RISE OF INDUSTRY

Evening Post, Issue 12, 14 July 1936, Page 4

RISE OF INDUSTRY

NEW SURVEY OP

JAPAN

CAUSES OF PROGRESS

In ■ 3930 raw .wool in quantity j 115,560,0001b was imported into Japan, and in 1935 243,439,0001b, says a writer in the "Sydney Morning Herald." -These ; figures are taken from. "Japanese Trade i and Industry," a work compiled by Mitsubishi Economic Research. Bureau, of Tokio. "Australia," the work states, "practically enjoys a monopoly in Japanese wool imports, though imports from South America, the Union of South Africa, and New Zealand, have shown slight increases since 1932. The importation of wool from Central and South America and South Africa was contemplated in 1934 as a matter of policy, and a scheme for reduction in freights, and for adjusting the, difference in prices was adopted withifunds contributed by general exporters and the Japan Woollen Industry Association, V/.it the results proved discouraging."

The work is a survey of the Japanese economic position, and furnishes an account of the factors and influences which have brought about the extraordinary expansion of trade and industry since 1931. As to the impediments raised by other countries, the authors consider that it is becoming increasingly evident that no matter how high the artificial trade barriers, low cost of production and superior quality cannot fail to compete successfuly in the world's markets.

The hope is expressea that other nations might come to recognise the problem of over-population in Japan, and to understand her effort in attempting to solve the problem, .ana it is stressea that Japan being debarred from all possibility of relieving the congestion by emigration to other; lands, has been compelled to seek an antidote in intensified indus-; trialisation. The extent of over-pqpu- ; lationis in the fact that, the population . of Japan proper is 69,251,000, .a 50 per cent, increase in sixty-three years, and; the population of the whole Empire j 97,695;000. .■:';' , • LACKS RAW JVIATERIALS. Japan is lacking in raw materials; for her manufacturing industries, arid; must1 depend on the importation on a large scale of iron, cotton, wool, and oil. She seeks, an outlet fof her manu-j factures and products -in the surround-; ing continents and islands, so that she' is obviously interested in the removal of excessive tariff barriers. "There-j fore," the survey announces, "it is not | unnataral that Japan should be a | whole-hearted supporter of the. old and time-honoured British free trade doctrine." '■■ \ ■/■.'■" ' - '■ , -|

Her reimposition of the gold embargo! in 1932 proved to be a; turning point in the general economic situation of the country-* The diminution in the im-| port of- manufactured goods and the I growing volume of- .export trade brought about a great* industrial,-■ expansion. Although textile goods still took the greatest share in the export "trade, there was a relatively greater advance in-; machinery, hardware, I chemicals,.and other goods which had I previously not figured in Japanese pro-1 duction. The first step was to take up the manufacture of goods, the import of which had become too expensive on j account of Ahe. low lvalue* of -..the yen, j : and. build up an export trade later on! the tea Sis 'Irt pneap Abduction costs. - The phenomenal.^expansion -of the Japanese rayon- industry furnishes an . example.- 5 Th'ougti of -Feeent'lnception,-'; the; industry, the survey 'Claims,' now ; occupies.the foremost position in world production. How has this position been achieved? By extremely low cpsts of production, it is admitted. Low production costs are in a great measure due to the continuous expansion of the country in industry, and in population. A new'factor has alsp'appeared in the' substantial cheapening of the cost of funds required"for industry. The financial; burden of industry has been greatly reduced by the decline in interest rates on bank loans and debentures. ' ■ :

The survey points out that Japanese industry today offers an example of production costs having been practically unaffected by the very sharp depreciation,of the national currency, except in so far as they are dependent on imported materials. In many, industries manufacturing costs have been substantially lowered owing to increased production, the installation of new" machinery, and a reduction in wages. Nevertheless, it is: noted that over-production is : particularly acute in. the rail and. steel industries, the effects of a curtailment of output being largely nullified by the expansion of producing capacity and the establishment of new enterprises. LABOUR AND WAGES. To understand the,wages cost the labour force should be considered. The ! latest statistics are .those for 1930, and they, give a working population of 5,414,000 in industrial pursuits, and it is pointed out that in improving the technical standard of factory equipment Japanese manufacturers are not deterred by the hostile attitude of labour. The growing population and the expansion of markets make the acquisition of up-to-date machinery a reasonable proposition.1 The Japanese I worker is industrious by nature, skilled 1 in technique, and able to work for 1 long hours. The cost of labour is very \ 1 moderate owing to social and economic conditions, and it appears to the come pilers of the survey that this condition s is to a great extent responsible for the ■■ recent development of Japanese indus--1 try, particularly as working efficiency 1 is increasing. ■

As to wages, take the cotton-spinning industry, one-sixth of the scale of wages in the United States, and onethird of that of Great Britain. In the knitting industi-y- "workers are content with 20 sen (3£d) a day in the case of side "jobs." In view of the density of population, and the restricted opportunities for emigration, Japanese labour has to be content with a lower standard of living conditions and is obliged to \vr>rk hard,to earn a livelihood. Labour conditions are determined by the standard of increase in agriculture, which constitutes the backbone of the country. The earnings of farmers are very small, even lower than the income of the workers in the cities. Here lies the difficulty of artificially raising the' living standard of industrial operatives. Welfare work and benevolent institutions, however, j supplement the regular rate of wages, and often involve a high outlay in proportion to the direct cost of nominal wages. ] '."'■.■••, As to the present attitude of labour, it is stated in '.the survey that although a labour movement influenced by Socialist doctrines appeared in Japan following the World , War, "since the Manchurian incident these doctrines have been discarded in,favour of nationalism. . . . There has been a surprising diminution in strikes which must be partly attributed to the new national outlook.".. Between 1929 and ; 1933 the average wage of industries (all manufacturing) fell from 2.52 d per 'hour to 2.16 d per hour.