JAPAN'S NEW DIFFICULTIES.

Dominion, Volume 1, Issue 160, 31 March 1908, Page 11

JAPAN'S NEW DIFFICULTIES.

FINANCE AND THE LABOUR QTJES TION (By F. A M'KENZIE, in the "Daily . Mail ") Japan:ms - to-day faced with , two . groa , problems^finance.. and the labour,\questioi i: At- tho,-beginning Pf. the Russo-Japanes •.•••war ••the- Government .instituted anew an ■ - extraordinary'; system '.of . war taxatior . which made Japan, the most l highly, taxe country, in proportion to -mcome, of .' an ■ • ; on; earth; ;'iTaxes were,: instituted on., almos everything, even railway, tickets not ,bcin ;v-^ 'SSme^tlihe';'Statfi, fmon< ipolies;- 1 such as' tho monopoly of {obaccc : : were .pushed- forward to make great .profit i - for.vtho < ExchequerAs >.a*result ;-,of thes ■ .. measures the national, income was - increase "from ktwenty-two. to :; forty-two l million! / THis taxation i added seriously to the cost c < living. ■ .The (burden was . looked upon as / temporary one; and was cheerfully borno b therivpeople—ivho;.;.are:/> among- ..the... mos patjent; patriotic, and'loyal: in the world.- ..•.. .TVhen :.tho • tfar.> ended tho Government 1 r< solved to continue tho extra taxation witli . -out abatemont, .and.'it endures fo this daj '•.Ijjlt' is ;how;to : increaseVthe taiation, for 'e'vei A ity is not: enough to meet , the cost of * the ! nc\ schemes ,of military, naval, and commercin • ■ :expansion>- Tho: national 'income/-from ,-al •. i - the, Regular sonrccs was" last: year s forty-tw. millions j; a' iyear/Xbut;:th e>na tioriai ' expendi . - .ture,.'Came :to ~wcll. over. sixty millions. • 'In 1907 the Go\ornmcnt could fall bad ■ ..upon - a .; substantial ; balance from the wa :*■■■■ issues nand, tho. payment . for tho Russiai prisoners.: This• reservo .money ;■ is , nov i ../largely exhausted.r. The nationalisation o .the.'railwaysJhas.'added- to the .financial ;«n- ---; barrassment." ■; Korea, and''Manchuria .'con .tmuu, to j be! heavy and -increasing ■ burden; to the'nation 1 is far ;froii .. favourable.. -; The military /and- naval' leader; , have consented ..to a-/ slight .re , iduction.-in :their but the outla; the ,:War., Eminent • financiers like Baroi . v Shibuiawa.and-Mr., Soycda have. in- the mos . - emphatic-. manner : • warned the Governmeni Aping V.tliem .. ,To -ijieet::tho comingvoiitlav vbonds are 'to hi ..: floated-in-the home market,:-and there is;t< . .hot; considerable ; new- .taxation.':.-'lCerose.no sake;?. tobacco.': and sugar- - are all to . -bcai heavier b\irdcfts 1 '', ; , ' deficiency'"coiilc . be made, up by, floating foreign loans..; Tim • v, is '.no'-'longer • so., ;money market! .( hav6>becomo uneasy tho threaten 1 .: ing" militarism . revealed in tho.s Budgets o vi-thd. pail two years. " .Chinese Five per, Cent: stand».to-day, 103; Japanese,Fiv< V" The': mdstcoptimibtii niiancieft'woidd^no^ - • ,-posd.s4- new ;foroigiv loan.. ■,The. Manchuriai Railways issue; was. an open' failure,: althougl ■ .only - half*of.-, the ■ money really needed wa; asked' f6f; ~iTl)0, Japanese, Financer Commis sioners who iwere nn Europe- last year re turned .home v disappointed. > i "Yon = can • res assured;'.'i one.'.ofrthcmtfwas .told' by a .:lead , ing /financial- authority,'. "that. Europe ha; not'"another -sovereign' to lend : Japan- for in creased; 1 armaments "i - „ < ' .;*The .monetary difficulties ,'liavp . been l ' in oreasedfi.by..' .tho ■■ disastrous results of;. com ;';::;.inercial in.^li^siimmer' of;!l907 V iiijdV?insitii <. .tionsjfailcd,.,, .Tho : situation is. such', to-daj , that (the- Government will, soon' bo:;faoodb' pn'fefpfj tfrb IfomustHeither/Vre duce,expenditure, and thus limit, some, of ll; :>/ pnerish'M/schemesV br^t' ■ /aasaggressive.- campaign:: agamst. its- wealthy . tteighbouf, China.. It is this which may ex plain the - Japanese breaches: of the Oper ■ Door,.'policy. ..The .Government,'-no .' doubt afford. ,thdtVwould expand its commorce .vaud .irrt pf-ovq itsrnational income ' « ' ,The i, financial has. led in- turn ■ tt .: the 'labour l ''problem i- J V;Th inev i talil e' -resi 1J .. of: high .taxation has been • to- raise the cosl ,;"• of ( :'iliVing;«::.lt :is., probably•. an.j.uuderrdtatc- . - raont; that- the cost living.' in -Japan "haf . doubled,in ; a. -few - One outcome ol :thia' rise .Has been:i a series' . of i i fornndablc ■ strikes) ' particularly-'? among':'vthe --. minersstrikes. ..often".accompanied'':by 'and .. ; loss of . life;;. In Apnl last soveral hundred • minors at; t.he:llorolai Coal .3ljne : attempted .._d6stfty |; the polico,:,wounding -five of them, and ■ set fire , to .the' mine <-offices>- and the go-downs, "using • dynamite to destrov the..premises. ■' :■ ; ','At::the.Ashio Copper. Mine the men rose. : - cut .down;the .telegraph -lines,'Jextinguished -- aljxtlie lights in the pits, blew un tho watchliouses'iwithhdynamite;jandi itart»d. a gpnera 1 • • ■..was into 'the watchi,. hoiise,.