Page
THE CHINA MAIL, JUNE 2, 1938
Japan's Capacity To
Capacity To Finance
Finance War
By John Ahlers In The "China Press"
HOME Japanese economists have United States where, however, to-day tie war loan issues, the war loan au- Army and the Navy in Japan, actual Sande fantastic statements
obtainable for thirisations by the Japanese Parlia- Japanese war costs seem to be smal- as no war credits are
estimate, ler than the Japanese Parliament has *Japan. For the floating of war loans, ment already surpass this regards Japan's alleged capacities of
It seems reasonable to been told. Japan at present has to rely exclu- considerably.
But it has by no means been easy war financing. The most optimistic of sively on her domestic loan market. assume that if all the Japanese war
offered in the these statements is crediting Japan In 1904-1905 she was unable to raise loans authorised are actually issued, to raise the loans with the ability of spending Y.12,000
will Japanese domestic, capital market since although million annually on war expenditure more than Y.480 million war loans as within less than a year Japan
a result of complete financial exhaus- face such finacial exhaustion as she the outbreak of the war,
were much throughout four years, before becom-
faced in 1905 on the eve of the Ports- the actual loan issues tion.
smaller than those planned. ing financially exhausted.
According to Japan's most promin- mouth Peace. Such statements, however, are bas-
Thus far, however, Japan has float- There are not only the war loans un- ed merely upon estimates of eventual ent financiers, Japanese finance and
economy as a whole since the Russo- ed much smaller amounts in war loans der the Special Account of Extraor- repayments through several decades
The war dinary Military Expenditure to be their than have been authorised. Japanese War have extended out of a theoretical maximum state power and capacity, as expressed in revenue considered possible in Japan, yen of the present value, by eight or while the question of war financing through the floating of loans, in the ten times. Japan therefore should be able now to raise war loans to an first place, is obviously one not so amount approaching some Y.5,000 much of repayment but of and raising the money needed.
In order truly to define Japan's domestic bond issue capacity in the In connection with the present loan authorisations for the financial raised, but also the deficit loan, under present war, the more appropriate China War, Japan has already issu- year 1937-88, which ended on March the General Account of the Japanese method to apply seems to be to con- ed eight war loans totaling Y.1,700 31, 1988, totalled Y.2,400 million, but Budget. sider what this capacity has actually million, and the Japanese government only Y.1,500 million war loans were.
Since then, there NEW ISSUE TOTAL Y.2,230,000,000. been in the past, and what it should has been empowered by the Japanese actually issued.
to raise
addition has been only a single war loan issue amount to nowadays according to the Parliament
In 1987-88, the new bond issue in present economic and financial state Y.5,100 million in war loans, the total of Y.200 million, this in April, 1988. the of affairs in Japan.
of the war loans hitherto authorised Although it has been said that
Japan totalled Y.2,230 million, i.e. The Russo-Japanese War of 1904- by the Japanese Parliament amount- principal cause of the lagging of Ja- v.1.500 million under the Special Ac-
the count panese war expenditure behind
and Y.780 million under the 1905, on the Japanese side, was chief- ing to Y.6,800 million.
issues These Account. of estimates is the slow pace in produc- General estimate ly financed with the help of foreign In the light of our
yearly domes- tion of war materials ordered by the amount to almost thrice the loans raised in Great Britain and the Japan's present capacity of
average of domestic bond issues in the five previous years 1931-86.
66
Anding million.
B WAR LOANS TO DATE
The Mother of this sturdy
little fellow writes:
"Here is a photograph_of_my son at twelve months old. He has had 'Ovaltine' and 'Ova'tine' Rusks regularly, and I can thoroughly recommend them for building strong, healthy babies. He has already won four First Prizes and two Championships at Baby Shows, and we ows our thanks to 'Ovaltine' for making him such a bonny, healthy baby,
"
"Such a bonny, healthy baby-thanks to
Ovaltine and Ovaltine Rusks”
OVALTINE
Builds-up Body.Brain & Nerves
HOW
row often the happy mother of a sturdy, healthy baby will tell you that it is all "thanks to ‘Ovaltine.' ” It
*
new
48
of
The practice of selling govern- ment bonds in the normal way
by subscription had to be abolished by September, 1937, and since the issues have all been turned over en bloc to the Bank of Japan which en- deavours to dispose of the bonds best it can. More than 20% of the bonds taken over by the Bank Japan could not be disposed of, and the bank's holdings in government bonds in the beginning of the current financial year, 1938-39, surpassed the holdings at the outset of 1937-38 by not less than Y.467 million
The Iresort
to balance bond
Bank of Japan has had to direct inflation to this increase in government holdings, and has raised its note issue
in the same period by Y481 million. This increase in the noto issue contri- buted considerably to the general price increase in Japan, and it also forced the Bank of Japan to revise downward the gold cover prescriptions of her statute.
