Evening star., 1932-01-10
Economic Background of Oriental War
BY FREDERIC ]. HASKIN.

With war in the Far East seemingly
inevitable, glance at the economic
conditions Of that region of the world
is deemed valuable as an aid in reach
ing an understanding of what the for
tunes Of war may bring. The worlo
witnessed the epochal alterations In
trade trends and other effects upon
international economics caused by the
World War. The war in the East will
affect, directly or indirectly, as many
people.
The beginning Of the two great
struggles - the European and the
Asiatic-shows widely different eco
nomic settings. Europe was in con-
dition of high prosperity. Never before
bad so much money been available fol
armaments. Trade was brisk and com
petition in trade expansion keen. A
huge tourist trade, springing largely
from America, was pouring millions ir
money into every European country
Naval reviews and land army ma
neuvers were frequent. The European
nations were cocky.
Taxes were the merest fraction ol
what they are now, although in al
times taxes seem high to every one
National debts Of most of the coun-
tries about to become belligerents were
relatively small and we'll funded. Cur
rencies were stable and the gold stand.
ard regarded as next to impregnable
So sound did economic conditions ap'
pear to be that for some months after
the beginning Of the war the nationa
slogans were Business as Usual"
Far different is the economic situa'
tion in the Orient as the war fol
Manchuria starts. Contrasted with thu
high-record level Of foreign trade II
1914, it Is found that all Far Eastern
countries have been suffering from &
curtailment of such trade for SOM
time. China for Is years has beer
disrupted by internecine strife. tn,
governors of the several provinces, thu
war lords, have been struggling agains
each other for military supremacy
The worldwide depression has affected
both China and Japan, as well as th'
other Oriental countries which will
feel the conclusion of an Orienta
struggle.
Difference In Situation.
While In Europe, at the outbreak o.
the war in 1914, the credit Of every ma
ton was high and its bonds good II
any market, q different situation L
faced now. Quotations on both ChlneS'
and japanese bonds have been of fol
some time and these nations would ex
perience less ease in making huge for
eign loans than was experienced II
1914.
Should this war for Manchuria as
sumo anything Like the proportions O.
the World War the two struggles viii
furnish fruitful sources of speculation
to students. One war was begun on th'
crest of prosperity, the second in tn,
trough of depression. What differences
are observed in the conduct and out
come of war SO differently Graded viii
mean much to the future commentators
To begin with, it must be remembered
that 1t was widely believed that the wa
in 1914 could not last beyond a few
months because of it's huge cost. Cost
are huger than ever, and the question i
whether nations can fight on nothing
as vigorously and disastrously as the.
fought on full purses and colossal bor
rowing power.
For two years commodity prices II
Japan have been trending downward
This has meant that, even with ta1
rate increases, collections would be NJ
larger The boycott in China agains
the purchase of goods made in Japan