JAPANESE FINANCES

Otago Daily Times, Issue 23591, 30 August 1938, Page 7

JAPANESE FINANCES

“AN UNBEARABLE STRAIN ”. STATEMENT GREATLY EXAGGERATED EXPLANATION BY CONSUL GENERAL , : ' (Per United Press Association) WELLINGTON, Aug. 29. The Consul-general for Japan; Mr K. Gunji, has issued the following statement regarding the finances of Japan alluded: to in a Press Association cablegram from. London, dated August 26, • Accordihg to the cablegram “Japanese finances are subject to an almost unbearable strain,” and' it is further stated that “ the general belief'is that a sharp deterioration in Japan of the economic position is. likely in the near future.” “This is a great exaggeratipn. We, admit the fact that Japan’s trade will be decreased this year in comparison with that of last year, but one must not at the same time omit the fact that Japan’s trade figures for 1937 reached the highest point since she opened her trade with foreign countries. The export figures for the half-years, January to June, of 1936, 1937 and 1938 are, respectively, 1,217,968,316, 1,527,776,070 and 1,287,222,000 (yen in each case) “ I venture to submit that almost every country’s trade,; will be decreased this year owing to the worldwide recession of trade. The trade decrease of Japan by boycott is quite negligible taken a.- general assessment. “The cablegram also mentioned that ‘Japan had lost from 50 to 60 per cent., out of its gold reserves since the war in China began.’ The actual figures will show that the, proportion of 50 to 60 per cent, mentioned greatly magnifies the amount of gold reserves exported; It may be said that our gold reserve is less than at the time the war ■ started, but the major portion of the percentage ' exported was due to , our newly established fund in foreign countries •• for the, purpose of our import trade. - Some foreign banks having refused to give credit to our merchants, the Japanese Government has taken appropriate measures by sending a portion of the gold ' reserves .to some important foreign cities. “In;; the first half of the year Japan has. the usual .unfavourable: trade balance,' but it is as a rule'the contrary in the last half of the year, and this more than compensates for the unfavourable balance of the first half, so if we judge Japanese trade by the first half-year figures it will be a miscalculation or a pure illusion Unjustified by past records.”