The yet-unanswered American Note of October 6 calls attention to the dangers of Japanese exchange control in China, whereby imports and exports, it is feared, will be under official power. Since that communication was written, word has come out of Tokyo to the effect that currency will be withdrawn from China and replaced with Japanese military notes. The effect will be that the Chinese farmer or producer will be forced to accept paper which will have no money qualification except that it may be exchanged -for Japanese goods only. This means that the consumer will have a smaller voice in price evaluations than under a free monetary system, because holders of military-issued mone: must become buyers automatically, li the course of time, of Japanese goods, solely.
The foregoing is the way and the method of application that the Japanese have adopted for deriving economic benefits from this country. These advantages have now to give them succour in their great China campaign. But in such a large-dimensioned field, sub-continental in scope, whatever may be derivable through these means can hardly suffice to keep, up with the growing strain and burden of a protracted and ever-spreading military activity.
Resources May be Drained It is admitted in all competent quarters that if Japan has to maintain an always-increasing army of occupation over a long period, it would consume all her revenue and drain away, to a point of exhaustion, the national economic resources.
At first sight it may appear that Japan should be avia to cover her requirements by making the armies of occupation live off the lard. But before that becomes feasible, a broad and deep network of control would have to be rooted. Prior to the accomplishment of this stage, the Home Government would have to outlay
Text read from the printed page and cleaned; old type leaves the occasional error.