The Western news. [volume] (Libby, Mont.) 1933-current, 1937-02-11
SEEN
HEARD
around the
NATIONAL
CAPITAL
By Carter Field y

cabinet designations and the bid OF
the army for power was an inn
mediately preceding action - the
licensing of exchange.
The mere words international
exchange" tend to drive the reader
to another column, which explains
why so little space was given to
this tremendously important devel-
opnent. But what happened IN ia
pan showed beyond question that
the island empire is in serious eco
nomic trouble, trouble comparable,
among the larger nations, only with
that of Germany, and with. the same
reasons underlying it in part.
Which becomes curious when it Is
remembered that in much OF the
talk about the coming world war
Germany and Japan are linked as
allies.
What Japan did, in effect, was
to say that except for very small
transactions no one could import
anything into Japan without n e
specific detailed approval for that
transaction Of the government.
This kind of action Is taken by
nations only for one reason they
are having difficulties getting the
money to pay for things the govern
ment considers they must have.
Hence they decide to limit their
purchases abroad in every other
line.
Japan must keep on buying war
munitions and war supplies. $ h e
feels. Obviously she must also keep
on buying raw materials. Her fac
tories must keep on working SO as
to provide the exports to pay for
the war supplies. There is also the
question of tax revenue for the gov
eminent, but that can be brushed
aside. Governments long since dis
covered that they can put off that
evil day by forced loans-or BY
printing press money--as long as
they can hold off a breakdown in
confidence inside their own coun
tries.
Old Axiom True
But that never did 60 for dealing
with the rest of the world, and botf
Germany and Japan---and for tina
matter Italy during the Ethiopian
business-discovered that the ole
axiom is still true.
Foreigners must be paid for i'm
ports in something. Normally 1t |.
goods or services. Occasionally, fol
brief periods, they can be paid II
gold. Japan has no gold to spare SC
it comes back to goods and services
Her need for greater exports, with
which to pay for war supplies, ha.
been frantic for several years now
1t is the underlying cause of hel
ruthless trade war, her slashing O
prices for cotton textiles 1t is alst
the explanation Of why she is such
good customer of the Unite {
States, If one considers only trade
total figures. She has TO buy hers
much of the cotton she processe.
and then sells in competition will
American and British textile mills
Which is another reason why tn,
textile industry of the United State,
continues to remain near the bottom
of the class both in profits ant
wages, In long hours for adults ant
in employment of children.
But even that foreign selling cam
paign is not enough. Her govern
ment has found that she must i'm
port less non-war materials if sh'
is to 60 on buying the amount of wa
materials her army thinks neces
sary.
So now, under the new orders
no one can import anything init
Japan without the purchase being
approved. The order is not wordet
in that way, but that is what /
amounts to. The order merely pre-
vents any one from buying foreign
exchange in excess of a small
amount without specific approval.
IT foreshadows very consider
able tightening OF the BELTS for tn
Japanese people. The next step ex
pected is a further reduction in tn
value OF the yen, which will oper
ate in the long run to reduce the pa,
of every Japanese worker. Eithe
from the economic standpoint, o.
that of world peace, it is not pleas
ant prospect.
Wall Street Relieved
Wall streets reaction to Presiden
Roosevelt's inaugural address sur
prised New Dealers no little. The,
thought the speech was very clea
warning that the old order had gon,
forever, and that the revamping 0
our entire economic structure hat
just begun.
But Wall street had been expect
ing drastic, specific proposals.
did not find them in the President
discussion and was trerhendousl,
relieved. True, at the moment mos
of the news OF a business natur,
was good.
Actually, no one on the inside
as pointed out in these dispatche.
weeks ago, looked for any clear-cu
agenda, or for that matter al
agenda of any sort, Quit ling legis
lation for the coming session.
was not on the cards, and for YER,
y rrSt- ~.