New-York tribune., 1920-07-25
Japan Decides
To Leave Gold
Specie i'm u. S.
Baron Takahasli Denies the
Reports That the Toxic
Government Is Contem-
plating With drawals S
Explains Money Situation
Unstable Condition Due to
Reactionary Stage of Post
Beilum Finances, He Says

TOXIC, June 11.--Baron Takahashi,
Minister of Finance Of Japan and one
of the, best known financial author-
| ties, to-day made a statement having
direct bearing on reports recently
circulated in the United States rela-
tive to Japan's financial status. The
minister emphasized that there was no
possibility of Japan's withdrawing her
| gold specie held in the United States,
as had been reported. Baron Taxa
hashi's statement is as follows:
"The financial situation in Japan is
/ in an unstable state at present, owing
\ to the reactionary stage of the post
/ bellum finances and economies, which
has brought about tight money Sit
uation, heavy excess of imports and
depreciation of negotiable securities
and general merchandise. But it is q
matter for regret that the recent de-
preston in financial circles led to cx-
aggerated reports in the United States
/ and European countries.
Perfect and clear understanding is
a most important factor for the pro-
motion Of international amity and
| friendship. True and correct informa-
ton about the exact aspect of fnan-
| clal situations are of vital Importance
to the formation of closer economic
relationship between any two coun-
tries having economic relations.
understand that in connection with the
recent financial depression in Japan
/ various unfounded rumors and ground
less reports found their way to the
American money market, where ru-
mors had it that the Bank of Japan
had raised its official rate to 10 per
cent, that several Japanese banks
closed their doors through failure or
that Japan was going to withdraw her
/ cold specie held in the American mar
ket.
Change in Economic Situation
Concerning these erroneous re-
ports the Japanese government some
time ago instructed the Japanese gov
ernment's financial commissioner and
the superintendent of the Bank of
Japan in New York to issue state
ment making clear the true aspect of
the financial situation obtaining in
this country. Through the statement
issued by them, / believe, the Amer-
can fnanciers and public have realized
the actual state of affairs in this coun-
try. But ! wish to take this oppor-
tunity to express my views about the
latest financial situation in this coun-
try
"The economic situation in Japan
has undergone great change as the
result of the European war. 1t is a
change similar to that in American
economic circles, only it is on COM
paratively smaller scale and of limited
proportions.
"ln the pre-war period Japans for
| eign trade always resulted in an ex-
cess of imports over exports, and in
the international accounts other than
trade accounts, too. the balance was
always against this country, which had
to pay large amount of money for
the settlement of the international
balance. Approximately 100000, 900
yen 500, O,o00,000) was paid to foreign
countries in 1918.
Adverse Trend of Trade
Accordingly, Japanese economic cir
cles IN the prewar period had to RELY
greatly upon foreign countries for
monetary assistance. The outbreak of
the European war, however, wrought
a sudden change in the trend of the
economic situation in this country.
Since 1915 the export trade Of this
empire suddenly increased and the
volume of exports continued to exceed
imports, the excess of the former hav-
ing reached approximately 100000, 900
yen by the end of 1918. At the same
time, the receipts of accounts other
than trade balance have swelled to an
enormous amount. This favorable con-
dltion has enabled the empire to af-
ford an ample fund for the develop
ment of national industry and to give
economic support to the Allies
In 1919, however, consequent upon
the termination of the war the eco
nomlc situation of the country began
to take a turn to some extent, and
though the volume Of exports and i'm
ports continued to increase, the bal
ance of the foreign trade for that year
resulted in heavy excess Of imports
amounting to 74,000,0O0 yen. The ad-
verse trend of the trade became more
prominent this year, and up to the end
of last April the excess of imports
reached about 340,000,OOO 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-bellum reactionary stage. The
| government has repeatedly given warn
| ings about the coming change in the
! NNN'iNiiiiS o'NUoSiOiJ ouO VIC puOiIC al
large was still dreaming of the con-
! tinuance of prosperous times and of
buoyant business which lasted long
since the outbreak of the war and was
not ready to realize the necessity of
business curtailment and the contrac-
tion of credit transactions.
Warning to Manufacturers
"In the mean time repeated panics
! have occurred in the stock market since
about the middle of last April. causing
a panicky slump in the cotton yarn
cotton cloth, rice and silk market
which was considerably disturbed. The
! financial circles have since then been
placed in a state of depression, and
still remain more or less paralyzed
The government, leading bankers and
financiers are doing their utmost fo1
the relief of the disturbed financial
and economic situation, and at the
same time taxing their nerves to find
proper measures for providing against
any similar occurrence in future.
THE late financial depression has
dealt severe blow to our economic
world. This must be admitted. But
it did not go to the length of affect
ing 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 no distant future. The