The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-02-06
JAPAN DEPRESSED
BY HUGE SLUMP
in FOREIGN TRADE
General Price Reduction
Alone Can Avert Cri.
sis, Is Belief.
DROP is GENERAL
Prices and Production Costs
Too High for Effective
Marketing Abroad.
DROP IS GENERAL

TOKYO. Feb. 5.-Generally speak
Ing, the new year has not been a
happy one for Japan. As is COM
mon elsewhere, public men and the
press have used the occasion for
retrospects OF the events of the
past year, and these have brought
scant comfort. Furthermore, the
statistics for the trade of that De-
riod have just been given out, and
they have heightened the gloom,
demonstrating with cold figures the
fact that Japan's foreign trade Is
very badly on the downward grade.
1t is realized that this condition
Is more or less common the world
over, but the fact cannot escape
notice that in the case of Japan
several factors enter which seem to
indicate that the future Is likely to
be even worse than the present I'M
less just one thing happens; name
ly. general reduction Of prices.
Cost reduction has for some time
past been a favorite theme with
financiers and politicians, but
though every one admits the right
ness of their contention that Japan
must cut her production costs or
face financial disaster, every manu-
facturer and business man waits
for his competitor to take the lead,
and as q consequence no improve
ment is in sight. So serious Is the
situation that in his new year
message to the nation Premier
Takahashi made his principal point
the dangers of the trade rivalry
with other nations which are now
facing Japan. II believe that the
most essential thing for US to do Is
to exert ourselves energetically to
supply better goods at cheaper
prices" said the premier. The
idea OF simply gaining profits with
out heed of what means are en-
ployed is as great a social sin as 1t
Is to wish to subdue others by
means OF military force" And the
nation solemnly answers, amen"
and that seems about as far as II
will go at present.
slump In Foreign Trade.
A summary of the country's for
eign trade figures for the past year
furnishes the best illustration of
the seriousness of the situa ton.
Thus those for the past three years
are as follows Gin yen):
Exports Imports.
1s1a..... 2,ess, 900. 900 ana, 600, 900
1920. go. 1.s4s,oo0, 900 1855, 900, 900
19e1..... 1,225,o0o, 900 1,57S,0oo, 900
Detailed analysis OF the totals
brings no consolation. In fact, II
shows that exports to all countries
fell or. with the single exception
of those to Germany, while, on the
other hand. nine countries showed
increases as regards imports into
Japan; namely, Germany, the
Straits Settlements. Siam, Canada,
Russian Asia. Switzerland, Porru-
gal. Mexico and Austria.
The totals OF exports and imports
for the past two years show the
following comparison Gin thousands
Of yen):
Asia-Exports. 1921, $4,000; 1920,
$4,000; imports, 1921, $4,000;
1920, SeS,00O
Europe-Exports. 1921. $4,000:
1920, $4,000: imports. 1921, $4,000;
1920, $4,000.
North Acknowledgements. 1921.
$4,000: 1920. $4,000: imports, 1921,
$4,000: 1920, 100000.
South Acknowledgements. 1921.
1888; 1920, 34,9s6: imports, 1921,
4.475: 1890. 3o.3os.
Africa-Exports. 1921. 1000: 1920,
$4,000; imports. 1921. 10000; 1920,
$4,000.
others-Exports.. 1921. $4,000:
1920. 10000; imports. 1921. $1,000;
1920, $1,000
Manufacturer Exports Decline.
The greatest decline in exports
was found under the heading of
manufactured articles, this falling
from 914,000.000 yen in 1920 to
476.o0o,00 yen last year. only one
single manufactured article showed
an increase; namely, beer; and this
Is not likely to continue. as German
beer Is already crowding Japanese
trews from their principal markets
in Asia, and this in spite Of the
fact that the Japanese product sells
as much as 10 yen per case cheaper
in China, for instance, than 1t sells
In Japan. Anyway, the increase
shown represents value rather than
volume. The greatest decline In
any single item Is found in cotton
cloth, amounting to 12S.000,000 yen.
Silk textiles fell by 72,000,000 yen
and cotton yarns by, 25,o00,ooo ven.
Cotton hosiery shows decline of