NEW ZEALANDER ABROAD.

Taranaki Daily News, Volume L, Issue 309, 4 January 1908, Page 2

NEW ZEALANDER ABROAD.

FINANCIAL POSITION OF JAPAN. Some interesting facta concerning tho financial position of Japan were given to a Post reporter by Air. John Duthie, an e.vAI.P., who has just returned to Wellington after a visit to Great Britain, America, Canada, Japan, and China. "In Japan," said Air. Duthie, "matters financial are very tender. Last year the expenditure was reduced by the withdrawal of contracts, and this year the estimates have been materially cut down. The responsible classes are much alarmed at the financial position. The country Is without any resources capable of development, but they are endeavoring to become manufacturers on a large scale. They are increasing the shipping business of the East, anil, more than ■that they are trenching on the trade of the North China ports, which arc all shallow. Now they are running (1000ton steamers every fortnight to Antwerp, London, and Middlesboro', and by another line to New York; and they are also collaring the transhipment business from Shanghai. This," rmid Mr. Duthie,

"seems to be unavoidable, seeing that they are strong and expert seamen, and that their rate of pay for both men and masters is not equal to half that paid under the British (lags and it is didicult to see what is to prevent them largely 1 superseding us throughout, the liast. ' I The Japanese claim, Mr. Duthie states,

that they can build ships at about sixteen per cent, less cost than they can buy Scotch vessels. In addition to this they receive a bonus from the Government, though Mr. Duthie himself thinks the Government cannot continue much longer to find the bonuses. The taxation at present is simply cruel, and when the expenditure of loan money contracts, the revenue, which is now even far short of requirements, cannot be made good by further taxation. If this is attempted the temperament of the people will suffer a considerable change.

There are six large shipbuilding and I engineering firms employing large staffs —one visited by Mr. Duthie had 4500 men on the pay-roll. The machinery and the quantity of the work turned out were highly creditable. At the same time it was very doubtful if the thing had not already been overdone. A large number of companies that were floated •.Vita ttv; ww'have recently been withdrawn. A single paper "which Mr. Duthie read during his stay nt Kobe Contained notification of the closing-down of eight iiiat'h factories.

"fine of Hie hollowest businesses in Japan," continued Mr. Duthie, "is insurance. Both fire and life companies are claiming wonderful results and arc paying out dividends which in the event of

any exceptional losses or the failure to j accumulate the proper reserves, must some day cause great anxiety on the part of the insured. Banks have been established by Hie tholiwml, some of . tliem being of a very speculative char- ! actor. Altogether, there are all the olements in Japan of a big crisis, and pos- f siblv before long."

As to the resources of Japan, Mr. Duthie declares they are not to be compared with those of China. No man, said be, can express any definite opinion of what may happen in China, but it is an undoubted fact that she possesses I mineral "Svoalth exceeding that of any other country in the world. Hitherto the Chinese have always refused either to allow foreigners to carry 011 mining or to carry it 011 themselves,' That prejudice is gradually being weakened, and there is a big fight going on as to which of the Western nations shall get the refusal of the privileges, when the decision in favor of liberality is arrived at. Up to now the cry is "Clii'iia for the Chinese," but the struggle is not yet over, and no one can say which side will

As for the position which China will take u]i towards the outside world, Mr. Diithie points out that an army is being trained with great vigor and earnestness, and if war conies again it will lie able to give a good account of itself. So soon as the Chinese feel strong enough to withstand pressure tliev will be much more difficult to deal with as regards the granting of concessions. A« for concessions that have already been granted, the Chinese as a nation believe in standing to their bargains, differing in that respect from the Japanese,