Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-25

TOXIC, June IS Correspondence of
the Associated Press).-Baron Taxa
hashi, minister of finance of Japan
authorities, today made a statement
having direct bearing on reports
| recently circulated in the United
States relative 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 report
| ed. Baron Takahashi's statement is
as follows:
1.-The financial situation in Japan is
| in an unstable state at present owing
to the reactionary stage of the post
| bellum finances and economics which
| has brought about a tight money sit
uation, heavy excess of imports and
a depreciation of negotiable securi-
ties and general merchandise. But it
| is matter for regret that the recent
depression in financial circles led to
! exaggerated reports in the United
States and European countries.
Clear Understanding Important.
Perfect and clear understanding is
a most important factor for the pro-
motion of international amity and
| friendship. True and correct infor-
nation about the exact aspect of
financial situations are of vital i'm
portance to the formation of closer
economic relationship between any
two countries having economic rela-
| tons. l understand that in connec-
ton with the recent financial depres-
sion in Japan various unfounded ru-
mors and groundless reports found
| their way to the American money
market, where rumors had it that the
Bank of Japan had raised its official
rate to 10 per cent, that several Jap
anese banks closed their doors
| through failure or that Japan was GO
ing to withdraw her gold specie held
| in the American market.
! Concerning these erroneous re-
ports the Japanese government some
time ago instructed the Japanese gov
ernments financial commissioner and
the superintendent of the Bank of
Japan in New York to issue a state
ment making clear the true aspect of
the financial situation obtaining in
this country. Through rhe statement
ISSUED by them, l believe, the Ameri-
can financiers and public have real
lied the actual state of affairs in
this country. But l wish to take this
opportunity to express my views
about the latest financial situation in
this country.
Economic Situation Change.
1.-The economic situation in Japan
has undergone a great change as the
| result OIL Tie european war. II Is a
change similar to that in American
economic circles-only it is on a COM
paratively smaller scale and of lin
| tied proportions.
| In the pre-war period Japan's 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 ths of the
yen (s100,e00. 000l was paid to foreign
countries in 1913.
Accordingly, Japanese economic
circles in the pre-war period had to
rely greatly upon foreign countries
| for monetary assistance. The out
| break of the European war, however,
wrought a sudden change in the trend
of the economic situation in this coun-
| try. Since 1915 the export trade of this
empire suddenly increased and the
volume of exports continued to ex-
| coed imports, the excess of the for
mer having reached approximately
1 400. 100000 yen by the end of 1918.
At the same time the receipts of
accounts other than, trade balance
has swelled to an enormous amount.
This favorable condition has enabled
the empire to afford an ample fund
for the development of national in
| dustry and to give economic support
| to the allies.
Heavy Excess OF Imports.
"1n 1919, however. consequent upon
the termination of the war, the eco
nomic situation of the country began
| to take a turn to some extent, and,
though the volume of exports and
imports continued to increase. the
balance of the foreign trade for that
wear resulted in a heavy excess of
imports amounting to 100000 yen.
The adverse trend of the trade be-
came more prominent this year, and
up to the end of last April the ex-