Dhananjayarao Gadgil Library 111111111111111111111111111 ~I~ 111111I GIPE-PUNE-009117 JAPAN AFTER GOLD BAN REMOVAL

JAPAN AFTER GOLD BAN REMOVAL

By TAKEO AONO FINANCIAL EDITOR OF THE OSAKA MAlNlCBI AND TBli: TOKYO NlCHI NlCBI. ENGLISH EDITION

RmUNKAKU loa EDOMACHI. KOBE. JAPAN

MARUZEN COMPANY. LID. TOKYO. OSA~ KYOTO. YOKOHAMA. KOBE. NAGOY~ Ft1X110KA. SENOA!. SAPPORO AND XEUO Cent-it"'. 1931 AU rit1d6 r'6nf1,4

'X .L\~' N3 G-l C) 1 17 TO FATHER who palSed away on January 1" 11120, wblle I was In 'Calcutta, not knowing that I would become a newlpaper man, tblt book .. humbly decilcated. Foreword This book IJ a collection 01 m, article. which h .... e appearecl Sa the Osaka Malnichi and the Tokro Nlchi Nlehl, EnlllJh Edition. I hue made, however, a revision 01 lome pan. .. well .. aome ad­ ditions, because these article. were oriJinalt, written .. ,ea_d reviews ot markets atter the JOld ban removal on January 11, 11180. In view ot the Importance attached to the liftln, 01 the embargo and the condition. thereafter, I hue watched the development 01 the Japanese economic situation with the keenest attention .. the financial editor ot the Osaka Mainichi and the Tok,o Nlchl Nlchl, En,Uah Edition. In February, 1930,1 wrote tor oar psper m, 6nt review 01 the economic conditions after Nippon'l epochal financial ellperiment. The second review, which I made la Jul, 01 the lame ,ear, appeared la our paper in a three day series under the headin, "W.. Japan" Gold Ban Removal Successful1" "Should Japaa Prohibit Gold Ellport A,aln'" w .. the lubJect of my essay, which appeared In our paper In a lour da, seriel durin, November of the ..me ,ear. This article w .. written la order to ItOOy the increased demand In lOme quam,. tor the second prohibI­ tion 01 the gold esport. At the beJinning ot December, 1930, I ltarted compllln, the economic diary of Japan atter her gold ban removal and covered, I believe, almost all the important incidenb In Japanese economic circlu during the one year since the big financial event. In this book, the diary seema to me to ban taken up too mucb space, but it is b, no means unimportant tor those wbo latend to trace the movement 01 the Japanese economic condition.. Parther It may prove to be good reterence material lor other coantria whicb are going to adopt the gold standard in the near tutare. 1 obtained the tigura up to December 20. 11130, la the coane of conducting the year-ead reviewl ot markda. In publlJhlnl' thlJ book, the figura after December 20, 1930, up to Janaary 10, 1981, were added. During the 69th aeasion ot the Diet, whicb w.. cODnned on December 2', 1930, the gold ban remon! at the original parity point 01 '49% 11''' criticized in view 01 the continued bulneas depreN10n and the lUting 01 the embargo at the new parity point 01 about "0 was demanded by the Opposition. I made a study of the demanded devaluation of the ,Yen and an article dealing with thlll appeared in our paper for several days during February, 1981. I believe that' some readers will be interested In this article, although it Is rather technical. The aim 01 this book is to describe the actual development of the Japanese economic situation after the gold ban removal and no attempt has been made to solve the problems associated with the exibt­ Ing difficulties in the business circles. My thanks are due to the Osaka Mainichi Shimbun&ha, Ltd., which gave me this opportunity of writing on such an important financial eV.ent and of publishing my articles in book form, to Mr. Yoshi­ kazu Uk yo and Mr. MilBuzo Hosokawa of the Intertype Department of our paper, who rendered valuable semces in printing my humble work and made various suggestions concerning this book, without whose help speedy publication would have been impossible, and to Mr. Shlgeru Kimura of the Economist, published by the Obaka Mainichi. who helped me In obtaining the data in preparing the tables used in this book. TAKEO AONO. At the editorial office of the Osaka Mainlchi and the Tokyo NlcW Nichi. English Edition. Osaka, Japan. March 10, 1981. CONTENTS CIIAP. PAaII I Introduction ...... 9 U Stabilization of Foreign Exchange ••••••••••• 13 m Import Excess For First Year of Gold Standard 19 IV Great Change in !4oney !!arket •••••••••••• 25 V Curtailment And Rationalization of Industries 31 VI Effect of Gold Ban Removal on Japan's Finance 39 VII Nippon's Economic Diary Since Lifting of Embargo 43 January' •••••••••••••••••••••••••••••••••• 44 February ...•...••••....••••••.••••..•••.. 45 March 48 April 51 :May 54 June 58 July 63 August ..•••••••••••••••.•••..•••••••••••• 69 September ••••••••••••••••••••••••••••••.• 75 October ...... -_ ...... 80 November 86 December ••••••••••••••••••••••••••••••••• 92 lan.uary .••••••••••••••••••••••••••••••••• 98 vm Study of Demanded Devaluation of yen •••••• 101 JAPAN AFfFR GOLD BAN REMOVAU 'I Introduction OME trouble,S are unavoidable ciers as a measure to cope with the Safter such drastic changes in the hard times after the gold ban remov­ financial situation a8 the lifting of al, waa generally inactive throughout • Bold embargo. Britain has already 1930, despite the fact that the Ex­ passed that stage, if the present un­ port Indemnification Law was enforc­ favourable conditions have no con­ ed on August 1 in order to promote nection with her gold ban removal in exports in addition to the usual en­ 19211, or it may be better to say that' couragement by the Government. ahe is now still passing through Thus the "only hope" was amash­ troubles associated with the "adjust­ ed to atoms. In other words, the ment crisis" partly affected by the Japanese economic circles lost every world depression. chance of "tl.nancial yentilation," A similar situation after the gold Imports into Japan during 1930, how­ !:an removal was expected in Japan ever, were comparatively small, thanks until she actually lifted the long con­ to the Government's retrenchment tinued gold embargo on January 11. policy, tbe .thrift of the Japanese peo­ 1930, Dut things were worse than ple in accordance with the Govern­ gencrlllly expected. Prices dropped ment's policy and the wane of their abruptly, proving to be a serious blow purcbasing power, following the gen­ to producers. The producers were eral depression. This caused Japan's eompe lIed to conduct the so-called in­ excess of imports over exports for dustrial ratlonlllisation and curtail­ 1930 not to increase heavily, com­ ment. pared with the previous year. The rationalization and curtailment, Japan was very unfortunate in find­ however, have caused the workers' in­ ing that the world-wide depression comes to decrease and the jobless to continued to develop adversely after Increase. Thia has resulted in the ber epochal financial experiment. wane of the general purchasing power The world depression,led by the Wall and even the lower prices have proved Street panic in the autumn of 1929, to be no stimulus to increase con­ was primarily due to the unprecedent­ .umptlon beyond the actual demand. ed slump of bar &itver and tbe higher Tbe uport 01 the low-priced goods. tariff walls throughout the world. wblch had heen the only hope of the The wane of tbe purchasing power Japlll1e&e manufacturers and finan--.-in the ailnr standard countries such JAPAN AFTER GOLD BAN REMOVAL

.. ChiD& and Britiah India, foUow­ Japanese population being en,a,ed fa ing the continued slump of bar .ilver, farming, although NIppon Ia one of and the prohibitive tariff. of almost the world'. advanced manufacturing all countries of the world checked countries. The wane of these farm­ the export of Japanese producta to er.' total purch ..lng power wu tre­ & fatal extent. mendou. from the viewpoint of the Among the producta the export of national finance. which has been seriously affected by The depression of farm vlllages these facta are cotton yarn and cot­ WBI witnesled not only In Japan, but ton textiles. which had been shipped In other farming countrle.. Similar actively to China and Britiah India. poor reaulta were .een In many farm­ The export of raw silk to the United Ing districta aU over the world In States. on the other hand, has been 1930. Raw cotton, 'wheat and corn inactive due to the buyers' cautiou. slumped due to the bumper cropl. attitude in view of the constant fluc­ The fundamental adjustment of the tuations of quotations. whereas raw farming .ystem fa Imperative, so far silk, together with silk cloth, cotton .. Japan fa concerned, In view of yarn and cotton textiles, is one of .uch undesirable resulta from bumper Japan'. major exports. farm crop•• It is not, therefore, too much to The only virtne of the gold ban say that the hard time. in Japan lifting waa the .tablllzation of the after her gold ban removal were Yen'. external value, that Ia to .ay, coupled with the wave of world de­ the normal foreign nchange of Jap­ pression. The depression iD the Japa.­ anele currency. Even this foreign nese financial circles has been con­ exchange .tabillzatlon haa not far sidered in some quarters as a direct proven to be a medium of facllltating result of the gold ban removal, how­ Japan'. foreign trade to & great ex­ ever, without counting the effect of tent due to the general bnsinCII .Iack­ the world depression on Japan'. trade. nell. What was unfavourable to the Jap­ Some optimista thou,ht that there anese financial circles was that the was a .iga of bnsinCII recovery In' bumper crop of 1930 rice was an­ view of the favourable tendencie. lD nounced and the riee quotatioDl on the financial circles, .uch .. the the exchanges and marketa slumped .teady decline of general commodity terribly. The adverse effect of the prlcea to the International level. de­ rice quotations' slump upon Japan'. ftation of currency, reduction of eapl­ finances was far greater than that of tal and dividendi by manufacturing the eocoon and raw silk prices' record eompanies. and the .pread of Indu­ decline, although the purchasing trial rationalization throughout the power of the Japanese sericulturists eountry. decreased in no small measure. The Increase of bub' loans. how­ !lice plantation fa atill Japan'. ever, despite the Government'. defl ... major industry. • mat part of the tion poliq, and the .Iow procraa of

-11- JAPAN AFTER GOLD BAN REMOVAL

urlou. companies' Industrial ration­ alization and the reactlonal wane of alization during 1930 have offset the their purchasing power had an un­ favourable effect of the above-men­ favourable effect upon the general tioned desirable tendencies In Japan's manufacturing. finance. Banks which made their Relief measures adopted by the loans to manufacturing companies, Government as well as banking in­ did not welcome the drastic financial terests were not very clever. The adjustment of these companies for Government could not but use the fear of a big loss on the part of funds ot the Deposit Department for banks. As a matter of fact, these the relief of industries of medium blinks were losing more by prevent­ and small meanl. The fundi of the Ing these companies' timely funda­ Deposit Department consist of postal mental adjustment. savings and premiums paid for posW These companies wanted to convert Insurance, which are held for the pay­ their. fixed assets into working funds, ment of the Insured amount. It is but the curtailment of operations noticeable that the relief of these in­ rather resulted In locking up their dustries was thus made at the n­ working funds. Such inconsistent pense of the lower class. facts were seen in the course ot the These loans cannot be fixed for a so-called industrial rationalization, long time in view of the nature of though they may be temporary phe­ the funds. The minor industries will nomena during a long course of ad­ then be placed in a harder situation. justment. These relief measures are something The rationalization of Industry in like tinkering. The Government and Japan Is an Imitation of the German banking interests must be blamed for system. The "imported" industrial their negligence of the fundamenW rationalization was not ready made relief, removal of the basic defects for adoption Into the Japanese "eco­ in these industries. nomic structure" without some dress­ The Bankers' Syndkate and the In­ Ing of the crude material, but the dustry Commission were formed to Japanese manufacturing companies cope with the hard times, but they were then placed in such a difficult did not touch the fundamental ques­ situation that they had no time to tion. Consequently general traders study the "imported" rationalization and manufacturers are still in a diffi­ plan and to revise It in order to meet cult situation and there is little hope the particular Japanese situation. of recovery in the near future. What is noteworthy Is the demand The result of the partial capitalis­ for the prohibition of the gold ex­ tic rationalization was the shifting of port again. Such a demand has in­ the blow from the large industries creased steadilY among some traders, to the labouring closs, farm villages, politicians, scholars, and farmers. and industries of mediQm and sma!] Continued gold outflux for some time means. Thus 90% of the Japanese has caused some people to become people had to suffer from the ration- uneasy about the future gold situ..

-11- JAPAN AFTER. GOLD BAN REMOVAL tion m Japan anel to demand a Dew frequent17 evea to th. m ..lmum Ia.. gold ban. declariDg that tbla outflOW' amount. of gold involves a eonliderable lum It la noticeable that the Cabinet bad m foreigu investmentl by lome Jap­ to reform the bud,d onl, three anese interestl whicb bave little hope month, after the beginning 01 the of Japan'. financial recovery. 1980-81 f1acal 1ear. In eonnectioa Some people demanded that the with the Hamagucbi Cabinet', finan­ Goverument declare another gold em­ cial policy, It muat be mentioned that bargo and then remove the ban at Premier Yuko Hamagucb!. on Noy­ • new parity point after a proper ember It wa. ...aulted on the plat­ time hal elapsed m ordn to eheek form 01 Tokyo Station by a 10uth the further depression 01 trade and wbo belonged to • react1onlatl' group. to rai.e prices. declaring that the ab­ Tbe Government', f1aanclal policy. rupt change of bUline81 eondition. however, waa cbanged. The .Iogan was due to the resumption of the of "retrenchment" was replaced b, Igold standard at the origiDkl parity "bome mdultry protect1on." TbUl point. relief loanl were liven In valioUl Farmers have been atreeted by the directions. caUlln, the eurrency to abrupt deeline of land values. because ,well again. Then the Government,' they had to put up additional aeeuri­ adopted the low Interest policy la ty against their loan. from the band. view 01 the .toppage 01 bl, gold out­ The price fall ot farm produetJ Wal Sows. heavier than that of industrial manu­ New rice was purcha.ed by the facturel. In addition, the increased GOYerDment In order to raise the rice return of the jobless from town. to quotations. Bond. were allo bought by the rural districtl has caUied farm the Industrial Bank 01 Japan 10 ac­ villages to suifer more and more. eordance With the Government'. poli­ Really the deprelSlon of fsrm vil­ cy to bolster them. lages is very serious. Even the bar­ Stock quotation. began to rise In ter system wa uled in some farm November and the fallin, tendency 01 districts, following the heavy Ilump the general merchandise quotation. of cocoon and rice quotations and the baa somewhat been checked. It would eonsequent wane of these producers' be premature to consider this aa a purchasing power. Some villagera .ip 01 fundamental buslneu recoyery proposed to pay taxes with rice In­ in the near future. bowenr. although stead of money. Several primary Mr. K. Tajima. Vice-MinUlter 01 C0m­ schooll in rural districts abolished the merce aDd Iaduatry. at a V1ee-MiDia­ higher elementary eourae 00 account ters' meeting on December 11. de­ of finandal conditions. This Ia why clared that there Wal an 1ndication farmers demanded the second gold 01 industrial reeove".. embargo. The autbol' believes that the ex­ Thus tbe general bandal situatioo Isting condltiolll will contlnue lor has become worse than expected' and some Teara with a certain amounl 01 even the Hamaguchi Cabinet, wbich up. and downa as long .. the wOrleS( Wal proud of its .~alled "non-bond­ tari~ competition eontinues anel DI), issue policy." was eventually obliged lundamental remedy for the a1ump to wue boo~ and Treasury Billao 01 bar ,Uve.. II f cnuuL • -H- n Stabilization: of Foreign Exchange THE atabUlzatfon of the Yen'. ex- high quotation. Later the quotation ternal value, which had been the was .teadied at about ,.9, being major alm ot Japan'. gold ban lower than the specie point by removal, was wltnes.ed throughout between % and 1;'. 1980. The Yokohama Specie Bank'. Thus the foreign exchange was change ot Its officlal excbange rates stabilized by the announc~ment of took place lesl than 10 times alnce the exact date of the gold ban re­ the gold embargo 11'&1 lifted on moval, whereas Japan's foreign trade Janua!')' 11, 1980, whereas the had been greatly afroected by the Dumber of the Bank's revisions of constant fiuc:tuations of the e~change Ita rates bad been annually between rates for the 18 years following the 10 and 100. prohibition of the gold export In It Is noteworthy that the Yokobama 191'7. Speele Bank'. revision of Ita ex­ Therefore, no abrupt advance of change rate on New York was made the Yen was witnessed when the em­ only thrice during the period after bargo was actually lifted on Janua!')' 11, 1980. The Yokohama Specie the ban's lifting, whUe the rate OD London was changed seven times. Bank, which raised ita official ex­ change rates on New York and Japan's gold ban removal, there­ London by one point to $~9V. and fore, was a succesa.o far as her 2/0 ~, respectively. on Saturday, foreign exchange was' concerned. January 11, increased these rates The Yen's excbange rate on New again the following Monday to $49% York, which was fiuctuating on the and 2/0 1/16• • U level, began to rise steadily since The foreign exchange market the formation of the Hamaguchi however, has been in an abnormal Cabinet on July II, 1929, followin. condition since the end of January, the l'ollapse of the Tanaka Cabinet, the ratea being comparatively low. because it had been generally believ­ while they should be higher at the ed that the Hamaguchi Cabinet specie point at least, as a resnlt of would lift the long continued gold the removal of the gold export ban embargo, lind the shipments of gold that bave The external value of the Yen been conducted by both foreign and reacbed the parity point of $49% Japanese banks. Immediately before the Government's This was due to tbe Bank of Ja­ announcement of the exact date ot pan's hesitation to seU the Dollar to the gold ban removal, which was the Japanese banks, with a view to made on November 1111, 1929, although checking imports and protecting Ja­ It was a temporSl')' and abnormally pan's specie holding, &I the exchange

-11 - JAPAN AFTER GOLD BAN REMOVAL

busines. baa been placed under the Foreign banks then to a certairl direct control of the Bank of Japan ntent controlled the Japan.. e "~ since the gold ban removal change market for some time, whlll The Yokohama Specie Bank'. Japan.. e banks bad to obtain tb, 8trong attitude of quoting ,-'9%" ac­ Dollar fund. In order to cover th' tual selling rate to banks, which waa exchange rate of raw cotton Imporb: lower than its official nchange rate and to meet the foreign payment.' by one point, wa. also responsible and Inveltments abroad by Japan.. « lor these foreign and Japanese bank.' companle,. go~d shiptnents. Alreeted by the.e foreign banka'l operation., Japanese banks demand­ In view 01 the cautious attitude 01 ed from the Government a more the Bank of Japan and the Yoko­ lenient attitude toward the Japanese hama Specie Bank, uneasines. about the Ye;' prevailed overseas and the bank,' gold conversion and the' Millul Bank .tarted conducting gold Yen eventually dropped abruptly In .hlpments on January 81. The 8um1-1 the New York exchange market on tomo and the Mltsublahl Banks fol­ January 11. barely maintaining the lowed. although they had been asked $409 leveL by the Government to rdraln from Foreign banks, which bad to with- conductin ... gold shipments end the, 'draw their Yen speculation funds had acted for ,ome time In accord­ from Japan In view of the gold ban ance with the Government'. desire. removal, converted Dote. Into gold at Thua the total gold shipments I. the Bank ,of Japan and ,hipped the one month after the gold ban re­ specie to the United State~ per al­ moval exceeded 180,OQO,OOO, 'although most every available ship .ince Janu­ both foreign and Japanese banks ary 21. were very moderate In making these The speeie point was then calculat­ shipmentl In view of the Japanese ed at "9% and the foreign banks Government'. desire for their moral found it profitable to ship gold III­ lupport of Nippon'l big flnanclal stead of bnying the Dollar at ,409%,. event and also for fear of a publle Some foreign banks, however, made attack upou luch action. • profit by selling the Dollar to the Still the Yen exchange Wal 11011' Japanese banks at rate. better-than to advance, being between UI 1/11 the Yokohama Specie Bank'. actual and '" 8/16, whicb flgnrea were selling rate, taking advantage of the much lo... er than the .peele point. fact that the foreign bank, had the Thus the foreign exchange was rather privilege of obtaining the Dollar unfavourable for .ome time deaplte from the Bank 01 Japan lreely, the gold ban removal whereaa the Japanese banks were The gold outflow eontinued evea BIked by the Government Dot to pun after March. whereaa the tetUement down the Yeu by buying the Dollar of the exee .. imports b, foreign ex­ actively. change I.e usuall, made before the end -1'- JAPAN AFTER GOLD BAN REMOVAL of March. The gold efflux was at- conversion 01 the 4.% Sterling Bonds tributed to the Bank of Japan's con- 01 the Japanese Government in the trol of the exchange market. The ex- London money market have caused change banks demanded that the the open market exchange quotations Bank of Japan make the exchange to rise to the higher level of the market quotations the same a8 the Yokohama Specie Bank's official rates. Yokohama Specie Bank's official ex- The "export season" of Japan change rates or change the Yoko- usually begins in July. The foreign hama Specie Bank's rates to the open exchange, therefore, should have been market level. stabilized In July, 1930, but the re- The Bank of Japan, however, was· suIt was adverse. This was due to unable to meet the demand, because I the continued gold outflow for in­ It had been placed in a dIlemma be- vestments abroad by some Japanese tween the protection of specie and interests, particularly in foreiga bonds hesitation to sell the Dollar in view of the Japanese Government in view of shortage of the Dollar funds, fol- of their higher yield, compared with lowing constant release of its specie securities in the Japanese market. holding abroad to Japanese banks, In view of the further depression headed by the Yokohama Specie of the financial circles, a demand for Bank, and foreign banks to a con- the prohibition ot gold exports again .Iderable amount after the removal occurred and some pessimistic traders of the gold ban. began to convert the Yen into the . The foreign exchange market was Dollar. The foreign banks, in addi­ comparatively steady in April, May tion, started buying the Dollar for and June, although there were some forward delivery, considering that the unfavourable factors such as the in- gold export would be prohibited again activity of the cotton industry and If a change of the Cabinet took place the slump ot various shares. This in connection with the ratification of was due to the Bank 01 Japan's the London Naval Treaty. change of I~ gold policy in view of The Privy Council then showed a the disadvantageous situation of Jap- strong attitude towards the Cabinet anese banks in the exchange market, regarding the matter and the politi­ follOWing Its protection ot gold. cal situation was uneasy for some The Bank of Japan this time ad- time. The speculative buying of the mltted these Japanese banks' gold Dollar and the consequent selling of .hipmerits. The foreign exchange the Yen for forward delivery caus­ market naturally became easy and the ed the Yen exchange to slump to $4.9'1.. which was the second big de­ quotations were gradually steadied. cline since the gold ban removal. In addition, the low interest rates in Thus the exchange situation was ab­ Rrltain and the United States, the de- normally unfavourable for the "ex­ Uease of raw cotton imports into port season." Japan, the 1ncrease of raw silk ex- In view of this unfavourable situ&­ ports from Japan lUId the successful tion. the Yokohama Specie Bank,

