The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1940-02-08
Economic 4. +. !.



came home to roost in Japan on Janu-
ary 26, when, at the instance Of the
United States government, the Amer
ican-Japanese commercial treaty was
concluded. AS required by the terms
of the treaty, we gave Nippon notice
of this six months ago, and in the in
term Japanese statesmen almost des-
perately sought to patch matters up.
But Washington was adamant.
The difficulty of Japan's position is
plain. The japanese are proud and
aggressive people, and they have been
taught by their leaders particularly
the army clique, which is responsible
only to the Emperor, not to the civil
government, and is almost all-power-
full that they are to achieve great
destiny. No people is more imperial
ist-minded. And to build an empire
requires vast quantities Of long list
of commodities, to say nothing Of
manpower. Japan has the manpower
her birth rate is the highest in the
civilized world. But she is poor in re-
sources. Even to feed her people by
low Asiatic standards is an exceeding
ly difficult problem-visitors to Nip
pom are always impressed by the fact
that hardly a foot of land is wasted,
and that the highest ingenuity and ef-
ficiency have been given to produce
much from little.
1t is to this country that Japan has
looked for the bulk Of those essential
commodities she cannot produce her
self-raw cotton, scrap metal, ma
chinery, oil, wood pulp, pig iron, etc.
And, on top of that, this country has
been the principal purchaser of
Japan's exports, of which raw silk is
by far the most important, followed
by cotton cloth, tea, finished silk,
porcelain, and crab meat. About a
third of Japan's imports come from
this country, and almost third of her
exports normally are bought by us.
Denunciation of the treaty does not
mean that Japanese-American trade
will necessarily be changed to any ex-
tent. 1t does mean that, without no.
tice, this government can levy ex-
cessive taxes or tariffs against Jap
anese goods, can embargo part of our
Japan bound exports, and can do any
thing else it considers wise or neces-
sary. Thus, the U. S., in effect, holds
an economic pistol pointed straight at
Nippon's heart.
Denunciation of the treaty resulted
from two things: our disapproval of
Japan's conduct in China, coupled
with Japanese mistreatment of Amer
lean individuals and property in the
Far East. Our nationals were never
so badly treated, as, for instance, the
British, but EapssSsse army authorities
have been far from gentle when Amer
ican rights were concerned. And
Washington observers think now that
this government will not consider re-
newing the treaty until Japan gives
absolute guarantees that American
rights will be fully respected-and, in
addition, that Japan agrees to respect
China's integrity, and to live up to the
Kellogg pact which outlaws was as an
instrument Of national policy. Fur
thermore, to bow to American pressure
would mean a serious loss of face
and that, in the orient, is the worst
of dishonors.
The probability is that this govern
ment will turn the economic heat on
Japan slowly. First step is likely to
be an embargo on materials OF war,
including oil, scrap iron and ma
chinery. That would cost US money,
of course, but it would not be any
where near as serious to us as to the
Japanese. Japan takes only about Z
per cent of our exports, and we get
about 6 per cent of our imports from
her.
The new Japanese premier, Admiral
Yonai, is considered moderate who
is more or less favorable to the U. S.
But history indicates that premiers
who displease the imperialist army
group don't last long. It's good bet
that our relations with Japan will get
materially worse before they get bet
tier.
X X X
Important political note, which
seems to have passed the rumor stage,
lis that Postmaster General Farley is
at outs with the President. In re-
cent speech he said fatty that he put
loyalty to the nation above loyalty to
the Democratic party.
Reason for the split is supposed to
be Farley's opposition to the Presi-
dent seeking a third term. Further,
it has never been thought that Big
jim was real New Dealer. He in
clines to conservatism by nature and
by past association.
A Farley walk-out would be a blow
to the White House. Farley has a
tremendous personal following - a
strong and genial personality, he
makes and keeps friends. AS head of
one of the most effective political ma
chimes ever developed in this country,
he knows how to get results. And
many a delegate at the next nomin-
ating convention will task Jim" be-
fore supporting or opposing any can
Ididate.
-. IL,