Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-12-06

Despite the continued power Of the
military faction in Japan, the disor-
ganiZed financial situation Of that
country Is a serious obstacle in the way
of further military activity, in the
opinion of the American public. 1t is
matter of comment that the financial
interests of the empire have given
warning of the dangers involved, while
the issue Of bonds to meet deficit
caused by war activities is believed TO
hold aggression in check.
"Manifestly, Japan is finding itself in
a dangerous financial situation, which
may end" according to the Salt Lake
Deseret News, ''in disastrous imitation.
This is the warning Of Baron Cob,
president Of the Japanese Chamber OF
Commerce" The Columbia IS. CO
Record observes that Baron Cob
warned the government that its policy
Of depending upon bond issues was in
creasing the national debt greatly and
threatening further decline of the yen,
leading toward something like Ger
many's postwar collapse" That paper
adds: "Other Japanese business lead
erS will come to perceive 1t and the
price Of Japanese bonds will reflect 1t.
The army and navy rule the roost in
Japan now. But not always Even
tually your wars will find you out"
Whereas last year." says the Hart
ford Times, "a total Of $80,000,0OO was
spent on army and navy, in the new
budget the sum of $163, 000, 900 Is appro-
priated for that purpose. In view OF
the discussion at Geneva on the basis
of the Lytton report, it is possible that
the cabinet can carry its point at home,
but that will not solve its borrowing
problem when 1t needs to find cash Tor
two-f1fths of its national budget, for
which no tax income was planned. 1t
is perhaps this financial situation
which may eventually prove to be the
strong EST factor to teach Japan econ
omy in its military expenditures. When
the government can neither collect by
taxation nor borrow from others funds
with which to finance military expan-
sion it will have no alternative but TO
cut expenses"
"That the Japanese government has
approved the largest national budget in
its history in the face of warnings from
influential financial interests" con-
cludes the Indianapolis News, lis an
indication of the great difficulties OF It's
policy in regard to Manchuria." That
paper feels that though the opposing
forces in China may be less alert than
the japanese, and lack unity to a de-
gree amounting to something like chaos,
they have size and a wearing capacity
that may swamp japanese resources"
The News offers the estimate Of the
situation: 1T seems probable that If
the danger of the weakening of home
support were not so great, the Japanese
would be less anxious about making a
SHOW in justification of their course be-
1ore the Council Of the League of Ma
lions at Geneva. Much of what has
been said there by japanese has the APP
pearance of boldness and defiance of
world opinion, and yet that opinions
favor Is still sought. Extra effort to
exert a persuasive influence on the
United States is indicated by the report
from Toxic that plan to keep 'coun-
Selor at large at Washington in addi-
ton to the usual diplomatic representa-
ton is under consideration"
Japan is in strong technical posi-
ton, having sharp grip on Man
churia, despite some Chinese armed re-
sistance," in the opinion of the Provi-
dence Journal, but Is beset by grave
domestic economic problems which may
seriously affect her political policies.
How long the Japanese people will stand
for the expensive business of aSsini-
lating a large mainland area nobody
can conclusively foretell." The Mime
apolis Journal points to "a police raid
on the home of the founder Of the first
outspoken Fascist organization, Mitsuri
Toyama," and declares: This raid has
its anomalous phases. For Fascisn uer-
meated the military, or at least the
younger army officers. It includes q
large number Of civic organizations. It
attracts farmers, it takes in MANY pa
triotic terroriStS-and these include ele-