The New York herald., 1921-10-03
Japan's Merchant Marine Able
to Contest for World Trade

attributed to the slump in the tee
trade is the surplus OIL hand in for
eign countries. Foreign tea exporters
now in Japan view the situation
alphabetically and DO not look for any
Improvement for two or three years.
Innation of Credits.
When Japan was faced with the
new and unfavorable conditions, for
which it was not fully prepared. there
was natural defiation OF credits and
advance in the rates of interest. The
business interests Immediately began
to demand the defiation of the volume
of currency as a means of checking
the upward tendency of prices, and
the Government assented to this plan.
The money markets responded to this
strain and were soon in distress. due
to the disclosure of unsound business
methods in financing the ambitions of
profiteers. who were quite as numer-
Gus and probably more audacious than
In the Occidental countries.
The failure OF several important
banks and business concerns precipi-
tated a panic. one of the victims being
the seventy-fourth Bank of Yoko-
hama, which had become involved in
the efforts at profiteering of a group
of war spectators. Hundreds of
failures OF trading houses, the closing
of workshops, and suicide of men who
had been ruined in gambling in war
industries came in rapid succession.
and induced the Government to sus-
pend the share, rice, silk. cotton and
other exchanges for many weeks.
Capitalists who had made tre-
mendous profits and business men
caught with heavy surpluses OF goods
were not the only victims. The farm
ers, who are not organized as they are
in the United States, suffered perhaps
more than persons engaged in indus
trial lines. The banks began to call
loans and refused to extend credit on
collateral that. under ordinary condi-
tions. would be regarded as gilt edged.
The Bank OF Japan. which is con-
trolled by the Government. finally ex-
tended credit to the extent of 300,-
900, 900 yen. and the business world set
about adapting itself to the processes
of readiustment.
Most Disturbing Feature.
Business conditions are still very
sensitive throughout the empire, but
the ajority of financiers and leading
manufacturers with whom 7 have
talked since coming to Japan agree
that the worst is over. The most dis
turbing feature Of IL Is the surprising
attitude of labor, which was deprived
of enjoying any OF the benefits OF war
profiteering.
Some of the leaders in the Japanese
business world are conceded TO have
made tremendous profits through the
favor of the Government or because OF
their extensive interests with foreign
countries. Most Of the money made
by this group. who have built palaces
for themselves and imported expen-
sive motor cars, was through the flo
tation of companies engaged in pro-
ducing war material and supplies. The
companies engaged in these lines OF
business had a combined capital OF
313.O0o.OcO yen in 1916. Five years
later 10.263 joint stock and partner
ship concerns were operated on capt.
tai OF 1.152.ss6.000 ven. II 1914 there
were 1909 factories. employing s5c.-
96s hands. In 1913 23.36i employing
i,4G9.196 hands. Present estimates
place the number OF factories in oper-
alton at 1900 and number of en-
plovees at 100000.
It Is practically impossible to secure
reliable data regarding the extent Of
the fortunes made by some Of the con
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