Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-07-25
Situation Bad in Eastern Empire,
but There VIII BE no With
urawal of Coin.
COUNTRY UNDERGoEs CHANGE
Minister OF Finance Explains That
Volume or Exports In Excess OF
Production and That Economic
Measures VIII Itc-EstnblIsh Credit
lIty Associated Pres. 1

no possibility OF Japat'a Withdrawing
Her so!d apecie held in the united
states. as had been reported. Baron
Iakahashi's statement is as follows:
The financial situation IN Japan is
IN an unstable state at present owing
TO the rcactiOuary stage OF the post
DclIum finances and economies which
mas brought about tight money
situation. heavy excess OF imports and
Ties and general merchandise. Bu; IL
IL matter for regret that the recent
depression in financial circles led 70
exaggerated reports In the United
states and European countries.
perfect and clear understanding is
IL most important factor for the pro-
motion OF International ainity and
friendship. True and correct In!ornIh-
ton about the exact aspect OF imam
c!al situations are ot vital Importance
70 the formation OF closer economic
relationship between any Two cOun-
Tries having economic relations. /
Ondcratand that In connection with
the recent financial depression ia
Japan various unfoundcd rumors and
Er0undlcss reports found their way to
Iumors had II that the Bank Of Japan
had raised It's 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.
American Iiusinrss Men Informed.
ConCcrnins these erroneous reports
the Japanese government some time
ago instructed the Japanese govern
Incuts financial commissioner and the
superintendent OF the Bank of Japan
ia New York TO issue Il statement
making clear the true ASPECT OF the
financial situation obtaining in this
country. Through the statement !s-
sued By them. believe, the AIncr!-
can hnancicrs and public have real
lied the actual state Of affairs in this
country. But / wish 10 take this OPP
purtun!ty 10 express my views abou;
the latest financial situation in this
country.
The economic situation In Japan
result OF INC European War. /; is a
change similar 10 that Ia American
economic circles only j, ls on "A com
pnTat!Nc!y smaller scale and OF limit
ed proportions.
In the prc-war period Japnn's
foreign trade alwayG resulted IN an
excess of Imports over exports. and
IN the International accounts, other
than trade accounts, too. the balance
MAS always against Iris country.
which had TO pay Il large amount Of
s Ter MMa INA balance. ApnT9xtma,eiy
EIcrss In Exports During War.
Accordingly. Japanese 9cQnon!c
circles IN the pre-war period had 10
rely greatly upon foreign countries
FOR monetary assistance. The out
break Of the European war, however.
wrought a sudden change IN the trend
country. since 1915 the export trade
OF this empire suddenly increased and
the volume OF exports continued 10
exceed Imports, the excess Of the for
iner having reached approximately
l.ipOOO0.OcO yen ny the end OF 1918.
At the sam. time. the rccc!pta OF .ic-
swcllcd TO an enormous amount. This
fdvoraDl" condition has enabled the
the Development, OF national indus
try and 10 give economic support TO
the allies.
The termination OF the war, the eco
nom!c situation OF the country be-
gan to take a turn TO some extent
and, though the volume of exports
and imports continued TO Increase.
the hIlaacr .: thr foreign trade for
that yea resulted in heavy excess
OF imports. amounting TO 100000
yen. The adverse trend OF the trade
became more prominent TINS year
and up to the end .: last APRIL the
excess OF imports reached about
"Wha, course tho trade situation OF
this country Will take in future is
dtiiicu!t 20 guess, but 1t is certain
entered The post -bclium rcact!onary
stage. The government has repeat
eddy given warnings about the com
Ing chang. in NE economic s!tna-
Sill dreaming Of the continual 10 n
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 curtailmcnt and the contrac-
ton of credit transactions.
Panic In Stock Markets Have Hurt.
I'm the meantime repeated panics
have occurred in the stock market
since about the middle OF last April.
causing a panlcky slump in the cotton
yarn. cotton cloth, rice and silk
market. which was considerably dis
turbed. The financial circles have
since then hccn placed in a state OF
depression and still remain more or
less paralyzcd The government. lead
ing bankers and fnanciers are doing
their utmost for the relief OF the dis
turbed financial and economic si,ua-
ton. and at the same time taxing their
nerves TO find proper assures for pro-
vidinE against ans similar occurrence
In future.
The late financial depression has
dealt severe blow TO our economic
fecting the stability of our economic
world or OF checking Its future de
velopment The harm done to the
economic interests by the late finan-
cial depression will be healed in no
distant future. The blow will, 7 be-
licvc. prove good and timely warn
ing 20 our manufacturers and mcr-
chants to arouse them from the idle
dreams Of buoyant business of the
past: and eventually serve to nip in
the bud the unsound elements OF our
economic circles: indeed. the present
misfortune may turn out future hap
pincss.
Industrial Outlook Favorable.
The future of our national indus
try calls for no pcssimism; 1t is bound
to attain more development. The
present tight money should he regard
cd as 4 phenomenon rejecting the late
financial depression and not as It's
cause. which properly speaking was
brought about by the unsound and un-
healthy business boom and unnatural
growth Of the speculative mania con
scqucnt upon the sudden increase of
demands for goods and soaring prices.
The growth of business enterprises
which included not few cases OF nm :
sound and unstable undertakings, has
led to the recent depression.
ITO check tho growth OF such spe-
culative business mania and to pro-
vide against its bancful result in the
future. the Bank OF Japan twice in :
creased It's official rate of interest and
discount last autumn by way Of warn
Ing the financial circles. but many un-
sound elements of our business circles
failed to appreciate and understand
tho warnings of the authorities and
continued to indulge in business pro-
jects of more or less speculative char
acter. The result was the recent manic
as was anticipated by the govern
ment and Intelligent clements of our
business circles
Those who suffered the sevcrcst
blow through the depression and
GtrlnCnnE money ,nno,l,, o.,