offering per cent
interest, have not yet. year after the
war, gone TO par. But that too, is incor-
rect. The most potent reason for that is
that the bonds are only short-lived-seven
years. And as a matter of fact the gov
eminent will next year withdraw them and
substitute per cent thirty-year issue.
The fear of a possible repetition CT the
post-Chinese war industrial and financial
crisis and al anxiety to avoid or at least
to mitigate its effects caused the larger
financial interests both at home and abroad
to bring very heavy pressure on the gov
eminent for cessation of hostilities. This
probably was the chief reason why Japan
was willing to concede such easy terms to
Russia as the price of peace, in face of the
popular desire to exact heavy penalty.
Why Crisis Was Averted
But the expected or feared did not hap
pen. The Industrial Depression and fnan-
cial crisis did not come. The reasons were
chiefly two; one. external: the other, in
ternal.
The external reason grew out of the
amaZement with which the world at large
viewed the unexpected and extraordinary
had been regarded as the greatest land
power of Europe. 1t was beating west
ern nation at the latter's own game-van-
gushing it with its own weapons And
with this Japan revealed a capacity for
organization, for management, for COM
centration, for anticipating needs, for striv-
ing only for essentials. for working out
ramifying details. not alone in the mill
tary but in the commissary and medical
departments. which WED with the develop
ment of the leading progressive nations
and excelied most
The outside world gazed in establishment
If Japan had made this amazing progress
in the art of war; if she had put aside re-
lance in her Samurai long and short swords
and in her egg-Shell junks to rival the first
nations in the use of breach-loading great
nd small rifles of tOrDp0OpS mines
steei-clad battleshipS, was it not probable
that she was. making just as surprising
advances in the arts of peace? Was she
not opening up to development like new
country?
Some of the GOOD Things"
This attracted the attention of those
princes of finance and captains of industry
in Europe and America who are ever look
ing for good things" such as railroad
concessions, water rights, telegraph, tele
phone and electric light franchises, coal.
copper. salt and other natural opportuni-
ties, ship subsidies, commercial bountieS,
tariff protection" and other privileges.
Western civilization with its new stand
ards and new needs had brought these
privileges into existence. But, with
them it had brought a keen Japanese APP
probation of their value. They were not
to be left for foreign exploitation. Jap
anese individuals quickly saw and quickly
awaited themselves of these advantages, and
later the government, imperial and local,
took over many of the privileges like steam
railroads and water. the telegraph and
telephone from the beginning being in gov
eminent hands.
Little chance was left for the foreign
privilege hunter, except as an investor in
the privileges owned and managed or
exploited by Japanese individuals or cor
porations But even in that respect the
profits were larger than could be found
for much investment money in other parts
of the world, so that japanese imperial
bonds were bought, and, in consequence,
went much higher in price than they other
wise would have gone. Large quantities
of money in other ways went into Japan.
The general outside world was not as yet
awake to these conditions in Japan, but
the spectators and far-sighted investors
were, and Japanese credit abroad entered
upon new and suspicious era.
Japan's Internal Awakening.
This extension of outside credit was one
reason why depression did not follow the
war. The other reason was an extraordi-
nary internal awakening.
The brilliant success of her arms at
time when the entire people had been
aroused to fight for national existence, and
the moral and, to a degree material sup
port of such rich and powerful nations as
Great Britain and the United States during
the struggle, sent a thrill of pride through
found itself. After the war it was felt
that the Japanese merchant must follow
the japanese soldier; that the Japanese
mine, mill and factory, = equipped with
adapted or Japanese-improved foreign ma
chinery, might dispute in the fields of pro-
duction with those of Europe and America.
In arts of peace. we'll as in feats of
JAnan might "A nh