The Washington herald., 1921-08-24
JAPAN IN THR0E
OF FIGHT TOFORCE
DECLINE In PRICES
Nippon Trade Associa-
ton Tells of Present
Conditions.
COSTS NOW LOWER
Reduced Wages and Smaller
Profits Among the
Demands.
COSTS NOW LOWER

opinion OF the business Wofio VI
Japan is drifting toward q new
point of view as regards the pro
motion Of the export trade or the
restoration OF Japan's commerce to
a firmer basis. It 10 now being de-
manded that the price Of commodi-
ties be lowered. A resolution Just
passed and published BY the japan
Foreign Trade Association 10 typi-
cal Of this tendency In the business
world.
Beginning with . brief survey Of
the foreign trade conditions dur
ing the first half Of the year, the
resolution declares that the ever
growing depression OF the foreign
trade is due to the decline in for
eign demand for and the high price
of Japanese products. High prices
are pointed out as being the main
reason for the present slump and
a reduction Of prices the first step
to be taken to restore trade.
Prices Must Go Down.
III the price Of commodities Is
to be reduced" the resolution
states. the cost Of production must
be lowered. OF the other factors
making up the cost of production,
the cost OF raw materials has been
lowered largely. but wages remain
high. Moreover. railway rates have
been raised. Taxes are also higher.
las the factors constituting the
cost of production are decreased no
actual reduction Is made In the price
of commodities. Consumption Is
not waning on account OF the up
keep of WHICH wages. the reten-
ton OF wealth accumulated in the
days of prosperity and the imitation
Of the government works. The pol
icy OF the Japanese government
consists in retaining the high price
Of commodities as q means OF re-
storing business stability. Having
been propped up by these factors.
the price OF commodities does not
fall so rapidly as abroad and the
export trade is prevented from re-
covering"
Lower Costs.
Entering upon a detailed discus
sion OF what Is to be effected by
business men, the associations
statement raised the question Of
lowering the cost Of production
above everything else. TN reduc-
ing the cost OF production. the low
ering of wages and salaries must
be accomplished along with the re-
duction in the cost of raw mate
rails" continues the statement.
Now. however. the cost of living
is kept up as whole on the in
crease of house rents. which offsets
a slight decline in the cost of food
and clothing.
Reduced Wages.
"a general reduction OF wages
may cause labor trouble and social
disturbances. but in view Of the ne
cessity OF promoting the export
trade by means OF lowering the
price Of commodities. wage earners
must cooperate with capitalists by
refraining from wasting their in
come and the restoration OF indus
trial enterprises"
AS another means OF lowering the
cost of production tho association
points out the necessity Of the in
crease in labor efficiency. It states
that along with an increase Of
wages has come a decrease in labor
efficiency. As a result. the cost of
production has been increased. II
labor will try to increase its ef-
ficicncy and working capacity the
result will be the same as . lower
ing OF wages. As another means
of lowering the cost OF production
the association urges the combina-
ton OF enterprises and the import
ance Of quantity production.
Smaller Profits.
production is a basic activity of
the nation and remuneration is not
its sole AIM" says the association.
Japanese business men who gained
abnormally large remuneration dur.
ing the war were SO much degraded
as to view the gain Of wealth as
the sole aim Of Industrial activi-
ties. without paying attention to
the basic idea OF industries they
are bent on increasing profits. Capt.
talists also have encouraged that
evil tendency. The result Is the
permanent among business men, the
the frequency OF labor troubles.
Capitalists and those engaged in
business enterprises are urged to be
SohltHI ldNco VI
neration or interest and to aim at
the steady development of bust
ness"
Lower Freight Rates.
The Japanese government is
called to task next by the associa-
ton. The increase In carrying
costs is now known to all as one
Of the stumbling blocks to a de-
crease in the cost Of living. II any
lowering of the cost of commodities
Is necessary. railway rates must be
lowered.
"As result OF having inflated
public works or increasing the pay
of public officials following the in
increased consumption along with
private business enterprises retain
ing high wages. As a result a de-
cline in the cost of commodities Is
checked. That retail prices are
slower in their decline than whole
sale prices can be attributed to II.
and as evidence the fact that retail
business shows no marked shrink
age can be given. The retrench-
ment of the treasury payments Is
one of the most urgent measures
I: , government must undertake.
Keeping Up Prices.
THE government must give up
the policy OF maintaining the price
of commodities so far adopted"
says the statement. while retrench-
ing public expenses. II consump-
tion is encouraged as at present