The Birmingham age-herald., 1920-07-25

held in the United States. as had been
 reported. Baron Takahashi'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
 had brought about a tight money situa-
 tion, heavy excess of imports and a
 depreciation of negotiable securities
 and general merchandise. But it is a
 matter for regret that the recent de-
 pression in financial circles led to ex-
 aggerated reports in the United States and European countries.
 Perfect and clear understanding is
 a most important factor for the promo ton of international amity and friend ship. True and correct information
 about the exact aspect of financial situations are of vital importance to l the formation of closer economic rela- | tionship between any two countries 1 having economic relations. I under
 stand that in connection with the re-
 cent financial depression in Japan va
 rious unfounded rumors and ground less reports found their way to the 1 American money market where rumors
 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 gold specie held in the American market. Concerning these erroneous reports | the Japanese government some time l ago instructed the Japanese govern
 ment's financial commissioner and the superintendent of the Bank of Japan in New York to issue a statement mak- ing clear the true aspect of the fi- nancia1 situation obtaining in this country. Through the statement is- sued by them. I believe, the American financiers and public have realized the actual state of affairs in this country. But I 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 a great change as tho result of the European war. It is a change similar to that in American economic circles-only it is on a com para lively smaller scale and of limited proportions.
 'In the pre-war period of Japan's foreign trade always resulted in an excess of imports over exports and in the international accounts other than trade accounts, too. the balance was always against this country which had
  settlement of international balance. Approximately 200,000,000 yen ($100,- 900. 000) was paid to foreign countries 1 in 1913.
 Accordingly. Japanese economic cir cles in the pre-war period had to rely greatly upon foreign countries for monetary assistance. The outbreak of the European war. however, wrought l a sudden change in the trend of the l.. ct iv, nv Since 1915 the export trade of this em- pire suddenly increased and the volume of exports continued to exceed inn ports, the excess of the former having reached approximately 1,40o,O00.000 yen | by the end of 1918. At the same time I the receipts of accounts other than trade balance has swelled to an enor- nous amount. This favorable condition l has enabled the empire to afford an ample fund for the development of na- tional industry and to give economic support to the allies.
 Tn 1919, however, consequent upon the 1 termination of the war, the economic sit | uation of the country began to take 1 turn to some extent, and though the vol ume of exports and imports continued to l increase, the balance of the foreign trade | for that year resulted in heavy excess | of imports. amounting to 74,00O000 yen
  more prominent this year. and up to the l end of last April the excess of imports reached about 340, 100000 yen.
 What course the trade situation of this country will take in future is difficult I to guess, but it is certain that our eco-
 homie circles have just entered the post 1 belium reactionary stage The govern ment has repeatedly given warnings about the coming 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 l the war and was not ready to realize the necessity of business curtailment and the contraction of credit transactions. "In the meantime repeated panics have occurred in the stock market since about the middle of last April, causing a pan icky slump in the cotton yarn, cotton cloth, rice and silk market, which was considerably disturbed. The financial cir cles have since then been placed in a
 state of depression annd stiIl remain