Beiyang reactionaries

The population involved in the industrial chain is astonishing.

The countries with the most raw silk exports from Japan are the United States and France, each of which imports about 2000 million catties of raw silk each year.Eighty-nine percent of it is Japanese raw silk.Japan exports 4000 million catties of raw silk every year, and the export value exceeds 20 million yen.Japan's annual export volume is now less than [-] billion, which shows the status of raw silk exports in Japan's exports.

Now the Japanese raw silk industry has collapsed.When the economic crisis broke out this time, the raw silk imports of the United States and France, two major raw silk importing countries, plummeted.The demand for raw silk is directly cut in half.

It directly destroyed the Japanese raw silk industry.As a result, countless factories engaged in the raw silk industry in Japan closed down. In the first half of 1930 alone, more than 300 raw silk-related factories closed down, and countless silkworm farmers went bankrupt.

"What about other aspects?"

"The Far East Shipping Company canceled some of the original ship orders, about [-] tons of tonnage orders. It is not certain when they will resume."

Takahashi Shiqing continued to answer.

The economic crisis came too fast and too fierce.The rapid decline in international trade has brought the world's shipping into a cold winter.Originally, several large consortiums in China and Japan hoped to create a world-class giant shipping company.It's really good to start developing. The Far East Shipping Company began to exclude the shipping companies of the British and French countries in the Far East.

Business is also booming.

After all, there are two major import and export trading countries, China and Japan, and the business of these two countries will allow Far East Shipping Company to continue its business.Only a few years after its establishment, it already has more than 30 ships.

Not only freight is booming, but passenger transportation is also very good.So many ships were ordered from Japanese shipyards and many orders were given to them.Even China's Wuhan Shipyard has received some small orders.

But who knew something like this would happen.

The Great Depression came, and business dropped rapidly.How can the Far East Shipping Company continue to order ships? Many original orders and some intentional orders have all been cancelled.

This put Japanese shipyards in a situation of no orders again.

"These two have been the bulk of the empire's exports in the past few years, accounting for half of our country's annual exports. But now there are problems. If it weren't for my country's imports of machine tools, generators, and cables, the imports were still very high, and even somewhat increase, otherwise the current situation will be even worse.”

Takahashi is very lucky.

Fortunately, we signed a "trade agreement" with China three years ago.Japan is a country that relies on imports and exports. It cannot be compared with countries such as China, the United States, and the Soviet Union that are capable of internal circulation.If China, the United States, and the Soviet Union make up their minds to close their doors and play on their own, there is actually no problem at all.Because the three countries of China, the United States and the Soviet Union have enough arable land for farming, have their own resources to use, can develop their own industries, and produce industrial products that can be digested by themselves.

The three countries can be self-sufficient when they are agricultural societies, and they can be self-sufficient even when they are industrial societies.

But not in Japan.

Japanese agriculture has no way to support itself, and it has to import a lot of food every year.Moreover, Japan has no industrial resources, let alone a sufficient market.Therefore, Japan must purchase resources from outside, and then create industrial products to sell.Only in this way can Japan have the money to recycle the industry.In other words, the Japanese economy is related to import and export.Once there is a problem with import and export, the Japanese economy will also have problems.Now there are economic problems in European and American countries, and Japan's exports have plummeted, which has hit the Japanese economy in one fell swoop.

Fortunately, there is China.

China still imports enough machine tools, generators, and cables from Japan.Because after the cabinet decided to release water, the enthusiasm of local governments to build power plants has greatly increased. Not to mention those cities with large populations, even some small counties have to build power plants to enjoy the fruits of modern technology.The result is that China has a higher demand for things like generators and cables.Therefore, not only did the orders not decrease, but they increased in 1930.It didn't let Japan's economy really collapse.

"What's the situation in China now?"

536

"What about China?"

Tanaka Yoshiichi immediately thought of China.

Yes.

Now Japan's exports have been severely hit, and imports from Europe and the United States have plummeted.The only thing that remains good is trade with China.Although orders for ships have dropped a lot, orders for other areas have not decreased at all.On the contrary, other orders rose somewhat, which surprised Yoshiichi Tanaka.

China really dares to import.

Now that the world economic crisis is so severe, China still dares to import so many construction projects such as machine tools, generators, and cables.It's really amazing.

