Milford chronicle., 1940-03-15
Economic Highlights
HAPPENINGS THAT AFFECT RIA DTENEs
PALs, DWwEED CHEcKs AND TAx
BILLS o. EgERY INDIVIDUAL
National asd faffrnafiaaai PgsBlfRs
IAlshara1Ie from Lslcal WeIiare

II has long been forecast that the
Land OF the Rising Sun was heading
for more trouble. And serious trou-
bic came home to roost IN Japan on
January 30, when, at the instance
Of the United States government, the
American 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 interim japanese states
men almost desperately sought to
patch matters up. But Washington
wRs adamant
The difficulty OF Japan's position
Is plain. The Japanese are a proud
and aggressive people, and they have
been taught by their leaders (par-
ticularly the army clique, which is
responsible only to the Emperor, not
to the civil government, and is al
most all-pOwerfuD that they are to
achieve a great distiny. No people is
more imperialist-minded. And to
build an empire requires vast guam
titles Of a long list Of commodities.
10 say nothing of manpOwef. Japan
has the manpOwer-her birth rate
Is the highest in the civilized world.
But she is poor in resources. Even
TO feed her people by low Asiatic
standards is an exceedingly difficult
prOblem-visitOrs to Nippon are al
ways impressed by the fact that
hardly a foot of land is wasted, and
that the highest ingenuity and eff
cheney have been given to produce
much from little.
1t is to this country that Japan has
looked for the bulk of those essen
tial commodities she cannot produce
herself--raw cotton, scrap metal,
machinery, oil. wood pulp, pig iron,
etc. And, on top Of that, this cOun-
try has been the principal purchaser
of Japan's exports, OF which raw
silk is by far the most important,
followed by cotton cloth, tea. finish
ed silk, porcelain, and crab meat.
About a third of Japan's imports
come from this country, and almost
a 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 extent. Il does mean that, with !
out notice, this government can levy |
excessive taxes or tariffs against |
Japanese goods. can embargo part !
of our Japan bound exports, and can !
do anything else it considers wise or
Thus, the U. s.. in ef- |
feet. holds an economic pistol point !
ed straight at NippOn's heart.
Denunciation of the treaty result I
ed from two things: our disapprOval I
Of Japan's conduct in China. coupled |
with Japanese mistreatment of AM
erican individuals and property in
the Far East. Our nations were nev-
eF so badly treated as, for instance,
the British. but Japanese army au-
thOrities have been far from gentle
when American rights were concern
ed. And Washington observers think
now that this government will not
consider renewing the treaty until
Japan gives absolute guarantees that
American rights will be fully re-
3pected-and. in addition, that Japan
lgFeeRstO 70 respect China's integrity.
and TO live up to the Kellogg pact
which outlaws wars as an instru-
nent OF national policy. Further
more, to bow to American pressure
would mean a serious loss of face
md that, in the orient, is the worst
If dishOnOrs.
The probability is that this gov
,rnment will turn the economic heat
N Japan slowly. First step is likely
o be an embargo on materials Of
var. including oil. scrap iron and
That would cost us mon :
", of course, but it would not be .
anywhere near as serious to us as to :
he Japanese. Japan takes only about
per cent Of our exports. and we
'et about per cent Of our imports
rom her.
The new Japanese premier, Ad-
niral YOnai, is considered mOder-
tie who is more or less favorable to
he U. S. But history indicates that d
who displease the imper-
alist army group don't last long. S
t's a good bet that our relations with :
apan will get materially worse be- f.,
pre- they get better. :
600
Important political note, which 5
GEMS to have passed the rumOr y
lage, is that Postmaster General
arley is at outs with the President. r
Il recent speech he said fatty :
nat he put loyalty to the nation
bOve loyalty to the Democratic
arty.
Reason for the split is supposed
} be Farley's opposition to the b
seeking a third term. Fur = =
Ter, It has never been thought that
ig Jim was real New Dealer He p
Iclines to conservatism by nature y
nd by past association.
A Farley walk-Out would be T,
low TO the White House. Farley n
as a tremendous personal follow
ga strong and genial personal r!
y, he makes and keeps friends. AS "
sad of one of the most effective pO-
Eical machines ever developed In q
Iis country. he knows how to get i
suits And many a delegate at
e next nominating convention will cl
SIX Jim" before supporting. or OPP 4
,sing any candidate.
A number of political experts eC
ink that the President could not Il
In again II he lost the aid aud back
& of Farley. So keep your eye on 70
c Postmaster General. ~