New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-03-29

u
power.
Into the hands Of the Japanese
government the war tossed tremen-
dous influence In the world Of finance.
A change Of administration In the
land of Nippon might concsivably,
under existing conditions. shake the
money marts throughout the Ave con-
tinants.
At the end of 1919, Japan had for
eign credit balances. chiefly in New
York and London, amounting to $780,
100000. The present Japanese gov
eminent, which is faced with infla-
ton at home, favors keeping these
balances where they are. But the
Opposition party, which may make it.
self more audible when the new Diet
meets in June after the elections on
May 10, contends that it would be
wiser to draw these balances home
ward in the form Of gold shipments to
Japan.
Akira Den, financial agent in New
York of the Japanese government,
ton, emphatically said: "The Japan
esee. government. in formulating its
policy in regard to foreign balances
takes due regard of conditions exist
ing in New York and elsewhere, and
rs disinclined to do anything that
would greatly disturb money condi-
TOMS in tho foreign money centers.
Japan is especially anxious to pro-
mote good relations with America. 1t
is true that the Opposition favors re-
duclng balances and bringing gold 10
Japan, but, even If it came into power.
feel sure. that it would adjust its
Of its decisions on the worlds finan-
cial position. Withdrawing great
quantities of gold from New York
would adversely affect the domestic
credit structure, and would react on
the various countries seeking credit
here and upon Japan herself"
Japan's Embargo on Gold
Mr.. Zen explained that Japan still
continued its war time embargo on
the export of gold. because it feared
heavy losses of the metal to China.
which could buy the yellow metal in
extremely favorable terms as q result
OF the rise in silver, of which large
quantities are held in China.
IN view of the large balances Of the
Japanese government in this country
which were built up during the war,
when Tor two years it was practically
impossible to export. gold from the
United States to settle trade dispar-
ties, the recent decline of the japan
ese yen has seemed anomalous. Un-
til month ago the yen had been at
premium over the dollar.
Mr.. Den said that the tide of trade
probably had turned in recent weeks.
moving in favor of America He said
that Japanese interests since the first
o. the ytal had been especially heavy
purchasers of commodities in this
country, particularly of cotton, which
heretotore Japan bought chiefly from
India; This, he thought, accounted for
of about two cents. The fact that the
yen has fallen below par indicates that
the Japanese government is not per-
uniting its nationals to draw on the
accumulated balances here, but instead
is making them purchase exchange in
the open market. 1t is clearly the pol
Icy OF the Japanese government, OBJ
servers OF the exchange market be-
lleve, to discourage unnecessary i'm
ports.
There are many vagaries about ia
pans policy in world finance, and it is
understood that the government is now
gram, which will be laid before the
Diet after the election. Until this new
policy is placed in operation several i'm
portant developments are held in abey-
ance. For example, the sinking fund
with which the Japanese government
has been retiring external bonds to the
extent Of 100000 yen (the yen at par
is worth slightly more the 4S cents)
a year is not now operating. The rise
in outstanding Japanese bonds, particu-
larry the ANS of 1925 and the As of
1881, in recent weeks has been a refec-
tion Of the upward movement in sterl-
ing, and, according to authoritative in
formation, has not been due to buying
in the open market, as reported.
Vanderlip's Visit Significant
Because Of the state of Aux of Japan
csc financial policy those who follow
financial Developments perceive more
than routine significance in the trip Of
party of distinguished American bust
ness men and their wives to Japan for