Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-25
JAPAN NOT TO WITHDRAW GOLD
SPECIE HELD IN UNITED STATES
Baron Takahashi, Financial Authority.
Makes Statement of Nations Economical
Difficulties Following the War.

cess of imports reached about 340,-
100000 yen
What course the trade situation of
this country will take in future is
difficult to guess. but it is certain
That our economic circles have just
entered the post bellun reactionary
stage. The government has repeat
eddy given warning about the COM
ing change in the economic situation,
but the public at large was still
dreaming of the continuation of pros
porous times and of buoyant business
which lasted long since the outbreak
of the war and was not ready to real
lie the necessity of business curtail-
ment and the contraction of credit.
Repeated Panics Occur.
''In the meantime repeated panics have
occurred in the stock market since about
the middle of last April. causing a
panicky slump in the cotton yarn, cot
ton cloth, rice and silk market. which
was considerably disturbed. The finan-
cial circles have since then been placed
in a state of depression and still re-
main more or less paralyzed. The gov
eminent, leading bankers and finan-
ciers are doing their utmost for the
relief of the disturbed financial and
economic situation and at the same time
taxing their nerves to find proper meas
ures for providing against any similar
occurrence in future.
dealt a severe blow to our economic
world. This must be admitted. But it
did not go to the length of affecting
the stability of our economic world or
of checking its future development The
harm done to the economic interests by
the late financial depression will be
healed in a no distant future The blow
will. believe, prove a good and timely
warning to our manufacturers and mer-
chants to arouse them from the idle
Iva. ~ ~ I%,,u: Of a-f
and eventually serve to nip in the bud
the unsound elements of err economic
circles; indeed, the present misfortune
may turn out for future happiness.
THE future Of our national indus
try calls for no pessimism: it is bound
to attain more development. The
present tight money should be re-
garded as a phenomenon rejecting
the late financial depression and not
as it's cause, which properly speaking
and unhealthy business boom and un-
natural growth of the speculative
mania consequent upon the sudden in
crease of demands for goods and soar
ing prices. The growth of business
enterprises which included not a few
cases of unsound and unstable un-
dertakings has led to the recent de-
preston.
Twice Increased Interest.
ITO check the growth of such specu-
lative business mania and to provide
against its baneful result in the flu
creased it's official rate of interest and
discount last autumn by way of
warning the financial circles. but
many unsound elements of our bust
ness circles failed to appreciate and
understand the warnings of the au-
| thorities and continued to indulge in
business projects of more or less
speculative character. The result was
the recent panic, as was anticipated
by the government and intelligent
elements of our business circles.
Those who suffered the severest
blow through the depression and
stringent money were mostly I'M
healthy elements, while many bust
ness establishments of sound and
stable financial standing were the
least affected. In short. the finan-
cial depression has singled out un
healthy elements of our business cir
cles and served to open a new aspect
of our business world. Such being
clare that both the government and
the Bank of Japan have not the
least idea of Withdrawing the specie
holdings in the American market on
account of the recent financial de-
preston, because We respect the close
monetary relations between this
country and the United States.
II think that the development Of
manufacturing industry and the econ
omy of consumption are two great
principles of the post-bellum eco
nomic measures which must be the
common policy of the worlds powers
in dealing with economic affairs
after the war. Ny particular wish is
that the United States will utilize
her resourceful economic power to
the best advantage for the post-bel-
lum economic adjustment and con-
tribute to the solidification and re-
organization of the worlds economics.
Japan. also. wishes to do her best
to contribute to the qualification and
preservation of the worlds economic
interests My sincere wish is that
the governments and peoples of the
United States and Japan will more
clearly understand the financial sit
uation of their respective countries
and come to realize the great i'm
portance of their cooperation. eco
nomically and otherwise, at this es-
peciaIly grave moment"