Evening star., 1935-12-01

| cOmDlneQ.
The balance Of trade between the
two countries formerly favored Japan
particularly because Of the large
American purchases of japanese raw
silk. But since the extensive use Of
rayon began and since the worldwide
depression set in, it has turned in
favor of the United States. The fig
ures Of the American Department Of
Commerce for the last three years
are as follows:
| Exports Imports
to Japan. from Japan.
1882 ---$134,921,0 900 s134,0l1 900
1888 ------- 143,435,00O 128,4l8,000
1884 ------ 210,420,000 1l9,25l 900
Even in the case Of Manchuria,
where it has been charged that the
open door" would be closed to the
United States, American trade has
benefited as a result of japanese de-
velopment.
United States Best Customer.
The reverse side Of the picture is
also replete with significance. The
United States is the greatest customer
Japan has anywhere. This country
buys more japanese goods each year
! than even China, her colossal nearby
neighbor. Likewise, the Stabilization
and industrialization of Japan, with
population only an eighth of that Of
! China enables her people to purchase
| annually a considerably greater
amount of American products.
Lord Strabolgi lists four charges as
popularity level against Japanese man.
ufacturers in explanation of their suc-
cess in the markets of the world. This
| first is the existence of labor condi-
tions practically amounting to slavery,
the workers living in compounds under
a rigid discipline and receiving wages
suitable only for very debased stand
ard of living" But he corrects this as
an error, saying that, Judged by
Oriental standards, labor conditions in
Japan are good"
Charles K. Moser chief Of the Far
Eastern section of the United States
Department of Commerce, in paper
read last Summer before the Institute
of Public Affairs at the University of
| Virginia, said:
1.-The standard of living provided
| for both male and female operators
in japanese textile mills which ntan.
ufacture for export adheres very closely
, to, and excels in many cases, the liv.
( ing conditions found in the average
( japanese home. Certainly 1t could not
be said that the wage scale in the
/ United States accomplishes much
more"
Exchange Problem Discussed.
| All things are relative; where life Is
lived more simply the requirements
for happiness are less. Japanese live
more simply than the people of the
/ British Isles or the United States, and
/ because of their more modest living the
/ cost of their labor is somewhat less.
But they are not proportionately less
we'll compensated nor is their lot less
good.
/ The second charge which Lord Stra-
bolgi says is popular, 'the depreciation
I Of the Japanese currency unit-the
yen-in terms of foreign currencies"
he also discounts. saying that the de.
probation of japanese currency no
doubt has assisted the export trade up
/ to point, but it is easy to exaggerate
its importance Thus, most Of Japan's
raw materials must be imported, and
here the depreciation currency acts in
the other direction" 1t is a distinct
disadvantage to Japan in her trade
with the United States because our
| balance Of purchases is heavily in ex.
cess of our sales.
The exchange control of Japan has
In view the freeing of the interna.
tional value of her currency from in.
fiuences of speculative capital move
ments, but it does not place any re.
straint upon the normal exchange re-
! quirementS arising from trade or 9TH
erwise. Thus the yen is left to find
its own level, as justified by the vari-
GUS items of overSea transactions. To
say that there has been any deliberate
attempt to depreciate the money in
order to help the industry is ma
licious distortion of the patent truth.
Bought European Mills.
The third contention listed is "a
very high degree of mechanization in
japanese industry" But, Lord Stra.
bolgi again discounts this, saying "ac-
tually Japan has bought a good deal
of artificial silk-making machinery
from mills in Europe, which failed in
the depression"
I'VE therefore are thrown back onto
the fourth explanation. namely, the
payment Of subsidies to exporters" S."
This is given as the reason for Japa.
nese success.
Here the English authority is in
error. The Japanese steamship SUBJ
sides are less than those of Great
Britain or the United States. The
annual subsidy provided by the Japa-
nese government for mercantile ma
rine is e.760,000 yen, less than So
900, 900, while that of Great Britain is
about $4,000 900 and Of the United
States over $28,OOO,00O.
The British trade commissioner in
Toxic reported in 1888 as follows:
| Reports received here from almost
all parts of the world show that ex-
aggerated opinions are current abroad
as to the nature and extent of Japa-
nese government assistance to trade.
1t has lately been alleged, for in
stance, the government is subsidizing
the major industries of Japan in order
to keep her workers employed. Such
statements are quite unfounded."
Japan's Success Analyzed.
Shipping subsidies are given in COM
pensation for the obligations of ship.
ping companies, such as mail carrying.
maintaining regular service and so
forth. just as they are given by West.
ern countries to their merchant ma
rine.
The sole reason for japanese sue
cess Is to be found in her scientific
development and efficient organiza.
ton. In indusry and commerce, the
Japanese are so advanced that they
are able to keep costs low enough to
compete with other nations. The peo-
pie are hard workers, both physically