The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-11-29
TOPEKA STATE JOURNAL
Information Bureau
EREDERIC ,. HAsKIN. Direcspr.
Washington, ID. O.
NO DEVELoP FAIi EASE MARKETs

fort is to be made at the Forthcoming
session of congress to stimulate trade
between the United States and the
Far East 1t will be based on the
theory that there must be a sort of
vacation of trade with Europe and
that, meanwhile. the United States
must find and develop a new market
for her large surplus.
ALI the world knows that two
strong elements prevent much trade
with the great manufacturing powers
OF Europe First, the foreign ex-
change situation practically forbids
extensive purchases by European ma
tions from the United States. This is
because the european currencies are
so badly deprecated that a dispro-
portionate amount of the foreign mon
ey is required to purchase a dollars
worth of goods in the United States
Second, the American protective tariff
is so high that European manufac-
turers cannot ship much here, pay
the tariff, and still compete with the
goods manufactured within our Dor
ders. Therefore, there is a check on
both outgoing and incoming goods
the two currents which make up for
eign trade.
The United States is so attuned in
dustrially that to attain her greatest
prosperity she must sell the surplus
of her manufactures abroad. If she
cannot sell to Europe she must find
another market. The present indica-
tons are that she will look toward
Asia.
The Asiatic countries do not manu-
facture goods in the same vast vol
ume that the European nations do.
Japan, it is true, rapidly is forging
ahead as manufacturing state, but
her population, her facilities and her
manufacturing skill have rot yet de-
veloped to a point where they can
supply the whole of the Far Eastern
trade. While China has made rapid
in the last decade, she still
is too far Behind to supply herself
with all the manufactured goods for
which market can be made.
These circumstances invite a de-
termined effort on the part of the
ern market and, in all probability,
congress Will suggest that either ex-
listing machinery such as the bureau
of foreign and domestic commerce,
or some new agency, make a special
study of increasing trade between the
United States on the one hand and
Japan, China, the new states of the
Siberian territory, Australia, New Yea
land, the Dutch East Indies and the
islands, of Malaysia and the South
Seas, on the other.
China's Purchasing Power.
Population makes markets. Before
Columbus discovered America, Amer
lea was here but did not figure in |
trade. Indeed, for many years after
the discovery, America was not a mar
ket- The country was here. but no
people to buy. The vast republic of |
China has population of nearly 45O,-
10000 persons. The United States
has only some 100000, 900. 1t IS true
mat the Chinese are not so wealthy |
as the Americans and therefore the |
individual Chinaman cannot buy as
much as the individual American, but |
there are more than four times as /
many Cinnamon as there are Ameri-
cans, and, in the aggregate, they rep
resent a tremendous purchasing pow
er- When the people of the other
Oriental countries are added. a total
IF many hundreds of millions of
prospective customers is found.
They are not, primarily. manufac-
uring peoples. They produce vast
Iast stores of manufactured goods
The situation is ideal to develop trad
ng and there is less arrangement of
oreign exchange between the Orient
md the United States than between
europe and the United States. |
What is of especial importance in
with the upbuilding of
rade in the East is the rapid strides
which China has made toward pros
'er7ty In the last few years. Julean
Arnold, trade attache o. the de-
'artment of commerce, in a recent
eport on China, says:
During the past few decades
wealth in Chi a has increased con-
iderably. A Chinese banker tells me
nat thirty years ago a man with So
90 was looked upon as well off. To-
lay little distinction is given to the
nan possessing ten times that amount
Within recent years many of the Chi
lese who have piled up huge fortunes
n political life have invested large
ums in industrial enterprises Manyi
4 the largest industrial concerns and
banking companies are the
reations OF those who have enriched
themselves as military governors or
ther officials. These people are not !
Bile to manage the business ventures
themselves, but engage managers
enerally men who have been closely
ssociated with them in politics.
General Increase i'm Prosperity.
This indicates that a new era has ,
ONE in China and that it is turning !
rom the ancient pastoral nation it |
'as into an Industrial hive which will /
reduce ever increasing wealth, the
1bstance of trade. While this part /
art of Mr.. Arnold's report gives only '
ne side of the picture, the increase in I
rosperity generally also is reported. ]
Ie says:
LESS than <orty years ago the brass /
ash, coin. ten OF which equalled ]
ne copper cent. was the coin of the s
calm. Today, in eastern China-thar
he outside world-the brass cash is q
lmost a curio, so seldom is it seen. '
coin ten times its value has re-
laced the cash. indicating the in I
-easing purchasing power of the c
asses" '
Purchasing power among the
asses is what constitutes a market (
nd Mr.. Arnold's report shows that 6
lie vast nation Of 45O,000,000 China [
ZEN now have that. He also points
1t that the last quarter of a century
as just been an awakening. The next r
twenty-five years. in his opinion, will |
e a much greater increase in pros J
gritty and a multiplication of the pur-
lasing power of the people. At this