New York, Apr. 17.
Japan faces the danger of economic collapse, even if ultimately victorious in China, Mr. Miram Farley declares in the April issue of "Far Eastern Review."
Japan is now building up "a wartime industrial plant which it will be difficult to demobilize after the war without catastrophic effects on national economy, government and finance," the author contends. "Magnitude of the sums demanded indicates that Japan anticipates a continuation of her struggles in China on an undiminished scale for many months."
Mr. Farley estimated that more than Y.7,394,000,000 have been appropriated for Japanese military expenditure since the outbreak of hostilities, with naval and military expenses now constituting thirty per cent, of the annual national income.
Meanwhile, according to Mr. Farley, taxation has increased about two-thirds over the 1936-37 rate, while the national bonded debt from June, 1931. to June. 1937, nearly doubled, and "bond nes thus far authorized since June, 1937, threaten to increase this figure to more than four-fifths."
The author emphasized that "Japan's resources are more and more being diverted into non-productive expenditures."—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.