The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-18
The Folly of a Japanese Boycott


The United States, in its international relations,
should avoid both the Scyla Of isoatonism and the
Charybdis Of suckerdom. We were played for a
sucker in the World We pulled the allied chest
nuts out Of the fire in 19l7-1s allowing them to ad
minister the Knockout" victory that brought the
much more decidedly knockout peace from which
western civilization has not recovered yet.
Having burned our fingers by our first sally into
internahonalisn. which will cost s100o0oO0O0oO,
to say nothing Of losses from world stagnation and
collapse we reverted 10 isolation and refused to help
pick up the pieces after the fight was over.
Now the far eastern situation once has forced
us to abandon isolation. We in danger of again
adopting the sucker role rather than advancing world
peace and protecting own interests. 1t has been
proposed that we alone. or with Europe. impose an
economic boycott on Japan to force her to make
peace
This sounds good, and certainly any civilized per-
son must wish for peace in the far east But few
persons have stopped to consider just what the di
rect and indirect results OF such boycott might tutn
out to be. This matter is admirably analysed in the
last issue of Facts for workers"
In the first place, any economic boycott on Japan
would be nearly disastrous to the United States
alone as to all the rest of the world combined One
third Of the total japanese trade is with the United
States China ranks next, but the trade of Japan
with China under normal conditions is ONLY about
one-thrd of the japanese commerce with the United
States European trade with Japan is negligible COM
pared TO ours.
Our foreign trade is in bad way, anyhow, be-
cause of tariff barriers and reprisals. boycott Of
Japan would almost constitute the last straw the
camels back. And our depression does not make
such a prospect any more inviting
Not only would a boycott on Japanese trade be
eign commerce. 1t would also paralyze some Of our
leading industries less than 81 per cent of Jap
anese raw silk exports come to the United States.
That this would mean that we could do great harm
to the japanese silk interests usually has been
emphasized.
1t has not been pointed out that it also means
that one Of our own most important industries-sk
manufacturing and related businesses-woud be hit
a parayzing blow Our silk business could not stand
any such shock without many and serious bank
ruptcies and factory shutdowns. 1t might force
liquidation Of many centers
Likewise with cotton. Japan buys no less than
40 per cent of all our raw cotton exports Cotton
prices already are at record low in our country
What would be the condition of the cotton industry
40 per cent CT the export market were to be Topped
of at one blow?
Japan also buys large quantities Of iron, steel,
machinery lumber and wheat from us. None Of these
industries is in a condition to welcome any add
tional curtailment of the market.
There probably would be a demand that the gov
eminent of the United States indemnify the ruined
silk and cotton industries. This would in no sense
help out our budget difficulties
Nor is this all. Japan might be forced to make
war to protect herself. Even if European nations
we're formally in it on our side, still would have
to bear the brlInt of the expense and fighting. Our
European allies who not or will not meet their
present obligations to us, will not be able to help
us financially in any additional burdens we might
take on as result of fighting Japan.
Therefore we stand to lose all along the line by
any boycott move whether made alone or in concert
with Europe.
II we merely will be patient the japanese mill
tarsts will hang themselves. All we need to do is
let them have their rope. japanese industries are
in a bad way already. Economic and social dis
content is rife.
Japan needs credit badly, but she can not Dor
row effectively abroad, on account Of depreciation
of her bonds Exchange value of the yen is shrink
ing ard her gold reserve is depleted She IS punish
ing herself severely for her war activities.
II this continues the military clique will be forced
tn the wall by sheer economic realities.