BANK OF JAPAN ALSO

Evening Post, Volume CXL, Issue 80, 2 October 1945, Page 7

BANK OF JAPAN ALSO

CLOSED BY MACARTHUR

Rec. noon

TOKIO, October 1

General Mac Arthur has closed the Bank of Japan because of its failure quickly to turn over the assets of seized institutions which it held. There is no indication when it will open again. American officers assured crowds of depositors, including many sobbing women, that their funds are safe.

General Mac Arthur's economic chief, Colonel Kramer, said that the Bank of Japan did not control the financial activities of military commanders in the field, who had the power either to sell their looted assets and place the proceeds in a special fund of the Finance Ministry or to keep the assets for themselves.

Viscount Shibusawa declared that he was unaware of reported transfers of gold and currency from the Philippines to Japan. Bankers denied knowledge of the full details of the Imperial household funds or where the Imperial gold deposits might be located, but disclosed that the household owned approximately a 25 per cent, interest in the Bank of Japan and that the Japanese Government owned a 50 per cent, interest. >.

The "Asahi" reported . that Kenji Kodama, a former head of the Central China Development' Company, one of the firms which has been closed, has been appointed the new president of the Japanese Central Liaison Office, which passes on to appropriate departments General Mac Arthur's directives.

A new news association, Kyodo, which means co-operative, will replace the Domei agency, which the president, Furuno, stated is to be wound up in about a month because it cannot carry on without the Government subsidy.

The newspaper "Mainichi" reported that Japanese political prisoners who were gaoled six months ago without explanation are still unreleased or are listed for trial.