The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-07-23
IApAN,s FINANCIAL CONDITION.

Standardization of it's treasury on
gold basis, is passing through the most
critical period of the history OF the en-
pire. Capacity for government OF hlgn
order was displayed in the poiltlcai
changes which followed the modernlz-
ing of the country, but the task now
before the financiers is one which may
have even greater effect upon the ma
ton than any previous change. 1t is TO
meet the new conditions of eommunl-
ty which has Increased it's powers OF
consumption to an enormous extent,
while it is compelled to face decreas-
ing export trade, that the men who nave
been trained to cope with these ques-
tions of finance must grid themselves.
In view of the difficulties, which are
appreciated thoroughly by Leading
financiers of the empire, the report OF
the operations of the Bank of Japan for
the year 1900 furnishes many strong
lights upon the situation and as Wen
upon the men who must work out the
questions for the empire. This report
was laid before the stockholders of the
bank at the semi-annual meeting In
February, and has caused much discus
SION In it is contained the address OF
Governor Yamamoto, which must De
taken as the strong utterance OF a man
who is thoroughly alive to the situa-
ton.
The foreign trade of Japan during the
wear 1900 amounted to the greatest sum
vet reached, 491, $40, 600 yen, an increase
of sc. $50, coo yen in the imports, while
the exports decreased to the amount OF
10, 720, 900 yen. This made the balance
of trade against the country SO, 10000
ven, an amount which was unprece-
dented. There were several factors
which must be taken into account in
the consideration of this condition. The
primary one, as set forth in the report
must be the increased power of the
people to consume. This is the result of
the introduction of the civilization of
the West, coupled with the new indus
tries which have been introduced into
the country, and which by offering new
channels for the energies of the people
attended by new needs. lead to impor-
tations which, as seen, have swelled
the imports to an exceedingly large fig
ure.
As an incidental also the war in China
withdrew from the markets customer
which took heavily of the cotton yarns
of the new mills, and as well made the
general trade feel its effects. This COM
binatfon might well be responsible for
even greater trade disarrangement, but
its effect upon the banks was peculiarly
instantaneous, in that the volume of
business and the rates of money We're
kept in constant state of adjustment.
The report of the transactions of the
bank gives complete synopsis of the
state of trade. Thus at the beginning
of the year there were being carried
loans of 121 100000 yen, at which time
the rate was sos per cent. Money was
called in until the volume of loans was
down to some eighty millions in March,
the rate having gone to 8.76, with an
upward tendency. The rate went on
up but with the half-yearly settle
ments. and the demands from the
houses to be affected by the crisis in
China coming in June, the loans again
went to 114,000,00o yen, with a rate of
$40, which was further increased in
July to 9.S5, at which rate it stood
through the year, the loans decreasing
and again increasing as the end of the
year came, leaving the institution car
rying 109,050,000 ven at that time.
These figures will indicate the; move
ments IN the local market, and may be
emphasized bg/t statement that the
stock of specie steadily: decreased, the
net loss for the year being above So
100000 yen Yet in the face of these
adverse conditions the men who have to
do with the carrying on Of the finances
of the nation have not lost hope. There
| is going on a constant though not heavy
accumulation of specie all the time, the
report trade being pushed along every
line possible, with the hope that the bal
ance of trade may be kept down and the
influx of investments from the outside
may tend to start the stream of gold
back to the banks. But there is q crisis
which will be watched with interest by
all those who have been attracted by
the development of the nation Every
branch of business is increasing and
Llengthening it's lines, as is shown by the
fact that in the report of the bank the
excess of Withdrawals over deposits is
gtren in round figures at 10000, 900 yen,
and this in volume of business zap
proximating two billions. To indicate
the feeling over the situation, though
there is no note of other than hopeful
ness and faith in the future, the follow
Ing quotation is made from Governor
Yamamoto's report:
I'VE are arrived at an important
stage in the financial and economic his
tory OF the country. That store of
money made up Of the war indemnity
and the proceeds of national loans, by
which the country had been conducting
various undertakings since the late war
with China, has been nearly exhausted.
while not small number of important
undertakings remain yet to be taken in
hand both by the Government and by
private Individuals
-%-
GRIPPING COMMERCE.