-16- JAPAN AlTER GOLD BAN IlEXOVAL

'Wbicb had beea Inaclive lince the .hlpmenta. It was thea repcme4 that ban removal, began to nU the Dollar .ome forel,. banu might appear lD for forward dellvell' activel, lD ae­ the call money market lD order to cordance with the exchange polIcy of obtaiD the Yen fUDeIa. the Government and the Bank of Speculatora be,aD to leU the Dol­ Japan, expecting that it 'Would bave lar reactionall,. Thla lent the ea­ to conduct .ome gold shlpmenta lD the change rate of the Yea to the hlp near future Thla 'Was lomewhat effec­ level of $U 18/18, only one point tive lD checking the further fall of lower thaD parlt" OD October 28. the Yen but the .Yokohama Spede Compared with the exchan... banka' Bank'. .elling 'Was then reported to aped. point, the quotatioD waa much bave reached from $'0,000,000 to hl,her and eVCD the Import 01 ,old $50,000,000. Irom Amerka wu then expected. The Yokobama Spede Bank thea Thu the YeD exchan,e became ab­ decided to condnct gold .hlpmenta lD Dormally hl,b and the Yokohama order to lDcrease Ita .pecie holding Specie Bank, lD aceordance with the abroad to meet the .ettiement of the policy 01 the Govemmrnt and the exchange tranaaclion.. Thu the Bank 01 Jap.. begaD to agree to the Bank'. first gold .hipment lince the. forei,. banka' demand lor the gold ball removal 'Wu eonductecl OD "change-cwer," beeau.. .ucb AD ab­ September 28 and the Yen exchange Dormally high quotatioD woulc! aaUN became lteady at $4.9%. the importa Into Jap.. to increue and The political uneaain... was rem"­ the exporta from Japan to deereue. ed with the ratificatioD of the Lon­ The Y okobama Specie Bank thea dOll Naval Treaty and forei,. and aomewhat controlled the ac:haa.. J apalleH 'peculatol'l, who made a btl market. purcbase of the DoUar lD all for fo,," Later the Yen exchange was ateedi­ 'Ward delivell', bad to ObtaiD Yen ad at from $4.9 11/18 to "II III. Th. funds for the letUement of their Yen euhange rate wu .omewhat low­ transactioll" Forei,. ball'" particu­ er during December, the Yokohama larly were placed iD aa unfavourable Specie Bank'. olidal ncbange rate .itnatioll for obtaining the Yea 011 New York being $4.9 %, but the fUIlds. beeaue they bad couducted undertone was quite firm. TbIa wu gold shi'pmenta to couiderable due to the Yokohama Specie Bank'. view the amount with the funda for YeD ~ .ellin. attitude In of fad culatioD. • that the "import aeuon" of. Japaa had let In. Some forei,. banka iDtended to Ie­ ThUl the .tahility of the Yea ca­ ae1l the Dollar to the Japan... 1m­ cbo,. had a favourable elrect DptJIt portera or aaked for the "change­ the banda! drdca at the ,ear-eucL over" in their exchange transactioDi Particulars of the biped ancI l0w­ with the Yokohama Specie Bank. The ed cullan,. rata of the YokohamC :Yokohama Specie Bank did Dot ~ Specie Baak dariD, the 12 moatha of to the demand and continued Ita ,old 11180 .... Genna ID tile follDwlDl table. JAPAN AFTER GOLD BAN REMOVAL Y.S.B.'s Official T.T. Rates Month On London On New York On Shanghai (1980) Highest Lowest Highest Lowest Highest Lowest Jan ••• , ••••• SIlO 11/16 SI/O 1/8 69% "9 119 93% Feb. • ...... 2/0 11/16 SI/O 11/16 "9% "9% 108 98 Mar. • ...... SI/O 11/16 SIlO 11/16 '9% '9% 106 100 Apr. • ...... SI/O 11/16 SIlO 11/16 '9%' '9% 10" 108 May • •.•• •• SI/O 8/8 SIlO 11/16 '90/. 49% 120 106 June ...... SI/O 8/8 SI/o 8/8 '9% '9% 140 120 July ...... SIlO 8/8 SI/O 11/16 '9% '9% 1311 128 AUI ••••••• 2/0 11/16 SIlO 11/16 '9% '9% 130 122 Sept...... SIlO 8/8 SI/O 11/16 '9% '9% 125 120Y. Oct...... SI/O 8/8 SI/O 8/8 '9% '9% 121 123Y. Nov. • •••••• •Sl/O 8/8 SI/O 8/8 '9% '9% 121 126 Dec...... SI/O 8/8 SI/O 8/8 '9% '9% USI 128,%' (1981) Jan. (up to Jan. 10) ., SI/O 8/8 SIlO 8/8 49% '9%' 151 165 (Year) 1980 ...... SI/O 8/8 SI/O 1/8 '9% '9 USI 98%' 1929 .••••.• SI/O 1/16 1/9 11/8 '9 '3% 9811t 10 While the Yen exchange rate. on level and the 81 cent mark. The low New York and London were general­ record of I'd .:y. was reached again ly steady throughout 1980, constant In London on December 80, while the fluctuations of the rate on Shanghal New York bar silver slumped to the took place durin, the year, follow­ Dew low quotation 01 80% cents on Ing the frequent bi, decline 01 bar the lame day. These revolutionary allver. changea 01 the 6ilver pricea have The London bar .ilver quotation, thrown the Chinese market into COD­ which had been downward since 1929, atemation several times durin, the broke the SlId level in January, 1930, year and .created a Dumber 01 tra~ the 20d mark In February, the 19d dies among the Chinese bankers and level In March, the 18d mark In May, others who held considerable SlIms 01 the 16d level In June and eventually silver. Cases of suicide and flight the Il1d mark In December. The un­ have been reported. precedented low records 01 Ud :y. The Yen exchange rate on Shang­ and 81 % cents were reaUsed !n the hai, which was on the TIs. 98 level London and the New York markets, at the beginnin, of 1930, advanced to respectively, on December 16. TIs. 1'0 in June, causing the Chinese The quotation had been steady at purchasing power to "ane consider­ the Ud level and the 81 cent mark ably. The Yen exchange on Shang­ until It recovered the IIId level and hal was steady at the lower level until the 82 cent mark on December the London bar ailver registered an 22. The quotation be,an to fall again unprecedented slump on December on December 28, breakin, to the ltd 16. The tremendous break sent the -n- .TAPAN AFTER GOLD BAN REMOVAL iYen nchange on Shanghai to TIL 14.0 Date London (lpot) New York lagain on December 111. (Unit Penny) (UDlt Cent) .Tan. In view 01 the recovery 01 the I ••' ••.•• ' •••. No market No market London bar silver to the 16d level on I ..••••••••• Ditto Ditto December 22, the Yen exchange rate 8 ••••••'. • • • • Ditto Ditto on Shanghai was reduced to TIs. 188 • ••••••••••• Sunday Sunday • ...... I'V. 29'1. by the Yokohama Specie Bank on I '" ...... 1811/18 1I9Y. December 28. f ••••••••••• 180/, 80 The Yen exchange on Shanghai was 8 ...... 187/18 118% • ...... 188/18 118'1. Y increased to Tis. 139 on the follow­ 10 ...... 18 /. 119'/. ing day due to the faU 01 the London II .••••••••• Sunday Sunday and the New York bar .Uver. Tbe Tbu. the general tendency .. down­ highest point of Tis. 142 for 1980 was ward and the future .. very gloomy, quoted by the Y okohaam Spec:le Bank the .upport 01 the market havln, on December 80 In view of the ful'­ been very poor. ther slump 01 the bar Inver. It .. generally admitted In the The unprecedented slump 01 the Shanghai market that the new .Iump London ,and the New'York bar snver was mainly due to the sellin, from was registered on January 9, 1981, Chin.. Short-lellin, by the.e the quotation being 13 8/16d and Chinese .peculator. Iince the berln­ 28% eents. Tbis sent the Yen rate IIln, 01 11131 has .0 far amount­ on Shanghai to the new high mark ed to a large InllV- of TIs. 167 on the foUowing day. Some leadin, .nYer broken are Yery Tbe movements of the London and pe88imlstie about the future of the New York bar silver quotatioDB since market, declaring that the quotatloll the beginning of January, 1931. are may break to the 10d levd befoN all f oUow.. 10D"

-u-' m Import Excess For First Year of Gold Standard HE stabilization of the Yen ex­ the gold standard. The Japanese T change a. a result of the gold ban Government adopted various manipu­ removal did not have a greatly fav­ lations in order to check imports and ourable eft'ect upon Japan" foreign to promote exports. They were some­ trade for 1930, but this does not at what effective. The tendency is \ all mean the failure of Japan'lI re­ generally good and a further impro­ 'sumption of the gold standard. The vement of the trade balance may be 'Inactivity of Nippon's foreign trade expected for 1931, If only the volume Is due primarily to the world depres­ of exports Increases by a higher rate aion, following the heavy slump of bar than that of the imports, following allver and the increasing international the recovery of the importing coun­ taritr competition. tries' purchasing power. The volume of trade, both In ex­ It had been considered in some cir­ ports and imports, decreased abruptly, cles that imports Into Japan would even more heavily than expected be­ increase abruptly in view of the fore the actual gold ban lifting, owing stabilization 01 the Yen at near the to the wane of the purchasing power parity point, whereas they had been of not only Japan but also other checked by the lower value of the countries. Still the balance was un­ Yen for a long time. favourable to Nippon. The adverse The decrease 01 exports from trade halance of Japan Proper for Japan, on the other hand, had also 19S0, however, was much smaller been expected on account of the than generally foreseen for the first higher value of the Yen after the gold year of the gold standard, being only ban removal, while exports were com­ 176,225,000 &gainst ¥67,621,OOO of paratively active towards the end of 1929 and ¥22~,SIS9,OOO of 1928. 1929 in anticipation of the further It Is rather unreasonable to com­ advance of the Yen in the next year. pare the trade balance of 1930 with As a matter of fact, imports did that of 1929, because the export was not increase 10 heavily. The largest brisk in 1929 while import was amount of imports was reached in avoided In expectation of the gold March and the amount began to fall ban lifting and the consequent ad­ particularly after July, when the "ex­ vance of the Yen, which is favourable port season" of Japan usually sets for imports but unfavourable for ex­ in. ports. Thus the trade for 1929 was Exports. on the other hand, had unusually improved, though it was a been declining since the beginning of temporary phenomenon. the year, as generally expected, up The year under review was also an to· June, when the bottom was hit. unulnal year, being the first year of The monthly amount of exports since

-19 - JAPAN AFTER GOLD BAN REMOVAL

July was somewhat irregular, how­ months of 1930 (quantitative figures ever, being comparatively large. are unavailable for November and At the same time it must be noted December), compared with the corre­ that the world-wide decline of COID-" sponding period of the previous year, modity prices and the advance of the are shown in the following table: Yen value were responsible for the Leading Exports drop of the total value of imports, Item Year Value Quantity and the price fall of the Japanese (Unit (Unit products for the smaller value of ¥1,000) 100 kin) Nippon's total exports. Raw silk, .•.• {~:;~ : :!!i:::! ::::!:: It was fortunate that the equili­ (Unit 1,000 cubic brium of the price fall between im­ centimetres) ports and exports, and the propor­ 1,309,(159 Cotton cloth .. {i:;~ ::i!~',~;~ 1,498.143 tionate decrease of the trade volume 1 Difficult on both sides caused the net balance Silk cloth •.••• {~::~ :1:::::: J to compare for 1930 to show little difference com­ 'j pared with that for 1929. Leading Imports (Unit 100 kin) For instance, the quotation of raw silk, which was as high as the ¥1,180 Raw cotton ... {~:~~ : :!;::::1 ~::~!:~:: ' level (per 100 kin) at the beginning Iron ..••••••.. {~:~~ :: li;:!~;:::: of 1930, dropped to the ¥500 mark 1:::::: 8 some time later. The prices of cot­ Mineral oil. •.. {i:;~ .' ;7:::: } ~i~=~are ton yarn, wheat, rubber, refined sugar, etc., all slumped heavily during the Fertilizer •.•.• {~:~~ :: ~::::: ~::~~;:::; year. American raw cotton, which is Wool. .•.••... {~::~ :: :::i1: ~i~:;~~ one of Japan's major imports, gradually declined from 17Yz cents to The decrease of the raw silk and silk textile exports was partly due to the 10 cent level. the wane of the demand in the United The decrease of the trade volume, States, following the general depres­ however, is evidenced by the fact that sion there. The slump of bar silver the total measurement of exports and and the higher tariff are held re­ imports for the first 10 months of sponsible for the decline of cotton 1930 (latest figures available) was cloth exports. 3,030,589 tons and 8,270,393 tons, re­ spectively, against 8,164,035 tons and Nippon's exports to China for 9,286,826 tons for the corresponding 1930 totalled ¥399,424,000. Com­ -period of 1929. Thus exports were pared with the previous year, this smaller by 123,336 tons or 3% and was smaller by ¥130,232,OOO, be­ imports by 1,010,633 tons or 11%, ing largely due to the slump of bar while the decrease of their total value silver and the consequent wane of the was 31%. Chinese purchasing power. Particulars of Nippon's leading ex. The decrease of the raw cotton im­ ports and imports for the first 10 ports is attributed to the inactivity

-20- JAPAN AFTER GOLD BAN REMOVAL of the spinning industry in Japan and The increase of the cotton cloth tarill the cons.quent curtailment of mill by the Indian Government and the operation. Other raw material im­ advance of the silk cloth duties in ports were rather larger. Thi. means Australia particularly proved to be that some speculative imports were a serious blow to the Japanese weav­ made in view of the favourable im­ ers and exporters. port price. and lome producers were Thus the international tariff com­ obliged to operate their mills. whereas petition has caused the markets for the curtailment was lmperatlve. these countries' exports to wane, af­ Among the adverse factors for fected by the protective policy of on~ Japan's trade was the adoption of another, and the world's industrie' the protective policy by many coun­ and foreign trade have become inac­ triea in their foreign commerce, fol­ tive. lowing their return to the gold stan­ The total value of Japan's foreign dard, and the consequent competition trade for the first 10 months of 1930 in absorbing the world gold. These decreased by 81 %, as already men­ countries increased their tarlll' in tioned In an earlier paragraph, Bri­ order to cover a deftclt in their na­ tain'. by 16.5%, America's by 27%, tional revenues, If the alm of the Germany's by 15% and France's by higher tarill was not the protection 11 %, compared with the correspond­ of their home Industries. Ing period 'of 1929. More than 10 countries created The Commerce and Industry higher tarill walls during 11180. Office. which made a survey of the Among these countries were the foreign trade of Japan. Britain and United States (raised In June), Ca­ the United States for the first 11 nada (June), Australia (several times months of 1980 in order to compare since July, 1929, up to August, 1980), the results of the trade of the three British India (May). Egypt (Septem­ countries. emphasizes the fact that ber), Brasil (September), New Zea­ Japan's trade was markedly recoveJ'o land (August), Turkey (February) Ing In October and November. wblle and Mellico (July and November). Britain's and America's were still un­ Uganda and Tanganyika in easteI'D favourable. Africa also Increased tbeir import Tbe decreasing rate of Nippon's duties, while China adopted the gold exports and importa In the fourth basis In collecting the customs duties. quarter was smaller tban that In the thereby causing the duty payments to third quarter, hut Britain and the become actually higher. United States witnessed a higher de­ France. Italy, Germany and other creasing rate. A rough estimate of European countries conducted a paJ'o the foreign trade of these three coun­ tllll Increase of their tariffs. EveD tries for the first 11 months of 1930 In Britain, the .abolltion of the tradi­ is sbown In the followiog table, com­ tional free trade policy was urged. pared with tbe previous year:

- 21- JAPAN AFTER GOLD BAN REMOVAL

Japan', Exports the second half of the year, and the )fonths Value Decrease monthly export excess continued for 1930 1929 the rest of the year, offsetting the (Unit ¥1.000,000) (Unit %) 3an.-Mar. • .•••• 401 496 19.3 adverse result of trade for the first Apr,...Tune •••••• 331 520 36.0 half to some extent. ,July-Sept••••••• 376 597 87.0 Oet.-Nov. • ••••.. 246 876 34.4 The favourable turn of Nippon's foreign trade for the second half is ,Jan.-Nov•• , •••. 1,354 1,989 81.9 attributed to the following facts: Japan's Imports 1. Keen selling competition was con. Jan.-Mar. • •••.. 526 68' 23.0 ducted overseas among the British, Apr.-June ••••.• 430 610 29.5 July.Sept. • .•••• 293 460 86.3 American and Japanese exporters Oct.-Nov•••••••• 198 298 88.5 in view of the marked wane of their domestic purchasing power. lan.-Nov. "'" .1,447 2,057 29.7 The Japanese traders carried out Britain's Exports their compulsory exports at reduc­ (Unit £1,000,000) ed prices to a considerable amount. Jan.-Mar. . ..•••• 189 211 10.4 Apr.-.Tune •••••• 166 208 20,2 2. A marked increase was witnessed July-Sept. • ••.•• 154 208 25.9 in Japan's exports to Turkey, Oct.-Nov.•••• ',. 105 145 27.6 Egypt and some eastern African lan.-Nov .•.. ' •• 614 772 20.5 countries as a result of the Japa­ Britain's Imports nese commercial travellers' success­ ful exploitation of markets there. Jan.-Mar .•...... 283 806 7.' Apr.-June •.•.•• 258 299 18.7 S. Exports to China began to increase July.Sept .•••••. 243 292 16.8 steadily in November and Decem­ Oct.-Nov.••.•••• 170 218 22.0 [ ber In anticipation of China'S new Jan.-Nov ...•... 954 1,115 14.4 statutory tariff enforcement in America's Exports January, 1931. and the consequent (Unit $1,000,000) higher duties. Jan.-Mar..•.... 1.129 1,420 20.4 4<. The Export Indemnification Law Apr.-June ...... 947 1,203 21.3 July-Sept. • ..... 876 1,221 28.3 was somewhat effective. Oct.-Nov...... 617 971 36.5 On the other hand, the causes of Jan.-Nov...... 8,569 4,!,·15 25.9 the smaller imports for 1930 are gen­ erally considered to be as follows: America's Imports Jan.-Mar. . .•... 893 1,122 20.4 1. The decline of import prices Apr.-June ••••.. 843 1.164 27.6 through, not only the advance of July-Sept. . .•... 665 1.074 38.1 the Yen. but also the world-wide Oct.-Nov ...... 453 729 37.9 fall of commodity prices. This Jan.-Nov ...... 2.854 4,089 31.0 caused the total value of Nippon's Although Japan's foreign commerce imports to become smaller. was adverse th rough out th e first half 2. The -wane of the Japanese people's of 1930, the trade balance began to purchasing power, following the show a favourable result, entering decrease of profits of traders,

...... 22_ JAPAN APTER GOLD BAN REMOVAL

manufacturers and farmers after France the priee fall of merchandise. The '(Unit Fre•• 1,000,000) Government's thrift propaganda Exports ... 42,829 60,139 14.', was also somewhat effective. Import. ...62,344 48,2ll0 10.1 8. The limitation of raw material im­ ports by manufacturers, to a eel"'­ Excess of ta1n extent, following their cur-­ imports .. 9,515 8,081 17.'1 tallment programs, was partly re­ Germany sponsible. - ". The Government's home industry (Unit Mks. 1,000,000) Exports ..• 12,036 Unavailable 11.0 pr~tection by urging people to use Imports " .10,292 Ditto 26.0 Japanese goods may be also held I.responsible. Excess The Finance Office bas prepared .­ of Un- comparative list of the 1930 foreign exports •• 1,143 .DItto available trade of Japan, Britain, America, Japan's exports, including those of Jl'raDce and Gennany, showing the Chosen and Taiwan, registered the decline percentage of their ex­ heaviest decrease by 31.5%, comp8l'­ 'ports and imports, compared with ed with the previous year, followed the previous year, in accordance with by the United States, whose exports request of Mr. Shigemasa Sunade, declined by 26.6%. The fall in the member of the Seiyukal Opposition U.S. imports during 1980 was most Party, during the 59th session of remarkable, the decline percentage the Diet. The list is as follows: being 80.4.%. Next comes Japan with Japan 'a 29.6% decrease in her Imports. Item 1930 1929 D«IiDe Partieu]al'l of the monthly exports (Unit ¥I,OOO,OOO) (Unit %) and imports for 1980 are shown in Exports ••• 1,618 2,JH1 81.4 the following table in multiples of Imports '.' 1,680 2,888 29.0: -- -- 11,000: Excess of Month Exports Imports imports •• 162 111 6.6 JaD .••••••••• 14.6,0040 Ur.a,760 Britain Feb...... 118.932 160,294 (Unit £1,000,000) Mar. •.•.•..•. 136,911 182,161 Exports 668 839 14.6 Apr...... 117,293 14.8,4811 Imports ... 1,0411 1,221 21.4 May ...... 115,102 155,592" -- -- June 98,949 126,23~ Excess of July ...... 111,296 ]0",6'42 imports .• 381 382 11.3 Aug. • ..•..•• 127,688 96,0,3 Am.rica Sept. • •.•...• 180,682 92,386 (Unit $1,000,000) Oct...... 128,411 Exports ... 8,804 G,241l 26.6 Nov...... 117,'98 1~~;~ lmports ... 8,060 4o,S98 80.4 Dec...... 116,001 98.;713 Excess of In order to give an idea 88 trJ the exports •. 1'4 8U 7.5 general tendency of Japan's 1(,Jrdgn -21- JAPAN AFTER GOLD BAN REMOVAL trade, the monthly figures of raw cot­ Mar .••...... ••••••••• 1T,1TI ton import. and raw aUk export&, Apr.•••.•.•...•••...• 10,8110 which are the major factor. of NIp­ Ma, ...... 18,269 pon'. foreign commerce, are Ihowa June ••• II •••••• II •••• 11,481 in the following table la multiples of Jul, ...... II II •••••• 61,8114 11,000: Au,...... •...... • 118,8111 Sep~ •••••••••••••••• 118,009 Monthly,Raw Cotton Import. oct...... 118,llll Month Amount Noy •••.••••••••••••••• 811,691 Jan...... 63,171 Dee. ....•....•••....• 811,2111 Feb.• II ••• •••••• ••••• 48,781 Mar...... 113,1111 The outlook of Japan" forelgll Apr. ••••• ...... 8',81B trade for the near future It Dot 10 Ma~,...... 88,118 bright, becaule the fint half of the June, '...... 2',1118 ,.ear It generall,. considered to be July· •.••.•••••••••••• 10,721 the "mport .eason" of Japan. In Aug. •••••.•••.••••••• 10,660 Sept...... 8,110 addition, bar .nver It .,ery low. The Oct...... 23.871 lrigber exchange rate of the Yen on Nov. • ...... !t 26,811 Shanghai will caUle Nippon" nport.l Dee. m., •• .... ~;. .• • Ir... . . 11.688 to China to decrease and. on the con­ Monthly Raw,. Silk P.tports trary, the Chinese cotton ,.am Import.l Month Amount lato Japan will Increase, taking &d­ Jan...... 41,881 .,antage of the fayourable exchanp Feb...... 23,'2' rate for th_ Cbine.e exporten.

