The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1908-08-16

phatical1y maintains that any great
advance in the productive capacity of
| the country must come in manufac-
tured goods. mainly from the large
| enterprises that have arisen during
the past two years. But will labor
| continue to be cheap in Japan? Two
years ago the British consular repre-
| sentative at Yokohama directed atten-
ton to the increase in the cost of Iiv-
| ing, and Mr.. Grove now suggests that
the advantage of cheap labor is one
which may soon disappear. During
| last year rice reached a record price,
and the cost of other articles Of every
day consumption has been affected by
; enhanced taxation. Demands for
higher wages have naturally followed
the rise in the cost of living. Some
have been granted and others refused.
An ominous feature of the labor move
ment in 1907 was an epidemic of
strikes. accompanied by serious acts
of violence. Mr.. Grove attributes the
rioting which took place to lack of
proper combination among the work
ers. Be this as it may. the damage
resulting from the riots at the Ashio
and Besshi copper mines was estimat
ed at nearly $2,500,000 and the services
of the military had to be invoked for
the restoration of order.
The significance of these statements
lies in the fact that they emanate not
from opposition newspapers, but from
a British official source In another
part of Mr.. Groves report he dwells
on "the inability of her (Japan's)
manufacturers to maintain high
standard of quality and intimates
that this is likely to initiate against
any great success on their part. Gov
eminent monopolies and government
inspection have been proposed as rem
edies, but where the latter has been
adopted the government stamps have,
it is alleged, been ,tampered with after
having been affixed to the goods in
spected.
Evidence of Depression.
The evidence of depression in Japan
is overwhelming. The British Consul
at Kobe recently reported to the Brit
ish Foreign Office that from the middle
of last year to December there was not
a merchant or broker at that port who
could record anything but utter stag
nation or loss The lottery scheme de-
vised by the Japan Cotton Spinners
Association, with the object of Undue
ing Chinese consumers to purchase
japanese yarn instead of Indian yarn,
afforded an eloquent proof of the con
dtion of the cotton trade. The idea
of placing tickets in bales of yarn en-.
titling the finders to prizes was in
genious enough, but the originators of
the scheme were hardly prepared for
the chorus of condemnation with which
their project was received at Shanghai
and Hongkong.
But while the general outlook is
overloaded there is reason to hope
that the indomitable spirit displayed
by the japanese people during their
struggle with Russia viii enable them
TO emerge triumphant from their diff
culties. 1t is essential to this end that
the National policy should proceed on
sound financial lines. and that every
effort consistent with the honor and
safety of the Empire should be made
to curtail expenditure and reduce tax
alton In 1907. it may be noted, the
average ad valorem rate of duty on
dutiable goods imported amounted to
1928 per cent. wich. composed with
1896 per cent in 1906. 11.66 per cent.
in 1905, 9.S4 per cent. in 1904 and 9.7l
per cent. in 1903. The effect of the
new tariff has thus been very marked;
and if the Protectionist Party has its
way the import duties levied viii be
greatly increased when the convention
al tariffs lapse.
From the point Of view of the hold
ers of japanese bonds the prosperity
of the country is a matter of great i'm.
portance At the end of last year the
foreign debt amounted to $590,000,000
and the ability to meet the interest on
this huge amount is closely bound up
with the welfare of Japan 5 manufac-
turing industries. This is one eogent
reason why the developments of the
fiscal policy of Japan should be follow
ed with keen interest throughout the
world ANY idea of war with a for
eign power, and particularly with a
power having the vast wealth and re-
sources of the United States, is I'M
The new Cabinet certainly
has a task before it which will tax the
ability and ingenuity of the greatest .
minds in the Empire.