The largest client for the new bond issues, however, was the Deposit Bureau of the Ministry of Finance which holds under its control, and at its mercy, the billions of small savings In the Postal Savings Bank, The Deposit Bureau took over not less than Y.538 million new bonds. Postal savings-by-the-small-man-in-the street thus became one of 'the chief financial resources of the Japanese military.
COMMERCIAL 'BANKS RELUCTANT
..:
Other savings banks bought new loan bonds totaling Y.143 million, while the commercial banks, despite their enormous financial power, were very reluctant to acquire government bonds and even after much encouragement from the government bought no more than for T.152 million.
the
In the first four months of current year the Bank of Japàn©sold- altogether Y.950 million in new govern- ment bonds, and herefrom: Y.310 million to the Deposit Bureau alone.. In the sale of the remainder, banks
companies by some 80%, and indivi- duals only 18%.
is the perfect food beverage for chil-participated by 52% Insurance trust dren. 'Ovaltine is rich in the nourish- ment that keeps them happy and full of energy and builds up strong, well- formed bodies and steady nerves. It is very easy to digest.. and how they love its delicious creamy flavour. And when the first little teeth begin to appear then is the time for "Ovaltine' Rusks. Delightfully crisp and "crun-Thrift Campaign" cames in with the chy," they provide the natural biting exercise which helps to bring the teeth easily and comfortably through the gums, keeps them sound and strong and promotes the correct formation of the mouth.
But if Y450 million. the monthly average in authorized new bond issues is probably higher than the actual need for loan issues in Japan, the monthly issue of only .240 million. since January, 1988, is then obviously much lower than the need for new loans It is here where the 'so-called
purpose of creating additional sources for bond purchases in the De- posit Bureau as well as in the banks lin general.
re-
The Japanese Government insists. that the people in Japan" "in 1988-39 save billions of Yen more than they
Made from the purest unbleached wheaten flour and “Ovaltine, these de-formerly saved in normal years, and licious Rusks contain all the ressential vitamins and health-giving properties. 93001
the idea is, of course, to Invest these additional savings in new government
bonds. The people are to be made not to save, but to invest their savings, Idirectly or indirectly, in war finance.
THE CHINA MAIL, JUNE 2, 1938
Page
EGER SHOOTING INCIDENT Czech Sergeant-Major Placed Under Arrest
SANJAK PROBLEM CHINA AND NEW
Berlin Newspaper Recrimination Revived
Berlin, To-day.
Paris, To-day.
The Government of Turkey in- formed the French Government yes- terday according to a report in the "Intransigeant," that it ardently de- sires a rapid settlement of the San- jak of Alexandretta question.
JAP TARIFF
Hankow, To-day.
Referring to the new tariffs pro- claimed in Shanghai a spokesman
In French diplomatic circles it is of the Chinese Government declared The new incident at Eger where, as reported, two emphasised that contrary to the re- that this action on the part of Japan Sudeten Germans were wounded by shots fired ports in the English press yesterday is calculated to heighten her inter- by a Czech non-commissioned officer, has caus-Government has been the
this communication of the Turkish ests at the expense of other coun-
tries in China. subject ed great indignation here.
Besides further infringing upon
"Once more the merely exem- plary discipline and control of the Sudeten Germans 'has prevented unforeseeable
consequences which
the hatred stimulated among the Czech soldiers against everything that is German, might have had," says the "Berliner Tageblatt."
The "Berliner Borsenzeitung" declares, In view of this endless
it must be asked how much longer one still patience."
intends
to try
our
neither of an ultimatum nor of
an
energetic demand.-Trans-Ocean, China's customs integrity, it in-
Mr. Cordell
Hull's
Sharp Note To Japan
Washington, To-day.
terferes with China's obligations to enforce unified tariffs, the spokes- man added.
In introducing the new tariffs, Japan," he said, aims at placing her own trade in China in a dominant position.
The spokesman asserted that the Chinese Government are considering counter-measures against Japan's
sovereignty.-Central News.
chain of most serious provacations The United States has sharply expressed "increas-repeated infringement of China's
ing concern"
" at Japan's refusal to permit Americans in China to return to their proper- ties from which they had been forced by the Sino-Japanese conflict.
"That events during the last few days have not taken another course is merely due to Germany's deter-
mination to maintain peace and to The Secretary of State, Mr. Cordell Hull, has in-
the high sense of European respon- sibility of the Reich.
"We expect, however, that these will in future not be exposed to an undue strain."-Trans-Ocean.
Q. C. TRANSFERRED
Eger, To-day.
The Czech officer in command of the battalion to which Sergeant Major Toman, (who wounded the two Sudeten Germans) belonged
has been transferred to another garrison as a disciplinary measure.
structed Mr. Joseph Grew, Ambassador in Tokyo, to present a note expressing the Ameri- can view to General Ugaki, the new Foreign Minister.
CIVILIAN BOMBING IN SPAIN
Paris, To-day, The Foreign Minister, M. Bonnet, received the British Ambassador
here yesterday afternoon.
