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Foreign News September 11, 1894

The Morning News

Savannah, Chatham County, Georgia

What is this article about?

US Consul McIvor in Kanagawa, Japan, urges American cotton exporters to ship directly to Japan, bypassing England, to capture the market and improve trade balance. Japan imports most US cotton via Liverpool due to lower rates; direct shipping could reverse the $14M trade deficit from last year.

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OCR Quality

100% Excellent

Full Text

Consul McIvor, at Kanagawa, Japan, is trying to induce American cotton exporters to ship cotton direct to Japan. In a recent report to the state department he says Americans are neglecting an already open opportunity by not making such shipments. Japan is now doing a large cotton manufacturing business, and is each year increasing her mill capacity. The machinery used in the mills is of a class that works American cotton better than the product of any other country. At present Japan draws almost her whole supply of American cotton from England. The staple is shipped hence to Liverpool, from which port it is transhipped to Japan. The supposed explanation of this peculiar condition is that the ocean rates from England to Japan are much less than the combined railway and ocean rates from an inland American point to Japan. If American cotton shippers and transportation lines would act together, the consul thinks they could effect rates that would give Americans control of the great Japanese market, and put into American pockets all of the selling commission, insurance and incidental charges that now go into the pockets of English men. Last year Japan sold the United States $17,000,000 worth of goods, and bought from the United States $3,000,000 worth. If the cotton business were taken in hand by Americans, the balance of trade would soon be considerably on the other side. The consul's suggestion is apropos. There is every reason why Americans should supply Japan with cotton. And the cotton should be carried in American bottoms. But how is that to be accomplished when the shipping laws of this country practically forbid Americans from owning ships to carry this trade? The prices Americans are forced, under the laws, to pay for ships preclude the possibility of their entering into competition with foreign ships. Great Britain controls the rates of freight, and will make the rates such as will keep the stream of American cotton for Japan flowing through Liverpool, until the American laws are revised so that an American owner may buy ships for the foreign trade wherever he can get them cheapest and without being taxed for the benefit of a few greedy shipbuilders in New England. Give Americans free ships and they will soon be carrying cotton to Japan.

What sub-type of article is it?

Trade Or Commerce Economic

What keywords are associated?

Japan Cotton Trade American Exports Consul Mcivor Shipping Rates Trade Balance Liverpool Transshipment

What entities or persons were involved?

Consul Mcivor

Where did it happen?

Kanagawa, Japan

Foreign News Details

Primary Location

Kanagawa, Japan

Event Date

Recent Report

Key Persons

Consul Mcivor

Outcome

last year japan sold the united states $17,000,000 worth of goods, and bought from the united states $3,000,000 worth. direct american shipping could improve the balance of trade.

Event Details

Consul McIvor reports that Japan is expanding its cotton manufacturing and prefers American cotton, but imports it via England due to lower shipping rates. He urges American exporters and shippers to collaborate for direct shipments to capture the market and commissions currently going to English interests. US shipping laws hinder American competition by taxing ship purchases.

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