So Yoshiichi Tanaka was very curious.

China is also a big exporter. China takes the lead and is the number one exporter of raw materials in the world.In recent years, China's coal, iron ore, tungsten ore, antimony ore, tin ore, as well as tung oil, rubber, bristles, and soybeans have been the world's largest exporters.Just exporting these things every year is how much money.

Now the world economic crisis, China's exports will certainly be affected.

For example, the export of bulk commodities, iron ore, tungsten ore, tung oil, and rubber will all be seriously affected.Exports have been affected, and those industries that originally exported have been greatly affected.Just like the collapse of the Japanese raw silk industry, so many export industries in China have not collapsed?How can China still import so many things.

too weird.

"Their options are completely different."

"what happened?"

Tanaka Yoshiichi looked at Takahashi Qing.Takahashi Shiqing immediately said: "At present, European and American countries have different ways of coping with the crisis. US President Hoover has always believed in liberalism. As early as last year, he just took office, and this is what he meant for agricultural reform. The government does not interfere. It is recommended The federal government withdrew its management of public lands, no longer operated new reclamation and irrigation projects, etc. This time the economic crisis occurred in the United States, and President Hoover’s meaning in this regard was more obvious, and his other method was to raise tariffs to protect domestic industries. I hope to encourage domestic enterprises. The tariffs on many commodities have increased by 60%, and the tax rate on some commodities that were not subject to tariffs has also increased to 15%. The last way is to reduce taxes and reduce income taxes, so that those companies can have more funds to carry out invest."

Takahashi is Kiyoshi, a veteran Japanese prime minister.

He has served as the Prime Minister of Japan several times, and every time there is a problem with the Japanese economy, he will come forward and perform very well.Faced with such a crisis this time, of course he wants to analyze the practices of various countries.

Only by understanding the practices of other countries can he choose a method for Japan.

"On the other side of Europe, Britain has suffered the least crisis, and there is nothing to see at the moment. France and Germany are both in serious crisis, but France has always adopted a laissez-faire attitude. Germany has adopted the method of reducing government spending and corporate taxation. I hope That allows those factories to cut costs and get through the storm."

In fact, the approach adopted by Germany and the United States is the same.

The United States is because Hoover’s economic policy is like this, while Germany is because Germany’s politics and economy are controlled by several financial groups.The German government has adopted such a tax reduction method as they requested.

"Does China take a different approach?"

Tanaka Yoshiichi immediately asked Takahashi Shiqing.

In Tanaka Yoshiichi's view, the United States and Germany's approach is very good.Now that it is an economic crisis, cut the corporate tax rate so that companies can pay less tax.

In this way, the company's profits can increase.

With enough profit, the company can continue to grow and continue to invest.As long as we continue to invest and develop, we can continue to hire workers, and the economy will survive.Because that's the normal way of thinking.It is a pity that countries such as the United States, Germany, and France cannot see the biggest problem now.

The problem now is that too much stuff is being produced and there isn't enough market for it.

lack of market.

That's the problem.What is the use of your government reducing investment in order to save money.What is the use of your tax cuts for those companies.Now the best way is to find the market.If there is no market, a market should be created.Only in this way can those companies be rescued in the short term.

"Yes, very different."

Takahashi Shiqing shook his head slightly, and said: "What the Chinese government has adopted is to increase government expenditure and increase private investment. I have carefully read some recent measures of the Chinese government. Several banks of the Chinese government, commercial banks, Bank of Communications, The four major banks, China Construction Bank and China Merchants Bank, have lent 30 billion yuan from the Central Bank of China.”

"Borrow money?"

"Yes. I lent 30 billion."

Tian Zhongyi instantly understood what Takahashi meant.

Although Yoshiichi Tanaka was born in the military, as the prime minister of the cabinet, he also understands the economy.As the central bank, the Bank of China actually has no assets.

Those banks borrow money from the Bank of China. The so-called borrowing by the Bank of China is actually printing money.The Bank of China prints money and then lends it to these banks.It is equivalent to increasing the supply of base currency.

If the base currency is increased by 30 billion yuan at once, then through the amplification effect of financial institutions, private funds will increase by about 150 billion to 200 billion yuan.