29
6
out strictly in conformity with prevailing conditions as brought out in many meetings of the Taxation System Inquiry Commission. The Finance Minister asked that the governors co-operate to the fullest extent in carrying out of these difficult matters.
Reviewing the trend in foreign trade, Mr. Aoki noted an increase of 35 per cent. in exports and 10 per cent. in imports, excess exports amounting to 400 million yen compared to an adverse balance of 97 million yen the year before. The Finance Minister noted, however, that this does not permit of optimism regarding the acquisition of foreign currency, as trade with countries other than Manchukuo and China showed a considerable adverse balance.
Regarding the possible effect of the European war on the international trade of Japan, the Finance Minister said that the present conflict differs greatly from that of 1914-18, so that it is difficult to tell what its effects will be.
He noted that the foreign exchange of Japan has been linked with the British currency, the rate being 1s. 2d. to the yen. As a result, the yen, in terms of the American dollar, slumped considerably when the pound started on the skids, not, however, because of any particular weakness in the yen. Suitable measures will be taken in regard to this situation, he declared, but care is needed as the exchange situation exerts a far-reaching influence on economic conditions in Japan.
He reviewed the course of the exchange market since the outbreak of the war, finally reporting that the exchange banks fixed the yen-dollar quotation at 23% yen after the 15th September until recently, when it was decided to determine the yen-dollar rate on the basis of the official British rate on the dollar as of the 29th September, stabilising the yen exchange unless there are fluctuations in the official British rate. He promised that the foreign exchange market would be closely watched and changes made in accordance with requirements.
He went on to say that, since the outbreak of the China affair, monetary circles in Japan have had to contend with great changes, but both the short- and long-term money markets have been all right. The enforcement of the Temporary Capital Adjustment Law and the ordinances relative to company dividends and capital outlay has also been satisfactory. The distribution of large sums by the Government, together with the progress in the thrift and savings campaigns, has resulted in the accumulation of fresh capital.
The
The outbreak of the European war caused a sharp advance in stocks here and has given rise to speculative operations. It was feared for a time that, if the tendency had been allowed to take its course, it would have resulted in much speculation. The Government accordingly asked financial institutions not to supply funds for operations in either the stock or commodity markets. various markets have become calm as a result, indicating the private interests concerned understand the intentions of the Government. The Finance Minister hoped that this self-restraint would continue, making it unnecessary for the Government to resort to stricter control measures over speculation and price advances.
As the question of prices is one of the most important war-time problems, the Government has adopted various measures to control commodity prices, such as prohibiting a rise in general commodity prices in accordance with provisions of the National General Mobilisation Law. The Finance Minister asked the co-operation of the people in making these various measures effective.
He stressed the importance of encouragement of thrift and savings as essential to ensuring an adequate supply of capital for expansion of industry as well as in connexion with the issuing of national bonds.
Mr. Aoki reported that assimilation of Government bonds has been very favourable, the total for nine months of the year being 3,680 million yen. Further issues are expected so that further thrift and savings are necessary.
He asked the governors to investigate earnings in various sections of the country, as well as past savings, so as to be able to suggest a systematic and organised method of accumulating funds.
Regarding the concentration of gold, this has been carried out satisfactorily, he reported. The number of articles containing gold received at the mint from various sources to date has reached 1,200,000, which he considered an excellent record. Further efforts along this line were asked as gold will increase in importance along with changes in the international situation.
X
No comments yet.
Private notes are available after approval.