Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-06-26

After the War Expression
Expected to Last For
Several Years.

Tokio-Cotton spinning which 10
the most important industry in Japan,
is threatened with a serious crisis. ae-
cording to- the Diamond" a Toxic
commercial newspaper. THE indus
try enjoyed an unprecedented pros
perity during the war boom and all
the spinning companies reaped en-
ormous profits and some of them paid
dividends as high as 20 to 100 per
cent" says this newspaper.
"This not unnaturally drew the at
tention OF capitalists with the result
that old concerns enlarged their
manufacturing capacity and a num-
Der of new factories were started.
When the panic occurred in 1920 the
market suffered from an over supply
OF cotton yarn and the spinners were
obliged to curtail the output by mu-
tuai agreement so Is to prevent a fur
ther slump of the market. Owing to
artificial applied to relieve the
depression of business what Is known
rs an interim boom, occurred last
summer and it lasted for several
lnon.hs. This had the effect of fur
tner encouraging the establishment of
new spinning concerns. On account
Of the interim boom tho spinners
dUOlAS1lSA liz 1SSLl ACI4ou d6I CCIICAI
from December last with the result
hat the output since hat month has
been steadily increasing. In Febru-
airy last, however, q reaction set in
and the depression began in real
earnest. The stock, rice, cotton yarn
and other merchandise markets began
TO slump in quick succession, while
the amount of specie kept in Japan
abroad rapidly decreased owing TO
the large volume OF imports ordered
during the interim boom last year.
The domestic consumption of cotton
yarn has greatly decreased as may be
inferred from the partial or total
stoppage of work in almost all the
weaving districts. In the opinion OF
those who are we'll informed with
the condition the prevailing depres-
sion will last at least for Il ear or
W. and the demand for piece goods
consequently will be less.
"During March and April last the
export OF yarn TO China was compare.
lively active--about 40, 900 bales were
exported each month but since the
outbreak of hostilities the export to
China has declined to q negligible
quantity. Even should the export tc
China remain on the 10000 bale leve
that would not be a YER influential
factor In the race OIL the Iact tnaL LQe
monthly output of cotton yarn is re
turned at something like 100000
bales. 1t is true that part of the yarr
produced is consumed by the spinning
c~onlpanies themselves for the manu-
facture of cotton cloths for export bu'
as the export Of cotton cloths is a:
inactive as hat of cotton yarn the!
will not be prepared to so on will
the manufacture Of cotton cloths tina
cannot be sold. According to Stats
tics so per cent of yarn produced il
consumed in the country and the re
naming 40 per cent is exported bu
owing to the falling-of in the do
mestic demand it is feared that tn
market will inevitably suffer from
over supply.
Moreover, the rapid development
of the spinning industry in China il
recent years, coupled with the keel
competition of British, Americanj an
GermanSgoods and the proposed rails
ing of the tariff of China and India
are considered further factors likel
to bring about a crisis of the spinnin
industry in Japan"