JAPAN AND HIGH COSTS

Evening Post, Volume CIV, Issue 91, 14 October 1922, Page 12

JAPAN AND HIGH COSTS

REGULATING COMMODITY PRICES,

Japan is making a gradual effort to reduce the high cost of living, and although a number of high tariff suggestions have been put forward, the Government of Premier Kato has taken a firm stand against this policy, particularly in the»matter of necessities, according to Tadao Wikawa, Acting Japanese Financial Commissioner to the United States. .

Under the head of necessities come food, cotton, and iron in the order of their economic importance. Luxuries include everything regarded as unnecessary to a livelihood. Higher tariffs, it is expected, will be imposed on some of the luxuries. At a recent general meeting of Chambers of Commerce throughout Japan a resolution was adopted for a campaign to inculcate habits of thrift among the Japanese, states the "New York.Times." Representatives will meet bi-monthly to promote this programme. Imports are gradually, declining. The first six months of the year is the period when imports usually exceed exports, and the last six months the period in which exports increase over imports. A plan for raising additional Government revenues by enacting a property tax, which was considered by a Government Committee, has been inferentially denied in the Premier's statement that no further taxes shall be levied in any form.

The programme of tax reduction will depend largely on how much can be saved by Government economies resulting from the policy of disarmament -and administrative reorganisation. The..expenses at present of running the' Government of Japan are almost as heavy as during the war. As the first step in regulating commodity prices - Premier Kato's Government is expected'to attempt a reduction of railroad and ocean freight rates. ■

The Japanese .Government in following out the naval programme has dropped about 1500 workingirien from one of the navy yards. Other navy yards and military arsenals will follow this exarhple. A considerable number of naval officers will be forced to retire. It has been stated unofficially that but few young officers, ranking- as captain or lower, will be included.' On the otherhand, many civil officers will be discharged on account of the reduction in Government expenses. To avoid a serious unemployment situation it is believed that the Government will pay a special bonus to all discharged army, n&vy, and Civilian employees. The Japanese news' papers are commenting on the fact that these older officers are awaiting with more or less, impatience .the retirement order, as they receive two or three years' pay, which would supply them with sufficient capital to start in business.-