The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-05-28
FLOW OF COLD TO
JAPAN IS PUZZLE
TO Government
Trade Balance Not Large
Enough to Account for
Exports

washington, May Z6.-IreaSury OF
ficials, engrossed in the far-reaching
programme of international financing
upon which this country lately has en-
tered, today 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 $3.50, 100000 to $20O,000,OOO a
year.
Gold exports to Japan within the last
thre or four weeks, it was stated au-
thoritatively, have been $10,000,000
and $15,000,000. Since January 1 they
have reached an aggregate of about
100000. Within the next thirty
days, the government has been in
formed, they will approximate so per
cent of the entire sum already export
ed in 1917. i
There Is every indication that the
big shipments will continue for sever
al months at least, an in an increas-
ingly large ratio. Informal overtures
already have been made to the gov
eminent looking to the shipment from
San Francisco to Japan next month Of
large consignment Of gold.
Shipments are being made by bank
ing interests with the full knowledge
of the Japanese government. In at
least one instance the Japanese gov
eminent, through an attache of the
embassy here, has approached Off
Gals of this government with a view
to facilitating the transpacific move
ment.
Officials here cannot account for
the seemingly large movement on the
ground that it is to restore the balance
ir, frada and TORS are check
ing the foreign commerce statistics to
ascertain if the big shipments are due
to economic laws. It is admitted that
such may be the case, though officials
are somewhat skeptical of this, and
are frankly puzzled by the develop:
ment.
British officials, including Lord
Cun1iffe, governor of the Bank OF
England, have noted with some sur
prise the tendency Of American gold
| to flow westward, and have discussed
the situation with Treasury officials.
| The British agree that it is to the
| interest of all concerned that the
| United States conserve it's supply of
| gold, although it is OF present the lar
gest store ever held within a single ma
| tons boundaries, and greatly in ex-
| cess of actual requirements, and that
a way be found to discourage 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
seepage 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 Ger
| many to have.
| The gold supply at San Francisco,
| from which shipments to Japan are
made, has at present reached a. point
| here 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 addi-
ton the retention here of the increas-
ed gold supply largely accumulated
i during the war is regarded as highly
1 desirable and its expectation is dis
i couraged.
Treasury officials under existing
| laws have no power to prohibit the
4 expectation of gold, but must redeem
gold certificates with gold. The law
+ provides that this shall be done in
| Washington, and the redemption of
l such certificates at SUBJ Treasures in
| the past has been purely through cour-
4 tesy and for convenience of bankers.
Should the heavy export movement of
gold continue, it is possible that the
/ government may discontinue the re-
demption of certificates at sub-Treas-
uries and redeem them only at Wash
ington, where the gold thus Withdrawn
is intended for export.