Evening star., 1932-07-03

former peasant class have availed
themselves of the rapid increase in
education facilities and have come to
believe they have a destiny apart from
the medieval militarism of their IA
theirs. Two parties, therefore. exist
and. in the depression and the period Of
military setback at Shanghai, a be-
wilderment has come over the nation.
The easy-money days of the war and
postwar boomS are past. A hard les
son has been dictated to new Japan.
The old aristocracy is pressing for ex-
pansion. bent on carrying the japanese
banner to military success on the con-
tinent of Asia. the new youth are recoil-
ing from the old banzat ideas and there
Is a definite trend toward communism.
1t is estimated that some 5000 Com
munist agitators now languish in
japanese prisons.
The economic effects of the military
domination have not been happy. The
Shanghai campaign cost heavily and
Japan has found that her credit in the
foreign money market is not so good as
she had anticipated. She has gone of
the gold standard and has inflated her
currency. Still h~~ condition is not
meaSuTsbly .-..lproved and 1t is stated
that only l out of every 20 Of her new
youth, graduating from her expanded
schools, finds a Job awaiting him. With
no employment and their heads full of
ideas, these students constitute an un-
certain force.
Japan found Korea a appointment
when she took it over after the Russo
Japanese War. The Koreans are a
static people. extremely conservative.
Japan has gained some outlet for her
trade there but not nearly so much as
she had hoped. Manchuria promises
better. The new government of Man
choukuo, while nominally Chinese, is
utterly dominated by Japan. and from
this vast, rich territory Japan hopes TO
restore her economic strength Yet
even this arrangement does not promise
salvation Manchuria has coal and iron,
the foundation of steel industry. But
coal owners and steel mill owners in
Japan oppose free admission of Man.
churlan products because the home
market would be wiped out due to
difference in cost Of production. In
that sense, the Expansionist party in
Japan has taken over a rich territory.
the products of which the home party
refuses to admit
However, it is decided, Manchuria does
not mean an enlarged foreign trade
sphere for the United States except as
Japan, in colonizing and developing the
country, needs goods from America.
Sales TO Manchuria will be made
through Japan. and, TO some extent,
through old China. It Is not a new
field, because all trade must be strained
through the japanese sieve.
The trade never was great. In 1929,
the last prosperity year, it amounted to
S20,000,000, American sales consisting
chiefly of tobacco. petroleum, iron and
steel. Direct imports from the United
States today are running at the rate
Of only about So 100000 a year. More
and more Japan will see to it, II she
can, that the trade, from whatever
country. passes through her hands first.
Meantime, Russia broods over the
western and northern borders of Man.
churia and may hold the ultimate eco
nomic and political fate of the rich
territory in her hands. Not in 10 years,
not necessarily in so, will the Man
churian question be settled. As matters
now stand, Japan is the only hurried
player. Size feels she must have new
territory in which to expand. Russia
can wait, because she has more terri
tory and resources than any other
nation in the world. China can always
wait.