-M- IV Great Change in Money Market A great change wae witnessed 1n April. The convertible note issue, the Japanese money market dur­ wlrich was about ¥I,300,OOO,OOO at the Ing 1980. The gold ban removal on corresponding period of the previous January II, 1980, caused the specie y~ar, also dropped to ¥I,18.5,OOO,OOO. tet flow out, thO! currency to contract, On January 11, 1930, when Japan deposits with banks to decrease, the returned to the gold standard and Increasing tendency 01 cash deposits she found herself on a normal eco­ with trust companies to cease, the nomic basis, the Bank of Japan had fixed loans 01 banks to increase, .pecie reserves of ¥I,073,OOO,OOO. bank" security holdings to decrease, The specie reserves were as low as the interest rate in the money mar­ '825,27.5,000 on December 23, when ket to advance and the Yokohama this article was written, showing a Specie Bank to appea~ In the calI decrease by 124.'1',725,000, compared money market and the financing 01 with January 11. Industries to become slow. The decrease of Japan's specie re­ On the other hand, the Japanese serves was due to the gold outflow money markets remarkably shrank during the period. The National City during the year, but the Bank of Bank .of New York made the first Japan's recovery of the power to con­ start by shipping 1500,000 in gold trol the money market is noticeable to the United States on January 18. as a .result of the gold embargo lift­ Particulars of the gold shipments by ing. Consequently tile money markets banks during the period are shown were somewhat stabilized, although in the following table in multiples of the markets were rather inactive. ¥I,OOO: With the removal 01 the gold ex­ Banks' Cold Shipments' port ban, the conversion of notes into lst hall, 2nd half, gold was conducted actively. Tht; Bank 1930 1930 Total conversion exceeded 150,000,000 early National City in February and the Bank 01 Japan's Bank of New selling 01 bills reached approximate­ York ..... 97,000 9,200 106,200 ly 140,000,000. Thus the gold out­ Nederlandsch In- dische Handels- /low amounted to '180,000,000 in only bank ••.•. 21,900 9,200 31,100 three months after the lifting of em­ Hongkong and bargo. Shanghai Bank­ The Bank 01 Japan's specie re­ ing Corpora- tion ...... 17,900 2,000 19,900 serves, which were on the ¥I,OOO,OOO,- Chartered Bank 000 level on January 10, one day be­ of India, Aus- fore the gold ban removal, fell to tralia and the '800,000,000 mark at the end 01 China 6,000 41,000

-11- JAPAN AFTER GOm BAN REMOVAL

Nederlandscb Thu. Idle fundi In the mone, ma.... Handel-Maats- keb heavUy decreased. Depolltl with chappij • • • 6,1>00 2,'100 9,200 commercial bank.. which were on the Mitsui Bank 82,000 82,000 Sumitomo ,. '6,000,000,000 level In Januar;y .teadl­ Bank •• • •• 25,000 25,000 Iy declined to 15,852,000,000 at the Mitsubishi end of Ma1. C ..h deposltl with trolt Bank • • • •• 15,000 15,000 companies al.o wltoe.aed aD abrupt Mitsui Trust decrease b, '18,000,000 at the rnd Compan1 .. 4,000 4,000 Yokohama Specie of October, compared with th. nd Bank • •••. -- 60,000 60,000 of March of the .ame year, the amount being about 11,110,000,000. Total ..•••• 225,800 88,100 808,400 Commercial banks' loan. Increased Thus the total outflow of gold from from 15,200,000,000 level to 15,821,- Japan was ¥808,400,000 against the 000,000. Thil mean. that their Joan. total gold conversion of ¥816,000,000, began to lock up. In view of the the balance of ¥1,600,000 being for unfavourable tendency, banb did domestic use. The influll of gold their beat to absorb depositl and be­ from China, Manchuria, and Chosen, came cautiou. about making new however, was witnessed to 80me a­ loan8. tent during the period. Thil !'CIulted In an adnnce of the In addition, the Government pur­ Interest rate. The minimum discount chased gold from the gold mines in rate for commercial bill .. which ..... Japan. Thus gold was received to from 0.8 seD to 0.0 .eu before the the amount of ¥66,000,000 up to De­ gold baD removal, adnDced to be­ cember 12. This resulted in the tween 1.2 seD and I.' ICD. Verlou. ¥250,000,000 actual loss of the Bank commoditr and .tock marketa deve­ of Japan'. specie holding. loped no better and bank. became Leading banka converted their in­ cautiou. more and more. terest free deposits with the Bank of The difficulty in the debenture wue Japan into gold. Thia resulted in a w .. then felt and manufacturing co~ big decrease of commercial banks' de­ panies became unable to meet their posits with the Bank of Japan. Oil payable promiasor;y notes, which had the other hand, foreign banka coned­ beeD drawn 10 order to finaDce them )~d their call mone1 invested in the and they had accumulated to a con­ ~~hort-term loan anarkets and convert­ liderable IUm. Financial help w.. e\d it into gold. eventuall1 demanded from an direc- In order to meet the increased tion.. • wi thdrawals of deposits, banka had Repreaentatlves of ayndicate bank8 to~ ~diSPose of their securit1 holding&, throughout the countr;y met at the the 'eb1 obtaining their working Bank of Japan at the end of JDne fun'.. Thus ¥800,000,000 worth of and agreed to give their financial .up­ docu entar;y securities were market­ port to manufacturin, companie. in ed b \ banks during 1930. order to enable them to eondolet their -11- JAPAN AFTER GOLD BAN REMOVAL flnaneial readjustment. Then a eo­ their interest rate on fixed deposits operative industrial survey assoeia­ to 4.5% in view of the leading Tokyo tion wa. formed by these syndicate banks' lowering of the overdraft rate banks. to 4%, although these Nagoya banks The Bank of Japan's rediseount did not take a cooperative action in rate-cut was also demanded in order the past. to remove the publie unrest about The Bank of Japan, on October 6, Japan'. financial situation and also unexpectedly reduced its rediscount in view of the constant reduction of rates by 0.1 sen all round, headed the rediscount rates by the central by the new low rate of 1.4 sen for banks In European countries and the commercial bills. According to the United States. Finance Office authorities, the prin­ Dut the Dank of Japan did not re­ cipal aim of the rate reduction was duce its rediscount rate on the ground. to meet the world-wide downward that the rate-cut was not only un­ tendency of the interest rate. favourable for the Japanese condi­ But it was apparent that the Bank tions at that time but it would also intended to check the riSing tenden­ cause the gold outflow from Japan cy of the interest rate in Japan and to' increase. to facilitate the financial readjust­ Thus the gold protection and the ment of various manufacturing com­ high interest policy were continued panies, as there was no more fear until July, because some Japanese in­ of the gold outflow from Japan at terests made their investments abroad that time. primarily in purchasing the foreign This was, however, inefl'ective in bonds of the Japanese Government checking the general upward tenden­ because of their higher yield, com­ cy of the open money market. It pared with the national bonds in the is also noticeable that the Yokohama Japanese markets. Specie Dank appeared in the short The money markets became some­ term money market in order, to ob­ what steady after July. The Govern­ tain call money, whereas it had been ment eventually decided at the end the supplier of call money. of August to lower the interest rate The tendency of the money rates on the postal savings by 0.6% to during 1980 is shown in the follow­ 4.2%, whereas the postal savings rate­ ing table: cut had been pending for a long time from the viewpoint of social welfare. 1\1oney Rates Month Call DiseouDt The reduction was efl'ected on Octo­ H'est L'est Ires! L'est ber 1. Savings banks followed the (Unit Sen) Government's action and they chang­ Jan. 1.10 0.45 2.02 1.52 ed their interest rate from 4.8% to Feb. 1.05 0.90 2.00 1.50 Mar. 1.05 1.00 2.01 1.55 4.2%. Commercial banks in Nagoya, Apr. 1.05 0.90 1.98 1.54 which are affiliated with the Nagoya May 1.11 0.55 2.04 1.55 Bank Clearing House, also reduced June 1.40 1.00 2.04 1.58

- 21- JAPAN AFTER GOLD BAN REMOVAL

July ..... 1.05 0.90 1.9'1 UI may lncre... again In u8i, because Aug. .... 1.20 1.05 11.00 1.111 further Inandal help wW be demand­ Sept. .... 1.011 0.85 11.01 1.611 ed lrom Yarlona direc:Uona In order Oct. 1.00 0.85 1.98 1.1111 Nov. 1.20 0.90 11.03 1.61 to elreel the financial readjustment. Dec...... 1.110 0.811 UO 1.65 The reduction of the redi.count Compared with the conesponding rate by the Federal Rese"e Bank of months of the previous year, these New York to the unprecedented low monthly rates, except January, are level of II~ from 1I'1.~ was report­ higher by between 0.8 sen and 0.1 ed On December 116. It was tben re­ sen. Thus the money was generally ported that the Bank's reduction was tight througbout 1930 and manufac­ to meet the open market tendency, turing compauies were placed In an but It waa apparent that the Bank unfavourable 8ituation. Intended to promote trade and Indu .. Even a crisis was expected for try in the United State. by meana lome time, if the Industrial Bank of of a low Interelt policy In new or Japan did nof make Its relief loana the marked wane of demand lor to traden and manufacturer. of funda. medium and small meana in accord­ No dired elred 01 the New York ance with the Government'. policy. Federal Relene Bank', adion upon The Bank', relief loans are great­ Japan" flnance was expected gen­ ly responsible for a marked increase erally, although lome declared that of banks' total loan by more than the Bank of Japan also .hould re­ 1100,000,000 at the end of October, duce Its ollidal rediAc:ount ratu In eompared with the conesponding order to follow the world-wide period 01 the previous year. dOWDward tendency 01 the Interest On the other hand, the Bank of rate. Japan started making loans to com­ With the approach of the Dew mercial banks. The Bank'8 total year, the demand for tbe Bank of loan reached 1'161,538,000 at the end Japan'. rate reduction Increued In of November. This was an abrupt in­ .ome quarteJ'l on the rround that crease by 182,'1'13,000, compared wltb Japanele trade and lndUlitry, which January 11, being the largest sum haYe been under depJ'e8Sion for a since the time of Japan'. financial long time. .hould a1Jo be promoted panic in 192'1. This meana· that the by mean. of the low Interest policy Bank of Japan 80mewhat recovered as In the United Statu and that the the power to control the money mar­ Inancial readjustment 01 lOme manu­ kets, whereas it had lost its former faduring companiel ,bould be car­ influence upon the money markets. ried out Immediately by supplying The Bank'. total loans, howenr, abundant fundi, bearing lower In­ were slightly smaller on December ·tereat. 23. when this article was written. The demaDd for the Bank or being 171'1,062,000. This was due to Japan" action fa Dot at aD hopei.... some collections of loana ainee. This becaDle the Govemment has Iaeeoaae

-11- JAPAN AFTER GOLQ BAN REMOVAL

.omewhat optimistic about the gold The actual foreign payments by .Ituatlon In Japan alnce the Bank of Japan will be comparatively Imall, J aflan reduced Its official rediscount and there will be no lear about the rates on October 8. gold outflow from Japan. Another The Bank of Japan" action then tear Is that a reactional boom may did not result In any outflow of gold be witnessed as a result ot the Bank Irom Japan, except the gold ship­ ot Japan's second rate reduction. ments purposely conducted by the Judging from the result 01 the previ­ Yokohama Specie Bank. The bank ous rate reduction on October 6, the ,rate reduction was conducted, taking second reduction will probably not advantage 01 the so-called "export cause stock quotations to advance leason" of Japan. abruptiy without any strong founda­ This can not be, of course, compar­ tion. ed with the request lor a second re­ Japan's industrial circles might duction by the Bank 01 Japan In the have been affected much heavier than coming "import leas on" 01 Japan. Is generally considered and the bank However, the Bank's second reduc­ rate reduction may only prove to be tion ot its official rediscount rates, a favourable factor for facilitating even it it Is carried out, may be the financial readjustment of various Justified by the fact that Japan will companies-nothing more than that. receive a considerable amount ot for­ According ,to the survey made by eige. funds In the first halt ot 1931 the Tokyo Bank Clearing House, ac­ as a result the Nippon Power and ot counts of banks, affiliated with clear­ the Taiwan Power Companies' ex­ pected flotation ot foreign loans, ing houses throughout Japan, for which will offset Japan's import ez.. January and October, both 1930, and cess In no small measure. October, 1929, are shown in the fol- lowing table In multiples 01 fl,OOO: All-Japan Bank Accounts Item Jan., 1930 Oct., 1930 Oct., 1929 Fixed deposits •••••••••••••••••• 8.220,2 •• 8,263.225 8,239,"6 Current account •••••••••••••••• 782.484 670,258 788.898 Special current account ••••••••• 1,211.502 1,153.Ul 1,173,269 Deposits at call...... 1116,502 .96.996 5.0.921 Miscellaneous deposits ••••••••••• 282,17a 276,481 29 ••081 Total, .••••••••••••••••••••• 6,012,90. 5.860,.01 6,036.31lS Loans against Certificates ••••••••••••••••••• 1,090.261 1,IlS5,900 1,106,376 Bills ..••••••••••••••••••••••• a,987.901 8,079.417 2,979,461 Overdrafts .•••••••••••••••••••. 89•• 56a 417.308 890,959 Di~ount of bills •••••••••••••••• 815,96. 809.311 912,580 Total •.••••••.••••••••••••• 11.288.688 11,461,936 11,389,382 Documentary secnrities •••••••••• 3,830.212 8,1.5,178 8.832,931 Call loans •.•••••.•.••••••.•.••• 184.990 201,602 1'7,3'8 Gold and ailyer bullions in vault •• U9.601 U2.~11 1I0a,1U

-11- JAPAN AFTER GOLD BAN REMOVAL

The Bank of Japan reports the Mar. 2,928 ',6/le 891 188 monthly particulars of convertible Apr. 1.969 ',4.lIJ 730 U8 Dote issue, specie reserves and its May 8,218 4.,lIli 850 84.1 loans in multiple. of 11,000 a. June •• 8,030 follows: ',34.8 '1'80 811 July ... 8,1116 4.,'28 814. 388 Bank of Japan', Accounts Aug.•• 1,680 4.,181 83/1 34.1 Month- Convertible Specie Sept. .. 2,826 8,7n 79/1 8'0 end note issue reserves Loan. Oct. 2,901 8,'1"1''1' 929 34.8 Jan. • .1,44.3,821 1,0402,988 685,61'1' Feb. • .1,294.,9140 951,091 691,116 Nov•••• 2,826 3,898 794. 288 Mar. • .1.281,300 908,815 696,029 Dee. ••• 8,678 4.,1188 1,029 429 Apr. . .1,263,156 889,34.6 707,939 Dee.. May •• 1,186,258 810,601 699,416 1929 .. 8,810 6,09' 760 896 June .. 1,291,261 811,366 703,717 July •. 1.181,131 882,096 681,'60 Thu. both the number and value of Aug.•. 1,165,4.24. 861,889 111,186 bill. clearcd during Dccembcr, 1930, Sept.•. 1,124.,903 865,126 616,n2 wcre .mallcr than thc correspondin, Oct. •. 1,183,121 830,428 695,152 Nov.•• 1.191,331 820,106 7n,538 month of the prcvious ycar, while Dec. . .1,4.36,295 825,998 154.,217 both the numbcr and value of biD. Dec., dishonoured were larger. 1929 1,6n,851 1,012,231 619,68'1' This sho" how business was Ina.c­ The Tokyo Bank Clearing House live during the ycar and the scale announced the result of its survey on of trade was .maller than the pre­ bills cleared and dishonoured for the viou. year. It goe. without .ayln, 1930 as follows: Ithat tbe more dishonoured billa there Bills Cleared And Dishonoured are It mean. the worse condition. of Cleared Dishonoured iinancial drclel. The comparatively Month Number Value Number Value (Unit 1,000 sheets and 11,000,000) .mall value of the dishonoured bill. Jan. '" 2,14.3 4.,201 6'3 299 w.. due to the decline of the iD­ Feb. '" 2,118 4.,24.8 161 24.5 dividual tran.. aetion amount.

-10- JAPAN AFTER GOLD BAN REMOVAL v Curtailment And Rationalization of Industries THE curtailment of operation and moval on November 22,1929, and the rationalization In order to cope actual lifting of the gold embargo on with the unfavourable situation were January 11, 1930. the two important features in the in­ The Wall Street panic in October, dUbtrial circles of Japan for 1930, as 1929, which was a reflection of the the depression further developed ad­ unfavourable conditions of tile versely after the removal of the gold American industries, caused the com­ export ban. modity prices to fall in the United The world-wide decline of com­ States. Bumper crops of raw cotton modity prices, supported by the ad­ and wheat affected the U.S. farmers, vance of the Yen exchange, caused as the prices of farm products slump­ the import prices of raw materials as ed. In addition, Soviet Russia dump­ well as manufactures to drop abrupt­ ed her bumper crops of wheat and ly. This also caused the value of other farm products in the Arq.erican manufacturing companies' holdings and British markets, throwing over­ of raw materials and manufactures sea markets into consternation. to fall, forcing them to write down Thus the world farming, commerce the value to some extent. and industry were affected. This Despite the price fall, the demand was responsible for the further for products decreased steadily, decline of world commodity prices. which resulted in an excess of pro­ Thus Japan was placed in an unfav­ duction over demand. The over­ ourable situation in the world price production caused the market quota­ competition, whereas the Japanese tions of commodities to drop further. traders now reengaged in the inter­ Thus manufacturing companies, national rivalry as a r.esult of the gold which had been conducting a tinker­ ban removal after a long inactivity. Ing of their weak points, without The movement of the wholesale removing the fundamental defects, prices In Tokyo and Osaka for 1930 were seriously affected. is shown in the following table by The Japanese commodity' prices index numbers: were at the highebt during 1919 and 1920, following the Government's Index of Wholesale Prices gold export ban in 191'1 and con­ Month Tokyo Osaka sequent deviation from the interna­ Jan. 201.40 '18.8 tional economic level. The prices Feb. 199.80 '18.3 have been falling since 1920. The Mar. 195.90 '1'1.0 Apr. 192.80 '16.1 downward tendency was accelerated May 189.40 '14.8 by the Government's announcement June 181.30 . 71.9 of the exact date of its gold ban reo- July •••••.•• 176.60 '10.3

- 81- JAPAN AFTER GOLD BAN REMOVAL

:Aug...... 115.60 '10.11 The Tokyo retail Indea numbert Sept. '. • • • • •• 1 '11.50 69.• were calculated on the basla of 100 Oct. •••••••• 16t.60 6'1.9 Nov.•••••••• 162.20 68.11 for July. IDIt, and the O,ua Index Dec. •••••••• 160.8068.8 number. were prepared on the bul. Dec•• 1929 ••• 20t.98 80.9 ot 100 for January 11. 1921. The Index numbers for Tokyo were cal­ Tokyo retail prices declined by 18.1 ~ culaied by the Bank of Japan on the during one year and the Oaaka retail basis of 100 for the average of whole­ priCei by 111.11%. sale pric/s during October. 1900. The movement 01 bldex numbers while th06e for Osaka were prepar­ for three leadin, productl of Japan. ed by the Osaka Chamber of Com­ namely, rice, raw .Ilk and cotton merce and. Industry, calculated on 1980 the basis of 100 for the average ot yam, lor I•• bown In the fol­ wholesale prices In 1920, 1921 and Iowin, table. 1922. Index For 3 Leadin. Product. The Tokyo wholesale prices feU by Cotton 21.6% during one year and the Osaka Month Rice Raw.lIk yarn prices by 18.1 %. This meana that Jan. ••••••• 22. 150 18'1 manufacturing companies have been Feb...... 231 1.. 118 affected seriously by the price faU Mar•• : .... 231 1t8 168 of their manufactures. Apr. • ••••. 229 I.. 11. May ••••••• 281 130 JIll! The retail prices which have a clos­ June ...... 231 108 130 er connection with the consuming July ••••••• 2.5 90 124 class than the wholesale prices, also Aug.•••••• 25. 90 138 declined steadily since the second half Sept...... 2tO 85 142 Oct...... 181 '18 IU of 1929. Particulars of the Bank of Nov••••••• 150 '1. IU Japan's survey for the Tokyo retail D.ee ...... 151 80 145 prices and the Osaka Chamber of Dec., 1929 •• 281 1.. 198 Commerce's investigations for the Thlle indes tlgurll were prepared Osaka retail pricel for 1930 are shown by the Bank of Japan, calcwatin, on in the following table: ' tbe basil 01 100 for the avera,e of Index of Retail Prices their wbolesale prlca in Tokyo dur­ Month Tokyo Osaka ing October, 1920. ThUl raw .ilk led Jan••.••••••• 1'10 9. otber articles In the .lamp of prlees, Feb•••••••••• 168 93 followed by rice. Thla meana that Mar. • ••••••• 163 91 tbe blow of deprllsion to the fann­ Apr•.•••••••• 162 89 ing district was larger than tbat to May ••••••••• 159 88 June •••••••• 158 8& the commercial and Industrial region. July ••••••••• 153 8. But the wane of the purcbasing power Aug. • ••••••• 151 85 of the farming district affecteci maD a­ Sept. •••••••• 151 8. factarinB and trading later and tbey Oct. ••••••••• 1.7 80 are all In • diJlicwt situation. Nov•••••••••• 1t2 '111 Dec. ••••••••• 1.0 'lI Prices In Japan, however, are still Dec.. 1929 ••••' 171 91 hi,ber than those III Britala a.nd the -12- JAPAN AFTER GOLD BAN REMOVAL

United States, and there is a proba­ Mar. 155.8 125.5 128.' bility that the J apanesc Index num­ Apr. lIl3.8 123.2 125.6 ber will drop further to the interna­ May 1110.6 121.1 123.1 tional level in the near future, it no June 1".1 119.0 121.8 manipulation Is adopted. The Lon­ July l4.0.' 117.2 120.0 don index number fell by 22.2% dur­ Aug. 139.6 1140.9 119.1 ing 1930, while the New York index Sept. 136.8 110.11 118.2 number wns lower by 17.8%, com­ Oct...... 180.9 109.8 1111.11 pared with the previous year. The Nov. 129.0 101.1 112.9 drop ot the Tokyo index number dur­ Dec. 127.8 103.7 109.2 ing the aame period was 21.6%. Dec., 1929 •. 168.0 133.8 13'.1 Particulars ot the monthly index In order to check the further numbers for the Tokyo, London and downward tendency of commodity New York prices during 1930 are prices, almost all industries in­ shown in the following table, which was prepared, ciliculating on the bllsis augurated more or le&'8 curtailment of 100 for the IIverage of the retail of operation by means of an agree­ pril-cs in these cities duriug July, ment ot the producers' aSsociation. 19141 According to investigations made as Index For Three Cities New on November 80, 1930, industries of Month Tokyo London York 13 kinds were observing the output­ Jan. 160.1 130.0 132.2 cut agreement, headed by 63.3% Feb...... 1158.8 127.1 128.9 curtailment by the Portland cement producers. Particulars are as follows: Agreements of Curtailment Industry Curtailment Rate Association (Unit %) . Spinning ••••••••••••••• 840.40 Japan Cotton Spinners' Association Spun silk yarn...... 86.0 Spun Silk Yarn Producers' As- sociation Rayon ••••••••••••••••• 20.0 Rayon Producers' Association Raw silk ...... 20.0 Japan Central Silk Men'a Associa­ tion Jute ....••.•••••••••••• 80.0 Ramie Spinners' Association Superphosphate ••••••••• '0.0 Artificial Fertiliser Producers' As­ sociation Bleaching powder ••• , ••• 405.0 Bleaching Powder Producers' As­ sociation Foreign style paper •• •.• • 85.0 Japan Paper Manufacturers' As­ sociation Newsprint ...... 10.0 Cooperative Paper Manufacturing Company Coal ••...•••••••••••••• 22.0 Coal Miners' Association Portland cement •••••••• 53.S Portland Cement Producer&' Asso­ ciation Steel material. • •••••••••. 50.0 Steel Material Producers' Associ .... tion Su,ar ..••••••••••••• Voluntarily Sugar )laDlJracturers' Asaociation

-11- JAPAN AFTER GOLD BAN REMOVAL

These curtailment ratea were reach.­ These indell Dumber'll were calculat­ ed at the end 01 November after the ed by the Bank 01 Japan on the buil constant increase 01 the rates aince 01 100 lor the aYerage 01 the month­ the beginning 01 1980. They are end Dumber'll 01 worken, the dally mosUy to be maintained for 1981 or regular wagee and the dally actual may be somewhat increased. Income durin, 1926. On the other hand, a cooperatiYe The aYer.,e 01 the male work era' sales agreement was reached among daUy wages wu ¥I.1I111 in Augu.t. various producers and the control 01 1929, and that 01 the lemale worken, markets was elfected to a certain ell­ tent. In this respect. the activity 01 '0.862. TheBe daUy figures dropped the Industrial Rationalization Bureau to ¥l.1I8'1 and '0.82, respectively. of the Commerce and Industry Office, The male worken' wages decline wat which WaS created to meet the &ituato •.•%, whUe the female workera~ tion after the gold ban removal, must wagea decrease wu '.8%. be mentioned. The actual Income 01 male worken, Even the curtailment 01 operation whlcb wu '2.248 In Augmt. 1929, and the rationalized sales system, dropped to 0.187 In August. 1930. however, were still inelfective in That 01 lemale workera feU from coping with the unfavourable sitna­ '0.9111 to '0.878. The decline pc,," tion, and all manufacturing plants centage wu '.9% for male worker. were obliged to reduce their workers' and 8.2% for female workers. The income. The movemenf 01 indell regular wages and actual Income de­ numbers regarding the workera lor cline wu particularly noticeable 1980 is shown in the following tablel amon, operativea 01 'pinning, weav­ Index For Labour ing and raw .ilk reeling mills. The number of worken decreued Month Number Regular Actual by 13.6%, compared with Auguat. of worker. wages income 1929. Naturally labour disputes 0c­ Jan. 88.'1 98.6 TOo •• ...... curred constantly In yarious fteldt. Feb. 87.& 98.' .101.8 ...... Particulan of tbe labour disputes be­ Mar. 86.9 98.2 102.8 tween October, 1929, and October, Apr. 86.1 9'1.6 100.6 1930, are shown In the 'oUowin, May 84.9 97.1 100.1 table I June ...... 83.1 96.6 98.9 July ...... 80.6 95.8 9R.S .Labour Disputes Aug...... '18.'1 96.• 97.8 Number 01 Number of Sept...... '17.9 94.7 97.0 Month diaputea worken involved Oct...... '17.2 94.• 96.2 (1929) Nov. Unavailable Oct. 101 ',139 Dec. Ditto Nov. 125 '1,471 Dec., 1929 ... 90.1 98.8 109.5 Dec. 121 22,265 -M- JAPAN APTER GOLD BAN REMOVAL

