The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1922-06-06
Bankers Of Japan
See Cause Alarm
Economic Conditions Found
Poor, Deposits Shrink While
Loans Decrease, Confidence
Weakened

TOKYO, April 25 - ASSOCIATED
Press MaiD-The unfavorable econo-
mic position of Japan, shown by the
decrease in specie reserves abroad,
the decrease of bank deposits and in
crease Of advances, the adverse trade
balance and the reduction of divi-
dends paid by industrial concerns
from an average of "a percent to IA
percent, a low figure here, continues
to occupy the minds of bankers.
AT a meeting of the Banking Syndi-
cate here, Junnosuke Inouye, presi-
dent of the Bank of Japan, warned
his colleagues against restricting adj
vances to reliable concerns, while Sci
chiro Kimura. vice-president of the
same bank, warned the meeting that
the worst elimination of the situa-
ton could be averted only by the most
judicious activity of the bankers.
Confidence Shaken
"Since the bankruptcy of a certain
Osaka Spectator recently the bank
ers in Osaka have been naturally but
unwisely inclined to refrain from in.
vestment even in the enterprise of
the most reliable characters presi.
uOlb llOut Sdlu. Ills nervous TEN
dency seems to be beginning to mark
the attitude of the Tokyo bankers as
well. Such an injudicious restriction
on bank advances would prove no less
fatal than a bold attempt to invest
in enterprises of dangerously specula.
tive nature and would only aggra.
vate the existing economic condition.
klmura gave a general review Of
the economic situation.
Situation Reviewed
Contrary to the happy spring sea
son now enjoyed in this part of the
world, the economic world il in its
bitterest of aspects under heavy
%frosts," he said. During the war,
when the country was under the spell
of the industrial boom, Japan made
more money than she could spend,
with her specie reserves abroad in
creas1ng from the pre-war figure of
yen 10000, 900 up to yen 2,200, 0O0, 900
and her foreign debts lesened from
the pre-war yen 1000, 900 900 down to
yen 10000 600 at the end of the year
1920. 1t was not long, however be-
fore Japan began to suffer from re-
action. With a steady increase of
imports and decrease of exports
caused by the reduced purchasing
power of the foreign consumers, the
country's foreign trade has continued
OF late years TO score an increasing
excess of imports over exports and
with it, all sorts of evil attendants
on such trade tendencies.
"As an inevitable consequence. the
specie reserves abroad have been on
the steady decrease. With the ex-
cess of imports ~aggregating no less
tina yen 100000, 900 within only the
first three months of this year, this
unfavorable tendency of the country's
foreign trade must continue. The eff
feet of the consequent business de-
preston asserts itself most eloquent
ly in the steady diminishment of the
profits realized by different enter.
pr1ses. According to official investi-
cations, the net profits realized by
the SO leading industrial establish
ments of the empire for the first
half of 1920 averaged "a percent of
the capital invested, whereas the per-
centage dropped in the first half of
last year to 80 percent and the latter
half to ID per cent. The general sit
uation thus requires a thorough indus
trial reform, the necessity of which
is all the more enhanced by the grow
ing gravity of the labor difficulty due
chiefly to the abnormal level of the
commodity prices.
Sinister Conditions
Under the above economic circum-
stances no normal condition of the
money market can be expected. The
marked decrease of bank deposits
and the contrasting growth of bank
advances during the past six months
presents the anomalous condition of
the existing money market. Within
the period under consideration the de-
posits scored a decrease of yen
100000 while advances rose by
yen $50, 600, 000."
The vice minister of finance point
ed out that the excess of imports
owe exports was due to the importa-
ton of raw material, such as lumber