Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1936-01-31
Babson Shows How Japan
Undersells Whole World
Continued from Page One)

spread attention. Although our own
mills have suffered q severe shake
up, Lancashire has been hit the most
telling blow. For instance, back in
1913 the ratio of British to Japanese
imports Of cotton goods into India
was $50 to /. Recently the ratio has
actually turned in favor of Japan.
Statistics are usually very dull, but
the following figures are illuminat-
ing: Between 1929 and 1884 exports of
iron goods jumped $50 per cent metal
manufactures, 1870 per cent; clocks
and scientific instruments, 200 per
cent; wooden fibres, 600 per cent;
toys 129 per cent: soap, 800 per cent
and rayon fibres, 200 per cent. Little
wonder that industrial leaders in the
United States shlldder at the thought
CT Japan turning her attention to new
fields.
What has made this miraculous
progress possible? The usual answer
is that the Japanese have n wonder
ful ability to initiate and that they
capitalize upon British and American
inventive genius. This Interpretation
is not the whole truth, for the Japan
csc very definitely have craetivc
ability.
The textile industry of the United
States and Great Britain is nearly 200
years DID, but these countries are fast
surrendering their leadership because
the Japanese insist on the most mod
ern and efficient machinery. With
Ono-sixth Of the spindles and 0ne-half
OF the looms, Japan annually con-
sumes more cotton than England.
Furthermore, there are no looms of
the 1885 model in Japan such as can
be found in certain textile centers Of
this country. The modern improved
machinery is one reason why Japan
is forging ahead.
Yen Factor
Is Japan's industrial revolution the
result Of devaIuation of the yen? This
undoubtedly has been a tremendous
factor. Even after our own devalua-
ton. the yen, whose old parity with
the dollar was 40 cents, is today quot
ed at 20 cents at New YrOk. This
means, of course, that Japan's world
prices are automatically much lower
than our own and those OF Great Bri-
tain. Like most economists, I believe
currency devaluation, as policy, is
SINFUL particularly on the part Of
those nations who start the vicious
cycle.
We must remember, however, that
Japan had heavy unfavorablc bal
ance Of trade for years. AS she pro-
crossed irdustrially and wanted to
find markets, those nations from
whom she had bought tremendous
quantities of goods erected barriers
against her products. Then also she
had to follow the declining value Of
the Chinese silver dollar. as silver
dropped in price So, in a sense, she
was forced to take this drastic mea5-
sure Furthermore, contrary to popu-
lar belief, Japan has not been dump
ing goods at prices below actual pro-
ductiOn costs.
Wage Scales:
Has her progress been due to
''coolie" wages? Hot debates have re-
volved around this point. One leading
authority connected with our own De-
partment Of Commerce made study
of textile wages in Japan several
years ago. He found that the daily
wage for the few men employed av
eraged $3.50.
Women's pay was ridiculously low
around % to 80 cents per day. Wo
men workers. however, are provided
with very low-cost, clean living quar-
tiers. Then too, the Japanese mills are
conducting excellent welfare and edu-
cational work. Custom and the SIM
pie manner Of living call for very lit
tie expense In fairness, it should be
noted that low wages in Japan are
not due to exploitation--they are due
to a huge over-supply Of workers,
their willingness to be satisfied with
the barest necessities and low living
costs.
In this connection, we must not for
get that the steak and potato diet Of
the American worker would have no
more appeal to the Jap than the lat
ter's fish and rice diet would have to