1980) a new movement for a body .1 ID. ... " ... 101 1'1,908 bankers, where.. banks bad been in­ cb. ." •.•.•••! 111 8,862 dividually giving their financial IIUP­ ar. ,", ..... 121 6,900 port to the readjustment of variona pro ,-." ,",",' 1140 21l,881 manufacturing companies. 181 1I,1l400 ay Some life InsuraDce companies e,­ 1112 1,700 lOe "':11'.~.,,, " tabllshed their security companies in 200 1'1,287 111 .. " ..•.. ,' order to check tbe further fall of UII'. •• • • • • • 221 Unavailable tbeir stock quotationl. Thul all ~pt...... 200 Ditto kinds 01 manipulations available were ct. ..••••••• 1640 Ditto adopted b1 manufacturing and trad­ These figures were obtaiDed iIa a ing companiea in order to cope with lIUlt 01 the survey made by the S~ the unfavourable lituatlon. ,al Welfare Bureau 01 the Home The dividend rate-cut and the re­ 'lIIce. The Olllce givel the figurel duction of workers' actual income by )Dceming the tenant disputea as 101- the Kanegafuch! Cotton Spinning Company created a great sensation. Tenant Disputes The Nippon Yusen Kaisha declared Number 01 Number 01 no dividend for the first time in iu [onth disputes people involved bistorr on account ot the unprece­ Landowners Tenants dented depression 01 the world ship­ 1929) ping business. ICt. ... 118 '181 8,8240 rov. •• 201 111,175 10,1740 As a result 01 these manipulations. lec. ••• 225 111,970 18,718 quotations of cotton yam, refined 1980) Bugar and spun silk yarn somewhat an.... 183 1,252 5,0400 stiffened, but the raw silk pricea 'eb. ... 61 823 1,271 siumped further despite all manipu­ lar. •• 190 815 8,076 lations. In view of the ineffective •pr. .. l408 408 • 1,1l740 result of the cooperative raw silk lay ... 115 229 661 bolding by the dealers, the Raw Silk uno •• 88 4021 1,688 Price Indemnification Law was en­ ul1 ... 87 Unavallable forced on March 8, 1930, in order to .ug. ••• 240 Ditto maintain the reasonable price 01 iept. .. 61 Ditto ¥1,250 per 100 kin. Forward deli v­ 'ct. ••• 90 .J Ditto err fell to ¥51.80 per 10 kiD. Then the total stock of 188,000 bales, 88 Apart from the Industrial ration­ a result of the cooperative holding &atlon, it is noticeable that the and the Indemnification Law enforce­ ~ooperative Industrial Survey Ass~ ment, rather depressed the markets :iatlon was established by s1Ddicate psychologically. ,anka in order to make thorough In­ restigationl prior to making loans to The maximum amount to be cover­ lIanufacturlnll' companie.. This w .. ed by the Raw Silk Price IDdemni4-

- IS- JAPAN AFTER GOLD BAN REMOVAL

cation Law wu then fncreaaed to ernment'. announcement 01 the .u_ 129,000,000 ID anticipation 01 a lup­ per crop estimate for 11180 on Oct.­ ther decline 01 the market price, and ber J. the redemption 01 the raw .ilk loan. (loans were made to the raw .ilk Raw Silk Quotation. dealers bl eertaiD bankl, designated lIad! Yok ...... ~ Kobe ...... m.... ~ BJ~z..... by the Government, against the lecul'­ (UDit 1'-l - ity 01 raw silk on condition that their I...... II •• GO 111.10 "Itt." 111.1. goods should be stocked for a certain " ...... 11 •• 7. 100.CO 11.... 101." fixed period and the Government Mar...... III... 105.10 111.00 I ..... would shoulder the loslo to lome ell­ Apr...... 101.50 ..... 101.00 'T.1t IIq ...... 101.&0 1 •• 10 10UO ..... tent, if the quotationl at the time of "...... ".80 '0.&0 II." ,.... disposal were lower than the Govern­ JulJ' ...... ".&0 .1.80 fl." 'U' ment's indemnified price) wu ea­ A...... -..... '1.80 ..... 'C.'O ..... te!lded from October 8. 1930, to Sept...... ".20 17.10 fl." ... .. Oe&...... 1." 11.10 II." ..... June 80, 1931, in view of the hop~ N ...... 'C.'O IT.OO ...10 II." less prospect of any immediate ~ Dee...... '0." '1.10 '0." covery. '1." CottoD Varn Quotationl In concluding this article, the market price tables of rk.e, raw allk OaUa .... _Ut Oeablluapla (tnde...,1I. and cotton yam, whIch are the major lied! IIzcIoup J'atunI CoI4 J'Ido, zo.) products of Japan, and leading .hares (11al'1'_l are given below ID order to give a I ...... 1t .. 00 I ..... lIT." In.'' general idea about the movement 01 ...... 115.80 I7T." In.OI 1.1... ".... •••••• 17 ••" 1'1.20 ITO.OO u .... Japan.ese main IDdustries for 1930. • __ .177.10 ~. 11'.10 171.00 III." Rice QuotatioDI -...,. ._ ...1'2." IC .... U7.00 ICI. .. 1I000tJa 0aUa Ill

Stock Quotation. Month Tok:vo Stoob. n .... OBaka Stock.. n .... Kan.,.ataehla Hill'bHt Loweot Hill'beIt Lo.. eot BllI'beot Lowen (Unl' Yen) JBn...... 160.80 98.40 &8.00 &8.20 228.70 21UO Feb...... 107.40 100.80 &7.40 &4.00 226.70 218.90 M ...... 108.40 9&.80 64.80 &0.10 218.00 192.10 Apr...... 101.80 87.80 60.80 44.80 199.80 172.10 Mall' ...... 98.40 87.00 &1.80 4&.40 180.90 162.70 June ...... 92.&0 82.20 47.60 8&.70 164.60 118.80 Jul:v ...... 94.60 84.10 &0.80 42.60 18&.80 119.00 AuII'...... 98.10 87.20 49.80 40.10 139.80 129.90 Sept...... 91.10 87.80 44.70 38.20 139.40 129.60 Oct...... 92.80 88.10 43.80 40.00 141.40 130.70 Nov. •••••••• " ...... 108.00 92.80 &2.40 43.10 168.80 140.10 nee...... 112.70 102.60 62.80 47.80 165.90 158.40 These quotations were all reglste1'­ ~d on the Osaka short-term stock Conditions ot trade and industry market. They have been generally will be faithfully reflected on these ~ownward since May and somewhat stock quotations. The recovery of recovered in November and Decem­ these quotations, therefore, can not ber. but they are far lower, compa1'­ be hoped for, unless tundamental de­ ~d with the beginning ot the year. tects in the Japanese trading and This means that the Japanese trade manufacturing companies are remov­ nnd industry are still inactive and ed and thorough financial readjust­ there is little hope ot early recovery, ment is carried out in all directions. especially In view of the fact that the But they will take some time-pel'­ slight recovery in November and haps some years, and we shall have December was due to the Govern­ to defer our hopes tor a fundamental ment as well as the exchange author­ recovery of trade and industry to the iUes' manipulation•• distant future. VI

E1fect of Gold Ban Removal OD Japan's Finance A synopsis of Nippon's economic conditions ·one year .rter her gold ban removal is herewith presented by means of statistics. Bu&iness extension and inauguration, payments called up for stocks and other securities and Tokyo prices were surveyed by the Bank of Japan, Osaka prices by the Osaka Chamber of Commerce and Industry, yield of stocks by the Hypothec Bank, nation-wide commodity &tocks by the Mitsubishl War.ehousing Company, iIll­ Japan bank accounts by the Tokyo Bank Cle.aJ'­ ing House andall-Japan trust companies' ac­ counts by the Trust Companies' Association. No figure for January 11, 1931, just one year after the gold ban removal, appears in this table, because that day happened to be a Sunday: JAPAN AFTER GOLD BAN REMOVAL

1981 11130 Item Jan. 10 Jan. 11 Compared (Unit fl,OOO) Specie holding...... •••••••••••••• 826,811 1,078,101 _ 168,280 I Convertible note issue •.••••••••••• 1,11'1,1118 1,2158,'0'1 185,'" i Bank of Japan's loan8 ..•••••••.••• 8'10,868 8158,'165 ~ 11,581

:Y.S.B.'s official exchange rat_ New york ..••...•••.•..•••••• "11% .",%' . London ••••••••••••••••••••••• 2/0% 2/0% Shanghai ••••••••••••••••••••• T1a. 151 T1a.1I8

Bar silver-- London ..•.•.•••••...•••••••••• 18o/ad 21 'I,d - 1%d • New york ...... 211% cenb 615% eenb -11 reub

Tokyo money rat_ (Unit Sen) Overnight $Highest •••.• 1.10 1.10 ••••••••••• 'lLowest •.••• 0.80 0.'5 +0.85 Spinning bill ...... {HLighest ••••• 1.'0 l.20 +0.20 owes t ••••• 1.10 0.10 +0.110

Osaka money rate_ . ht {Highest •••• 1.00 1.00 O verDig ...... Lowes t ••••• 0.60 0.150 +0.10 Spinning bill ••••••••• {Highest •••• 1.80 1.80 Lowest ••••• 0.1115 0.80 +0.11

;Yield of stocks- Jan. 8 Jan. , Quotation ••••••••••••••••.• f6U2 l ¥'I8.8' • -19.11 Dividend ••••••••••••••••••• 11.2'% 10.63% - 1.89%', Yield .•.•.•.••••••••••••• Ul% '1.'115'" - 0.2'%

Tokyo price index- Dec., 1930 Dec.. 1921 Wholesale .•.•.•••••••••••.•• 160.8 2015.0 Retail •••••.•••.••••••••••••• 139.5 I'll.'

Osaka price index- Wholesale •••••••••••.••..••• 6G.8 80.1 Retail ...••••••••••••••••••.• 16.0 9'.0

Dec. 31, 1930 Dec. 81, 11121 (Unit 11,000) Nation-wide commodity stocks ---8SIl,8" t18,25' -118,'10 JAPAN AFTER GOLD BAN REMOVAL

llell\ 1980 1929 Jl'oreign trade of Japan Proper- (Unit ¥l,OOO) Compared Exports •••••••••••••••••• 1,4069,850 2,1'8,619 -618,169 Imports •••••••••••••••••. 1,5406,015 2,216,24.0 -670,165

Total ..••.•••• • • • • • •• 8,015,925 40,364.,859 -1,34.8,9340 Import excess •••••.•• '16,225 61,621 + 8,6040 BUliness extension and inauguration 4056,952 1,04.2,220 685,268 Payments called up for stocks and other 8ecurities •...•.• 922,618 1,4016,106 40940,028 Bank clearing- Tokyo ••••••••••••..•••.• 21,866,615 25,010,553 --8,103,938 Osaka .•••••••••••••••••. 11,888,933 22,314.,04.3 -40,4.86,110 Billa dishonoured- (Unit Yen) Tokyo •••••••••••••..•••• 606,2940 124.,581 118.231 Osaka ...... ••••••••••...• 289,4.09 311,4.66 82,061 Raw silk arrivals tn Yokohama (Unit Bale) market ....•.•••..••••••.• '11 0,34.5 14.6,082 86,131

1931-32 1930-31 Budgets for general account- (Unit ¥l,OOO) Revenue •••..••.••.•••••• 1,4.58,112 1,606,116 U1,9U Expenditure •..••••••..•.. I,U8,528 1,606,116 158,188

Dec. 81, 1930 Dec. 81, 1929 National10ans- (Unit ¥l,OOO) Domestic ••••••••••••••••• 40,4.68,896 40,458,823 + 10,013 Foreign ••••••••••••••••.• 1,561,826 1,4.4.6,895 + 120,4.31 Total 6,036,222 5,906,118 + 180,6040 Dec., 1930 Dec., 1929 AIl-Japan bank accounts- (Unit ¥l,OOO) Deposits ••••.•••••••••••.• 6,908,19' 6,103,091 1940,891 Loans •..••.•••••••••••.•• 6,865,64.1 li,310,611 6,136 :AII-Japon trust companies' accounts- Cash deposits •••••.•••.••. 1,180,068 1,185,693 6.625 Loans ...•...•....••••...• 900,561 886,4.20 + 140,131 Postal savings- (Unit 1,000 persons and n,OOO) Depositors ..•••••••••••••• 88,133 81,181 + 862 Amount •.•••••••••••••••• 2,88'1,616 2,051,126 + 286,390 Note: Marks + and - mean increase and decrease. respectively. '-'1- VII Nippon's Economic Diary Since Lifting of Embargo THE detailed review of the markets for the first year of the gold standard has already been made. The direct narration of the im­ portant incidents In the Japane~e financial circles during the year Is herewith given in the form of a diary in view 01 the Importance attached to the movement 01 the economic circles durin, the period: JAPAN AFTER GOLD BAN REMOVAL January The fund UWI.. tiOll committee .r the Drpollt Department 01 the 11. The removal of the .old export Finance Office decided Oil the utiU­ ban was effected. .atloll plan lor the 1930-81 I,cal Mediators In the trouble between year. the Electric Bureau 01 the the 18. The Yokohama Specie Bank low­ Osaka Municipal Office and the ered Its official ellchauge rate OD Daido Electric Power Company in Shanghai by TL 1 to TIs. 96. connection with the power .upply The Tarilr Commis.loD decided OD charges held a meeting for the firlt the revlsloD 01 the tarilr. time. Female operatives of the Yo.himl The Yokohama Specie Bank raised Cotton Splnnln, Company, Yo.hlml its official exchange rate both on Dear Osaka, went OD .trike and New York and London by one about 100 worker. left their point each to $~g %, and 2/0 %. dormitory III the Mill compound., :12. Mr. Tokutaro HayashI, Director Negotiation. lor the revision 01 the of the Mitsui Buslan Kaish., pa.... Sino-Japanese Commercial Treaty ed away. were opened. iB. All-Japan cotton piece-gooda pro­ 11. The Yokohama Specie Bank low­ ducers' meeting wal held in Olaka ered Ita official exchange rate OD and a resolution for standing Shanghal by TI. 1 to TIl. 95 flat. against the spinners' curtailment 18. The Yokohama Specie Bank ID­ &lid demanding the abolition of the creased Ita official exchange rate on cotton yam tariff was passed. Shanghai by TIs. 2 to TIs. 97 flat. The Yokohama Specie Bank de­ The Suglmura Warehouse, In creased itl official exchange rate OD Osaka, burnt down. The los. 01 Shanghai by .% to TIs. 97%. raw cotton .tored there was re­ U. The Yokohama Specie Bank in ported I. '600,000. creased its official exchange ralet The Y oshiml Cotton Mill'. labour both OD New York and London by cfupute was aettled, thankl to one point each to $U% and 2/0 mediation by the Chief of the Sano 5/16, respectively. On the other Police Station. hand, the Bank lowered its official 20. Mr. Slnjl Muto, President 01 the exchange rate OD Shanghai by Tls. Kanegaluch! Cotton Spinning Com­ 2.% to Tls. 95. pany and leader 01 the Kokumin 15. The Yokohama Specie Bank in­ Doshikal (bnllnessmen'. political creased its official exchange rate OD party) lett the Compauy. Mr. Shanghai by TIs. 2 to. TIs. 91. Ryoklchl Nagao was made PresI­ Communicationl Minister Maiajiro dent and Mr. Shingo Tluda, Vice­ Koizumi became mediator in the President. power supply charges trouble of 11. The 11th aeas10ll of the Diet 11'&1 the Osaka Municipal Office. reopened and the Lower House 11'&1 JAPAN AFTER GOLD BAN REMOVAL

Immediately dissolved. The date 26. The Finance Office Iuned the ot the general election was decided "He" Treasury Bills, amounting to on a8 February 20. 140,000,000 in all, payable on The actual crop ot the 1929 rice March 25, 1930. The wues were was announced as 49,725,000 koku. over-subscribed immediately. the plantation area having been 8,- The Raw Silk Commission decided 210,000 cho. (one koku Is equivalent on & plan to buy up 40,000 bales to 4.96 bushels And one cho is equal of raw silk in order to raise the to 2.45 acres.) Compared with market prices. the previous year. the crop was 28. The Japan Cotton Spinners' All­ 477,000 .maller by koku. while the lociation, at & general meeting, plantation area was larger by 18.- adopted the curtailment plan. 000 cho• .The Sugar Cooperative Supply AB­ .ociation decided on the selling February prices and the marketing quantity for January and February deliver­ 1. Operatives and other employees of the Ikegami Electric Railway, ies as follows I Refined sugar 121.40, 1110,000 plculs; "plantation numbering 164, flied & demand for white" 121.10. 80,000 picula. the Increase ot salaries by 30% but the Company declined It. 12. The Teikoku Nokai (an agricul­ ture society) held a round-table The Bank of Japan's gold holding meeting of sericulturists in order to decreased by 1128,000,000 in only maintain reasonable prices of raw three weeks after the gold ban re­ • ilk. moval. 2. The Ikegami Electric Railway's ~8. The Japan Cotton Spinners' Alt- • oelatlon. at an executive commit­ operatives went on strike. tee meeting, decided to adopt & The Tokai Cotton Spinning Com­ curtailment plan for six months pany was established with an au­ after February 111. The curtail­ thorized capital of 13,000,000. ment plan consisted of two holidays 8. The Finance Office banned the fol­ per month and sealing of 10% of the spindles. Those spinners, who lowing three local banks against consumed their yarn in weaving further transactions; the Kurita textiles, were allowed to seal only Bank, authorized capital 1500,000. G% of their spindles. in KusatBu-cho (town). Shiga Pre­ The Nichiro Fishery Company de­ fecture; the Kainan Bank, au­ cided to obtain ¥8,600,OOO loan thorized capital 1530,000, in Ko­ each from the MitBubishi Bank and chi City, and the Yoshida Bank, Sale & Co. authorized capital 1500,000, iD 114. The Cabinet decided to establish Mizuho-mura (village). Yamanasht the Industrial Rationalization Bu­ Prefecture. reau in the Commerce and Industry Compro~ise was reached between Office. the Ikegami Electric Railway Com-

-"-11:- IAPAN ArrER. GOLD BAN IlEJdOVAL pany alld operaUva at a I" ID­ Shanghai by TL %' to Tla. lot creue of .alarieL lat. The IndustrJ Commission held the Savinp banb In Alchl, Shlluokf, irst meeUn" presided over by Gifu aDd Mle PRfeclura paue4 • Premier Yako Hamaguehl, III raoluUOD demanding the reductloa order to cope with th. altaaUon of Interat rate on postal .avlD ... after the gold ban removaL The Spun SDk :Yarn Produtera' •. The Sugar CooperaUve Supply MsoclaUon adoptee! a further cu... Association decided on the aellin, tailment plan 01 increulng two price. and the marketing quantity hollda,. per mouth, effective from for FebruarJ deliverJ /II follow.. Marcb, 11180. Refined Bugar 121.20, 100,000 10. The Yokohama Spede BanJE piculs; . "plantaUon white" 121.10, lowered Its ollidal nc¥nge rate 80,000 picul.. oa Shanghal by TL I to Tla. 100. I. Five fertilizer companle. III Kanto The golel outflow In one mODth decided to buy back .uperphoe­ efter the baD removal reached phate at the rate of fl.20 per bale 1611,900,000. in order to maintain a reuonable It. The Industrial Bank of lapan market price. decided to luue No. 181 Debell­ The Japan Cotton Spinnerii' Auo­ tura. amounting to 110,000.000 la ciation decided on the minor de­ .u- tails of the enforcing of the agreed The Chugon Godo Electric C0m­ curtailment plan. pany decided to luue 16,000,000 7. The Joban Anthracite Sala C0m­ debenture&. pany was established. The Japan Ccutral Weavera' Auo­ The aetual crop of the Choseneae daUon held the irst meetin, of Ita rice for 1929 wu announced .. Industrial raUonaUzatioD co_ 13.'100,'1408 koku, an inaeue by mitt«. 190,021 koku .. compared with the Mr. FuaaklchJ T.kemura, Ea_ previoul year. tive Director 01 the Godo J[corl The Finance Olliee issued No. I Kalab. W&l summoued to the DIa­ 1% Bonds, amounting to 130,OOOr trld Oaee of Procurator-. Tokyo. 000 In in order to covel' a part an. 18. The Taiwan Governmcut aD­ of tbe funda for the earthquake Dounced the actual _nd crop of reconstruction work. 1929 rice .. 8,1128,211 kob or The Nippon Ste.el Tube, the Kam. 81,201 koku (0.840%) IarJel' thaD ishi Mining and tht; Fuji Sted the preYlou ye.r. Companiel established an output The District Otlice of Procurator-. agreement. , Tokyo, IDdicted Managing Director 8. The Yokohama Specie Bank in­ Y oldchl J[imb.ra and Enc:utJ"e creued its offidal nchaDp r.te on Director Fas.klcbl Takemar. of JAPAN AFTER GOLD BAN REMOVAL

the Godo Keorl Kalaha for the ille­ 19. The total conversion of notes into Jral possession 01 the Compan:y'. gold since the ban removal reach­ mone:y. ed 1100,706,000. The Industry Commission held the The Taiwan branch office 01 the first meeting 01 Its special commit­ Sugar Manufacturers' Association tee on the Industrlal amalgam.. announced the estimate of the Tai­ lion. wanese sugar crop as 13,029,602 The Osaka Federation 01 Social picuIs, an Increase b:y 72,171 piculs, Welfare Associations passed a re- compared with the previous :year's 801ution lor atanding against the ·actual crop. cotton spinners' curtailment. 20. The general election was con­ It. The Portland Cement Producers' ducted. Association decided to adopt the The raw silk quotations slumped '0% curtailment for March, April to the lowest since 1920. The and Ma:y and an additional special luture goods on the Yokohama output-cut b:y 16% lor March onl:y. Raw Silk Exchange fell to 1111.70. 16. The Yokohama Specie Bank The Yokohama Specie Bank in­ lowered its official exchange rate creased its official exchange rate on Shanghai b:y TL 1 to TIs. 99. on Shanghal b:y TIs. 2 to TIs. 101. The To:yo Muslin Compan,'s 11. The Kanto Steel Cooperative Kamedo No. B Mill was closed. Sales Association, at an executive The cotton spinning companies en­ committee meeting, decided to eo­ forced the curtailment agreement force the production pool s:ystem of two hoUda:ys per month and in March. 10% sealing 01 spindles. The Japan Paper Manufacturers' U. The Bank 01 Japan announced Association passed a resolution for that it would issue new ¥6 notes maintaining the 86% curtailment on March 1. rate after March. Mr. Ken-Ichl Fujita. President 01 The agreement for the Toho Elec­ the Tok:yo Chamber 01 Commerce tric Power Compan:y's absorption and Industr:y, was arrested again 01 a part 01 the Okazaki Electric b:y the Police on the charge 01 Light Compan:y was signed. destroying evidence in connection with a business scandaL 23. The election results were an­ 18. The Teikoku Sanshi Kumlai. at a nounced as follows I Minseito (Gov­ general meeting, decided on a plan ernment Part:y) 278, Sei:yukal 176. to utilize funds for the cooperative B'- Peace negotiations 01 labour dls­ raw silk holding. pute in connection with the clos­ The Bleaching Powder Producers' ing 01 the To:yo Muslin Compan"'_ Association decided on the further No. B Mill broke up and 'Workers eurtailment of 80% lor March. 'Went on strike.

