Production only Solution Tokyo, Apr. 14.
Although Japanese cotton textiles exports to countries outside the yen-bloc for the first quarter of this year totalled over 101 million yen in value, an increase of 23.3 per cent. compared to the previous quarter, their quantity, 479 million square yards, showed a decline of 5,8 per cent., despite the fact that many shipments which should have gone forward in December were actually made in January or later.
Meanwhile, with the export season ended and slocks estimated at 900 million square-yards, an unusually high figure, the Asahi Shimbun expresses the opinion that prospects for the second quarter are far from bright It forecasts stocks will increase by a further 400 million to 500 million square-yards between now and August unless something is done to alleviate the situation, and reveals that the Federation of Japanese Cotton Spinners Association is inclined to believe a curtailment of production to be the only way.
Another alternative, the paper points out, would be export of a portion of the stocks to the yen-bloc countries, Manchoukuo and China, which exporters and spinners alike have been anxious to achieve for some time owing to the higher prices obtainable in those markets.
Such shipments, however, were prohibited by the Government some two years ago when they reached such di-mansions that they interfered with exports outside the yen-bloc and thus hindered obtaining supplies of foreign currencies, which the Government considers essential.
In support of its view that exports of Japanese colton textiles will continue to decline, the Asahi Shimbun states that stocks abroad are larger than normal, purchases having been greater than normal, purchases having been greater than actual nee speculators bought early in anticipat tion of a rise in prices, while the strengthening of control of Japanese cotton-goods by Britain and France naturally will keep their imports Gown to a minimum.
An additional factor is the hoarding of Japanese cotton-goods by merchants in China.
Finally, the paper points out, Japan's customers in the sterling bloc and in Central and South America are buying less of the lower grades of Greys as these are being supplied, in an increasing degree, by local factories.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.