The Washington herald., 1921-08-12
JAPANESE TRADE
SHOWS DECREASE,
AGENT DECLARES
Trade Com IN issioner
Butts Cables of Condi-
tions From Tokyo.
EXPORTS TAKE DROP
Silk Business Decline Acts
AS Barometer for
Nation.

Foreign trade OF Japan in July
suffered a pronounced slump in
10th imports and exports, according
to report received by cable by the
Department of Commerce from
Trade Commissioner Butts at Tokyo.
The value of japanese importa-
tiohs for July was only 1os,o0e,0oo
yen. compared with 1f7.ooO.ooo yen
during the preceding month. and
is ,00O, 900 yen during July. 1920. In
connection with this shrinkage OF
$4,000, 900 yen TO July imports from
those for June IL Is worthy Of note
that in July, 1890, there was a SINH
lar shortage of s3,o00.oo0 yen and
in July, 1919. of 32.ooo,ooo yen.
While the decline was generally
distributed throughout all lines of
imports the decline in iron and steel
products was most prominent
Export Values Drop.
The value of exports dropped
from 1os.o0o,o00 yen for June to
only ss.O0o.ooo yen for july. which
compares with 154.oo.ooo yen during
July. 1920. The reduction from the
preceding month was primarily due
to very large decreases in the value
Of the expectation Of tea. silk. cot
ION yarns and textiles OF various
;nds. offset somewhat by a pro-
nounced increase in the expectation
OF copper
For the seven months from Janu-
ary imports totaled s0l,oo0,ooo yen
ar u exports 671.000. 900. resulting in
an excess OF imports Of .230.ooo.o00
yen for the period. During the cor
responding months of 1890 imports
totaled l.T7i.000,000 yen and exports
l."s2.000,0o0 yen. involving an ex-
cess Of imports of 492.00o.o0o yen.
The net importation of gold and
silver specie and bullion during July
was only 10.0s5 yen. or about the
same as for June.
The reason for the abrupt decision
of the Imperial Raw Silk Company
to discontinue its silk purchases
pr'or to July was the unexpected
increase in the price OF cocoons, ac-
coIding to a cablegram from Trade
Commissioner H. A. Butts. Tokyo.
Ghe company's purchases to that
date of 42.376 bales were far short
CT the $1,000 bales which the syn
dicate had previously announced 1t
WIS prepared to purchase IN sup
port of the silk market, the re-
sources of the syndicate amounting
tc s7.00o.oo0 yen. being sufficient
% finance such an undertaking.
The fundamental reason was that
the principal members of the syn
d.cate are also leading manufac-
turers Of raw silk and. therefore.
as filature operators they were
compelled to buy cocoons in the open
r,arket in competition with all man
ufacturers, Commissioner Butts re-
ports.
ReelIng Basins Increase.
War time demands and high
prices has led to a large increase
in the number of reeling basins. ac-
cs-ding to the report. and in an ef-
fort TO keep all basins working the
manufacturers found themselves
bidding against one another for the
seasons supply. which was known
70 be about 10 per cent less than
that of last year. Consequently, the
price Of white cocoons advanced and
the resulting increased cost Of pro-
ductIon could result only in a
further loss to the filatures. unless
for some unexpected reason. Ameri-
can demand should increase.
The members of the syndicate.
therefore, concluded that the con-
tinuance Of further transactions
would foster speculation on cccoons
and result in the burden being
placed upon themselves. perhaps to
the extent of jeopa -dizing the entire
capital Of the syndic.te. The syndt-
Gaze was formed to save a dis
astrous situation brought about by
spe culation and the members real
lied that if the reeler was forced
to be dependent upon the open mar
ket for his sales he would be more
cautious in cocoon purchases. the
report continues.