New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-26
Flow of Gold to
Japan Is a Puzzle
To Government
officials Say Trade Balance
Is Not Large Enough to
Account for Exports

Washington. May 25.--Treasury Of
fcials. engrossed in the farreaching
programme Of international financing
upon which this country lately has en-
tered. to-day turned their chief atten-
ton to the unexpected and somewhat
disconcerting discovery that for the
last month Japan has been withdraw
ing gold from the United States at the
rate of sl5O,OOO,OOO to s200,000000 a
year.
Gold exports to Japan within the last
three or four weeks, it was stated au-
thoritatively, have been 100000 and
$4,000, 900. Since January they have
totalled s55,O0O,OOO. In the last eight
months they have reached an aggre
gate of about S50,OOO,OO0 Within the
next thirty days, the government has
been informed, they will approximate
30 per cent of the entire sum already
exported in 1917.
Larger Shipments Indicated
There is every indication that the big
shipments will continue for several
months at least, and in an increasingly
large ratio. Informal overtures al
ready have been made 10 the govern
ment looking to the shipment from
San Francisco to Japan next month of
large consignment of gold.
70 hi
ing interests with the full knowledge of
the japanese government. In at least
one instance the Japanese government,
through an attache of the embassy
here, has approached officials of this
government with a view to facilitating
the transpacific movement
Officials here cannot account for the
seemingly large movement on the
ground that it is to restore the balance
IN trade, and investigators are checking
the foreign commerce statistics to as
certain if the big shipments are due to
economic laws. 1t is admitted that such
may be the case, though officials are
somewhat skeptical of this, and are
frankly puzzled by the development.
British Officials Surprised
British officials, including LORD
Cunliffe, governor of the Bank of Eng
land, have noted with some surprise the
| tendency OF American gold to flow
westward, and have discussed the sit
uation with Treasury officials. The
British agree that it is to the interest
Of all concerned that the United States
conserve its supply of gold, although it
is at present the largest store ever held
within a single nations boundaries, and
greatly in excess of actual require
ments, and that way be found to dis
courage very heavy Withdrawals.
Added to this is the apprehension
that, notwithstanding the utmost care
and vigilance on the part of all con-
cerned in such movement, some seep-
age from the golden stream may touch
the shores of Germany, and gold is one
of the last things that this government
and the Allies want Germany to have.
The gold supply at San Francisco,
from which shipments to Japan are
made, has at present reached point
where the government has decided that
the cost Of transferring gold across the
country properly should be borne by
the interests intending TO ship it out
of the country. In addition the reten-
ton here of the increased gold supply
largely accumulated during the war is
regarded as highly desirable and its ex-
portation is discouraged.
Treasury officials under existing laws
have no power to prohibit the exporta-
ton of gold, but must redeem gold GER
tificates with gold The law provides
that this shall be done in Washington,
and the redemption of such certificates
at sub-Treasuries in the past has been
purely through courtesy and for con-
venience of bankers. Should the heavy
export movement of gold continue. it
is possible that the government may
discontinue the redemption of certifi-
Gates at sub Treasures and redeem
thcm only at Washington, where the
gold thus withdrawn is intended for
export.