The Washington herald., 1908-04-08
By FREDERIC ]. HASKTN.

establish weaving on a larger scale in
Japan and the small Weavers were great
ly encouraged. They bought the japanese
yarns at fancy prices and the spiuners
theTeup0n allowed their stable business
in China 10 go by default Now the East
Indian yarns have supplanted the Japan
csc yarns in the Chinese market the
home market is dead, and the japanese
spinners are making yarn 10 store in
their godowns. The dividends have ex-
hausted the treasury and ruin is imml-
nent.
Frenzied finance has some queer kinks
in it in this part of the world The
japanese business men seem 10 get at
things from different angle as they
look on the world from their oblique
eyes. The cotton spinners had a meeting
and discussed the loss OF the foreign
business. Now. it has been the fashion IN
Japan 10 bolster UP by a subsidy any
business too weak TO stand alone Jap
anese ships are subsidized. some Of them
proftably SC. These people have seized
on the idea Of a subsidy as a cure for
every commercial III and the subsidized
concerns are legion. So the cotton spin
ners decided to tax themselves for q
private subsidy in order 10 give a bounty
foreign market. This would, they said.
permit them to sell below the market
price. But this was taking the thing too
far and the scheme did not hold together
long. One native newspaper said il was
Il case Of cutting the flesh OF the thigh
in order 10 eat" and that view appealed
to the spinneTs when they were called
on 20 pay their share of a bounty TO be
given TO some other spinner 10 reward
him for cutting down the price Of their
own product.
The spinning mills win have 10 close
down If conditions are not righted 1T
once. SILK reeling establishments are al
ready closing, and the silk production
probably viii be curtailed next year.
Thus far the vast amount Of public work
going on has kept the most Of the people
in employment. but, as the people pay
the bills through taxes. this is another
case of cutting the flesh OF the thigh
10 eat. 1t may help for a time, but the
day of reckoning will come Among the
masses Of the people the prosperity
caused by the unusual distribution Of
money during the war is still manifest
This is point 10 be considered in reek-
oning Japans fighting spirit The nation
has a million men who would welcome
y
not because CT the old Samuri fighting
spirit, but because as soldiers they have
better clothing better food, and better
pay than they could ever hope 10 have
as workmen. The Japanese soldier
fares not half so well as the American
regular. The difference in the condition
of the laboring classes of the two couu-
tries is torcibly illustrated at this point
The japanese pray TO get into the army
for the good pay: the recruiting officer
in the United States has 10 beg men TO
enlist.
A people as poor as this cannot afford
even one week Of idleness. When the
factories stop in the United States Il
causes much suffering. it is true. but
when they stop in Japan the word suffer
ing does not go FAR enough, II means
starvation.
Many Of the wisest men in Japan be-
lieve it was good thing that the boom
burst so soon. If it had gone on for
another twelve months it would have In
volved absolutely the entire capital Of
the country. and the wreck would have
been complete. That the crash came be-
fore it was physically possible for some
OF the people TO get their money up. has
helped the situation As most OF the
capital that was invested was borrowed
abroad. the other nations are much In
terestsd But, nevertheless. black as
Japan's financial outlook is at this time,
there is still faith. In the face OF the
panic and the government policy of TAX
ing over transportation properties at IT'S
own valuation whenever II gets good and
ready British company has put up
S5,0o0,0e0 for an electric railway to be
eighty-three miles long. The dismal fall
ure Of the first great steel making pro-
ject in Japan has not deferred other ven
turous souls, and a new steel company
IS about TO be perfected with English
money actually in sight
No nation IS more interested in Japan's
commercial prosperity than the United
States. Ours is the largest share Of its
foreign business, and the financial health
OF the two countries is closely connected.
japan has shared our monetary troubles,
although infinitely less able 10 bear them.
and it Is certainly 10 be hoped that she
viii share cur returning prosperity. But
as yet there Is little hope of a speedy re-
covery. and the industrial situation IN
japan Is extremely gloomy. Private fnan-
ces and credit are strained Public
finances are in a tangle that is causing
a storm Of protest from every part OF
the empire. But that is another story.
To feel the tragedy Of tie thing as a
japanese must feel il, one must imagine
himself making pasteboard boxes for
wages Of three cents for a ten-hour day.
Even the American imagination refuses
10 work for such wages.
Copyright. ls. by Frederic J. Baskin.l
To-morrow-Japane Business