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These houses conduct a general mercantile business in exports, imports, shipping and insurance. The competition encountered is mainly that of Japanese merchants, but there was considerable competition hefore the war from local German firms, who were present in considerable numbers, and pursued their usual methods of cutting margins, selling on long credit, &c. The manager of the Hong Kong and Shanghai Banking Corporation at Yokohama, writes as follows
-
"As to how far the present efforts of British merchants in Japan are likely to be successful in securing, after the war, the trade formerly enjoyed by Germans, I should say that they would be more likely to secure and consolidate a larger share of the trade if British manufacturers confine them- selves to British firms as agents; if British steamship companies charge rates on goods shipped from British ports not higher than the rates charged on goods from Continental ports; if British financial houses exercised more discrimination or commercial patriotism in their dealings with aliens; and if British manufacturers would take a share of the risk as they do in the home trade consequent upon the granting of credit facilities, and have on the spot, where necessary, a technical expert working under the direction of their agents until customers became acquainted with the goods to be disposed of." During the war America is supplying many lines of manufactured goods. principally iron and steel, machinery and hardware, which were formerly obtained from the United Kingdom, but a considerable share of this increased trade is in the hands of British merchants, and it is probable that a return to normal conditions in Europe will see the re-entry of British manufacturers in the trade. The increased demand for Japanese manufactures has led to considerable increase in the means of production, and the necessary plant and equipment, hitherto obtained from abroad, bas, to a considerable extent, been supplied by Japan herself. "Necessity is the mother of invention," and Japanese manufacturers will have learnt a great deal during the time that they have been thrown back upon their own resources.
2. JAPAN AS AN INDUSTRIAL AND COMMERCIAL COMPETITOR IN THE FAR EAST AND ELSEWHERE.
Sources of Information. The bulk of the statistical matter contained in this section has been obtained from :---
"The Financial and Economical Annual of Japan," 1915 and 1916, issued by
the Department of Finance.
"The Recent Economic Development of Japan," 1913, published by the Bank
of Japan.
Statistical Report of the Department of Agriculture and Commerce," 1916,
Japan.
!
The rapid strides made by Japanese manufacturing industries of recent years, and the growth of the export trade in manufactured articles to the countries of the Far East and also to Europe, renders an examination of Japanese industrial and For the sake of commercial power particularly opportune at the present moment. convenience, the following grouping has been adopted :--
A. A brief study of Japanese competing industries, viz.
(1) Textile industries.
(2) The mining and metal manufacturing industry.
(3) Ceramics, lacquer-ware, &c.
(4) Miscellaneous industries.
B. Japanese competition in cotton textiles in Eastern markets.
C. Shipping.
D. Active Government encouragement of foreign trade.
A. The textile industry is the most important industry in Japan, and comprises the spinning and weaving of cotton, wool, silk, and to a lesser extent hemp.
Cotton. The cotton industry, from the point of view of future competition with Great Britain, is the most important of all. Japan resembles the United Kingdom in that she imports the whole of her raw cotton and depends upon foreign markets for the sale of the greater portion of her manufactured goods. The industry is centred in Osaka, the Manchester of Japan.
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The imports of raw cotton in 1914 were drawu from the following countries:---
Olina
Egypt
India
United States
French Indo-China
Other Countries
Total
£
14,847,800
5,509,100
1,199,500
584,400
163,200
49,600
- £22,353,600
It is noteworthy that whereas in former years the bulk of the supplies consisted of short-stapled Chinese cotton, the imports from India and the United States of recent years have advanced rapidly, and these countries now constitute the main sources of supply. A considerable proportion of the small crop of long-stapled cotton grown in India is purchased by Japan, and ber increasing imports of American and Egyptian cottons clearly prove that Japanese mills are spinning finer and finer counts. In consequence of the abnormally high Atlantic freights due to the war, and the low charges maintained on Japanese subsidised vessels, American cotton has recently been laid down in Japan at 73d. per lb. as compared with 81d. per lb. in Liverpool! While this relative advantage will probably be removed on the resumption of normal conditions, Japanese shipping subsidies will always tend to re-act in favour of low laying-down costs of raw materials in Japan.
Cotton SpinningThe following statistics compiled by the Japan Cotton Spinners* Association give a fairly accurate idea of the strength and essential details of the Japanese cotton spinning industry :—
The figures are for the month of December 1915 :---
Working spindles: ring, 2,602,475; mule, 38,894; total, 2,641,369.
Working days per month, 26.1.
Working hours per day, 22-37.
Average count of yarn: 21 7 on rings; 30-4 on mules.
Yarn produced during the whole year 1915: ring, 696,747,242 lbs.; mule,
2,978,156 lbs., total, 699,725,398 lbs.
Average per day per spindle in lbs. ring 92; mule, 27.
Cotton consumed in lbs. (whole year 1915), 808,156,198.
Cotton fly in lbs. (whole year 1915), 94,544,681.
Waste yarn in lbs. (whole year 1915), 4,483,702.
Actual horse power used, 72,569.
Number of operatives: male, 24,304; female, 95,447; total, 110,751.
Average wages per hand per day in pence: male, 12.35; female, 8·27.
Weaving. It is difficult to ascertain with accuracy the number of power looms in Japan, as the official statistics group all the looms in the country together. Cotton weaving by power loom is largely in the hands of the spinning companies which usually conduct both operations.
The Japan Cotton Spinners' Association gives the following figures for 1914--
Companies, number
Power looms
37
Working days per month
hours per day
>
Production per 12 months, yards
Average per loom per day
Operatives, male, number
"
female
Wages per day, male, pence
57
female
11
454,901,674**
15
25,106
26.3
13.23
57·40*
3,416
21,993
12.76
9
I
NOTE. These figures appear to be excessive for the number of looms given, and this leads to the comelusion that the number of looms in Japan are in excess of the number given above.
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