Evening star., 1920-06-05
MILLIONS IN GOODS
FROM j. S. REFUSED
BY jAPAN'S BUYERS
Economic Depression Causes
Importers to Spurn Ship
ments Now Cutting Ports.
BY JUNIUS II. WOOD.
By Cable to The Star and Chicago
Dnily Newa. CODyrfxht. 1920.

BY C0bIG TO Ine St0r ana Sn1CA8O
Daily News. Copyright, 1920.
TOXIC. May 2S.-Thousands of tons
of imports, mostly American and val
ued at millions of dollars, are lying
in the customs warehouses Of Japan.
the consignees refusing to accept the
goods contracted for.
Official reports say that cargo val
ued at s105, 200, 900 is stored in the To-
kio warehouses alone. showing an in
crease of 20 per cent over March and
rs per cent over the corresponding
month last year. The glut in the
ports of Osaka, Kobe, Nagasaki and
Yokohama has reached such proper
tions that ships, though their car
goes are only one-third Of their for
mer size, require weeks to unload
Not only are the warehouses and piers
, filled with merchandise, but lighters
are used for storage purposes.
Reaction In Business.
The refusal Of Japanese importers
to accept shipments is phase Of the
empires sudden economic depression,
which is affecting world markets.
There is the same reaction in domestic
| business. The railroad sheds in the
lchandise which the smaller dealers or
dered, but were unable to accept on
arrival.
Speculation caused millionaires to
sprout like mushrooms in Japan dur
| ing the war and this is big factor
| in the present disturbed conditions.
The oriental markets which the ocean
| shipping of Japan monopoliZed dur
ing the war are again being invaded
by American. British. Belgian and
| French concerns. In the big Chinese
market the boycott is still in effect.
| The overall and other anti-luxury
campaigns in America are a big factor.
especially in the silk industry, silk
| being Japan's most valuable export.
Local buying is also diminished on
account Of the closing of hundreds Of
factories and shops.
National Finances Stable.
of merchandise Japan is facing a
greatly reduced demand. The national
finances are declared to be stable
with nearly a billion dollars in specie,
of which S600.000,000 are deposited in
the banks of New York and London
A surprising feature of the situation
is that the American dollar. which
was exchanged for 2.13 yen in March
despite the increasing economic de-
preston in Japan, has now fallen be-
low par. The exchange now is 1.94
yen. The explanation is that there is
no demand for American money be-
canse there is no purchase of goods
and no payment of bills by America.
Re-exporting on a large scale is
under way. Japanese importers con-
tracted for 100000 bales Of cotton;
100000 in America. 100000 in India
and the remainder in China and
Egypt. OF this quantity 845. 900 bales
have arrived. of which 10000 have
been accepted. It is expected that
the cotton will be re-exported to New
York and Bombay at a profit Of SIS on
the bale. The April re-exports were
double of those for the corresponding
| month in 1919.
Industrial Districts Hit.
The industrial districts around
Osaka and Kobe are the hardest hit
| by the depression. A large proportion
of the major industries are either
| closed or running part time. Even
)! the breweries are affected. The trade
| in sugar and tea remains extremely
profitable. though the sugar trade is
no longer paying 208 per cent divi-
| dends. The reduced output Of the
! factories has brought lower prices to
| producers.
On account of the natural charac-
| teristicS of the japanese race dis
turbances are not likely to occur
Leaders in the metal. cotton and other
| industries are forming relief associa-
tions and other bodies in order to
prohibit imports temporarily; to de-
cline deliveries; to encourage exports
and pool selling: to prevent the break
ing of the market. and to deposit
funds in the banks to relieve embar-
rassed competitors.
| Commercial experts declare that it
may require years before Japan re-
covers from her present depression.
Still, in spite of these conditions
L n nd q vsa tro
vailing before the war. Japan is de-
pendent upon American machinery
| steel and cotton, and will not long be
able to decline shipments.