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The reconstruction from the present slump will almost certainly teach the lesson of concentration rather than diversification.
The very rationalisation movement at present so much discussed will help in this direction by discouraging dispersal of energy and encouraging the purchase of new plant.
How seriously the difficulties of rehabilitation are regarded, is shown by the recent appointment of an Industrial Investigation Committee," with executive powers, to consist of twenty members, including the Prime Minister and two other Cabinet Ministers.
Parallel to the work of bringing about industrial mergers, the Government are encouraging bank amalgamations, the number of banks having been halved in the last five years and, further, u Banking Syndicate to facilitate large scale schemes of rationalisa- tion is projected. The rationalisation in many cases will mean considerable destruction of capital owing to the extravagance of the boom years, and financial arrangement to meet a revival of trade will not be too easy. So, although the will to self-sufficiency is present, conditions may be such that a trade revival will not be met by the rationalised industry.
LABOUR.
35. The overhead charges of Japanese factories are high, and only hard work, long hours, and low wages have kept machinery prices down. Trade unionism is at present not a strong depart- ment of Japanese industry, but it is certainly gaining ground, and education of the masses will speed up the process. There is con- siderable anxiety in industrial circles lest trades union develop- ment should get on to wrong lines. The first and most direct sign of development, however, being the steady improvement in conditions of labour and wages, is all to the good. In fifteen years the wage rate has nearly quadrupled, and to-day is in the region of Yen 1.80 a day average. Current rates for mechanics are, according to information supplied to us, as follows:-
STANDARD DAILY RATES OF WAGES FOR METAL WORKING INDUSTRIES IN JAPAN.
The following rates are for an 8-hour day-
Workman.
Foreman.
Ten.
Yen,
Pattern Makers
3.00
5.00
Moulders
2.00
5.50
Planers
2.00
5.00
Millers
2.00
3.30
Turners
1.50
3.30
Grinders
2.00
5.00
Fitters
2.00
3.30
General Labourers
2.00
5.15
(The value of the Yen is from 2s. 01d. to 28. Old.)
After 1 year
3 years
4
31
5
19
6
10
1)
11
15
15
20
17
25
DISMISSAL RATES.
10- 20 days' pay 40- 50
23
50- 60 60- 80
53
+
80-100
160-180 12 260-280 360-380
12
For casual labour no dismissal allowance is given at the end of the period, it being the custom to make a contract with the man for a certain wage rate, which is slightly higher than the average, in lieu of any dismissal allowance.
In the engineering trade it seems to be generally recognised that Japanese labour is slow to learn and quick to unlearn a trade. There is a decided difficulty in developing a good class of fore- The very quickness and skill shown in textile manufac- ture makes it likely that in engineering they will shine rather as users of organised mass production plant than in developing or manufacturing heavy plant or specialised machinery for themselves.
man.
THE JAPANESE AS CONSUMERS.
*
36. But, in addition to considering Japan as a producer, its peculiarities as a consuming nation can also afford useful study.
As a people, the Japanese have an innate love of perfection and though false teaching of the cult of buy cheap and scrap it has at present somewhat obscured this, it is probable that in the end the merits of quality will get home to them again and this will lead to a pro-British trend in trade when they realise the fallacy of the ideal of not the best but good enough so cleverly advertised by our chief competitors.
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A further national trait is a love of novelty, and undoubtedly this will lead to demand for electrical applications and other amenities of applied mechanics.
Thirdly, as their standard of living increases, it is generally conceded that the Japanese are good spenders and this will again make a trend towards a quality market rather than cheap-jack trade.
PUBLICITY.
37. To take advantage of the market, however, good salesman- ship and good publicity should be developed. In the past, British publicity has not only not been good, but has been actively bad. The Japanese are assiduous students of newspapers and maga- zines, and can hardly be favourably impressed by the statements continually appearing in speeches of prominent public men in Great Britain and in newspaper articles that British industry is behind the times. When it is asked why, in a factory, all the
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