New-York tribune., 1920-10-02
Japan Beginning
10 RecOverFron
Its Trade Crisis
Expected To Be Permanent
Competitor in Markets
Where She Gained Entry
Through War Conditions

mat the comm rcial crisis in Japan
Will have any appreciable influence on
the industrial activities of that coun-
try is declared in foreign trade circles :
20 DC unlikely. That the Japanese will
De permanent competitors in the mar
Kets they gained during the war is a
view widely entertained.
British publications, especially. are
sounding warnings against underesti-
mating the commercial strength of tho
Japanese. Already there are said to
De indications that the crisis is not
laf from over and that new industrial
en.eLprlses are being established.
AlIhough a shadow has been cast
since the period Of prosperity which
they enjoyed during the war" saws
IN 1ne trade supplement- of The London
lines, Ut must not be supposed that
the positions then gained BY japan in
international trade have been under
mlned TO any great extent by the sub
seguent happenings in that country"
inns, also, is the view of The Brit
lSh Export Gazette, which believes
mat the crisis will be valuable les
son to the Japanese.
paper, "she took the wrong method for
gaming permanent standing in world
trade. The old complaints of bulk con-
slghments not being up to the standard
OF sample, and general looseness in re-
gard to quality, were again revived.
haste to export was the one considera-
ton. A belief was current that nei-
ther Europe nor America would ever
again be in a position to manufacture
hoJ
the world cataclysm, and with their
competition practically eliminated ia
pan might not improbably, she believed,
become the greatest industrial and com
merclal nation on earth The main
thing was to show the world how rap
idly Japan could produce and other
considerations were ignored.
"To-day many of the factories have
closed down, or are in process of clos
ing, and many are the cancellations of
orders for machinery that had been
destined to tale an important part in
Japan's economic expansion. In other
words, the Japanese dream of big for
tunes quickly made has vaporized in a
manner not uncommon to dreams, and
the nation has awakened to the stern
realities of industry and commerce.
This experience, however, will prob
ably be the best thing that could have
happened LOT Lne lnuuSIrlal ana COM
mercial future of our ally, for it's les
son is that neither Europe nor Amer
lea built up their enormous industries
and trade on the manufacture and ship
ment Of 'shoddy, but by painstaking
care in every process and direction. If
Japan is willing to compete on even
terms with the West, the opportunities
before her for regular and sound bust
ress are undoubtedly good.
"To what extent Japan had already
up TO 1919 established a footing in
various export markets may be judged
from such outstanding facts as that
it's imports from the Far East empire;
that the cheap cotton piece goods mar
ket of China is steadily being monopo-
lized by Japan to the serious reduction
in the demand for British marks; that
particularly rapid headway has been
made in Japanese commercial penetra
ton in South America, New Zealand.
Australia, the Philippine Islands and
the Dutch East Indies, and that even
Great Britain and the United States
have enormously increase their pur-
chases from Japan.
at must also be realized that last
year this Far East country, so lately
arrived at commercial first rank, ac-
tually transacted an export trade val
ued at more than half that of Great
Britain in the year before the war
That fact alone demonstrates that the
competition of Japan, temporarily in
terrupted by the slump. is matter to
be seriously reckoned with II, on the
resumption Of manufacture and export,
our ally aims at something higher than
mere quantity production. which never
yet meant more than ephemeral success
for anu natiOn'