CONDITIONS IN JAPAN

Evening Star, Issue 22382, 4 July 1936, Page 12

CONDITIONS IN JAPAN

FLOURISHING TRADE AND INDUSTRY A review of the economic condition ')i ; .Japan dining the second halt of 1935 was made by Mr Kenji jKodama, president and cinurmau o; the Yokoiirma Specie Bank, at the halt-yearly moothif of the bank. i<Yom tins review it appears that although there was in som« industries evidence of a .light depression, yet in general the progress of industry was maintained. Deposits and advances of the- trading banks increased. During the six months ended December 31 there was in Japan, Mr Kodania said, a tendency toward overproduction in certain important industries, such as those connected with cotton spinning, rayons, etc., and the siwns of a. slight depression were discernible in the market. The special branches of industry, however, continued to bo very active, due to which the small and moderate-sized industries were also prosperous. The districts were favourably affected by high prices of rice, wheat, and cocoons, and seem to have been considerably relieved from the protracted depression. Foreign trade showed a remarkable expansion in the exports of raw silk and miscellaneous goods, and broke the record in volume. This brought about a brisker movement of and a strong tone in commodity prices, and a considerable improvement in the general financial world was apparent. Money remained, on the whole, easy throughout the term, deductions wero effected in tho rate of interest by local banks, savings banks, and land banks, on account of which cheap money became more general. Short-term funds were slightly tight in the middle of' the term, but eased off toward the close, due to the redemption of bonds and t,o the distribution of Government funds; tho market was, as a whole, easy throughout the period. The absorption of Government bonds continued favourable. Certain debentures, -however, remained undigested, while_ the share market recovered its activity and continued so during the term. Al-though-previously the advances of the ordinary banks had been continually declining while their deposits increased, during the period under review increases were recorded in both cases, which may be regarded as being evidence of an increasing demand for capital. Exports for the six months were valued at 1,325 million yen (£A96,610,000), an increase of 157 million ven (£A11,450,000), and imports to 1,128 million yen (£A82,240,000). an increase of 4 million yen (£A291,700). Excess of exports was thus 197 million yen (£A14,360,000). Raw silk registered a gain in the quantity exported of 27,000 bales, and in value 84 million yen (£A6,125,000), due to an increase in consumption' # in the United States and to a rise -in price. On the side of imports, raw cotton registered a decline of approximately 16 per cent, in quantity i and 57 million yen (£A,156,000) in value, purchases • being delayed owing to the uncertain outlook in America. A rapid increase in wool imports of approximately 80 per cent, in ouantity and of 43 million yen (£ A -3.135.000) in value was also "recorded, for which a recovery in the sninnins* industry was largely respon sible. Kxports to Australia increased by 3 million yen (£A218,700), and imports from Australia increased by 47 million yen (£A3,427,000).

LONOO‘I WOOL SALES Messrs Murray, Roberts, and Co. Ltd.’ 1 have received the following cablegram from their London agents, Messrs Sanderson, Murray, and Elder L'td., dated the Ist inst.; —The following vessels have arrived in time for the consignments of wool by them to be offered in the next series:—Akaroa, Waimana, Pakeha, Maimoa, Kumara, Coptic, I,'amaroa. • WOOL TRADE AN UNSETTLED MARKET Wiuchcombe Carson Ltd., Sydney, in commenting on the wool situation, remarks that at present’, largely as a result of the Japanese position, the trade is passing through an unsettled period, and prices, particularly for faulty lines, have receded appreciably. Unrest in Europe has contributed to the situation. Experience of past phases of the business, however, indicates that the world will sooner or late adjust itself to the changed distribution of demand which appears probable. No person can state that, if Japan promptly and , actively re-entered the market, prices would quickly recover lost ground, because confidence has beendisturbed and selling figures for tops, yarns, and fabrics have lost the support of the consistently sustained raw material prices which inspired consumers to purchase mill products confidently during the past 12 months. Rut the sheep’s staple will certainly find more eager buyers than it has recently. THE METAL MARKET Press Association—By Telegraph—Copyright. LONDON, July 2. The following are the official metal quotations:— Copper.—Spot, £36 10s 74d per ton; forward, £36 18s lid. Electrolytic.—Spot, £4O 10s; forward, £4l. Wire bars, £4l. Lead.—Spot, £ls 6s 3d; forward, £ls 8s 9d. , „ Spelter.—Spot, £l3 ts 6d; forward. £l3 13s 9d. Tin.—Spot, £176; forward. £173 2s Silvdr.—Standard, per oz; fine. 21 1-l Cd.