THE CH
AUGUST
ECONOMICS OF THE WAR German Experts Predict Inevitable Inflation
Most Expensive War In Nation's History
Frankfurt, To-day.
"Japan is now waging the most expensive war in
her history," writes "Frankfurter Zeitung,' yesterday, in the course of an article dealing with Japan's financial situation. •
The paper recalls that the Sino-Japanese War of 1894-95, cost 200 million yen, the Russo-Japan- ese War of 1904-5, about 2 million yen and that the conflict which broke out in connection with the "Manchurian Incident," in September, 1931, necessitated an expenditure of between 1,400 and 1,500 million yen.
DUTCH-
DIPLOMAT
SERIOUSLY INJURED
Berlin, To-day.
The Dutch Minister to Berlin, Dr. Ridder Van Rappard, was rushed to hospital yesterday with a fractured skull and internal in- juries, received in a motor car ac- cident last night as Dr. Rappard was returning to Berlin after visit to Holland.-Reuter,
B.O.T. INDEX OF PRODUCTION
London, To-day.
NEW IMPERIAL
FLYING BOATS
London, To-day.
It is expected that the “Cabot" first of eight strengthened Em- pire flying boats now in construc- tion for the Imperial Airways will
emerge from the Short factory very soon.
She and her sister craft can be loaded to a gross weight-of 53,000 pounds, 12,500 pounds more than standing Empire flying boats and may be fuelled in midair.
They will be employed on trans- Atlantic flights and over the The Board of Trade index of in-Tasman Sea between Australia and
New Zealand.'
The paper goes on to say that if current national revenue withindustrial activity in the June quar- the present war continues for the next 12 months. To achieve ter was 7.8% less than in the pro- The "Cabot" is listed to make some months, costs will be four or this aim, "savings" are already be-ceeding quarter and 8.7% less than two return flights between Eng- five times as high. Since the out-ing compulsorily deducted from the in the second quarter of last year land and New York, going by way break of war with China in July, earnings of every Japanese citizen-the latest index number based of Foynes, Botwood and Montreal 1937, the Japanese Government and extensive reductions imposed on the quarterly average for 1930 before the end of October. has been authorised to spend 7,400 on consumption.-Trans-Ocean. 'being 122.1.-British Wireless.
million yen on purposes connected
with it and this sum, it is anti- cipated, will
suffice to cover war
expenses till March, 1939. But, i according to the "Frankfurter Zeitung," even if this fact be taken into consideration, and even ad- mitting that between 1981 and 1934, the exchange value of yen decreased by two thirds, and that wholesale prices in Japan are to- day at least twice as high as ́ be-j fore the outbreak of war, it is none the less incontestable that Japan never has been confronted by such a huge financial task as is now facing her.
The sum of 7,400 million yen, which the war is provisionally es- timated to cost, amounts to con- siderably more than one third of the national income, which in 1937 was 18, or according to the most optimistic calculations, 20 millions of yen.
3
INFLATION CERTAIN
The "Frankfurter Zeitung," goes on to say that even if the war bud- get should not exceed the estimate of 7,400 millions, the balance of 4,700 millions would have to be
raised before March, 1989. On the other hand, the capital required for the industrial development of Ja- pan is estimated by the Bank of Japan, at 5 million yen for the present year alone.
The paper says that in view of these sums, it is evident that mere control of prices and of the capital market will not suffice to prevent inflation. Hence the Japanese Government has created a National Savings Fund into which it hopes to divert 3 millions of yen from
tish
Wireless.
ay to travel!
That's the way
air Until we actually experienced an ||trip-enjoyed the comfort,⠀⠀⠀ speed and
depeħdability of modern air travel-wo: But were against our husbands flying, now, we urge them to travel by air, wherever they go, on business or pleasure, because they're back home. in one fourth usual time-and feeling, fit, too !!!
Bri-
SIR JOHN SIMON
2
IN LONDON
London, To-day.
The Chancellor of the Exche quer, Sir John Simon who
been spending
has his holiday In
North Berwick, yesterday returned to London to transsot, business at
took the Interview
the
Sir John. Simon,
tely.
in the North British Wireless.
CHINA NATIONAL AVIATION CORPORATION
GENERAL TRAFF,
AGENTS FOR