The evening times., 1901-04-16
THE FINANCES OF JAPAN.
Every Effort Being Made to Avert :,
Pending Panic

Pending Panic
Owing to the complications in the
Orient which have threatened war be
tween Japan and Russia. there has been
considerable interest, especially in Wash
lH=t"n. in regard to the financial condi-
uon of the Mikado-s country in particu-
lar Approaching this interest. E c. BEL
lows the United States Consul General at
Yokohama has sent the following re-
port on the subject To the State Depart
rlent
The financial condition of Japan is at
present far from eucourag gine. and her
bankers. statesmen. and business men are
cNerting every effort TO avert pending
panic The situation as analyzed by the
shrewdest financiers and statesmen Of
the Empire. shows that the Chinese in
dcmui:y secured at the close of the Ja-
rBu-China war. together with large ma
tional loans. led to the exploiting of many
public and private undertakings which
caused money to he unusually plentiful
among the cOoIie or iabOTing, classes
This induced extravagant methods of liv-
ing and * assigned a potent factor IN
the large increase Of imports. The
amount of indemnity paid by China
proved insufficient for the enterprises
projected. and many millions were divert
ed from the customary channels Of trade
To carry forward these undertakings
The large increase in imports was uu-
fortunately accompanied by falling of
in exports during the past year, ocCa-
stoned by the interruption of the Chinese
trade, and d decreased demand for silk
and haJutai in America and Europe. so
that last year the relation of exports TO
imports stood in the ratio of five TO six
M of
the country to settle Japaus balance OF
trade This large outflow Of specie led
the Bank of Japan to raise its rate of in
terest, produced a glut of merchandise in
the godowns of the importers, and caused
a pronounced depreciation of stocks,
bonds. and securities.
The scarcity of money for commercial
and Industrial purposes is all the more
keenly felt because of the steady rise in
price of all living expenses, which have
increased during the last few years over
. per cent.
Foreign capital declines to enter the
Japanese market, although tempted by
fatteTing rates Of interest. The Govern
ment's recent effort to Goat a foreign loan
has not proven d success, while school
and municipal bonds. based upon safe So
curity. are rendered undesirable TO for
iititN b"-totfS-- OF ttfr ir-itlLN ttt'tAt''
and conditions attending their issue
Both foreign and native banks decline
loans on personal credit. and at the close
of 1899. the total paid-up capital of the
banks of the Empire exclusive OF the
Bank Of Japan. was $f13.0ooe)o while at
the same time they were carrying loans
based on concrete security 10 the amount
of sl25-2 $4,000. distributed as follows:
Lands and houses. s50.500.g4o: goods. SOL
%. 600: public bonds. $23,5o0.G51- From this
it will be seen that the banks have tied
up in concrete investments Il larger sum
than their total paid-up capital. and Min
lister Watanabe observes that this fact Is
largely responsible for the present embar-
rassment in business circles
The President of the Bank of Japan
a the last annual meeting Of the share
holders said:
Throughout the year under review
$500 the specie reserve of the bank
steadily dwindled month after month the
eNcess OF imports over exports and f.
naucfal panic in Shanghai. owing to the
Boxer trouble. all contributing to bring
about this re2rettable result. The depIe-
tiUn OF specie and the increased demand
tor money UCCaSiOUed by the Chinese ITOu-
ble uecessitated the banks Issuing notes
beyond the prescribed limits in june and
the succeeding months
combined with the dUllness Of trade and
violent Ii,fctuatioHs of prices is causing
much alarm among merchants. manufac-
turers- and bankers, and more failures are
imminent
Under date Of March l. Mr. Bellows.
sends. in continuation of the above. the
following extract from a recent issue of
the Japan Times"
The market of last year was sluggish.
but this yaaT it IS at dead standstiu In
osaka, all kinds of industry testify to
their unhappy condition in the thiunpd
columns Of smoke rising from the factory
ch!mneys- Every sort Of textile goods
and foreign ironwaTe has had j poor sale
i1eateTs IN silks and cotton goods declare
that they have never experienced sT1rF, =
miserable time during the past twenty
Years The fact that the price of rice IS
!CW Notwithstanding the fact that the
crop was not 50 good as was estimated at
first, made farmers store their rice and
consequently diminished their purchasing
power 50 that depression is also felt i'm
no ITar-1np4c