Evening star., 1918-07-21
BIZ CHARLES II. PEPPER,

world trade policy which
taxes in the western hemis-
pnere- There Is nothing in 1t,
- however. antagonistfc to the
United States or contrary to
the Monroe doctrine, Its foundation
y economic. Ships and banks In
eouth America are the main consid-
grafton. japanese emigration is not
especially in mind. but it Is a factor.
Japan. in the. light Of her indus
trial expansion, has recognized the
importance Of overseas banks. Since
the national policy has developed SO
as 10 Include Latin America within
banks nave been proposed as q means
OF strengthening the trade relations,
mol long ago II was stated in q dis
patch from Toxic that Japan pro-
posed to follow the example OF the
United States and establish branch
banks In foreign countries. No fed
erai reserve law was necessary for
Japan In order that this might be
done: All that was required was that
the financial institutions should COM
ply with the laws of the different
countries In which they proposed to
set up business. Nevertheless, the
newa that Japanese banks were to be
established in Rio de Janeiro and
IouShlO8 LAlISS, 4uQ PROBABLY UneS
South American cities, excited mark
ed4interest.
The Japanese look on banks as the
means of facilitating foreign trade.
When they start out to establish
banks in South America. It, there
fore. may be assumed that they look
forward to developing permanent
commerce.
= Buenos Aires has many European
banks. and during the last two years
@r.A xrfk aI 49, II III
ok several branches of banks with
the principal institutions in the
United States. That the proposal to
establish q japanese bank should so
quickly follow these American in
situations does not mean that Japan
expects to divert any trade from the
Argentine Republic to herself that
otherwise would go to the United
States or to Europe. 1t simply means
that in the future she expects to do
business with the Argentine Republic
and proposes to be In position to
facilities. Until last year the busi-
ness was very one-sided. Exports to
Argentina increased threshold from
1915 to 1917. but imports into japan
from Argentine increased several
hundred fold. Before 1916 they were
negligible.
The Argentine Republic has an
Asiatic exclusion policy which would
prevent the colonization of japanese
1aborers. So 1t may be assumed that
Japan is looking forward simply to
commercial and business representa-
ton in Buenos Aires, The establish
ment Of q Japanese bank, neverthe-
less, will have some International in
duence OF political character, since
1t will serve to show that japan ex-
poets to trade with all the world and
has d world trade policy.
In Brazil 1t might be assumed that
the presence of japanese subjects has
something to do with the proposed
bank, yet this is only indirect, since
1t is not likely that their presence
in itself viii markedly stimulate COM
merce. At least the Japanese who
have been there, and who went out
originally as coolie laborers. did not
greatly stimulate the trade between
the two countries. n
These Japanese colonies have been
frequently described. The principal
thing about them was that they did
not remain vefy long as colonies. The
japanese laborers quickly manlfested