According to well informed cir-
to make an attempt to induce the
The note says: "The problem of enabling American cles the French Government intends citizens to re-enter and possess their properties Spanish insurgents to cease large whence they had been excluded by the Japan-scale bombardments of Spanish ese military, and of which the Japanese mili- government towns. tary have been and, in some cases, are still in plans a similar move in Burgos. occupation, is giving the United States Govern- Trans-Ocean. ment increasing concern.
Toman himself was immediately placed under arrest. The condition "It is difficult to perceive the of the wounded Germans, Josef warrant for continued placing by Kraus and Otto Bayer, hás improv-the Japanese authorities of ob-
ed so far that their recovery is stacles in the way of return by now regarded as certain.-Trans-Americans who have legitimate Ocean.
reasons for proceeding to the areas jin question."
The United States specifically that the University of
IMMEDIATE STEPS REQUESTED
It is also asserted that the Vatican
ON WITHDRAWAL OF AGENTS
demands PAUL YU-PING Shanghai be returned to the Amer- tion by the Japanese forces to from insurgent territory, stated that
MGR.
BOUND FOR HOME
ican missionary societies.
UNIVERSITY SEIZURE
"That the Japanese Government will take immediate steps in keep-
London, To-day. ing with such assurances and will Mr. Oliver Stanley, answering a cause the return of the Shanghai question in the House of Commons University premises and other yesterday, as to whether British American property under occupa trade agents had been withdrawn
their rightful owners, and that they would not be withdrawn.-
"The Japanese Government will Trans-Ocean. order the removal of obstructions interposed by the Japanese au- The University, the note adds, thorities in China against the re- has been occupied by Japanese turn by American nationals to military and naval units since the places such as those mentioned in areas under Japanese military oc- Catholics who attended the Eu-sity has been used as a barracks
The note alleges that the Univer-cupation."-Reuter. charistic Congress in Budapest, is now
military offices, and the on his way home again passing through Czechoslovakia, campus as an airfleld.
Supplementary runways are be- ing constructed in the adjacent
Prague, To-day.
The Catholic Bishop of Nan- king, Monsignor Paul Yu-Ping, originally of Manchukuo and lead- er of the delegation of 20 Chinese
outbreak of hostilities.
and
On Tuesday the Bishop visited the town of Bruenn, where he held a lecture at the Komensky Universi-golf course, which has been con- verted by the Japanese into a mili- tary flying field.
ty about religious and cultural con- ditions in China.
Paul Yu-
On Tuesday evening Ping arrived in Prague and paid a
visit to the Cardinal Archbishop,
taries.
LOOTING ALLEGED
EUROPEAN'S CAPTURE
HORRIFIED WHEN SHE WAS WEIGHED
Took off 31 lbs. with Kruschen
Why continue to be fat? Why con- tinue to be afraid to step on a weigh- ing machine for fear of what it may show? Once you start on Kruschen, being weighed is no longer an ordeal, but a pleasure. Read how one woman is losing weight and gaining health by taking Kruschen Salts:-
Sentence of six months' hard "I had become very fat (I am only labour was imposed on Wong Kim-29), depressed, and always had in- tuk, 55, unemployed, by Mr. N. plucked up courage to have myself digestion and palpitation. At last I
Dr. Kaspar and other Church digni- The note adds that during the Lockhart Smith at the Kowloon weighed, and, to my horror, I was 13 Japanese occupation, several build-Police Court this morning, for lol-stone 11 lbs. This was four months The Minister and Plenipotentiary ings were damaged and the tering on Mr. Minshall's verandah, ago, and now I am pleased to inform of the Republic of China, Long majority looted.
at No. 286, Prince Edward Road, at you that I am 11 stone 8 lbs. I have not dieted to any great extent, except Liang gave a lunch yesterday in "My Government is confident 10.55 p.m. yesterday.
that I eat brown bread instead of honour of the Bishop of Nanking, that the Japanese Government can- Inspector Russell said that Mr. white, and have cut out potatoes and Since I purchased my at which representatives of the not but concede that the infringe- Minshall surprised defendant on his fried foods. Czechoslovakian Foreign Office ment of and interference with verandah and chased him towards first bottle of Kruschen Salts, I have watched my weight decrease each with the Chief of the political sec- American rights in China by the the garden gate. Just as defendant week." (Mrs.) J. R. W. tion, Dr. Krano, and many other Japanese authorities, involved in reached the gate, the house boy, The six salts in Kruschen assist the prominent persons were present. the situation to which attention is returning home, opened the gate internal organs to throw off each day
From Prague Yu-Ping will go to herein brought, are contrary to the and arrested him.
the wastage and poisons that encum- Marseilles where he will take a repeated assurances by the Japan- Defendant had three previous ber the system. Then, little by little, that ugly fat goes slowly, yes, but steamer or for: Hankow.-Trans-ese Government that American convictions for larceny and was, a surely. Ocean.
rights will be respected:
.
returned banishee..........