-and-.blow 'it-'to'.atoms.: 'iTho 'rioters :i.'^:wfere.--^.thoroughly. : Vor^anis(:d;:'>;'and*;;^ . : plies <,6f, kerosene, and:-explosives for their Mork.. "Irr, tho orfd, a heavy: body::of i troops and ff over. 300 ..polipo had-|o ;go .and: restore ..,) order. ; .-y ln . this inot no j fewer:..than- 830 houses Were, burnt'and ;d;/nunlber. of. lives were lost : :-;At:ithq^'Besshi: GoppervJline; :in' June, last; . .there.: werei- serious - disturbances and grave v. fights.,involving ,addirectt t loss, of £200,000Offices, wore set; on . fire,., and ..-damage - done ~ ".whlchjit;will,take.a .year., to repair.'. In- Sep- . tcmber/last some thousands. of dyemj; opera- , /tives: : went.on strike.' . An epidemic, of "striken ratiihrpu^KrJmany iiidu'stries:'-The'.:' ."'men : v have;.generally .obtained, large -increases' of . .wafecsy. in. somo/cascs,:as- much ;as'.'" 45 - per ■-cent. </• >v', : gy V ; " ; v ]i' i j®'EM-'.^incrca~sd'.y;ii)' : - :^-wageSy ; hitting - Jff.p,?npse;;:m^ i-.inpst>.yital:;p6int.-.'-."An attempt: was' made to , cheap labour vJas't; jear;. ; by ampbrtihg a,'number .of/ Chinese coolics:.- -.The ; Govern--1 ment()nickly. coolies :''■ oxuplled,-; with the accompaniment;• of -considerablo. indignity- -. and > suffering. ,'Japap '• »<>: liesitatidftV:in ■ prdfcbctiii'g: hefsolf fioia ;,ohcaper, .labour, - although she 'to having similar, protection for-1 her peonle , t t ■. labour .question, raises' yot another V "lapari's: success as a * manufacturing . 5 1 W on ,has_so .faribren' larcely^■■ duo to.'the ,< Wcyag e ' s '^%f.--her:vtoilers. -The"cotton "'mills, ; with an unlimited supply of women" workers i. at. fivepence a day, and children at a few :-.: pence;. a^week, tho>. factories with ' skilled , men - earning ; an average wag© of 60 sen (15d) a daj, are able to turn out goods . yeryvcheaplj. .The Japanese working;man, ... cpmion of .'all'competent authorities so...capablo.'a I ;handler'-:of Jnja' as, tho European. : Generally speak- ■. .ing):,it (takes-, two < Japanese men to: do 'thc : ; wprk;,of: one, European whore much' macliin- -: ery .ls .used... Japanoso. deftness lies largeh .' in handicrafts. ■ ■ : ' . So. long, as, human material was cheap thif ■v. : did?'not .matter mtich. • But now wo hav< ; labour, appreciating all tho time, until ir ■ somo. districts known to - me: two shilling : a 'day. have been paid.- Firms that land good at,, Japanese ports,are already.becoming louc in their complaints of the cost of handhflt ,•; freight. .. vTho-; Japahespmanufacturer'v tliul finds - his labour bill growing larger,- whib ■. his:-,direct -as doublo ior Itreble ■wlia it once nas -At „the same time a -new: commercial'riva ;' " i s '/,ansihg;'Vi 1 The; factory is 'being j'n trpduced Jnto parts of - China, especiall; around; the'.Yangtso .V.alley,,: and the. Chines: are I ,beginning to produco. on a considerabl: .scale certain lines of goods in, competitioi ; :'.-wjtli,.-Japan. In China, labour ,is still pai( a. minimum wage and taxation is low. Tin Cpinesey-worker: is,; at least , equal:. to ( tin . Japanese. What, China • has lacked up t< now been Governiticnt . direction anc ■ skilled Government aid in -fih.mcc, in secur ' and in getting: and keep lng-.customers. Dear 'high' taxa tion threaten Japan . more ■ nearly and mori seriously ..than any armada from foreigi '. lands. . .y,.., ; ' --i 1 It. must not be forgotten . that thi Japaiieae ,trader will - always have, whethe labour be'-'scarce or. plentiful, ; ono > grea source of,strength at-his back. Tho mos efScient. trade ;orKanisatioil in Japan is tin . Government itself; It' opens 'up new. mar , kets,: it,backs up; manufacturers ■ and/ mer ..chants in every possible'jiwhy, and it faster ihdiis^try;,after' a manner'-which economist of the' old, school .".would term dry ."nursing ■ . It, has commercial/pupils all over the worl: seeking ..information,Vantl< this information i fully, put at the .disposal of- the right par ti«!Si-T-Its: Consuls: are .the:advance agent of. commerce. Its'' highest statesmen in i ■ terest■'themselves"in trade' triumphs.; Japa; ' believes and acts' on its: Relief' that'success ful commerce is essential," to/national'exist enoft. - ' i