124 JAPAN - MISCELLANEOUS 



Thus, we see the average rate of discount in the principal credit estab- 

 lishments is to-day very high (lo %) and the official rate remains about 



6 '/4 %. With respect to these, Japan is returning to its maximum rates 

 of 1908, after the official and the bank rates had fallen in 1910 to 4 ^ % and 



7 ■'/., % respectively. 



The serious crisis of 1908, the result of the general crisis of the preced- 

 ing 3'"ear, had in fact caused really enormous rises; in July the official rate 

 and the bank rate were respectively 7. 14 % and 11 %. The general conditions 

 of the Japanese money market improved later on. As we have said, the 

 official rate fell as low as 4 14 % and the bank rate to 7 3/^ 0^. But in October, 

 T911 , a new rise began, which as yet shows no sign of an arrest. This is due 

 above all to the constant increase of industry, as a result of which the demand 

 for capital becomes daily more pressing. The loan of £ 9,175,000, raised in 

 London, in February, 1911, certainly improved the position of the money 

 market a little, but its effect was only temporary. Immediately afterwards, the 

 rates again began to rise and, in the course of 1912, the Bank of Japan 

 had, on three several occasions, to raise the official rate. 



Among the many causes of the high prices of articles of first necessity, 

 w^e must certainly not forget to consider the excess of the imports over the 

 exports, amounting to 237,000,000 frs. in 1912. Above all when we remember 

 that about 78,000,000 frs. worth of rice was imported and that, in spite 

 of a considerable reduction, the import duty on this article is still, i yen per 

 100 kin, or 4.28 fr. per quintal. We shall return to this subject hereafter. 



To the causes of a purely financial character of which we have just spoken 

 we must also add others which are rather of an economic and social nature. 

 The mode of living is no longer and can no longer be that of thirty years 

 ago, and this is the common experience of all progressive nations. There is 

 no corresponding increase in production to compensate for the increased con- 

 sumption due to the altered mode of life and the increased population. Hen ce 

 a rise in prices. To these causes which may be called local, we must also add 

 those of a more general character, affecting at once all the markets of the world; 

 the increase of the population throughout the world, and that of the consump- 

 tion per head of agricultural produce, compensated to a very slight degree, 

 by increased production. We must add that the output of gold is more abund- 

 ant, while the cost of extracting it from the ore has decreased; then, also, 

 the rural exodus has increased among the civilised nations ; the number of 

 intermediaries is now excssive, as is also that of the trusts. And there are as 

 many other causes which, acting on the international market, have also strong- 

 ly influenced the conditions, certainly somewhat disturbed, of the Japanese 

 market. 



These summary remarks on the general economic situation of Japan, 

 or rather on the causes that have the most influence on that situation, per- 

 mit of our now studying the fluctuations in prices, wages, etc., during re- 

 cent years, with a better knowledge of their causes. They will serve above 

 all to enable us justly to appreciate the effects. 