- 47- JAPAN AFTER GOLD BAN REMOVAL sus. The Cabinet decided on the date 01 opening 01 the extraordinary March session of the Diet at April 21. 1. Agreement wa. reached betweea The Osaka Kogyo Kumlal IMued the Osaka Municipal Office and the a statement against the Govern­ Daldo Electrk Power Company re­ ment'. draft plan 01 the Labour garding the power lupply ~harp .. Union Law. The Tokyo Chamber 01 Comme," The Coal Miners' Association, at and Industry u well .. the Japaa an ellecutive ~ommittee meeting. Chamber of Commerce and Indu.­ decided on further ~urtailment of try recognised the reslgnaHon 01 the marketing quantity. Pretident Ken-Ichl Fujita 01 both Chambera. 26. The Yokohama Specie Bank In­ 2. An offi~lal announcement wu ~reased its official ellchange rate on 10 Shanghai by TI. 1 to Tis. 102, the made to the elrect tbat mergen 01 bank. took plue during Feb­ highest in the history 01 the Y.S.B.'I ellchange business. ruary, 18 banks losing their In­ dividual ttatu. u a result 01 these The Habutae producers in Taken­ amalgamaHon•• ~ho (town), Fukui Prefectnre, de­ cided to seal one-third of their 8. The Government 01 Leued Terri­ looms on and after March 2. tory of Kuantung announeed a 22% reduction 01 busin... taL President Fujita of the Tokyo Chamber of Comme," and Indu.. The Finan~e Office decided to make a '60,000,000 loan lor the try was indicted for the Illegal po.. "I maauladu~ session of money. relief tfade,. and en 01 medium and .mall meau. 2'7. The Toyo Muslin Company" obtaining lunda from the DepOl!t financial adjustment plan wu Department 01 tbe omce. drafted. The Bank 01 Jspan announced the 28. The Yokohama Specie Bank in­ indn Dumber of the aver.,. creased its official nchange rate whole~ale priee. In Tokyo lor Feb­ on Shanghai by TL 1 to Tis. 103, rnary .. 199.8, weulated on the breaking tbe previous re~ord in basil of 100 for October, 1900. tbe Bank·s history. •• The Cabinet decided to enloree The Government decided to iMue the Raw Silk Pme IndemnlfteaHon 113,000,000 6% bonds in order to Law in order to cope with the ~over a part of the earthquake rOo heavy ,lump 01- raw .ilk quota­ ~onstruction lunds. tiona. Aecording to the Law. The Government announced the 250,000 bales of raw .ilk were to total national revenue at the end be indemnified by the Government. 01 1929 as 1961,000,000 or l121r if they were atoeked for a hed 000,000 smaller than the prevloUl time. I. Cooperative .ales afJft1llent w .. - .. - JAPAN AFTER GOLD BAN REMOVAL

reached between the Nlsshin and The Shipping Department of the the Nippon Flour Companies. Mitsui Bussan Kaisha, the Kawa­ saki, the Yamashita and the Taiyo f. Representative-s of all stock ex­ Kaiun Shipping Companies form­ changes, at their meeting, passed a resolution to propose that the Gov­ ed the Pacific Lumber Freight Conference. ernment should make the deflation policy more lenient in view of the Provisional agreement was reached marked decline 01 stock quotations. regarding the Sino-Japanese tarilf negotiations. The quotation lor Kanegafuchi Itocks, old, broke the ¥200 level. 18. ·The Bleaching Powder Pro­ The A waji Bank's financial. ad­ ducers' Association decided to in­ justment plan was drafted. crease the curtailment rate by 5% to 85% • •. Minor details lor enforcing the lIS. The Finance Office opened a Raw Silk Price Indemnification meeting of Its high officials in Law were decided on at the second order to study the budget for the meeting 01 the Raw Silk Commis­ 1930-81 fiscal year. The total ex­ lion; indemnified price, ¥l,250 per penditure was estimated at ¥l,606,- 100 kin. 800,000. 10. The Yokohama Specie Bank, at The Silk Weavers' Association de­ a general shareholders' meeting, clined the demand of the Fukui decided to declare the ordinary weavers to abolish the rayon cur­ dividend of 10% and the special tailment agreement. dividend 01 6% In commemoration of the Bank's jubilee. 1 T. The establishment of a Portland eement sales pool was proposed. Weavers in Otsu-cho (town), Sem­ poku-gun, Osaka Prefecture, The Government disapproved the numbering 260 in aU, closed their Kobe Bean-Cake Exchange's appli­ mills for six days until March lIS. cation to handle the Chilean salt­ petre and other fertilizers of 21 11. Amalgamation of the Nisshin and kinds. the Nippon Flour Companies' Sales Shipowners throughout Japan met Departments was eifected. in Kobe and passed a resolution for The Japan Central Silk Men's As­ forming a compulsory shipowners' sociation decided to establish an association and reserving a. coope­ organization to control the silk rative relief fund (3 sen per ton). markets. The amalgamation of the Nagoya 12. The interest rate on banks' loans, Electric Railway Company and the in accordance with the Raw Silk Min a Electric Company was effect­ Price Indemnification Law, was de­ ed. cided on as 1.6 len per ¥l00 per The Teikoku Nokai decided to pro­ diem. pose that the Government should - .. - JAPAN AlTER GOLD BAN, JLEMOV.u; fII withdraw Itl pIa of increasing the III. Th. Cabinet decldeil to dlabllIM _ulphate of ammonia bril!. 11.120,000 .. the Central Govern­ :'9. The minor detalIa of the Raw Silk ment'_ lubdd, to the l~ IOv- Price Indemnification Law were ernmenll' Dew enterprilea for re­ ~nnounced in the Ollicial Guette. lieving the Jobleu. The taril! committee of the Finance Th. fund ut1l1utloll committee 01 Ollice decided Dot to change the the Depo.lt Department decided Oil taril! tor Iron. dyestuff.. pulp, in­ cODdition.. Oil which the relief ~andescent electrie-bulbl and COlI" loan_ to farmera, traders IUIII densed milk tor the time being. manufacturers of medium IUIII The final decision of the Finance _mall meanl were to be made. Ollice was reached regarding a '20r The ellecutive committee for the 000,000 relief loan to farmera, Portlanll Ccment Salea Pool draft­ traders and manufadurers of ed a marketing Ichedule. medium and small means. The Cabinet decided on the work­ 10. The Rice Commission, at a pl~ ing budget for the 1Da()'81 flacal Dary meeting, passed a dratt plan, ,ear anll the additional budget for on the control of marketl and the the ,ear. regulation of prices. which was to IS. Tokyo celebrated the completion be submitted to the Government. of Itl recODltruCtiOIl work. The Coal Miners' Association. at an The Koga BlUlk in Shiga Prefecture ellecntive committee meeting. d~ was dOled. ~ided to ~ontinue the original CUI'­ tallment rate ot 11% until the end 27. The All-Japan MelaeD Sllk ot 1930. Weavers' Auoclatioll w.. lormed. More than 20 Mompa weaving mm. 18. The 1400,000 budget lor the De_ in Sennan-gun, Osaka Prefecture, l, established Indu.trial Rationali­ decided to have Sill holiday. per sation Bureaa of the Commerce month. effective from March 21. and Induatry Ollice was approved by the Cabinet. 21. The ~ompulsory cooperative hold­ ing of raw silk in the Yokohama Banks agreed to the Deposit D~ and the Kobe markets was effected. parlment'. condition.. on which th, relief 10IDs to farmera, traders The date of enforcing the Raw Silk and manufacturers of medium and Price Indemnification Law was d~ _mall mean. were to be made. dded as March 24. The Railway Ollice decided to The electric committee of the Com­ establish a committee for drawing manlcationa Ollice adopted a draft world touristl to Japan. plan lor establishing the Hydn­ Electric Power Act. ••• The Kansai Savings Banks' Syndi­ cate decided on a plan to make The Osaka Machinery Won." petty loans without any security. trouble amoog Directors w.. IIettled.

-It- JAPAN AFTER GOLD BAN REMOVAL

19. 'A Joint appllcation of three rice , 8. The Bank of J span announced exchanges In Kansal fo], adopting that the average of wholesale prices • temporary classiflcation system in Tokyo for March decJined by W88 approved by the GO'f'ernment 1.9%, compared with the previous &fter lome revision. month. . """ L. The All-Japan Pawnshops' As- •• The Cabinet decided on the estab- sociatioD started a movement stand- llshment of a commission to enquin ing against the projected extension into the increase of the Japanese of the PubU. Social Welfare Pawn- population. shop Act. S. The Kanegafuchi COtton Spinning The Matsuda Agricultural. and Company announced the abolition Commercial Bank in Chiba. Prefee- of the War time allowance (be- ture waa closed. tween 60% and 70%) of its stair Regulations governing the organi- members and operatives and the "ation of the Kalmsa! Kanko Kyo- establishment of the special allow- ku (Board of Tourist Industry, of·, anee system (80%). Some troubles ftcial name) of the Railwa.y Ofllce were then expected. were decided all. The Deposit Department of the Finance Office decided to make & ¥10,000,000 loan to the Government April Iron Works in ,Yawata. l. The Home Industry Commission', 6. The Rosui Kumlai (an association reply to the Government's enquiry of Japanese companies engaged in OD the fuel problem was draftt'd. fishery in the Russian waters) de­ The Tochigi Bank was closed. cided on its two fundamental poli­ cies to cope with the Soviet fisher­ Delegates to the International La-­ men and it filed a petition with the hour Conference were officially de­ Government asking for support. cided OQ. 1. The Tariff Commission decided not The draft of the Shipping -Associa­ to change the tariff for dyestuifs. tion Act was made out. and pulp for the time being The Roryo Ringyo Kaisha (a com­ Parliamentary Vice-Ministers and pany engaged in the lumber bUSiness CoubceIIors, at their regular meet­ ib:D.ussian territory) was dissolved. ing, decided to appropriate the sur­ t; The 'ltifIance Office announced the plus fund, which was obtainable as gold OU~OW8 from Japan for the a result of the naval reduction, to first three months of 1930 as ¥116,- the reliet of the jobless and the 000,000. lowering of the taxes. Weavers in Banshu district in The Hom~ and the Finance Offices Hyogo Pefecture decided to sus­ notified the loeal governments of pend ope-'1!ioDS for two months. the extension of the maximum -'1- JAPAN AFTER GOLD BAN REMOVAL

.mount of the tota! loan. to be lL The Tokyo Stock Ellchanre wal made by the public locia! welfare temporarily .u.pended. pawnshops. The Comme~e and Indu.try OIBc. 8. The Cabinet decided on the estab­ authoritIel met leadin, nporten lishment 01 an organization lor In­ lD order to .tudy the rationalisa­ vestigating Japanele domestic pro­ tion of their .alel IYltem. ducts. the use of which Ihould be The HInode Cottou Spinning Co_ urged on the Japanese people. pany announced the reduction 01 Executive committees of the a.aaa Ita operatlvel' income. Dojima Rice Exchange tendered 1'- The All-Japan Serlcultumta' their resignation In connection MeetIn, paased a resolution for with a problem to revise the cl&S81- aaking the Government to apply fication 01 rice. the Raw Silk Price Indemnification Representative. of fertilizer com­ Law to the Dew IUk. panies rued a petition with the II. The O.aka Machinery Worb waa Agriculture MinIster regarding the closed due to a labour dispute. Government'. fertilizer lupply im­ W orken of the Kubota Iron Worb provement plan. went on Itrlke. 9. The committee for ltudying the The reopening of the Mabudo Silk Industry Act decided on me.... Agricultural and Commercial Bank ures for controlling the mulberry waa decided aa on April II. plantation. The Cabinet IIpproved a plan to The Canned Crab Producera' ,.. lubmIt a. additional budget of lociation decided on the meuurel 1185.700 for the encouragement 01 to cope with the depression. the Japanele product con8umption The Government approved a plan amoug the Japanele people. to make a 11,600.000 loan fOl' the The Olaka DoJima Rice Ellchang"l relief of the Japanese emigranta to troubles, in connection with the re­ Brazil. lignation 01 an necutIve commit­ 10. Regulationl goveming the orgam.. tee&, were aettled. zatlon of the Populatiou and Food 18. The Japan Federation 01 Stock Commission and the Board 01 En­ Ellchaugel .tarted a movement to quiry on Economic Probleml were get the "genlen" (tall on com­ abolished by the ·Imperial Ordi­ panies' payable dividends) tall" naO(~e. tioa IJItem adopted, Instead of the Mr. Sakura Okamoto became Vice­ tall o. the Individual dividend lu­ President 01 the Tokyo Gaa Com­ pany. come. Negotiations among the members The Privy Conncll approved the of the Portland Cement Producera' GOYemment'. pIau to establish the Association for further curtailment ForeigD Trade Bureau with • ended in failure. waming to the CabiDet. JAPAN AFTER GOLD BAN REMOVAL

f. Regulations governing the rice The Coal Min era' Association de­ spot markets were promulgated. cided on the reduced marketing The AJl-Japan Fuji SUk Pro­ quantity for 1980. ducers' Association was formed. SO. Operatives of the Tokyo Muni­ The Privy Council approved the cipal Electric Tramway went on Slno-J apanese TarUr Agreement .trike. with a warning to the Govern­ SI. The extraordinary leSS Ion of the ment. Diet was opened. The Japan Chamher of Commerce 22. Operatives of the Kobe Municipal and Industry made a proposal to Electric Tramway went on strike. the Government regarding the use 28. A cooperative sales agreement of the 8urplus fund, which was ob­ was reached among the steel pro­ taInable as a result of the naval ducers, being eifective on June 1. reduction. Representatives of Japan in the ,8. The Government redeemed ¥II,- Bank of International Settlements 000,000 worth of 6% national were decided on. bonds by buying them in the The Export Indemnification Law market. Bill, the amendment of the Com­ The Cabinet decided on a plan to pulsory Primary Education Fund make a rebate of the railway Act and the. amendment of the freight as a means to promote Tariif Act were introduced in the exports. Diet. Regulations governing the execu­ U. The special committee of the In­ tive committee of the Board of dustry Commission approved the Tourist Industry were decided on. minor committee'. plan for the im­ The Government adopted the reply provement of the financing system of the Electric Commission. which lor the manufacturers of medium was made to the Government's en­ and small means. quiry regarding the improvement The Yokohama Raw Silk Expor­ of the electric: power industry in Japan. ters' Association decided on a 20%. curtwment, the limitation of mar­ 19. The Yokohama Raw Silk Expo~ keting quantity (both on the part ten' Association passed a resolu­ of reelers) and the postponement tion for effecting a thorough policy of the new silk dealing by one to support the raw silk prices. month. Conditions, on which the 6Srd Na­ The new elassification system of tional Bonds were to be issued, the Kyoto, the Osaka and the Kohe were decided on by the Banks' Syndicate. Ric:e Exchanges was sanctioned. A mediation" plan regarding the Negotiations for the Toho Electric Shokawa Power Plant', trouble Power Company's 130,000,000 for­ was drafted. eign loan flotation were started.

-11- JAPAN AF1'ER GOLD BAN REMOVAl,

15. The strike of the Tokyo Muni­ cipal Electric: Tramway operatina May was lettled. I. The Mlnaelto Introduced a propo.al Mr. Benjiro Morl wa. made Presi­ lor the ltablliaatlon of cocoon dent of the Chosen Ynsen Kaish .. price. In the Diet aeaalon. . The Social Welfare Bureau of the I. Salea Manarer Nobuo TateisM 01 Home Ollice announced the total the Gonrnment Iron Worb In Y.. Dumber of the unemployed atand­ wata was appointed Chief of the ing on March 1 as 8151,1100. Foreign Trade Bureau (newly 96. Heated diseuasiona took place III established) of the Commerce &lid the Diet regarding the alleged vio­ Indnstry Ollice. lation of the Supreme Command The Nippon Yuaen Kalah., at a by the Government In the London Directors" meeting. decided to de­ Naval Negotiations. dare the dividend rate of • .,. 98. The Finance Ollice announced Ita (8')(, lower) for the arst ball 01 working budget for the 1980-81 1980. fiscal year as ¥l,GOG,OOO,OOO. 8. The Japan C8IIIIed Crab Pro­ The total conversion of DOta Into ducera' Association decided to 0'" gold after the gold ban remo"al gani" their cooperatl"e lalea _0- reached '200,000,000. ciation lor Japan. The Japan Central Weavers" Asso­ The Sugar Manufacturers" '.\Moda­ ciation decided to file a petition tion decided on a plan lor the al­ with the Diet for the abolition of lotment 01 the ceDtrifupl .ugar the textile excise. .upply for the aecoDd balf 01 11130. The strike of the Kobe Municipal Electric Tramway operativea WII .. The Home Ollice decided to c:reate settled. a tas OD ".bohln kitte" (me,.. cbandise tickets or exebange che­ 99. The Osaka Iron Worb decided ques). whieb bad beeD pendinl for to discharge 91 workers. manyyeara. 80. The Privy Council,. at the plenary •• The Budget Bill paued the pleDary meeting, approved the Dew Sino­ aasiOD 01 the Lower Houae. Japanese Tariff Agreement and the establishment of the Foreign Trade The Mitaubiabr. Nagasaki Dockyard Bureau. enforced a plan for Ita labourers. The Tokyo Stock Exchange post­ working for one week aDd takln, poned the opening of the moming one week', bollday. alternatln, with session and compromises were each other. reached among bears and bulls. S. The ollicial ligniD, of the New The Kanegafuchi Hyolo Mill'. Sino-Japan_ TarUr Agreement • trike WII aettled. took place In Nankin.. -N- JAPAN AFTER GOLD BAN REMOVAL

The additional Budget Bill for the the Tokyo University of Com­ 1980-81 fiacal year palled the merce, passed away. plenary .e88lon of the Lower The All-Japan Cooperative Cocoon House. Desiccating Warehou8es' Associa.­ Regulation. governing the organi­ tion passed a resolution demand~ aatlon of the Railway Conference ing low-Interest loans from the were promulgated and Immediately Government. enforced. The Tokyo Stock Exchange Iu­ The Home Office', regulations for the necessity of Indicating the creased the minimum sum of the weight of all freight. were pro­ warrant money for dealing In 20 mulgated. Issues, the market quotations of Baron Seln08uke Go, financial which reactionally advanced. leader In Japan, accepted the 9. A plan for the reorganization of offer to become President of the the Tokyo Electric Light Company Tokyo Chamber of Commerce and was signed. Industry. The Nagoya Stock Exchange filed ,. The Compulsory Primary Educa­ a petition with the Government tion Fund Act Bill and the Export that the laUer should lower the in­ Indemnlflcatlon Law Bill passed the terest rate on postal savings In Lower House. order to cope with the continued The Central Government notified depression. the local governors to enforce the Negotiations for the conversion of emerllenry relief measures for the the Japanese Government's Sterl­ unemployed. Ing and Dollar bonds in London The Jopan Central Silk Men's A .. and New York were conciuded and lociation, at an executive commit­ tee meeting, decided to demand the documents were duly signed. from the Government the low­ Quotations for other Japanese Interest loan for the relief of the bonds slumped In the London mal'­ lericulturists. ket In view of the comparatively The Mitsublshl Company dischargo. high yield of the new Issues. t'd more than 200 miners employ­ 10. The Agriculture and Forestry ed Ilt the Yoshioka Mine in Oka.­ Office announced the stock of the yama Prdecture. domestic rice standing on May 1 Operatives of the Konegafuchr. 88 81,810,000 koku or 1,850,000 Hyogo Mill approached the Mill koku smaller thon the correspond­ authorities again regarding the Ing date of the previous year. Improvement of their treatment. The 23rd meeting of the Dni Nippon The OSllka Enamelled Ware Manll­ Rice Society ""OS held In Fukui facturing Company was closed and City. all workers were dlllCharged. The Altriculture and Forestry •. Dr. Tokuao Fukuda, authority on Office estimated 8,320,000 spring political economy and professor at silkworm egg-cards brushed at the

-11- JAPAN AFTER GOLD BAN REMOVAL

end of April, 1930. Thil W81 2.8% Th. Nippon Nltrogenoua Fertiliser larger than the previoua year. Company, at an extraordinary The Kanegafuchi'a Yodogawa Mill abareholderl' meeting, decided to discharged U operative.. lsaue new 16,000,000 debentures. The Railway Office', freight rebate 18. Regulation, gOYernlnl the or­ .ystem W81 enforced. ganlzlltion of the Industrial Ra­ 12. New Japanese bonds, $110,000,000 tionalization Bnreau 01 the Com­ in New York and £12,1100,000 In me~e and Industry Office were de­ London, were over-sublCribed. cided on at the Cabinet meetinlf. la. Several groups in the Upper House The Bleachln, Powder Producera' introduced in the Diet a plan for A ••oelation agreed to Incre... Its the relief of manufacturers of curtaUment rate by 6% to tII% for medIum and small mean. and the June. jobless. The New Slno-Japane.e Tarilf The executive committee. of the Agreement W81 enforced. Osaka 'Stock Exchange tendered 1'7. A tentative agreement W81 reach­ their resignation. ed regarding the cooperation be­ U. The 68th session of the Diet ad­ tween tbe Onoda and the Olt. journ~d. All bills regarding ee. Portland Cement Companiea. nomic problems, which were intr. 18. The Statistics Bureau of tbe duced by the Government, were Cabinet announced the Inere... 01 passed. the Japanese population during FinalU!e Minister Junnosuke Inoue, 1929 816,000. at a meeting of the Bank Clearing a. 111. Tbe Yokohama Spede Bank de­ Houses' Association, urged bank­ clined to make a loan ag/lln.t the ~rs' support to the financial read­ lecurity of Ipedal cOlU'le yam. justment and the industrial ration­ alization of yarious' manufacturing President Kenkichl Kagaml W8I re­ companiea. elected 81 President of tbe Japan The Osaka Keizai'kal passed a re­ Shipownen' Aaoclatlon. lolutlon demllnding that the GOY­ The Tokyo Dento Big Shareholden' ernment appropriate the surplua Auoelatlon, beaded by Mr. Momo­ fund, following the naval reduc­ auke Fukuzawa, pused a resolution tion, for lightening the people'a demanding the Company', read­ tax burden. justment. The Asano Portland Cement Com­ 20. The Home Office'. regalation. re­ pany tentatively decided to reduce garding the adjustment 01 the local its authorized capital to ¥6,310,OOO. gOYemmentl' finance were pr. The Portland Cement Producers' mulgated. Associatiou decided on the further The labour dispute of the Yu_ curtailment to 1iI.1i% for the Copper Works, Oaaka, _81 amic­ period from June to September. ably eettled. thallu to the appJ1ea,. JAI'.\.N AFTER GOLD BAN RE~OVAL

tion of the Labour Dispute MedIa­ and the Shin-Keihan (new Kyoto­ tion Act for the ftrst time In Japan. Osaka) Electric Railway Companies The Osaka office of the National 11'81 announced. City Dank of New York conducted SIll. The Kansai branch of the Japan gold conversion, amounting to ",- Central Silk Men'. Association 000,000, at the Bank of Japan" passed a resolution for opposing Osaka branch. the curtailment of new raw silk. 21. Home Minister Xenlo Adachi 26. Finance Minister Junnosuke urged the uecesslty of using the Inoue, at an extraordinary meet­ Japanese products at the Guber­ ing of the Japan Chamber of Com­ natorial Conference. merce and Industry, which wa. The Railway Office announced a held in Osaka, urged the necessity decrease of its revenue by '110,- of continuing the deflation policy. 000 since the beginning of the The Public and Private Financial 1990-91 ftscal year, compared with Retrenchment Commission decided the corresponding period of the 'On a propaganda plan for the en­ previous year. couragement of using the Japa­ 13. The Federation of Manufactur­ nese products. ers' Associations in Tokyo, Osaka, Sl1. The All-Japan Savings Banks' Nagoya and Yokohama started a movement, standing .against the Meeting was held in Osaka. Government's Labour Union Law The Yokohama Customs House. in Bill. reply to the Finance Office's en-. quiry, proposed to increase the im­ 23. The Government decided to in­ port duties on motorcar parts. troduce the Labour Union Law Bill in the next session of the Diet de­ The Unemployment Prevention spite the strong opposition of the Commission held its first meeting. Capitalists' organisations. 28. The Finance Office decided to re­ The allotment of loans, which were duce the sundry expenditure by to be made to traders, manufactur­ 80% for the 1931-82 fiscal year, and ers and farmers of medium and to maintain the total expenditure • mail means with the ¥200,000 lunda budget at the 11,500,000,000 level • of the Deposit Department, '11'88 de­ The joint committee of the Finance cided on by the lund utilization Office and the Bank of Japan fin­ committee of the Finance Office. Ished the dralt of the Bank of The Nippon Yusen Kalsha, at a Japan reorganization plan. Directors' meeting, decided to re­ Tbe Hypothec Bank, at a Directors' duce the bonus for the sectional meeting. decided to absorb the chiefs by 80% and that for the agricultural and industrial banks of ordinary staff members by 20%. Iwate and Saitama Prefectures. 2 .. The decision on the amalgama­ The Japan Chamber of Commeree tion of the Kelhan (Kyoto-Osaka) and Industry, at an extraordinary -11- JAPAN AFTER GOLD BAN REMOVAL

