JAPAN'S "BOOM" ENDED.

Taranaki Daily News, 18 January 1918, Page 2

JAPAN'S "BOOM" ENDED.

WAR TAKEN' MOKE SERIOUSLY. The following interesting artic'c dealing with the eltect on Japan of America's entry into the war was written for'the New York World by Mr. Mock Joya, a j well-known Japanese journalist. It is dated October 27. Japan did not feel any effect of the war for three years, and she had 'iinpiecedented prosperity because of increasing exportation, and especially the development of new industries and ship' piny. But the entrance of the United States in the war brought a change in Japan. She, began to feel war's effects gradually, and iAnow expected that from the end of thi™,car Japan will have financial and industrial difficulties like all the other belligerent countries and some neutral nations. . The first blow given Japan by the war was the embargo on the export of iron and steel from the United States. Japan's annual . production' of iron only amounts to 50,000 tons, and shipbuilding and ; other steel-using industries which suddenly developed aftpr the war begari' could not continue their work when the supply of iron and steel stopped., Even the new shipyards made tremendous pro-, fits in the last two years, and the prosperity of the shipping trade wa s the most phenomenal event in Japan's recent history. After the United States placed an embargo on iron and steel a large, number of workmen were discharged. Manv woTks are now at a standstill, and the market quotations of the shares and stocks of shipbuilding companies have declined. But the effect of the embargo was restricted to. limited circles, and it did not cause general depression, in the country. Prohibition of the exports of gold from the United States Was the second and heaviest, blow to Japan. This caused Japan to lose one of her largest sources of gold importation. The balance of tho'i trade between ' Japan ■ and the United States amounted to £13,500,0(1) in favor of Japan in 1916, the exports to the United States being valued at £34,000,000, and the imports to Japan £20,500,000. Prevention of the import of gold from the United States made it impossible for Japan to obtain the payment for the balance of the trade. This affected the trade and industry'of Japan generally. Japan's spinners wore the first to suffer, lacking money to buy Indian cotton. They are now considering a plan to import more American cotton and less Indian cotton, but the Am'erican cotton is much more expensive than the Indian product, and when American cotton is substituted for Indian cotton the price of tiie fabrics which are used for general clothing of the people, will advance. These effects of the war, which began to hr, felt by the Japanese public only about a month ago, caused much depression throughout the country. .Stock market quotations of shares and stocks, which reached top price after the war begun, are gradually coming down. While prices of commodities are going up, wages liave decreased, and many, arc out of, work. Three months ago not a single workman was idle Factories did their best to get more workers, .and t.licre was a strong competition among factory owners for labor. Banks have reduced their rates of interest, and the indications to-day are that the nation will ha,ve a hard time before the year is out. Many war millionaires who lived in luxury two months age. became bankrupt diiring the past two weeks. Many of the larger cotton dealers and speculators lost large fortunes. One. cotton dealer who gained a fortune of £1,0(10.000 within the last three years became penniless ten days ago in consequence of his speculative dealing. A cotton broken in Osaka committed suicide because he could • not endure bankruptcy. Before the your is ova it is expected that many more war millionaires will lose., their fortune,s. The money market will become tighter as the end of the year approaches.' From now on Japan cannot enjoy the prosperity of the past three years, and the- public will have to meet war-time conditions, as all other peoples of the world have been doing in tho past three .■years. Many small concerns and factories which sprang up like mushrooms .after th* war began will be wiped out. The laborers and lower class .of people who have had high wages will iind themselves in a difficult condition, for not only will wages come down, but it. will be hard to find work.

A strange effect of the war, now generally felt by die public, is a shortage, of r.mall coins--. The high price of silver caused exporting and melting of Japanese silver coins, which contain more silver than coins of many foreign countries. As the Government does not increase the supply the public is suffering immensely. Railways will not sell a ticket unless the passenger gives the precipe amount of fare, and many are losing trains. One cannot ride on a street car unless lie has exac\, fare. At the post offices one cannot buy a three-Ben stamp with a ten sen or twenty sen coin. Many stoves have posted an announcement •' that. no change will he given to customers. Some stores charge customers for changing large bills, the charge usually being 0 per cent. The exchange office caarges ten sen tc change a one yen bill into small coins, thirty sen to change a five yen bill, and three to five yen to change a one huedred yen bill. It is profitable business. Many have tried to start in it, but have i'ot been able to get small coins enough to r.iii exchange office. Even at such t. 'lugl! ri.to the people are constantly having lar< ; (; bills changed, as large bills 111 iot accepted for payment of small If the war continues much longer Japan will iind herself in a missrablc :o;:aitio:,. The prosperity of the i>:-3t three ye.'.iv; blinded both Government people, ?no, neither prepared fur J-jinr.ruil Sepir.-^iot; : onlv planned for -further dc.eloymiciii; and greater profit". .Most ÜB?rpect-Jdly t'.is reactionary depression - broujlio on, .uithe people wonder whno "'ill conic ."ext. The general public aid not pay ar,\ ali'j ; ; )iy v.'z.r: they wen- 'tor, W'v profit? siul pl.«miins laore c-hi. Thr ne;.ive?=V6::,. 'in... tmivi tht-ir f.ttwtJer: h ihe r;:r. The end '-f <Ji-yr--ar Triil hrjns-; a cthh in the afi.vry c f a lsr~o proportion of business men. The vear 1-.IS \.-ill dawn with economic anil industrial depression, and the condition will become more severe ns the war con- . I