The New York herald., 1921-10-03

Japan. less than most of the other
countries directly involved in the war
between the Allied Governments and
the Central Powers. was not prepared
for the reaction that set in about a
year ago. During the conflict the jap
anese economic market had enjoyed
an unparalleled boom, which produced
a great many war millionaires but did
not carry the same benefits that were
assured to labor in the more active
belligerent countries.
The chief reason for this was that
the Government itself was the most
conspicuous proflteer. The more i'm
portant productive agencies of war
character were not only under the
control of the Government but We're
operated by it. The most notable in
stance of this was the Government
monopoly of munitions, for which the
inefficient Russian Government pro-
vided most of the money and a very
large percentage of the raw material.
The Mikado's Government made
enormous profits out Of munition
making and also in transporting and
marketing its own products and those
Of other countries in ships which have
since furnished the basis for a mer-
chant marine that is quite adequate
to give vigorous commercial battle for
the trade Of the Pacific, and perhaps
the world. But the japanese Gov
ernment did not share the enormous
profits made by 1t with the labor that
produced it. an omission that is chiefly
responsible for the widespread unrest
that prevails throughout the empire
and has recently disturbed its states
men a good deal more than they care
to admit.
Japan first became aware of the de-
fiation that had already set in in
other parts Of the world about a year
ago. Two developments were respon-
sible for the awakening. One was the
wartime substitution of machinery for
hand labor in the cotton, silk and
other mills. The other was the stead
lily diminishing volume of foreign or
ders for these products and an over
supply of bottoms in which to carry Its
trade.
The first jolt received by Japan was
in the collapse of the silk market ten
months ago. Before the war, raw silk
was selling in the Yokohama, Toxic
pound. During the third year of the
war 1t arose to SIS pound and hung
around there until the decline set in
a few months after the arnistice.
Raw silk Is now around SO again.
with an oversupply on hand and no
new orders to keep them running at
more than one-third OF the time.
silk Is selected because IL is one OF
the chief items in the foreign trade of
the Mikado's Empire. The history of
IL Is the history of every other COM
modify which Japan is contributing TO
commerce. with the falling Off OF i'm
ports. war prices, which had scared in
the imperial island quite as much as
anywhere else. hung on and brought
great distress to the people.
Another feature that contributes
to the business depression existing
throughout the empire is reflected IN
the tea market. The demand for
Japanese teas, which have always had
a high place among tea drinkers in
Great Britain and the United States.
has not only fallen Off during the last
two years but the price has sumped
on on average OF 20 per cent. on all
grades.
In 1918 4i.S16,000 pounds OF Japa-
nese tea were sent to the United
States. Last year u was g7915.e0o
pounds. The cause most generally