meetln" pUBed a reJolutioa de­ tween Hokkaldo and Japan Proper, mandln. that the Gonrnment a.e ,tarted a monment. Itandin, the ,urplu, fund. 10Uowln. the e,alot the Rall .. a, Ol!lee'. 'reight Danl reduction. for llghtenln. the rebate aystem adoptcd lor the people" tall burden. Hakodate-Aomorl 'erry Benlce. 19. The Federation 01 EcoDomlc .. Flnanee Minister JunnOluke Inoue Bodlea In Osaka decided to pro­ reported at the Cabinet meetln. pose the revilion of the Gonra­ that the amount 01 expenditure ment', Labour UDlon Law BIlL wa. reduced b, "0,000,000 ai a CODdlUoD' for the Tokyo Muni­ reault ot the commodlt,. price lalL cipal bODd luue, amountln. to A c:ommlttee ot the MlnBelto JU.900,OOO In all, were dedded on. agreed t. a pIa. 0' approprlatln, Accordlnlt to the Bank 01 Japan', a ¥S98,OOO,OOO ,urplu. fund, '01- accounta brought forward to Ma,. 10wlnlt the .uapenslon 0' the rapltal t9. the Bank', eODnrUble note ,hlp construction, '0r the reductio. IIlue wu ",101,180,000 01' '180.- ot the people" till burden. 000.000 lower than the correaponcloo In. date of the prevlou, ,.ear. •• The Telkokll Nokal propoled a plan to revile the land taB .,stem. 81. The Finance Ollic:e lIIued Treat­ a1'7 BUll, amountln. to ISO,OOO.- f. The eaecutln committee of the 000 In all. redeemable after two XOITO Club, which wu agaln.t the month.. They were wdcomed In Gonrnment', Labour Union Law the bond markeL Bm. decided to promote the .dla... ot labourera. The Finance Ol!lce derided on the Jun~ unitlcaUon ot the tobacco quallt, 1. The total amount of the local and the ratlonall.atlon of the bond llluea duriD' the 192 .... 80 Monopol, Bureau. tscal year WU anDounced U .na.- The Finance Ollice atarted the In­ 000.000. vestlgaUon. of the revision 0' re­ The Government declded on the re­ gulation. go .. ernln, the ....Inp duction of com million payable to banb and mutual crewt bUIlDe... the local distrlbutora (IOmethln, like wholesale dealera) of tobacco The Superphosphate Produeera' and clgarett... Aaaoc:laUon decided to maintain J. The Dewl,. established Industrial the curtailment rate 0' 80~ alter RationalilaUon Bureau 01 the Com­ Jul,. merce and Industry Ol!lc:e start­ 8. The Superphoaphate Produt:en' ed funcUonlng. Aaaoc:latlon dIac1Iued a plan tor 8. The mlppln, companle.. enlaged the prevenUoa 01 foreign .ulphate lD the tranlporlaUon 01 roods be- 01 ammODla Importa. -u- JAPAN AFTER GOLD DAN REMOVAL t. Advianpw to the Industrial RatioD­ The Dal Nippon Sanshikal (a aeli­ aHaation Bureau, at a meetnig, do­ cu!turillts' a&locialion) estimated tided to eatabliah four minor com­ the 1930 crop 01 spring cocoons .. mittee. and to Itart a movement 113,000,(\(,0 kan or 8,000,000 kan for urging the people to nle the larger than the actual crop lor the Japanese producta. previous year. Chamber, of commerce and Indu.. 13. The executi.e committee of the try In Kanlal agreed to .tart a Tokyo Bank Cleartng House movement against the Go.ern­ agreed to aupport the continuance ment', Labour Union Law Bill of the Government's defiation 10. A bill for the re.islon 01 regul .. policy. tionl governing the Railway CoD­ The Yokohama Spede Bank iD­ lerence passed the Cabinet meet­ neaaed Ita official exchange rate Ing. on Shanchal to TI& 130. The period 01 .alidity lor applying The call money rate advanced to lor the Government', ,pedal loan, I.' ,en due to the active demand In a('('ordance with the Raw Silk for the new spring Iilk funds. Price Indemnification Law expired. Some 200 mills. affiliated with the The National City Bank of New Osaka Sempoku Weaven' Associa­ ,. ork conducted the gold con.er­ tion, detided to suspend operation, .ion, amounting to 12,1100,000. commencing from June 20. The Overseas Office lanctloned the revision 01 regulations governing The White Cotton Cloth Producers' the organization of the South Association in Chit... Akhi Prefec­ ture, agreed to atop work for two Manchuria Railway Company. weeks from June 111. The raw silk stock In the Yoko­ hama market rea(hed 228,000 The South )Ianchuria Railway bales, the highest In the history of Company conducted the adjusbnent the markeL of the stair on the largest scale ever attempted and discharged 81. II. The Government estimated a clerk.. no.ooo,OOO decrease In ita re.enue for the 193().31 fiscal year. The Iwaki and the Chkhibu Port­ land Cement Companies increased 11. The Home Office Issued an order their selling price to 13.10. to the local governmenta to etfect Raw silk slumped and the break a retrenchment In their expebdi­ ture.. of the 180 lewcl was fured. The Sodal Welfare Bureau of the 16. The Industry Commission decid­ Home Office sent enquiries to large ed on ita reply to be made to the lactorles throughout Japan regard­ Go.ernment', enquiry regardins ing the nutrlti.e conditions of the protection 01 the home indo.­ labourers. try.

-il- JAPAN AFTER GOLD BAN REMOVAL

The Government Iron Workt III Government'. Labour Union Law Yawata decided on the outpukllt Bill. of steel materials. Finance M1nlster Junnoluke Inoue The Toyo Kisen Kaisha won the announced hi. view on the demand­ suit in connection with the Bill of ed reduction 01 the Interest rate on Lading trouble with the Mitsublshl p08ta1 .avln,a. Bank. The Social Welfare Bureau of the Mr. Naozo Igarashi, former Direc­ Home Office approved the Japan tor of the Yokohama Specie Bank, Central Silk Men'. ABloclation'. became Director of the Tokyo plan to .horten the working houn Electric Light Company. for female and Juvenile operatives. The Portland Cement Producers' Quotation. lor .prlng COCOORI Association decided not to change dropped lurther. the selling price for the time being. The Cotton Operative.' Union filed lIS. The Izumi Cotton Spinning Com­ iL demand with the Japan Cotton pany's two mills reduced the work­ Spinners' Association for the aboli­ ers' income by f%. tion of the curtailment. 18. The cotton lIpinners' 10% eurtail­ The Keihau Electric Railway Com­ ment of operation was elrected. pany, at an extraordinary .hare­ The sericulturlsts in Kyoto Prefec­ holders' meeting, approved Its amal­ ture agreed to a plan to cope with gamation with the Shln-Keihan the unfavourable situation. Electric Railway and the new de­ The Bleaching Powder Producers' benture Issue, amounting to 120,- Association decided on the 'IS% 000.000. curtailmen~for July. A plan was formulated for dispol­ Quotations on the raw silk es­ Ing of 200.000 balel raw tilk .tock changes broke the ¥80 leveL accumulated III the market. If. The Cabinet approved the aboli­ 18. The Osaka ChamLer 01 Commerce tion of the tobacco and cigarette and Industry'. reply to the Gov­ distributing agent system. ernment'. enquiry regardinr the The Commer. e and Industry Office revision of the Commercial Code decided to devote its elrorts for the was decided upon. rationalization of steel and five The Kanda Bank, which had been other industries. cloaed for a lonl time, Ilarted re­ The Tokyo Prefectural Government funding deposits. decided to create a jobless preven­ 19. BaroD Selnosuke Go and BaroD tion committee. Takuma Dan, both financial leaden Some 80 economic bodies III Tokyo III Japan, tiled • petition with the ~d Yokohama agreed to start • Finance Minister III connection wltll cooperative movement against the the relief 01 1iDanclal c:ircla.

-11- JAPAN AFTER GOLD BAN REMOVAL

The Kokumln Doshlkai Issued a General Motors Japan Ltd. adopt­ .tatement, atandlng against the re­ ed the five days a week plan In ducllon of interest rate on postal order to cope with the depression. lavlngs. The revision of the power supply Representative. of the Japan Cen­ charges agreement between the tral Silk Men', Association asked Daldo Electric Power Company the Agriculture Minister to post­ and the Osaka Municipal Office pone the period of validity for ap­ was signed. plying lor the Government's spe­ 21. The Kyoto Municipal Bus opera­ cial loans In accordance with the tives went on strike. Raw Silk Price Indemnification Movements against the abolition of Law. the tobacco and cigarette distribut­ The Government Iron Works In Ing agent system were started in ~awata announced Its plan for the various places. reduction 01 the steel material out­ The Central Government issued an put. order to the local governments lor The Wakayama Umbrella. and Para.- observing the "Japanese products' 801 Manufacturers' Association week." .greed to effect the two month.' According to the Bank of Japan's curtailment. acounts brought forward, its specie The readjustment plan 01 the Oita reserves were larger by 1582,000, Portland Cement Company was de­ being '869,4.98,000. cided upon. The beer breweries in Tokyo agreed The Osaka Iron Works' lurther dis­ on the prevention of selling eom­ charge 01 labourers was anDouncet1o petition. dismissing as many as about 1,000 The Finance Office tentatively de­ workers since the beginning 01 cided on the reduction of the Mono­ 1930. poly Bureau's selling prices of do­ mestic salt. 10. The Nagano Prefectural Govern­ New shares of the Tokyo Stock Ex­ ment planned to Issue bonds lor the change fell to '8" the lowest since relief of the eericulturlsts. 1914. Some 800 weaving mills In Hama­ matsu suspended their operation 12. The Hoshi Drug Manufacturing 'imultaneously. Company's labour dispute was set­ tied after 22 days. The Hishu Lumber Company, which . had been In trouble with the Nip­ IS. The Tokyo Prefectural Govern­ pon Electric Power Company re­ ment Introduced the expenditure garding the latter's Shokawa Plant, budget for the relief 01 the jobless brought a lawsuit against the Goy­ in the Prefectural Assembly. ernor of Toyama Prefecture, in The flour mills in Kanto reduc:ecl which the Power House is located. their. aclling price by a sen.

-81- JAPAN AFTER GOLD BAN REMOVAL

The Bank of Chosen 'Won the suit month ,n.penllon and the 80% ~ regarding the Bill of Lading trouble ductlon of 'WI geL between the Bank and the Talwsn The cotton Iplnners adopted the Sugar Company. one .hilt 'Y6um for their operation. 2'. The Japanese conluls in China Pres1dent Ryoklchl Nagao of the filed a protest with the Chinese Kanegafuchl Cotton Splnnln, Com­ Government regarding China's pany retired and Vice-President double imposition of cnltoma duties Shlngo T.uda W81 promoted Presi­ on imports. dent. The Steel Material Producers' AI­ Pongee producers in Fukul decid­ sociation decided on the 110% re­ ed to luspend operation for one duction of the round steel bar out­ month after July. put. IYG-Kasuri (a Idnd of cotton tu­ The revision of minor regulationl tilel) weave,. Igreed to .top of the Factory La'W for shortenin, operation for two monthL the working houra for the female 28. The Government authorltie.. to­ and juvenile workers 'Wal decided. gether with leadin, banke,.. .tudi­ The Kawasaki Factory of the ed the financlal .ituation. Asano Portland Cement Company The namel of the men to .e"e 81 discharged some 200 'Workers. Diredora of the Tokyo Electric Light Company were decided on. 25. The executive committee of the Tokyo Municipal Assembly approv­ The Inauguration of the Kobe ed the expenditure budget of Municipal Bn. Se"lce W81 lane­ ¥2,II'O,OOO for the relief of the job­ tioned. lesa. The Hacbioji Weavers' A.. ociation The .allotment of the Deposit De­ decided to ltop operation for three partment'l relief loans to lericul­ 'Weeks. turists W81 decided on. Dirmora of the Osaka SholeD The stock exchanges in Kyoto. Kalah. decided not to declare an1 Osaka and Kobe agreed to form a dividend for the current tenn. syndicate for investing in stocks. The Mitsublahi Trading Compan1 The Rayon Producers' ~ociation Joined the canned crab cooperative adopted the 20% curtailment plan .ales agreement. for July. The Daido Electric Power Com­ Commercial travellera to be IeDt pan1. at • general .hareholden" abroad by the Cotton Textile Ex­ meeting, decided to baue 130,000,- port Promotion Society 'Were ap­ 000 debentureL pointed. 29. The Tokyo Prefectural Alsembl1 26. The Nagoya Weaycra' AsaoO... approved the expenditure budget tion adopted a plan to elred one for the relief of the JobleaL -u- JAPAN AFTER GOLD BAN REMOVAL

10. The Finance Office announced the The Steel Material Production total Import excess for the first six Pool was eBected. months of 1980 as ¥218,OOO,OOO or The Nippon Yusen Kalaha, the '60,000,000 amaUer than the previ­ Osaka Shosen Kalsha and the ous year. Harada Kisen Kaisha enforced the The call money dropped to 1 len new system of coUecting freight on per 9100 per diem In view of the the Japan-Tsingtao !;ervice rn the quiet term-end settlement. basis of the Yen, instead of the The reduction of the Interest rate Tael. on postlll savings by 0.6% was ten­ The umbrella manufacturers' asslr tutively decided. ciation in Gifu decided to stop The Toyo Muslin Company, at a work for July and August. general shareholders' meeting, de­ 2. The names of members of the cided to reduce Its authorized capi­ Railway Conference, according to tal to one-tenth. the new regulations, were an­ nounced. Mr. Katsutaro Tajima. Director of July the Fukuoka Mining Superinten­ 1. Communications Minister Matajiro dent Office, succeeded Mr. Yone­ Kolzuml Introduced In the Cabinet matsu Mitsui as Vlce-?tfini&ter of meeting his plans to expedite the Commerce and Industry. extension of the telephone service The Osaka Chamber of Commerce and to change the Government's and Industry decided on its financial policy. measures to cope with the de­ The Commerce and Industry Com­ pression. mission was abolished. The Mitsui Bank started giving The Indu&trial Rationalization loans to salaried men. Bureau of the Commerce and In­ The Teikoku Nokal planned to give dustry Office selected 100 kinds of support to the settlement 01 luperior quality Japanese products farmen' debts. and announced their names. The Government decided on a sub­ Trust companies in Kansal sug­ sidy to be given to the Showa Steel gested the formation of a bank for Works. financing the industrial ration­ 8. The Government invited leading alization. businessmen to a party and asked The Fukuyama Mill of the Fuku­ them to use Japanese products in shima Cotton Spinning Company accordance with the Government's reduced their operatives' wages to policy 01 the industrial rationalisa­ one half. tion. The Government Iron Works in Advisors to the Industrial RatioD­ Yawata closed three factories. alisation Blueau. at a ma.tiDi'. de-

-11- JAPAN AFTER GOLD BAN REMOVAL

dded to create a committee for QaotBUon. for atec1 materl&lB promotln, the cooperatl.e aaJea dropped all rouncl. I1stem amon, ... uloUI producera. .. Application. of the local IOn,... The allotment of the DepOlit De­ meata and municipal olliee. to ob­ partment'l relief loanl amon, tain the Central Gonmment'. ... arloul ...odaUoDl wu aD­ pnc:tlon for the Jobleu relief Joan Dounced. f1otaUon numbered ...ea darln. the flnot week of July, the total The Dal-Ichl Bank decided to r.­ amount being about 17,800,000. duce Ita dividend rate hy 1~. ,. Th. Na.oya .radicate ban'" de­ Mr. Muuaabaro Uehata, Chairman cided to maintain their pre.1011. of the O.aka Stock Eachan... aD­ dividend ralea. Doanced hla plan to create a ltock Innstment company. Some Jerit'Ulturlall, at a rouad­ table meeUn,. alftCd to elreet a The temporarr IDcre_ of the ... oluntal')' prodactlon-cat of .um­ Portland cement eurtailment rate mer and autumn cocoon .. by 1% wu decided. The Japan Cotton Splnnen' A.~ I:' The eatahllshment of the Tele,rapla dation decided on the ... oluntarr and Telephone CommJaaloD wu enrlBUment lor July and Aara_t. cledded. QaotBtlon. of Iplnnln, .hare• :AU banb In Fukui Prefecture, .-lumped further and Kane,alucbla ~lIilIated with the Fukui Bank feD below the 1120 l"eL Clearing Houle, decldecl to redace The Yokohama Specie Bank an­ their di... idencl ratel by 1 %. Doanced the reduction 01 the "'alae The labour dispute of the FaJI of raw .1Ik beld or to be held u Gu Spinning Company wu Rttied. teenrlty agalnat Ita loau. The Osaka Sho.. n Kalaha decldecl a. Th. Commerce aad Inda.tl')' Olllce on a plan to reduce the total pay­ ..Iected fore I,. good.. the Import ment to Ita employee.. of which Into Japan .hoald be checked, and aJlIIollaced their .. The Indes of the ..erase who1eaale price. In Tokyo daring Jane feD Dame.. to 181.8, calcalated OD the bula of The Baak of Japan rnlJe4l the 100 for October. 1900. Thla wu Ilyle of III weekly report. the lowest alnce the end of 11121. The Kyoto. Osaka and Kobe n­ Finance MIDh.ter JannolDke Inoue changel Jointly annoanced their In... ited leading Portland cement plan to eIlabllab u la't'atment cor­ producen to • party and lIrsed poraUOll. them to elt'd a mer,.r. Th. SUk GoocJ. Dealen' A.uoda­ The diacbuse of the KawuaJd Uoa, at u neeuU.e c_mlltee Dockyard Com pan,.. worken wu meetlD.. adopted a plu to Impro... e aJlIIoanced. the ~ty of FaJi IlIk. JAPA..'l ArrEll GOLD BAN RElfOVAL

The Daido El«tric P~r Com­ panies aI~ ill Ashin, in the paDy ftduM iu employeft' ~ Rusiaa eutrna waters. by 10%. The Fuji Gaa Spinnin, Company 'I'be agrffmtDt to raise the PIgai' ckrided to iDcrcue its monthly pri~ wal ruched amODe the &is holida,... leadine eompanies.. The Apiculture and Forcstl"y The silk I'fflen' auodati_ iD Kof. Ollice UlII01IDeed the stock of rice. dKided to IUspcDd operatioD for 11 staDdin, 011 JlIly I, .. 21,840,000 da,w and to ftduce female opera­ bh. tiTCS' Wage&. Jlaw ailk quotations alumped fur­ .. 'I'be Home Ollice drafted the ther. forward ddiyery reachinc the Labourer". Acddent Relief Act. _w low Ind of 162.60. 'I'be ~ Duploa Silk Retied lL The Commerce Minister annOUDt"­ AssociatioD" iD Shisuoka Prcfee­ ed at the Cabinet merlin, that ap­ tvre. dec:ided to I1lSpcDd operatioa proximately 1600.000,000 worth of for one mouth. imported coods may be nbstituted The SpUD Silk Tara Produ«d by the J apaDCSe products. Association iDcrcased iu nrtail­ 'I'be Social Welfare Bure.. of the mat rate to 10'-'" Home Ollice decided _ meanres 10. Japan"s fomgn trade for the am to eope with the uDemploymat of 10 days of July resulted ba .. the day-labouren. ~CTSS of erporb onr l.nports by The 15th Bank'i Blocks., 8.mbuiDe ...... no.ooo. bd.na the Irst faT01II­ _re th.. 160.000 shares. became able balaDt"e Dee the be~ of .un aDd ..oid on &Ct"OUDt of _ 1t30. paymeDt by Ihardaolders. Brpl'CRlltativa of farmers iD Sai­ The Acrinlture and Forestry lama Prefec:ture Yisited the CabiDd OlIice seat instnIctioq to the loal Offices, ~t>. askin, for the ~mon to 11~ the sericu.lturists t.elp for their d.ifficulties.. to limit the 51l11l1DU and au tuDlJl The Waka,.... 43re1 Bank ckciI!ecI silkwona feediDc. to bud OTeI' its maiD offiee -a The Daisaa Oub fa S.w. decided branches to the 34th aDd other to Blop OperstiOD for two months. banks 011 account of baDciai eoadi­ tioos- The minimum nport pri« of ~ The N!ppoD Ekrtric Power C0m­ .ed crab w .. decided. pany won the law-suit iD C'OIlnectiOil The ..alue of raw silk, both yellow with the troubles with the Hish. and white. as I«1lrity against loans Lombcr Company. was ftdaM below i3OG. The Forei~ Office filed a stron, protest with the SoTid authorities 12. The Chosea lkYe.!opment Bank rcpni;n, the latter'. high-baDdecl issued the 90a Debeuhlres, action 1IpoIl the J apaacse com--.-_till, to 1-5.000.000 ia all. JAPAN AFTER GOLD BAN REMOVAL

The total insured amount of the The Gonmment Iron Worln III I postal insurance .. on July 12 R­ Yawata decided to reduce th.' ceeded 12,000,000,000. lellin, prices of lte.l material•• The Teikoku Sericulturists' A.­ 18. Representatlv.. of the HachloJI lociation, at a Directon' meeting, textile weavell filed a petition with 1&'Sued a statement, standing the Govemment to reduce the tn- " "against the limitation of the lum­ tile excise. mer and autumn silkworm feeding. The lilk reelen' BIIociations In The Tokyo Electric Light Com­ Toyama and Alchl Prefectur.. de­ pany announced the discharge of cided to .top work for lOme time. 180 clerks. The Gifa Silk Reeleri' Association The Toho Electric Power Company decided to lu.pend operation lor purchased the Isahaya Electric two months. Light Company in N aga&"aki Pre­ The quotation 01 Ipun IUk YUIl fecture. registered a bl, reactlonal advance The Bihoku Silk Reeler.' Associ.. by 120. tion, in Aichi Prefecture, agreed to 1 'I. Operatives of the Okatanl Reel­ stop work for two months. Ing Mill propoaed the voluntary re­ The Rice Commission decided Oil duction 01 their wages In view of the release of the Govemment'l the Mill-owner'l difficult Iituation. rice holding. The quotation of electro-copper ". Japan's specie resenes increued reached a new low level of 168.95. by 15,000,000 ·since the beginning The Kanto Steel Material Coopera­ of July. tin Sal.. MlOclation reduced the The Kob: Raw Silk Conditioning lelling price of round lteel ball by House decided to increase its conell­ n. tionin~ capacity to more than 10 18. The Industry Commillion com­ time~ that of July 1'- pleted drafting an eden.ive plaa The Japan Cotton Spinnen' AB­ to rationalize Japan'l shipbuUdlng lociation decided to effect the strict classification of cotton yam from industry. August 1. The Cabinet decided to reduce the amount 01 the working budget lor lIS. The Tokyo Chamber of Commerce .nd Industry drafted measures to the 198~1 ftacal year by 160,510,- cope with the depression. 000. The International Raw Silk Com­ General Motors Japan Ltd. an­ pany was established in Kobe. nounced the luspenslon 01 its work lor one week. The Agriculture and Forestry Office announced its decision to re­ 19. The Tokyo Bank Clearing Houae le.. e its old rice holding to the announced that bUls dishonoured utent of 1500,000 koku. during June Dumbered '180. the - .. - JAPAN AFTER GOLD BAN REMOVAL

amount being 1312,1100. which wu Tbe Kishiwada Cottoo Spinning larger than the lame month of the Company enforced the 15% redue­ previous year by lilS .. billa and n,- tion of ita operatives' wages. 8SS. The Kobe Municipal Ollice laaued 2 ... The Government railways' income lor June amounted to ¥36,UO,OOO. bonds. amounting to 12,000,000 10 a decrease by 13,'160,000, compar­ all. ed with the corresponding month The Tokyo Electric Company dis­ 01 the previous year. charged 60 employees. The Finance Ollice announced the The silk reeler. In Suwa decided to escess 01 gold and sUver exports aeal 20% of their boilers after OYer Imports by 1226,000,000 lor August 1. the Arst hall 01 1930. The Tokyo M1l8Im Company Ared 8119 operaUves. President Seibei Kawanishi of the Niboo Keorl Kaisha submitted tbe Simultaneous reactionai advances woollen goods cooper .. tive sales were witnessed on the atock es­ company establishment plan to the changes, Tokyo Stocks, both old Industrial Rationalization Bureau and new. rising by III. 01 the Commerce and Industry The Flour Producers' Associatioo Ollice. lowered Ita Belling price to 12.95. The Sano Towel Manufacturers' 11. The site of the Showa Steel Works Association in Sen nan-gun, Osaka wu decided on u Shingishu. Prefecture, decided to adopt a plan All workers of the Nikka Cottoo to have sis holiday. per month. Spinning Company went on strike. Workers of the Tokyo Electric The Asano Portland Cement Com­ Company's Kawasaki factory went pany decided to reduce Its capital on strike. by buying Ita shares In the market. The Kanto Steel Material Produe­ lil2. The Kanegafuchl Cotton Spinning ers' Associatioo decided to reduce Company. at a general share­ the production nf round steel bars holders' meeting, decided to reduce by 60%. Its dividend rate after nnpreced­ ented heated discussions. The Government released 600,000 koku out of ita old rice holding. Tokyo Stocks, new. jumped to the 19.. level in the short-term market 25. Th~ special committee 01 the 10 view of the uneasy political Board of Tourist Industry decid­ lituation. ed to disburse 11.000,000 as publie­ 23. The reductioo of ollicials and ity funds in order to attract world clerks' .a1aries and the revision of tourists to Japan. the pension system were decided 00 The Yen eschange rate on New at the eonference of towo and vU­ York weakened to $49 % for Odo­ lace masten throughout Japan. ber and later deliveries.

