The daily independent., 1937-08-12
Who Started AnThe
Trouble In China!
Babson Says United States, Great Britain
and France Are at the Bottom OF IL
Japan, Victim of Economic Pressure

our total exports have gone to
japan. Yet in return we have
bought only S92,OOO,OOO worth OF
goods, or siv per cent of our i'm
ports from her. Raw materials
are the principal item which we
send across the Pacific. For in
stance. Japan took more OF our
1886 cotton crop than any other
nation - even more than Eng
land.
How Can Japan Pay
Foreign purchases can be PAID
for only with gold or with surplus
products. Japan cannot pay us
with gold-for she has none with
which she dareS part. She can
and does pay us partially with
silk, but our acknowledgements
rayon has raised havoc with Nip
ponese silk farmers. She cannot
pay the remainder of her debt In
other surplus goods which IN
her case are manufactured pro-
ducts-becauSe she cannot scale
our tariff barriers. She has the
same trouble with most OF the
other Western nations. They are
all eager to sell to Japan, but
they do not want to buy her
goods. Hence. Japan in deSpera-
tim seeks new territory which
will give her needed supplies OF
raw materials and an outlet for
her finished goods.
During the last two decades
while the world has been shouting
for an end to military wars, 1t has
been deliberately, with our aid,
starting a far more dangerous
war:-A battle of economic bar
riers. In the end, these barriers
lead desperate nations into wars
of aggression, such as the current
conflict in North China. More
over. Germany. Italy, and other
stifled nations may try the same
way out" at any time. Hence l
heartily commend PreSi d en- t
Roosevelt and Secretary OF State
Hull for their painStaking efforts
to lower tariffs reciprocally and
to reeStablish trade among ma
tions. Only an unSelfiSh give
and-take revision of these artlt1-
cial barriers can prevent future
wars. Economically. we are all
brothers regardless of race, color.
or creed. One nation can prosper
only as all nations prosper.
Japan's Bad Psychology
Naturally I cannot agree with
Japan's method of solving her
problems. She is only making her
situation worse. She fails to re-
cognize the value of goodwill. The
Japanese are an industrious. in
telligent. and exceedingly patient
people. but they are very poor
psychologists. The Chinese are
are good psychologists and know
how to present their case well.
The Japanese apparently think
that victories come only through
physical strength and material
wealth. They fail to study his
tory. The victories of the world
have not been won by the physic-
ally strong, nor have the races
been won by the physically swift.
The pen has always been might
ier than the sword and it always
will be. In the long run, right
always wins and wrong always
loses.
Most nations are emerging
from the period of deep depreS-
sion. They are bitter against
Japan for taking a chance that
the applicant may be upset. If
she wages a real war on China,
Russia will help China and then
it WILL be a REAL war. In
dustry and commerce the world
over will suffer. Furthermore, if
Russia gets into the conflict it
will be a great temptation for
Germany to stab Russia in the
back. This would lay the founda-
tion for another World War which
could set civilization back for
fifty years. Therefore, from a
business as we'll rs moral point of
view, I sincerely hope that Prince
Konoye and his Cabinet will be
made to see the light and stop
this war of aggression.
Japan Should Be Cut
What can the United States
and other powers do to bring
japanese officials to their senses?
From my knowledge of the Jap
anese, the most effective action
would be for all nations to close
up their Tokyo embassies, saying
I'VE cannot do business with
pirates and robbers" Further