The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1908-08-16
Japan BEARS BIG
BURDEN OF DEBT
Question Empires Ability Pay Debts Incurred War With
Russa-Tdea of>Armed Conflict With Any Foreign
Is Declared Unthinkable.

, amour propre of the Chinese, who have
/ shown their resentment by boycotting
! Japanese shipping as well as Japanese
goods.
Depends on Financial Policy.
Putting aside all temporary factors,
| however, the broad question is, Will
. Japan be able to bear the burden inn
posed on her as the result of her strug-
gle with Russia? The answer depends
on the financial policy which will be
inaugurated by the new Cabinet
the political arena in order to combat
increasing expenditure, and the effects
of enhanced taxation are regarded
with widespread alarm. The military
party is for increased ornaments; on
the other side is ranged an influential
body of public opinion which demands
retrenchment and economy. Apostles
of protection urge that when the con-
ventional treaties lapse in 1911 Japan
will be able to increase her import du-
ties, and thus stimulate her home i'm
dustries. The view was recently ad
vanced by the Director of the Gov
eminent steel foundry at Wakamatsu
expectations were raised when the
Wakamatsu foundry was established.
Rails, bars, angles and plates were be-
ing turned out in large quantities from
the foundry several years ago, and it
was predicted that importers of steel
manufactures would find serious COM
petitor in this establishment. So far,
however, the foundry has been fnan
aia 70 If haG
country nearly $30,O00,000 1t has
been contended by some authorities
that the enterprise has not been con-
Quoted on efficient commercial lines,
and they suggest that the foreign ad
visers employed by the Government
were not retained for an adequate pc
Rod. In any event, the foundry is re-
garded as a 'fwhite elephant in this
country, and its Director can only pro-
pose as a remedial measure the adop-
tion of high protective tariff.
Newspapers Comment.
Commenting on the Protectionist
theory the Japan Chronicle remarks:
"While the Government advocates
urge on the one hand that high tariffs
will diminish imports and protect the
home industry, they assume on the
other that a larger revenue viii be OBJ
tanned from these increased tariffs.
How then can the home trade be pro-
tected if the same quantity of goods Is
to come into the country even at high !
er prices? Clearly Japan cannot have
both protection for her manufactures
and increased revenue from her tariff;
and it is also evident that just as she |
checks imports by high duties so she
win raise 90 freights on her exports
and damage her mercantile marine. One
of the great ambitions of Japan is the !
development of a great shipping in
dustry, but the experience of other |
shows that this Will be i'm
possible so long as she remains welded |
to her policy of protection
A similar warning is contained in a |
less direct form in a report on the
trade of Japan for 1907 by Mr.. Grove,
Commercial Attache to the British |
Embassy at Toxic, which has just been /
issued. Mr.. Grove s report is compre-
hensive and suggestive. 1t is recog-
nized by most people, says the report,
that Japan must increase her exports
very considerably if she wishes to full +,
fill her aspirations; otherwise it is not
clear how she is to keep up her heavy
on her army and navy
and pay the interest on her foreign
debt. Last year, however, the >expan-
sion in her exports was no more than
34.419,175. equivalent to "a per cent;
and, as Mr.. Grove points out, an analy-
sis of the figures is disappointing, +
since most of the manufactured arti-
cles on which it was hoped Japan
would continue the progress she had
made in 1906 show either small in
,reases or actual decreases. For the
first four months of the current yea,
moreover. exports from Japan exhibit
4 decline of $2,s50.000 as compared
with the corresponding period of 1907.
Manufacturing Facilities.
The facilities which Japan offers for
have frequently been
described. Labor is cheap. and coal 5
Ind water plentiful Mr.. Grove en-