Capital journal. (Salem, Or.) 1919-1980, 1921-01-05
BY w. r. Atkins

INTERNATIONAL News service SlaLl
Corresponoent).
washington, Jan. 5.-Japan, wal
srror OF the Far East, in The rolt
pr0ponent of a world plan fol
sduced armament, is the mex
robabie surprise of an interna'
.onal nature, expected by best in
3rmed Government officials, as i
Jesuit of tile pow-wows now going
"a betWeen Entente diplomats.
she toId fact, just dawning, is thai
&pan Is on the verge of an econ
mic precipice and must econom-
~e. The only way for Japan to
!. fleet any material cuts in Gov
rnmen4 spending is to reduce her
enormous outlays for ambitious
Military and naval projects. Japan
+ act exactly 'broke." but is in
he tnr0es oI a business panic
That has wrought considerable fin
Ntncial difficulty to the Nipponese.
The cnly avenue Of escape IRON
national bankruptcy, as Japan's
leading statesmen view it, lies in
aEoverninental, economy.
Men directly American fiscal pol
ELes consider as one of the highly
important developments, possibly
torecasting events OF the IuLure,
4dvices reaching the Treasury De-
rArtment and the Federal Reserve
3oard Stating that Japan's new
budget discloses deep slashing of
stimates of moneys to run the
government. This budget, Off
ials were advised, is in process IF
compilation, but the policy of re-
renchment agreed upon by Jap
atn's leading statesmen, shows a
purpose to trim appropriations
lOwn to the. lowest minimum con-
sistent with efficiency.
A very significant note given by
hese diplonlatic advices from To-
no discloses that Japan's popula-
ION, made discomfort by their
financial losses suffered thoughO at
he Empire in the recent tumble
a lpr1ces, and bank failures, are
pleading that they be not forced
q pay heavy taxes to support the
sre-war dreams of the military
lemcnt. A scaling down of some
az the estimates foE naval purposes
4s well as for military purposes
NJ being urged by some of Japan's
oremost figurejj. the dispatches
HOm financial attaches at Toxic
declared.
Forgetting War Plans
NH prfA lc.
I'D, staggering beneath their debt
burdens, are forgetting about war
lans and are thinking about the
Ugh cost of living. There is a
snsra1 sentiment growing out Of
resent dissatisfaction among the
apanese masses for a reduction
! the rate of interest by the Bank
Y Japan to facilitate the recovery
business from the depression
hpw SO widespread.
Japanese financial authorities
Ie putting into effect the most
gid measures to check credit en-
asnsion and remove some of the |
tRlation developed to near the !
5rsting point during the war, par
@ularIy in the silk ond rice mar
ITS. Spectators are being given |
rdrubbing by this process of Gov
nment restriction upon illegitim- |
e uses of credit, as a result of !
.le steps taken. The best author |
les of Japan laugh at all sugges- !
Ons for raising the bank rates, |
such a step, they contend, would
Irce thousands more firms into
'ankruptcy.
Old pre-war arguments have
one by the board and Japan is
saking up to the idea that waste
md extravaganza, both public
nd private, must be stopped if
Apan is to survive as. an import
mt world power officials declar-
u. This indicates to officials here
public sentiment somewhat sim
ar to sentiment prevailing both
the United States and in many
the leading European powers.
tat tax burdens chiefly attribut-
BILE to war and war plans for the
lture shall be radically reduced
a real peace basis.
Tight Money Market.
Some indication of the economic
rats in which Japan is laboring
revealed by other official ad-
ices. stating that the Bank of
apan granted loans amounting to .
bout $4OO, 100000 when the boom
as at it's height, but when high ,
de began to recede, with tumb-
ng prices on Japan's principal
port commodities, the loans
minded to a bare $10O, 900, 900.
he, panic and the disastrous eff
cts h heaped upon the whole of I
apan is mainly due to a tight :
oney market, and according &c
pane Sc observers the corrective
s IN making the supply of money
failable at lower rates of interest.
Economic depression in Japan {
IS spurred up plans for COM
ercial supremacy in certain di-
ctions which Japan seeks 10 $
inmate. Her food policy is l
med at monopoly in the world 2
arkets, if possible. A new kink
this plan for world dominance A
things commercial is Japan"s h
0Ve to buy up and store enor- h
9us quantities of foreign rice to ii
~ Japan the power to regulate =
prices of rice.
Plan Rice "Cornero
officials here were amazed TO +
ID Japan's scheme to corner"
e Eorld's stocks of rice would
rolve actual financial loss to
pam. 1t is defended on the
oupd that rice is the chief need
the people. Although in Japan