Pine Bluff daily graphic., 1920-07-25
REPORTS OF JlPAN'S
 FINANCIAL DISTRESS
 ARE 0vERESTIMATED
No Danger of Withdrawing Gold Specie Held
 In U. $.


 Tokio, July 24. Baron Takahashi, minister of finance of Japan and ono of the best known financial au- thorities, today made a statement having direct bearing on reports re- gently circulated in the United Stetes relative to Japan's financial Etatus. The minister emphasized that there was no possibility of Ja- pans withdrawing her gold specie held in the United States, as had been reported. Baron Takahashi's state mcnt 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 a tight money sit uation, heavy excess of imports and a depreciation of negotiable securi- ties and general merchandise. But it is a matter for regret that the re- cent depression in financial circles led to exaggerated reports in the United States and European coun- tries.
 "Perfect and clear understanding is most important factor for the pro- motion of international amity and friendship. True and correct infor nation about the exact aspect of f- nancial situations are of vital inn portance to the formation of closer economic relationship between any two countries having economic rela- tions. I understand that in connec- tion with the recent financial de- prcssion in Japan various unfound- cd rumors and groundless reports found their way to the American money market where runmors had it that the Bank of Japan had raised it's official rate to ten per cent, that several Japanese banks closed their doors through failure or that Japan was going to withdraw her gold spe- cie held in the American market.
 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 state ment issued by them, believe, the American fnanciers and public have realized 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.
 StTbc .no,xo,,,;. .;t,,.x;1~ has undergone great change as the result of the European war. It is a change similar to that in American economic circles-only it is on a com paratively smaller scale and of lm- tied proportions.
 '.ln the pre-war period Japan's for eign trade always resulted in an ex- cess of imports over exports and in tho international accounts other than trade accounts, too, the balance was always against this country which had to pay q large amount of money for the settlement of the international balance. Approximately 200,000,000 yen ($1,00,000,000) was paid to for eign 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 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 for mer having reached approximately l. 400 0,000,000 yen by the end of 1918. At the same time the receipts of ac- counts other than trade balance has swclled to an enormous amount. This favorable condition has enabled the empire to afford an ample fund for the development of national industry and to give economic support to the allies.
 "ln 1919. however, consequent up- on the termination of the war, the economic situation of the country