-I'l- ,JAPAN AFTER GOLD BAN REMOVAL

The ,JapaD SbJpownen' Auocl... A movement. standln, a,aIIlat tht! I tioDo at aD eltecutin eommittee ~Id standard of the Nippon YU_I meeting. decided to make loana out Kalab.. the Osaka ShoBeD Xalah., of ita reBe"ea to shipownen III and the Harada Kianl Kalaba III order to enable them to tie up their eoUectin, the lrelpt for Taln,uOf.J idle ships. wu atarted by some shippen. The RaIh,a, Oflice ~omplete4 The Aaano Portland Cement Com,·. draftin, the moto~r Be"ice plaD pan,..s Kawuald factory sta.rtft;l, for the 1930-81 Iac:aJ. ,ear. cUacharging Ita worken. .

The Ship Inaurance AaaodatioD de­ Eltport ~ontracta of cotton c)ot!IJ l cided to reduce the premium for were concluded to a conalderabld I ahips. which are tied up. quantity, lakin, advantage 01 tM The KisbJwada CottoD Splllnln, higher allver quotatlOD. Compan, decided to lower the reat QUOtatiODS OD rice euhanrea drop" of ita houaea for operatins III order peel to the '28 !eYe!. afected b; to cover the redUctiOD of the Iat­ the Government". release 01 Ita oIoJ ter'a wages. rice holdin .. The Dal NippoD Raw Silk Societr Raw .ilk futuFel broke the I'" estimated the decrease of the earl, Ind due to unluourable eond;I1' autumD &ilkworma b, betweea tO~ tiona at home and abroad. and 80~. • BaroD SeiDoauke Go. tlnancial, 2f. The Yokohama Specie Bank de leader III ,Japan. atarted promotin, dined the petition 01 the Raw SiJ;:; the merger of laherr companlea. .. Eltportera" Aaaociation to adDi: ~ which are engaged III lahin, III the \the postponement 01 payment c I Dorthera aeaa. \interest on the latter'. loan. lrot' the Bank apinat the lecurlty ( , Silk reden iD be prefectuJ'el of Kanto decided to atop work for raw aIIk. one month. Stock quotation.. whlcb lIatid The Daiman Department Store of abowD aD upward tendenC)' .oar', Kyoto decided to reduce ita em­ time ago, agaiJI b«ame weak. a . ployees" wages by 10%. leeled by the lower "change ra",,", and other adverse facton. Raw eottOD quotations dropped b, I betweea '0.80 and '0.50 due to the The Nippon Dyeatull' Manulacbl t1 iDcreased aelling. In, Compan, enloreed the new 111 tem 01 two holida1l per week (­ 26. The Agriculture and Forealr7 Of­ Saturda, and Sunday). fice planned to introduce IIlto the ned session of the Diet a bill to Operatlvea 01 the Xelad E1ectn~ enforce the farmin, insurance. Railwa, went OD atrIke. Operativea of the Tokyo lfualiD A movement atandiD, atron,l'O Company started a c-Iow. -.-araillat the Yuuda Buk', .ttac.J: JAPAN AFTER GOLD BAN REMOVAL

ment on the ,hlp, of the HuhS­ courage the merge,. of motorcar moto Kisen Kalsha wu started. manufacture,.. 28. The Osaka Association tor Lib­ 80. The Seiyukai organized scveral erty of Trading urged the open­ parties for investigating economic Ing of the international tarilr re­ conditions in various districts of duction conference. Japan. The syndicate banks in Tokyo .tu­ Presidents of local agriculture .0- died the plan to establish a finan~ cieties throughout Japan, at • ('Ial organization for promoting In": meeting held in Tokyo. passed a dust rial rationalization. resolution demanding that the The Arlma Bank In Hyogo Prefec­ Government use the surplus funds, obtainable by the naval reduction, ture was ordered. In accordance ~ with the new Banking Act, not to for relieving. the 'ann villages. undertake new transactions. The Sumitomo Bank decided to reo' duel' its dividend rate by 1 %. The Yokohama Specie Bank reduc­ ed its official exchange rate on The Agriculture and Forestry Of­ I.oodon to 11/0 4/16. fice decided on the plan to control the silk industry. The Tokyo Muslin Company oroe...., ed Its 1,800 female operatives to fe-i Retail price 01 cleaned rice wu turn to their native places. . raised by 7 sen per 10 kilogram. Meisen (a kind ot silk textile) in Tokyo. weavers In Ashikaga, numbering 81. A party 01 local agriculture so­ 800, went on strike. ciety prerJdents visited Premier Quotation on the rice e)(Cbange Yuko Hamaguchi and proposed reached the new high lcvel of measures to cope with the depres­ '29.158 for recent months. stimulat­ sion in lann villages. ed by the activity ot bulls. 29. The Home Office decided to sup-l A press the farmers' movement to J ugust postpone the payment 01 theiri 1. The Export Indemnification Law taxes. was enforced. 1:he syndicate banks in Osaka stu- Regulations. governing the 1m- died the plan to establish a flnan- .. t"ial or . t· f t·. provement of the fertiliser supply gaDllla Ion or promo mg m- . dustrial rationaliaation. system. were put mto force. The Portland Cement Producers' . Yen exchange rates advanced due Association studied measures to to the favourable trade balance tor rationalize the Portland cement in- the last 11 days 01 July. dustry but no decision was reach- Gold influx into Japan during July ed. amounted to 12,6315,000. The Commerce and Industry ot- The Tokyo Elecric Light Company ft('e decided on the plan to en- decided to hand over its supply di... - .. - JAPAN AFTER GOLD BAN REMOVAL

trid In Nagoy. to the Toho Elec­ ,am production lor luI, wu 17f.- tric Power Company. 800 bales, the lowest record .Inee According to the .u"e, made by 1928. the Mitsui BU8san Kai8ha,ldle .hlp. The Nitrogenous FertIliser C0- tied up throughout Japan totalled operative Sales Auoclatlon wu dis­ approximately 250,000 ton. .. on .olved. July 22. The executive committee 01 the The Commerce and Industry Ollice Japan Cotton Splnnen' Auocla­ announced the average Index of tion decided to abollah the two commodity price. In 18 leading .hllt system. cities in Japan during June was The establishment of the Imahar. lower thaa the previOUI month by Export Cotton Cloth Wenen' As­ U%. .ociation was .anctloned. I. The Bank of Japan announced The Tokyo Municipal Markel re­ that the number of banks, which duced III retan price 01 cleaned reduced their dividend rates during rice by , leG per 10 kUogram. the first half of 1930, reached 206. Accordlng to the .u"., made by The Industrial Rationalization the Bank 01 Japan, the everage Bureau decided on the plan to ra­ Index lor wholesale prices durin&, tionalize the striped cotton cloth July was lower thao the previous weaving industry. month by 2.5%. 40. The Government decided to dis­ 6. The Hypothec Bank announced burse ¥l35,OOO,OOO out 01 the De­ that the average yield 01 leading posit Department" funds for the Itock. wa. '1.'15% u 00 Augnat I, purpose 01 relieving the farm YU­ showing • decline by 0.56%, com­ lages of financial difficultiea. pared with July I. The Government tentatively decid­ Banke tentatively decided to make ed to extend the period 01 the Raw loan. lor • lurther .ix months In Silk Price Indemnification Law _ accordance with the Raw Silk Price forcement by lix months. Indemni8.catlon Law. Three plans for improving the wool The MitBubiBhl'. Nagasaki Dock­ industry were adopted. yard discharged about 900 worken. IS. Mr. Taro Kimimori, Financial The establishment 01 • cooperatit'e Commissioner stationed in China, .ales .organilation in connection was appointed as Director 01 the with thin eteel .heets wu decided. Industrial Bank 01 Japan. The plan to rationalize the etriped The National City Bank 01 New cotton cloth wenln&, InduetrJ wu York converted 13,500,000 DOtes adopted. into gold in Japan. The Osaka Municipal Market re­ The Japan Cotton SpinnerI' .AIao­ duced ill retail price 01 cleaned ciation announced that the cottall rice b, 0.' JeD per kUorram. -fO- JAPAN AFTER GOLD BAN REMOVAL

.7. The Kyoto Gas Company rued • lecond release of the GonrD­ petition with the Commerce and ment'. old rice holding to the ex­ Industry Office to approve Its tent of 1100,000 koku. plan to reduce the lupply charges. 11. Market quotation. of national Charges for conditioning woollen bonda slumped by from 12 to 13. textiles were reduced. 12. According to the Social Welfare Baron Takahide Shijo, former Bureau's estimate, the number 01 Vice-Minister ot Commerce and the unemployed 0.1 on May 1 was Industry, was appointed President 878,1115. ot the Telkoku Hemp Company. Foreign banks converted notel 8. The Unemployment Prevention Into gold as lollows: National Commission, at a general meeting, City Bank of New York 12,1100,- approved the plans to start con­ 000, the Hongkong & Shanghai struction work. In Tokyo, Osaka, Banking Corporation 12,000,000 Yokohama and Yamanashl In or­ and the Nederlandsch Indi6che der to aid the jobless. Handelsbank ¥I,700,OOO. The Tokyo Agricultural and In­ Mr. Kankichi Yukawa, Chair­ dustrial Bank issued debentures, man 01 the Sumitomo Interests, amounting to 12,000,000 in all. retired from his post and Mr. Masatsune Ogora succeeded Mr. Forestry Dlen In Mle and three Yukawo.. other prefectures studied mea­ .ures to cope with the depression Contract for the annual delivery at the Mie Pr.efedural Assembly ot '0,000 ton shale oil was con­ Hall. cluded between the South Man­ churia Railway Company and the II. The National City Bank ot New Navy Office. York converted 13,000,000 notes into gold at the Bank of Japan. 13. The Industrial Rationalisation Bureau announced the result of The Kyushu Hydro-Electric its first selection of superior Power Company Issued deben­ quality Japanese product& tures, amounting to 127,000,000 The Nederlandsch Indische Han­ In all. \ delsbank converted "00,000 The Karafuto Kogyo Kalsha de­ Dotes into gold. cided to ~nvert Its old deben­ The Tokyo Federation of Busi­ tures, amounting to 13,000,000 in nessmen's Associations declded on all, Into new Issues. • plan to finance traders and pro­ The Japan Cardboard Manufac­ ducers of medium and small turers' Association decided on the \ means and proposed the plan to aO% curtailment for September. the Government. . The Rice Commission, at itS 26th The Nippon Yusen Kalsho. decid­ meeting, decided to make the ed to reduce the 81'1t ciass pu-

-ft- JAPAN AFTER GOLD BAN REMOVAL

lenger larea 01 the Talyo Marll 16. Accordin, to the Bank of Japan'. I and the Shinyo Maru. account. brought forward. the The Portland Cement Producers' convertible note Iisue amounted to :Association decided on the 68.8% fl,029,OOO,OOO. the lowest record curtailment for September-Nov­ .Ince May. 11121. ember. The Government decided to dt.­ The Toho Electric Power Com­ burae 13,000,000 lor the consecu­ pany, at a Directors' meeting, tive pt'riod of Bve years In order approved the transler 01 the to protect the Japanese motorcar Tokyo Electric Light Company', indu.try. supply district In Nagoya to the 1'1. The lahlwara Sanryo Kauha Toho. purchaqd ,Ill boata from the U. The interest rate on postal.avinp Kokulal Kisen Kauha and other was reduced to '.2%, effective on .hipplng companlea In view of the October 1. con.tant fluctuation of the charter­ are. The Nederlandsch Inwsche Han­ delsbank converted '800,000 now The aleel material market wa. into gold. thrown Into a chaotic condition and the quotation. leU to the new low The Tokyo Muslin Company" l~ bour dispute was settled. level 01 no per tOD. The Japanese nporters commenc­ :According to the Agriculture and ed marking the country 01 Origin Forestry Office's .urvey, the upon goode Ihipped to the United brulihing 01 summer silkworm Statea. egg-cards and autumn silkworm egg-cards was smaller than the 18. The Bleaching Powder Pro­ previous year by 11 % and 22%, ducers' Association decided to respectively. maintain the curtailment rate for The Underwriters' Pool decided September at U%. on the new premium rate on the The rubber quotation In Tokyo Hokkaido special products. dropped to the new low Iud of According to the Tokyo Stock '0.1875 lor Immediate delivery :n Exchange's survey, the total value view 01 the continued decline In 01 documentary securities at the the oversea mark~ end of July, 1930, was smaller 19. The Social Welfare Bureau an­ than the corresponding period of nounced that the lunds to be tued 1929 Dnd 1928 by ",000,000,000 lor the relief 01 the JoblCII durin, and '9,000,000.000, respectively. the 1930-81 ftaeaJ year were • The Dai Nippon Silk Society com­ '37,802,000• pleted the draft of the silk in­ The Cabinet decided to disburse dustrr improvement plan. 170,000,000 lor the ~elief of the

-tl- JAPAN AFTER GOLD BAN REMOVAL

farm, f1ahln, and other agrIcul­ 22. The establishment 01 the Agri­ tural vmages. culture and Forestry CoIIIJD.IaaIOR The Mle Agricultural and Indo­ was decided. trial Bank started making low-in­ The Industrial Rationalisation terest loana (11,000 per lot as Bureau started the control 01 the capital lor traden and producen enamelled ware industry. of medium and .mall means). Worken of the Kawaniabi F1yin, 10. The Hypothec Bank decided to Machine Works went on .trike. Issue debentures. amounting to 23. Mr. Gentaro Shlmura, Preaident 110,000,000. of the Central Producers" A&aoc:ia­ The Mitaublshl Bank dec:lded not tion, passed away. to revise Its dividend rate for tt.e Representatives of the Japaa CIl rren t term. Federation of Forestry Associa­ The Banshu Hosiery Producen' tions filed a petition with the Gov­ Association enforced the suspen­ ernment, asking lor the low-inter­ alon of operation for an Indefinite est loan in order to convert the period and 80me 9,000 oprratlve8 high-interest old loan. 100t their Jobs. The CommuniC'atiollS Office decided Cotton mill owners, at their re­ on the plan to give a subsidy for gular periodical luncheon, agreed dee~sea navigation. to Increase the curtailment rate. The Olta Portland Cement Com­ tl. The Industrial Rationalisation pany asked the Mitsui Buss.. Bureau announced the result of ita Kaisha to scll the Oita'. products. second selection of the superior • quality Japanese products. 2'_ Worken of the Murao Dockyard Company started a strike. Three banks in Nagoya notiBed the The Tsurum! Gas Company decided promoters of the Cooperative In­ to reduce ita capital by 1250,000. dustrial Survey Association that they would not participate In the The lumber quotationa dropped all plan. round. The Hokkal Colliery Steamship The Osaka Municipal Market re­ Company decided to atop opera.­ duced its retail price of cleaned tion of one of Ita mines. rice by 0.11 sen per kilogram. The Daido Match Company's HIra.­ 25_ An exhibition of Japanese pro­ no factory In Kobe was closed. ducts, comparing with imported The flour quotation for forward goods, was opened In order to pro­ ddivery advanced by I scn. mote tI,e use of the Nippon mana­ factures in Japan. The Kanto steel producen reduced their selling price of round .ted liS. The Mitsui Bank planned to ban by 12. make loana to traders and manu- JAPAN AFTER GOLD BAN REMOVAL

fadurers 01 medium and .mall A~ln, to the Conmerce mean.. and Indu.try Oftlce'. 'U"fY. the The N ederlandseh Indiscbe Han­ Indell for the average wage. in the delsbank converted 1600,000 notee 18 leading cltiee during Jaly 11'&1 lower than the prniou. month by into gold. l.'7%. The Government conducted the The Bank of lapaa purchued second release of its old rice holcJ.­ ,aoo,ooo gold bullion, the total gold ing to the extent of 1100,000 koku. purchase Iince the gold baD re­ SI'7. The Deposit Department of the moval reaching 130,000,000. Finance Office created the new POlt The Bank of Japan" convertibla 01 inspector. Dote lAue increued abruptly. a­ According to the Bank of Japan'. ceeding the 11.100,000,000 level Recounts brought forward, its .pe­ The establishment 0; the Klta-Kya­ cie reserves amounted to 1866,000r .hu Hoalery Producerl' AllociatiOD 000, the lowest since the War time. 11'&1 .andioned. The Kanagawa Agricultural and The lahlwara Sallgyo Kalsha Industrial Bank issued debenturelo .,11. made purch&lee 01 old .hlp.. 'amounting to 11,000,000 in ail The Tobo Electric Power Company The Japan Cardboard Manufac­ discharged 220 workera. turers' Associatiou decided on the prevention of dumping. 80. The aport acell for the last 10 day. 01 August deereuecl to SIS. The call money market tightened IS,OOO.OOO. and rate advanced to 1 sen, c_ ing the Osaka banks to decide on The .maUer export ellceu ancl the tbe increase of the agreed call tight money eaaaecl alack quota- rate. tion. to .lump. . The Showa Spun Silk Yarn Mana­ The Gonrnment decided to laue facturing Company reduced the bonda, amounting to 120.000,000 wages of its operatives by 20%. In all, In order to coyer the funda The Toyo Muslin Company decicJ.­ for the railway eonatructioa and ed to postpone the redemption of repair worka. its old debentures. The Yokobama Specie Bank .... Bond quotations alumpecl all ceived lilver .hipments, amouDtln, round. to Tla. '700.000. from its brandt ollice In Shanghai. 29. The Commerce and Indu"U7 Office prohibited producerl to paste According to the Bank 01 Japan'. the label of "Selected by the Com­ accounts brought lorward, com­ merce and Industry Office" on any mercial banks' deposits with the product, because ncb action will Bank 01 Japan, bearin, DO Inter­ unlavourably alrect other mana­ eat, amounted to '80,000.000. the facturera. lowest .lnce 1921. -,,- JAPAN AFTER GOLD BAN REMOVAL

Overnight call money rate' advanc­ The minimum interest rate on the ed to 1.8 .en. overdrafts was reduced' by tbe The executive committee of the first claaa banks In Kanto and Japan Shipowner.' As.ociation Kansai. approved the plan to make loan. Tbe Agriculture and Forestry Office. to It. member. to enable them to gave a subsidy of ¥lM,OOO in all tie up their boatL' to the local marine product. LIt­ The Inaugural meeting of the No. sociations in order to promote the t Toye." MUllin Company was held. raising of .. aim on and trout. Six leading steel companies in Kanto reduced tbelr buying price September . of scrapped iron. 1. The Finance Office purchased '19,- II. Tbe establishmen't of the Export 000,000 worth of old national Ink Producers' Aaaoclation waa bonds In order to redeem them. sanctioned. The Olta Agricultural and Indu&­ Nine sugar companiel decided on trial Bank Issued debentures. the Voluntary holding of 200,000 amounting to '1,000,000. plcul centrifugal .ugar In all in I. Labour dispute of the Kawanlshl order to check the fall of the mar­ ket price. Flying Machine Works was settled. The Nippon Yusen Kaisha's tied­ The Cabinet approved the plan to up boats exceeded the 100,000 ton lower the Interest rate on the De­ level. ' pObit Department's loans to com­ mercial banks. Tbe Toho Electric Power Company planned it. financial readjustment. Syndicate banks' Cooperative In­ dustrial Survey Association was Tbe Nagoya Electric Railway establLihed. Compa&y absorbed the Mino Elee-­ tric Railway Company. The Kanegaluchl Cotton Spinning Company decided to close Its Kolu Miscellaneous shares slumped. filature In January, 1931. Cotton yam quotations dropped In The market quotation of platinum 'View of the unsatisfactory result alumped by ¥2. of curtailment. Stock quotations slightly advanced Tbe Mitsubishl Trading Company In view of the uneasy political obtained the sales right from tbe situation. Nippon Steel Tube Company. •• Tbe life Insurance companies' 6. The Hypothec Bank lasued "dl&­ group decided to estabUsb their count" debentures, amounting to cooperative Investment company. flO,OOO,OOO In all. thanks to the Finance Minister'a Tbe Osaka-Ya Tradln« Company" encouragement for the plao. capital reduction aDd Ita enerance

-fl- JAPAN AFTER GOLD BAN REMOVAL

01 relations with the Nomura Go­ Jointly by representatives of the mel Kaisha were announced. agriculture sodeties, the Associa­ The Toyo Muslin Company, at an tion 01 Towa aad VWase Muters extraordinary shareholders' meet­ and the Ceatral AssociaUoa 01 ing, decided to increase ill capitaL Reelen. The Osaka Shosen Kaisha fUed a The opea market eIIchange rate on petitioil with the Government, ask­ London declined to I/O 11/82. ing not to check the dumping of Aceordin, to the Bank 01 Japan'. foreign soda ash In Japan. accounll brought forward, III .pe­ cle reserve. amounted to '865,628;", I. The Yokohama Specie Bank 000, the lowe.t Blace October, lowered its official exchange rate 1919. on London to 2/0 %. The call money rate dropped to The Mitsubishl Trading Company 1.05.ea. concluded flour sales contract covering 600.000 bags with the Mr. Ryohei Okada, ex-Educatloa Soviet State Mill Minister. and Mr. TetsuJlro Shld .. chI, ex-Governor of the Industrial 9. The Cabinet decided not to tU1 the Bank of Japan, were recommend­ vacancies, which have been creat­ ed a. President of the Central ed by the retirement 01 officials, in Producers' Association and the order to Bave salaries. Central Silk Men'. Association, The Nederlandsch Indische Han­ respectively. delsbank converted '2,000,000 Insurance companies !iled a peU­ notes into gold. tioa with the Go.... rnment, askin, The Federation 01 Kanto and Kan­ for the withdrawal 01 the Govern­ sai AgrICultural Warehouses decid­ ment'. plan to enforce the State ed on a plan to establish the infants' life Insurance .ystem. Federation 01 Rice Cooperative The Kurashild Cotton Spinning Sales Associationa. Company reduced III operatives' 10. The Association 01 AU-Japan income by 10%. Salaried Men was established in Rice quotations OD exchanges Osaka. Blumped and forward dellveriel fell The Statistics Burean 01 the Cabi­ to new 1011'1. net announced that the natural in­ U. Mr. Shlmakichl Suuki. GoY­ crease 01 Japan's population lor ernor of the Industrial Bank of the first quarter 01 1930 was 812,- Japan, resigned his PCNIt and Hr. 600. Toyotaro YukI, VI&»Presideut of The Bank 01 Japan's buying was the Yasuda Bank, IDcceeded Mr. conspicuous in the bond market. Snsuki. The Towns and Villages' Loan Ad­ The 140,000,000 relief lOaD to Justment Committee was formed manufacture,. and traderl ot

