Evening star., 1931-12-24

The effect on American trade Of the
action OF the Japanese government in
| placing an embargo on gold is the SUBJ
| ject of considerable comment IN Amer
lea. Its bearing on the cotton and silk
trade especially is speculated upon. 1t
is assumed that the embargo, which
had been discussed for some time, was
forced by present economic conditions
and will not become a permanent policy.
The Manchurian trouble may have
| had something to do with the fall of
the Wakatsuki ministry in Japan, but
it seems to be the general conclusion
| that the row with China was certainly
not the major issue involved" observes
the Fort Wayne News-Sentinel. ''Rath-
er, 1t was opposition to the Wakatsuh
governments policy on the gold en-
barge favcrable to the gold standardD,
not it's policy either in Manchuria or
at Geneva, which forced the premier
to step out" Declaring that the
world at large is just as sensitive to
this financial operation as it Is 10
events in Manchuria, and so are the
japanese" the Louisville Courier
Journal suggests that the new govern
ment may be less of a menace than it
was at the head of an opposition party"
The Chicago Daily News says: "Inf1a-
ton and jingoism seem to be the new
governments prescriptions for Japan S
| troubles. They are more easily applied
than any others in the political phar-
macopeia, but, as Japan may discover,
they have tendency to foster greater
ills than they cure"
That the dropping of the gold stand
ard by Japan was not from choice
is the opinion of the Oakland Tribune
as it points out that "it is because for
eign trade has dropped, the balance Is
unfavorable and Japan lacks the gold
To nav her bills that the abandonment
of gold becomes an emergency meas
ure." The Springfield (Mass,) Repub-
lican states: Japan might perhaps
have made harder fight for the gold
standard If it had not been losing
| trade to the British since the slump
of sterling The new ministry Is very
sympathetic to manufacturing in
| terests."
The Cincinnati Times-Star notes
that, like Great Britain after the war,
Japan overreached herself in 1880,
when she restored the yen to its pre-
war value Again like Britain, she
now realizes the need of adjusting her
currency to that of her customers in
the Far East" Discussing the effect
| UIl LIlc ycIl, lIlc NcW LOlluOll Doy "
marks: Despite the fact that the
reaction on the yen may be unfavor-
able at first it probably will not suffer
any great decline as balanced against
the economic benefits that are expected
in the nation itself" The Hartford
Daily Times declares: 1T Is recog-
nized in Japan that, while the en-
barge on gold will lower prices in
some lines, it will raise values in
others. The drop in the value of the
yen Immediately caused stocks to rise, d"
while the San Antonio Express points
out that "the break in the yen's value Is
expected to reduce operating costs for
Japan's cotton mills, which obtain
their raw material mostly from the
United States
Buying a large store of cotton at
gold prices and selling the goods in
the future on non-gold basis places
Japan at an advantage with England
in competing for the Oriental trade
in cotton goods, unless boycotts work
against her." in the Judgment Of the
Wall Street Journal, which sees Japan,
for the present at least, Gin q favorable
position as a world producer Of cotton
goods" Pointing out that this coun-
! try Is the principal customer Of Japan
as far as silk Is concerned, and the
Japanese buy large quantities OF Amer
lean cotton" the Lexington Leader be-
lieves that "the new DEGREES in Japan,
because Of which her currency has
fallen of in value as compared with
the dollar, will affect this cotton and
silk trade, which is carried on extern
sively between the United States and
Japan" The South Bend Tribune, al
though recognizing that Japanese
trade is not so voluminous," declares:
Nowadays, however, all nations are
linked more closely than ever before.
The Japanese financial crisis, therefore,
is not inconsequential. It may materi-
ally affect the American cotton and
silk trades"
As to the position Of France and
America as countries still on the gold
standard. the Manchester Union de-
clares that "the, proposal OF general
abandonment Of the gold standard
could only result IN greater confusion