Aug. 6.
An unfortunate but none the ess ominous phrase, "survival of the fittest," has crept into current business terms in certain quarters lately. Ominous as suggesting that certain commercial entities—manufacturing concerns with the firms which market their goods throughout the world—must inevitably disappear im the course of the present worldwide depression, and for this people are prepared. The phrase is misleading in the suggestion that certain productive elements of a different character will equally variis. To illustrate how erroneous this impression is, the two industries, silk in Japan and rubber elsewhere, may be contrasted. For the silk filatures in Japan, now in a deplorable condition, artificial measures in the past have been unsuccessful in stemming the downward flow of prices in times of business depression.
When, for instance, an agreement was reached by filatures not to sell under a stated price, it was found that while, on the face of things, this was carried out, rebates were being granted by manufacturers which nullified the whole scheme. In the same way, it is now feared that the closing of filatures for two or three months, as has been arranged, will be defeated in its object by the working of longer hours in the meantime, and that tha industry will be no' better off in the final accounting. The conclusion therefore, is that only the fittest of the filatures will survive, and that the others wil go to the wall. This will certainly be correct in the case of imiany of these institutions which, they have to go bankrupt wil disappear lock, stock and. barrel, nobody being found to: take over their probably. depreciated machinery, but there is little doubt that in the case of many others they will be acquired by companies with sufficient financial resources await the time prosperity will have been restored to the industry.
If the phrase "survival of the fittest" applies here it~is not in the same way applicable to the rubber industry in. which Shanghai has a very vital stake. The position of every plantation company in, the world to-day is that market prices are below the cost of production of the crude material, and accordingly all: are trenching upon their reserves. For Shanghai especial
Text read from the printed page and cleaned; old type leaves the occasional error.