JAPAN AT WAR.

Auckland Star, Volume LXVIII, Issue 281, 26 November 1937, Page 15

JAPAN AT WAR.

TIGHTENS HER BELT.

GOVERNMENT LOAN ISSUES.

WORKERS EAR-MARK WAGES. A brief but interesting article has been written for the "Star" by an Auckland business man who has close contacts with friends in Japan. "Officially," he writes: "Japan is not at war with China, it is regarded as an 'affair,' but the punishment which she is serving out reminds one of childhood days when father in using the strap was wont to observe 'it hurts me more than it hurts you."

"Japan is being hurt drastically in the pocket. Imports, particularly of war materials are too" high, on the other hand, exports have declined. For the year to the end of September the visible trade balance was unfavourable to the tune of approximately £43,000,000 compared with £31,500,000 for the corresponding period in 1030. The tailor in the person of the Minister of Finance, therefore, has had to get busy with the shears not only on imports, many items of which, particularly manufactured goods are now prohibited entry, but alscj on domestic consumption. Commodities made from imported materials such as raw cotton and wool are required for domestic purposes as well as for export, and the Government has decreed that domestic consumption of these goods must be reduced in order to release more for export. These exports are vital as they provide the foreign currencies which pay for imports, of war materials.

"Even in the case of such materials as copper and iron which are produced in Japan, the same control is being exercised as it is being brought home to everybody that every ton saved reduces imports correspondingly. Manchurian goods are treated in like manner.

"Those sections of tlie community which are benefiting by the war are being urged to Invest their increased earnings in the special Government War Loan issues. It is pointed out that if these extra earnings are wholly consumed, there will be an increased demand for goods which may result in a shortage of supply and an advance in prices. Moreover the point is made that it will be extremely difficult to reduce the standard of living once it has been raised. There is a lot in this latter argument, too; who does not remember the unloading of fur coats on to the London pawnbrokers after the Great War?

"The employees of four of the big Japanese industrial companies—Mitsuis, Mitsubishi's. "Yasuda and ' Sumitomo— about 40,000 of them have decided to earmark portion of their wages—ranging from 3 per cent to 30 per cent—for the purchase of war loan bonds. Other concerns will certainly follow this lead. "The Government in giving publicity to this policy Bomewhat paradoxically concludes their, statement by observing that there is no necessity for the Gov" ernment to push a general thrift movement. Provided there is adequate production in Japan it is best to allow liberal consumption, as any forced economy is liable to depress the economic world.

"Meanwhile desperate efforts are bein<» made to hold the yen at 1/2" ' 9