IN THE EAST

Hokitika Guardian, 1 April 1933, Page 6

IN THE EAST

JAPAN’S 'MANY PROBLEMS.

•PROSPERITY IN INDIA,

WELLINGTON, March 28

A brief survey of conditions inqthb East) was given by Mr S. W. Cayward, vice-president of the'. International B. E. Goodrich Corporation, who arrived to-day .from Sydney in continuation of a .business tour which has already included India, Ceylon, Siam, the Malay States, .China, Japan, the Philipines, and Dutch East India. Mr Cay ward said that Japan was at .present enjoying an industrial boom and many of .the factories .were working night .and day.. The. export market was growing- on account of ,t.he,low manufacturing costs and her products were successfuly competing with .those of western nations. The Japanese .goods had improved during the last few years, and her cotton especially as finding a wide market. However, she. still had to fight, the Chinese boycott, which was very effective, not only in China, but in other parts of the-.world .where Chinese merchants operated. Chinese merchants outside their own country were even more strict in observing the boycott than those in China, if that could be possible, .and the Japanese had been forced to open up their stores in different parts, of the East. When it was remembered that the average factory worker in Japan received about 2s a daj* gold standard money it would be realised that their factories had a big advantage over English and American factories. At one time Lancashire cotton goods dominated the Indian markets, but to-day-half the cotton goods consumed in India came from Japan and on top 0 f that India was now. also an extensive manufacturer of cotton. The Chinese wars, however, were proving a big drain on Japan’s financial resources. Her taxation was very heavy and the Government was raising forced loans in order t-o obtain revenue. The Government issued these loans and the bunks were compelled to take them over. It was now practically impossible for Japan to borrow, externally, as she had reached the limit in that direction. CHINA AND INDIA. ...

In China, business generally-was unsettled owing to thei wars, and merchants were not prepared to carry substantial stocks but were -living from hand to mouth. Business was poor in Malaya owing to the low price for rubber, but in India they did not seem to have been hit as badly, as some ,of the other Eastern countries, and in parts of the country there was a .fair a,mcun.t of confidence. Portions of the Philippines were also good, although those -parts which depended on their exports of hemp, and copra-were in a.'bad way.

One of the most optimistic countries was Australia.. Business men there had stated that there had been a better tone in the last six months c ,and their volume of turnover had been greater. • .

•- “I was much impressed with the (success of tlie conversion loans in Australia and- New Zealand,”, said Air Cayward. “It speaks well for the t>regressive policies of the two Governments”

Although lie had not been in the United States of America for about eight months, advices he had received seemed to indicate that people were looking forward to an improvement. in economic conditions as a. result of the election of the new Government, which was more unified than the last. World conditions generally would (have to improve before there was a (return t 0 prosperity, and great hope was felt for the forthcoming world economic conference.