JAPAN'S FINANCIAL OUTLOOK.

Colonist, Volume LXI, Issue 15047, 15 April 1919, Page 2

JAPAN'S FINANCIAL OUTLOOK.

I Mail advices from Japan, under date \ January 8, state that the financial out,look in, tnat country.is- by no. meaiis bright.,, The armistice has been responsible for the collapse of a number of mer- . chants, and, it-is thought the' bankers *. concerned will suffer more or less, l'he war has been the chief factor in the deI velopment of Japan's shipping trade, and in the remarkable advance in the price of the mercantile marine. The market is depressed, in view of the fact that British and other steamship companies are reconstituting their ocean services very rapidly. - During the !boom in September, 1917, steamships were valued at up to £100 per ton, but at present only £35 or £40 is quoted, and even these figures are nominal, as there are no buyers. While the shipping^ market was active, bankers in Japan advanced on 1 the security of vessels, taking advantage-, of the easiness of the money market then prevailing. This was especially the case in Kobe where a new • bank was established not long ago with the exclusive object of financing shinping interests. In most cases advances ■ were made to the extent of 70 per cent. ■ of the value of the vessels pledged, and even when ample security seems to have been taken, judging by the ' "boom" basiSj tho serious depreciation in tho i value of tonnage has created some peril- • ous situations. s The shipping market in Japan is do--1 cidedly weaker, the charter rate stand* ' ing at 22 yen for ocean service and 15 I yen per ton per month for. coastwise. In ■ addition to the expected release of 150,I 000 tons of Japanese vessels chartered • to the United States, Japan's trade with , South Africa, which has been greatly ' developed by the war, v has come to a standstill. It is said that owing to the ' consignees refusing to take delivery oi , the goods sent, Japanese shippers now I 1 find themselves in serious difficulties, for f it would involve them in greater loss, it - is said, if they got their goods shipped 7 back. A similar state of affairs exists s with-regard to Japan's trade with India, - and these set-backs are not helping 3 lousiness overseas. -