The writer points out that the cost of the war is being met largely by borrowing, which on the budget Jestimte will amount to over ¥.9,000,- 900,000 for the two years ending March, 1939.
Such rapid borrowing, the journal declares, has been responsible for manifold signs of inflation in Japan in recent months—for example, a 25 per cent. increase in the Bank of fended 1938, Japan's note circulation for the year
Relatively, "it is stated, world Jwholesale prices and Japanese prices have risen by over 50 per cent. within a year.
Dealing with Japan's foreign trade, the writer points out that, while the adverse balance for the first half of 1938 was less than that for 1937, this reduction was only achieved at the cost of a drastic shrinkage of all foreign trade 1@ decline in Japanese exports, the "Economist" declares, can be partly ascribed to the recession of world trade, but the concentration of industry on the China hostilities and, recently, the difficulty of procuring raw' materials have also played a big part.
Text read from the printed page and cleaned; old type leaves the occasional error.