The Guardian And Evening Star, with which is incorporated the West Coast Times TUESDAY, OCTOBER 11, 1932. JAPAN’S FINANCE.

Hokitika Guardian, 11 October 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times TUESDAY, OCTOBER 11, 1932. JAPAN’S FINANCE.

It would be surprising to many of our readers to read the statement in a recent cable message of the critical position of the finances of Japan. The foreign policy which precipitated the events of last year has been generally regarded as the expression of a national will to find territory and wealth for an increasing population with increasing needs, and the steady growth of Japan’s army and navy in the last generation has bee” fully remarked. That this activity has been the work of or.e small but powerful cl”"; in Japan has not been so widely c’ir: ussed. The constitution of Japan is Y/estern in form but in practice Eastern and despotic. Last March the Executive;, compose.d of

war-lords devoted to the aims and practice of their profession, applied to the Diet for a further 76,000,000 yen to finance the Shanghai expedition. The application was not granted; yet the money was obtained, and later 22,000;000 yen more was appropriated. The strain on the financial resources of the country was very heavy—the cost of maintaining the t two expeditions to China was computed at 10,000,000 yen a month—and as a result the Japanese gold reserve, which last year was so low that the gold standard had to. be abandoned, became seriously depleted. A loud out-' cry against the Government was led by business and financial interests in the country; but militarist propaganda had been too effective. In fact, willing hands were soon found to assassinate Baron Tukuma Dan and Junnosuke Inouye, two cf the principal advocates of retrenchment. The interesting point about the present disclosures of Japan’s financial trouble is, however, that the militarist party may be checked by their own previous success. So far, they have aroused great popular enthusiasm for their cause. According to the Manchester Guardian, however, “the .(present indebtedness of the peasants is about 6,590,000,000 yen, with annual interest charges from 10 to 40 p.er ednt., equalling the value of the entire annual agricultural production.” Such a burden is bound to have its effect on the feelings of the people, and it will not be surprising if the financial position does not have fa,r reaching results on the internal and external policies of the Ration.