Trade With Japan

Dominion, Volume 29, Issue 208, 30 May 1936, Page 13

Trade With Japan

Sir, —I notice that a correspondent has commented on my letter which appeared in your issue of Saturday, May 16, under the above heading. I fail to see that the dumping of Japanese goods in this country raises the standard of living. To a certain extent it is beneficial to purchase goods at a cheaper price, but when the commodity is inferior, one cannot say that it is economical. For instance. a man behind a counter does not raise his standard of living nor do the returns of the firm go up, when he or they have to sell cheap garments, materials or pther commodities. No doubt more articles are sold, but the actual profit on these is so small that it shows no return. What does this firm have to do? Its overhead is normal and does not decrease, therefore, it finds that it has either to dispense with the man behind the counter or reduce his salary. This man’s standard of living does not go up but down. This rebounds the manufacturer and trade generally;

Apparently our correspondent champions Japan, The British Empire would come to a sorry pass if we had to rely on Japan for our everyday needs. We appreciate the fact that Japan at the present day cannot grow enough wool for her own requirements, but the day will come, as in everything else, when she will be able to do this and supply other markets too. We know that she suffers from climatic conditions as regards wool producing, but she must be overcoming this, otherwise why does she buy stud sheep? Apparently our correspondent forgets that she has interests in North Chi_na covering vast areas. One of the reasons why Britain cannot supply her own wool for her own requirements is due mainly to the fact of the industrial revolution. As regards her climate, if our reader should at any time visit the South Downs or the Midlands, he will fin'd that these are admirable sheep countries. If anything, England has more sheep than New Zealand, but these are inadequate to supply her enormous population. With regard to. the “manufacture of synthetic wool being uneconomical,” I agree that in the first place this was the case, but, like everything else, these difficulties have been overcome. If the produced and finished article was too costly, why is it that France exported during 1935 3,796,0001 b. of staple fibre yarns, which can be used in the production of artificial wool? Germany produced during 1935 approximately '57,000,000 kilogrammes, and has recently floated three huge companies for the sole purpose of manufacturing this type of yarn, which undoubtedly .will be used in producing artificial wool. Japan is also producing this type of material, and during 1935 she produced approximately 16.000,0001 b., and she has a possible expansion of 25,000.0001 b. Although Japan and other countries are producing staple fibre, it is not necessary that it should be used in the manufacture of artificial wool only, but this is the possibility of it. If this should go on perhaps it will not be necessary for Japan to grow her own wool or to purchase it from .elsewhere. One must not forget that only ten years ago artificial silk was looked upon with disfavour, anil it was unanimously said that it would be a failure. What is the position to-day- Real silk is scarcely sold, artificial silks having supplanted this market. Japanese butter, in comparison with that made in New Zealand, is at the present moment of inferior quality, but we understand that they are employing Danish experts, who will no doubt raise the quality of this commodity, and then Japan, with her deflated currency, can easily compete with New Zealand.—l am, etc., ADVANCE. ■Wellington. May 2L