-'rI- JAPAN AFTER GOLD BAN REMOVAL

medium and .mall mean, w .. do­ The go-slow ,trike of General clded on by the Government. Motor. Japan Ltd. workers l]lread The opening of the Soviet Far further. Ea6tern Bank', Kobe office was tem­ 13. According to the Bank of Japan'. porarily sanctioned by the Japanese accounts brought forward, its con­ Government. vertible note Issue eventually broke The establishment of the Asahlgaw" to the 1900,000,000 leveL Spot Rice Market, Hokkaldo, w .. The Agriculture and Forestry Office tentatively sanctioned. announced the 1930 spring cocoon Mr. Naosaburo Mlnorikawa, who output as 11,489,000 kan, an in­ contributed much to the promotion crease by 4.6% as compared with of the Japanese aUk Industry, pas&­ the previous ycar. ed away. The Government decided to release 11. The executive committee of the 250,000 koku of old rice in order Osaka Association For Liberty of to ciear Its holding. Trading passed a resolution for 111. The International Statisticians' .tanding against the projected in­ Conference w .. opened in Tokyo. crease ot the import tarltl' on soda ash. The Agriculture and Forestry Office distributed the Government's sub­ Overnight call money dropped to sidy, amounting to 1240,000, for a new low level ot 0.8 sen. the first period cooperative equip­ The establishment ot commercial ment for forestry Indu&try, among and industrial credit unions was do­ the prefectures throughout Japan. cided on tor the purpose of financ­ Mr. Sutesaburo Hashillume, Vice­ Ing traders and manufacturers ot President 01 the Kanegafuchl Cot­ medium and small means. ton Spinning Company, passed The meeting ot promoters of the away. LICe Insurance Security Company The amalgamation of the Keihan was held and the Articies of the and the Shin-Keihan Electric Rail­ Company were approved. way Companies was announced. The proletarian members of the The Bleaching Powder Producera' Osaka Municipal Assembly decided Association decided to maintain to introduce a bill Into the Assem­ the 45% curtailment rate for Octo­ bly, demanding the reduction ot ber. the electric light supply charges of the Hanshln and the Keihan Elec­ 16. The Cabinet decided to redoce tric Railway Companies and the the expenditure on the special ac­ Osaka Municipal Office. coont for the 1930-81 fiscal year by approximately 16,250,000. The Shochiku Cinema Company en­ forced 20% reduction of Its em­ The enterprisers' associations ID ployees' Income. Hokkaido isloued a Joint statement, -Tr- JAPAN AJrTE& GOLD BAN IlEMOVAL

.tanding against the Govemment'. mlsUe add rei. each, reporting that draft plan 01 the Labour Unlon there were .Ign. 01 bUllne.. n­ Law. eove..,.. The Industrial Bank 01 Japan t.­ Mr. Yoahltaro Hayakawa. Pre.ldent .ued debentures, amounting to 110,- 01 the Hayakawa Bill-Broker B8IIk" 000.000 in all WBI recommrnded .. Chairman 01 the Tokyo Rice Eachange. A meeting was held at tbe Agri­ culture Minister's official residence Miac:ellaneou. .harea .Iumped all in order to study the plan to a­ round In view 01 the .tabUisatiOll tend the period 01 the Raw 8llk 01 the poUtical .Ituatiem, alth01l,. Price Indemnilic:atioD Law enlorce­ .ome operaton npec:ted a chan,e ment. 01 the Cabinet. The Govemment eonductecJ the Tbe JapaD Shipownera' AssodatioD third releaae 01 Its old rice boldln,. officially decided to make loans to ita members ID order to enable 111. The Govemment ereated the .hort­ them to tie up their boats. term payment .,..tem for the poltal penalon.. The JapaD Central Silk Men'. Aa­ .ociation decided to adopt the con­ The Sumltomo Bank took over two ditioned weigbt system in c:oeoOD branch offic:ea 01 the ABacla Bank. t- transactioDs. The Taiwan Electrie Power Com- pany decided to resume the COD­ 17. The Sino-Japane&e Telegraph atmcUon work of Its Nlchlgetautaa Conference was opened in Nanking. Power Plant by the end of S~ The Japan-Dutch East Indies So­ tembor. ciety was established. The JapaD Cotton Spinner.. AMo­ The South Manchuria RaIlway ciatioD decided OD tbe minor reru­ Company decided to lsIue deben­ lation. 1rovemin, the ntenalon of tures, amounting to 120,000,000 in the eurtailment rate. all Mr. Hac:blso YamaguchI, Eneuth'e Ac:c:ording to the Bank 01 JapaD'. Director 01 the Xanegaluchl Cot­ accounta brought lorward, its eon­ tOD Spinning Company. became vertible note lasue was 1983,000,- Vlce-Preaidenl, 000, showing a margin lor lurther The stock market took a favonr­ Issuance for the first time .ince able tum in antidpatiOll 01 the the gold ban removal. stabilisation 01 the ChInese dvO war .itoation. 18. Vice-Minister 01 Finance )flsao Kawata and Vice-M"mister 01 Com­ 20. The Commerce and Induatrr merce and Industry Xatautaro Otic:e made the announcement 01 Tajima. at a regular meeting 01 the reau1t of Its third selec:tlOll of Vice-Ministers. delivered an opti- .uperior quality Japanae procluda. -H- JAPAN AFTER GOLD BAN REMOVAL

". 8blpbuUden tiled a petition with The allotment ot the Deposit De­ the Government, asking for the In­ partment's low-interest loans to the ~re ... of the 8ubsldy amount. local districts wall announced. The Life Insurance Security Com­ The Dal Nippon Brewery's Sulta pany decided to bave 82 life In­ Factory discharged about 100 • urance companies as Its member. workers. out of '0 companies tbrougbout The Shochiku Cinema Company's Japan. 200 workers became members ot The Nippon Electric Power Com­ the Japan Federation of Labour. pany won the lawsuit regarding The Coal Miners' Association In­ the lupply charges controversy creased Its curtailment rate for between the Company /lnd the November and December to 22% . .UJlgawa Electric Power Company. The Japan Central Silk Men's As.­ The Sulyokal faUed to obtain a lociation decided on Its raw ailk unanlmoua agreement about buy­ price atabilization plan. Ing back luperphosphate. which The atock market witnessed the 11'88 lold at unreasonably low simultaneous slump ot industrial prices, and the Kanto producerll Issues In view of the low quota­ alone decided to repurchase It at tions for rice and raw sUk. a Ilgure below ¥l.10. 26. Tbe Yokohama Specie Bank con­ Rice futurell slumped to the 120 ducted a 15,000,000 gold shipment level. to tbe United States. Quotation. for various fertiliserll Bond quotationa registered a tUI'­ feU all round In view of the ther decline. smaller demand. Operatives ot the Toyo Muslin The executive committee of the Company went on strike. Dumping Commission recognised Peace negotiations between the that the British and German pro­ Godo Keori Kalsha's Directon and ducers were dumping their goadl operatives were commenced. in Japan. The retail prices of cleaned rkc 18. Tbe number and the value of continued to falL bills discounted by banks affiliated The Government of Chosen pro­ with the Tokyo Bank Clearing hibited the import of foreign rice House during the month ending until the end of Decemher. September 20 were the lowest figure. IIInce 191'1. The Yokohama raw silk futorel broke below the 160 le'l'eL 15. The Overseas Office sanctioned the South Manchuria Railway 1'1. The Finance Office decided to Company'. HO,OOO,OOO debenture con... ert Ita olel Treasury Bm.. wue. amounting to 1'15,000,000 ba aD.

-ft- .JAPAN AFTER GOLD BAN REMOVAL

'I1Ie Railway Office, at a meeting 'I1Ie Raw Silk Commi8lioD decid.' of the local divisional chief., de­ ed on the uten.lon 01 the perlocl cided to reduce the upenditure lor lor the enforcement 01 the Raw the 1930-81 fiscal year by Bilk Price IndemnlflcatioD Law '4.,680,000. and the Increalt 01 the maldmum The Japan Cotton Splnnere' Asso­ amount 01 the loan. ciation finally decided upon the The .Japan Central Silk Men'. ~ third increase 01 it. curtailment .oelation flied a petition with the rate. Government, alking It to Mnctiotl 29. The Shakai Minshyuto (a prole­ the .ericulturlst.' postponement 01 tarian party) issued a ltatement, the repayment 01 their low-lnterelt Itanding against the Government loan. \0 the Governmcnt. plaDB 01 the Iteel merger and the 2. The Home Office annoonced the establishment of the telegraph and relult 01 It. .electlon 01 ClIcellcnt telephone company. Japanese drug.. The Umebachi Iron Works in The Agriculture and Forestry Office Sakai reduced the wagel 01 It. announced tbe official estimate 01 workers by 10%. the 1930 rice crop as 86,860,000 Flour futurel slumped to the 4.0 1I0ko, the largest In the history of Ben level Japan. and the lorward delivery OD the rice eschange• .tomped to the 80. 'I1Ie Kanegaluchi Cotton Spin­ Ding Company's plan to reduce the 111 level interest rate on its employees' de­ 8. The Sugar Manufacturei'll' Alloci... posits with the Company was sane­ tion decided on the productloD ratio tioned by the Government. amODg the member producei'll 101' the nest .ogar year. The establishmcnt of an nport October testile weaver,' ...oelatiOD In K ... 1. The Yahagi Electric Power Com­ .ai-gun, H10go Prefectore, was pany stopped its power supply to .anctioned. the Toho Electric Power Company. Tr&D8actioDi of rice uchangCl The Toho Electric Power Company throughout JapaD were temporari­ reduced its capital to 1130,000,000. ly IUSpended. The quotation 01 electro-c:opper The Teikoka Nokal decided OIl t ..o slumped and the domestic goods meas.'UrCi to cope ..Ith the .Iump of were quoted at 138.20. rice quotatlona, YiLo the uport 01 The reduction 01 interest rates on rice and the Go.... mment·. parchalc the postal laviDgs and the Deposit of rice. Department'. loanl was elFec:ted. The inaugural meeting of the c.­ The Osaka Savin" Bank lowered operative Industrial SunC7. AIIo­ it. interest ratea. ciatlotl .... beld. -M- JAPAN AFTER GOLD BAN REMOVAL to The appointment of Mr. Yoshltaro Tbe Bank of Japan reduced Its In­ Hayakawa, President of the Haya­ tereat rate by 0.1 len all round. kawa Bill-Broker Bank, aa Chair­ The eft'ect 01 the Bank 01 Japan'. man of the Tokyo Rice Exchange rate reduction upon the markel. wa. decided upon. waa comparatively .malL )Iembera of the Shipbuilding Com­ The Central Depositor,. 01 Pro­ mission were appointed. ducers' Aasociations reduced the The Yokohama Specie Bank con­ Interest rate on Its rice and fer­ ducted the second gold Ihipment, tillzer loans to the local associa­ amounting to 17,1500,000. tions. The amalgamation of the two larg­ The Yokohama Specie Bank con­ est banks In Okayama Prefecture, ducted the third gold shipment, namely, the Sanyo Bank and the amounting to 111,000,000, the total Dal-Ichl Godo Bank was tentative­ 01 the Bank'. shipments mnce the ly decided. gold ban removal amounting to The liquidation of the Oml Bank 117,1500,000. was completed. The All-Japan Portland Cement The syndicate banks tentatively de­ Cooperative Sales A88ociation plan cided to make a cooperative loan to was drafted. the Keihan Electric Railway Com­ ~ccording to the Agriculture and pany. Forestr;r Office's estimate, the 1980 e. Rice quotations were .tablll.ed 8ummer and autumn cocoon pro­ and exchange. throughout Japan, duction waa 11.1 % &mailer than which had been closed since Octo­ the actual output lor 1929. ber 8, were reopened. The Osaka public market reduced The Agriculture and Forestry Office Its retail price 01 cleaned rice. decided on several measures to cope with the rice altuation, and 8. The call money rate dropped to the export of 100,000 bales out of 0.7 sen, the lowest since May, 1930. Its old rice holding as the first Rice shipments, amounting to 8.- step. 000 tous, conducted from Kobe. The Tokyo public market ftdueed 9. The Osaka Kel.ai Koshinkal Its retail price 01 cleaned rice. passed a resolution lor standing f. Members of the Shipping Commi.. against the second prohibition 01 ,ion were appointed. gold esport Irom Japan. The Inaugural meeting of the Life Banks in Toyohashl district redu~ Insurance Security Company was ed their agreed interest rate on de­ held and Mr. Kuniao Har., Presi­ posits from 15% to •.7% per an­ dent 01 the Aikoku Life Insuranoe num. Company, was made Cbairman of Spot quotations 01 bonds advanced the Board 01 Directors. b,. from 10.95 to n.BO aU round. .JAPAN APTER. GOLD BAN REMOVAL

The Osaka Municipal Market roe­ 'OlutiOD for atancl1n, apln.t the: dueed its retail price of cleaned Gcwernment'. draft Labour Vnfoll rice. Law. The Commerce Office appointed ad­ 16. The Yokohama Sped. Banlr COIH ditional commercial traYeDe .... dueled n,ooo,oOO cold .hlpments.! 10. The AU-Japan Labour Su"ey the total for thla Banlr linee the: was conducted. COld ban removal beln, '22,100,-1 The Central Depository of Pr0- 000. ducers' Associations decided to Bond quotation. .oared. reduce the interest rate on It. loans The Toyo Mulin ComplUly cI1a-i. to fanners for purchuinJr fertiliaer eharged 180 operaUvea. who had by 0.3%. beeD on .trike. Syndicate banks officiany decided The O.aka Municipal Market re-I to make their cooperative relief loan dueed Its retail price of cleaned-. to the Keihan Electric Railway rice. Company. III. The Japan Chamber of Com-I The Bank of Chosen reduced Its meree and Industry lsaued a .tate.: interest rate. by 0.1 % all round. ment. .taudin, against the gold ban Workers of the Hoshi Drag Manu­ removal at a Dew parity point. . factaring Company orgaoiaed a The R.iee Commlsalon held the 61th! party to control the Concern in meeting. view of the non-payment of wage. by the Company. TIle Finance Office luued DeW' The Communications Office tenta­ Trea.ury BillI" amountin, to 'SII,-I tively decided on a draft plan to 000,000 In alL create a semi-official telegraph and The Bank of Taiwan redaeecl lui telephone company. -iotereat "teL 12. The Finance Office announced The Sumitomo Bank doaecl Its! that the customs revenue for the Hankow office. first five months of the 1930-81 The Xawaklta Eleetrle Machina fiscal year decreased by ¥l4,000r WorD dosed Its Kyoto factory. 000. compared with the correspond­ The Bleaching Powder Producers' ing period of the previous fiscal Association decided on the ""'0( year. eurlailment for NOYember. The Japan-Turkish Commercial The usoclatioD of aport atrtpec! Treaty was concluded. cottoD doth weaven w .. eatahliah-, The Japan Central Silk Men'. AI-­ eel. lOCiation decided on its permanent Operatlvea of the Joto Eleetrle .ilk industry relief policy. Railway went OD atrlke. II. The Kinki FederatioD of Pro­ Rice quotaUons on the eschaa,a ducen' Aaaociations puaed a roe- fell to the 116 leveL

-11- JAPAN AFTER GOLD BAN REMOVAL

"i'he average retail price In Tokyo The CaLned Crab Producers' As­ became 11.7'70 lower than the prevl­ sociation decided on the 200,000 ou. month. cBlle production figure for 1931. IS. The basic rice price plan of the 19. Weaving mills in Sempoku-j::un, Agriculture and Forestry Office Osaka Prefecture, Increased their was referred to the special com­ operatives' wages by 20%. mittee of the Rice Commission. 20. Bond quotations registered ful'­ The "Ko" 11'70 National Bonds ad­ ther decline. vanced to the 190 level The Coal Miners' Association de­ The Agriculture and Forestry Office cided on the increase of the cur­ decided to make a 160,000,000 tailment rate to 22'70. low-Interest loan as one of mea­ The flotation of a domestic loan sures to cope with the unprecedent­ amounting to 111,980,000, by the ed slump of rice quotations. Osaka Municipal Office for the The executive committee of the purpose of conducting the under­ Central Silk Meil'S Association de­ ground railway construction for cided on the minor regulations for the second period was sanctioned eft"ectlng the curtailment of opera­ by the Government. tions. The Rice Commission decided on the Increase of the import tarilJ The Toho Electric Power Company on foreign rice and the extension reduced its electric light supply of the period for the enforcement charges In Nagoya district. of the rice Import restriction. The Chugoku Bank was the name decided upon for a new bank to 21. The Yokohama Specie Bank eon": be formed a8 a result of the amal­ dueled the sixth gold shipment gamation of the Okayama Dai-ichi abroad, amounting to 15,000,000. Godo Bank and the Sanyo Bank. The Mitsuda Bank in Toyama City suspended its business. The Kanto Steel Material Pro­ ducers' Association agreed on the Applications lor the Government'. selling price of round steel bar. low-interest loans lrom larm and for December delivery. fishing villages reaclted the 1200,- 000,000 level. l'r. Tbe Yokohama Specie Bank con­ ducted a shipment of gold, Minor details 01 the nitrogenous amounting to '11,000,000. lertiliaer cooperative sales agree­ ment were settled. l8. Bond quotations slumped reac­ The Japan Paper Manufacturers' tionally. Association passed a resolution for The establishment of the spot rice sealing some machines and reduc­ market in ABahigawa was officially ing the monthly output 01 news­ .anctioned. print.

-81- J'AP~ AFTER GOLD BAN REMOVAL

TIle Inereale of the Nikko B ....aI 28 The maximum issue amount of Lite Insuranee Company's capital the Industrial Bank of Japan'. wu sanetioned. short--tenn C'dtscount" debentures The cooperative selling price of pig was increased to ¥75,OOO,000. iron 'WJ\I decided as 183 per tOD. The maximum Issue amount of the TIle Tokyo MuDlclpal Market re­ Treasury Bills was Increased to duced its retaU price of cleaned "00,000,000. rice. The Ensulko Sug&r Company's rrr Ill. The openlDg of a meeting of the adjustment plan was approved by &ll-Japan agriculture society pre­ its creditor banks. Bidenu was decided on in order to Minor detalla regarding the co-­ atuciy measures to cope with the operative holding ot law &Uk b,. unfavourahle rice situatioL reelers were 8~ttled. Negotiatlool for the Nippon HI..,.. The Government Iron Worb in tnc Power Company's £1,400.000 Yawata tentatively decided to re­ fo"fgn loan flotation were conclud­ duce the production of steel ban: ed. by 20%. The Japan Shipowners' Association The Superphoaphate Producers' A ... lIIed a petition with the Govern­ socIation decided 00 the 10% ...... ment, asking for the increase of ta.ilment. t the Govemment • .ubsidy for the Tbe amalgamation of the Yamate d~wa~le~~ • and the Sbibuya Electric RaIlwa,. . The Commerce and· Industl')" OfIlce Companies In Tokyo waa elfeeted. notifted the Communications Ofllee President Kawakami of the Nippon thft It Wal against the projected In. Shlotaku Ginko (Japan Trust and fants' life in&urance. .. Banking Corporatiou) tendered his The Murao DOCkyard Company's resignation. strikers dissolved their organiza­ The . Mitsobish, Dockyard Company tion, which was formed in order to leceived orders from Soviet Ru .. cIeaI with the Company. 81a lor the construction at tw. The increase of the phosphorous tankers. fertilizer eurtaJlJIlOot ....to to 40% Lumbermen In Hokkaldo lIIed • and the enforcement of the new petition with the Govemment, ask­ agreement OD NOTember I was de- Ing for the Increase of the Import cided on. . duty on foreign lumber. Mr. T,uiteo Sem, Chat!'JD.1.n of the The enforcement of the Porelgu AI1-Japan· Mutual Financial AId ruce Import Restrletlon Act ~ AssocIation, resigned. Karafuto on November it as iR The diSao}ution of the Nippon E1 .... Japan Proper was decided. trl.. Security Company Was decid­ 16. The Social Welfare Bureau of ed OD. tbe Home Olilee announced tile JAPAN AFTER GOLD BAN REMOVAL

total number of the unemployed at Reeler.. affiliated with the Nagan. the end of July, 1980, as 818,4000. Reeler" Associatioo, decided to The meetln, of representativea of .top operationl for the whole .teel companle. wal held for the month of March, 1931,. cooperat­ ftrst time In order to Itudy the n.,. Ing with each other in reeling as tlon-'Wlde steel merger plan. well as business management. 28. The charges of the Tokyo Elec­ 1111. Minor detal'l. of the release of the tric Light Company's power supply Government's old rice holdin, to to the Railway Office were tent.,. Boclal welfare corporationa were tively decided at 2.12 sen per kilo­ .cltled. watt. The Yokohama Specie Bank con­ The Tokunaga Glass Works in ducted a shipment of ,old, amount­ Osaka enforced the eight working Ing to 11,1100,000, the total ,hlp­ bours a day and silt days a week ments pnce it. first export after system. the gold ban removal reaching ""0,000,000. The Portland Cement Producers' . Association decided to increase ita The Korlyama Godo Bank waa selling price by from 10.20 to closed. 10.80. 'I'he Overseaa Office sanctioned the 29. The Ryoetsu Bank in Toyama wa. resumption of the Taiwan Electric closed. Power Company'. Nichlgetsutan Plant construction. The establishment of the Awa Ex­ port Cotton Textile Producers' As­ The labour dispute of the Toyo sociation was sanctioned. Muslin Company further developed adversely and the workers clashed The Tokyo Municipal Market lie­ with the police. duced its retail price fall cleaned rice to the ¥1 level per 10 kilo­ 116. The Nippon Electric Power Com­ grams. pany-Tokyo Municipal Office con­ 80. Three Imperial Ordinances were tract for the supply of power, ap­ promulgated regarding measures to proximately 9,000 kilowatts, at cope with the unfavourable rice ai- rate of 1.11 sen per kilowatt waS tuation. . concluded. The Nippon Yusen Xaisha decided 21. The Yokohama Specie Bank to discbarge approximately 600 conducted a 111,000,000 gold ship­ employees. ment. Mr. Xa.ujl Iio,. President of the The control of tbe KJoto Godo Cotton Spin.oin. Company, Electric Apparatus Manufacturin, assumed the additional post of the Company'. two faclorle. by the President of the Doko Cotton workers was elfected. Spinnillg Company'. -11- JAPAN AFTER GOLD BAN REMOVAL

81. Governor Toyotaro Yuki of the Nippon Electric Power Compu,r Industrial Bank of Japan Invited Wal decided on. leading security brokerl to the A plan for the establishment of a Bank in order to study mealurel cooperative power plant (generat-I, regarding the promotion of the In, power b, mean. of .team wbeD:1 security market. water Is .hort In winter) W&8 draft-I; The Agriculture and Forestry Of­ eeL fice drafted a plan governing the The allotment of tbe markeUn,II compulsory classification of raw quantit, amon, the particlpatln,rI silk. countrJeB of the Internationak Nitrogenous Fertillaer Agreementl Wal decided on. ! November Brunner, Mond 6: Co. propoled tot 1. The conference of all-Japan agri­ eatablllh a marketing agreementlfl culture society president. Wal held with the JapaneBe producen In' in order to study measure, to cope view of the advene developmentl'l with the unfavourable situation of of the soda &8b dumping Issue. farm villages. Stock market. throughout Japa.. ,: The Osaka Chamber of Commerce were placed In chaotic condition" ,. and Industry, at a general meeting, following big Suctuation.. decided on a 'plan to propose that .. The allotment of the Government":'l the Government should establilh relief 108111 to farm, liahlng aDQ,1 a special act for controlling labour other agricultural villagea Wal de}; disputes. cided on and the local governorm The revision of regulations regard.­ were' Ilotifted. I ing the Government', lubsidy to the I. The Prj", Council, at a plenar)" loda ash industry was announced. 1C8810n, approved the bill of est.-b·J J White cotton cloth weaverl In Sem­ lishing the age-limit for .toker.. I poku-gun, Osaka Prefecture, IUS­ The Industrial Bank of Japan Ia-j pended their operation. The IUS­ .aed debentures. amounting to ¥U.\J pension of operation was to be con­ 000,000. tinued for half a month. The Itaukakai

The unification 01 the Portland 9. Mr. Solchiro Asano, aged business­ cement .ales In Kanto wa. decided man and President of the Toyo and a cooperative lales association Kisen Kaisha, having eonnection wa. estabUshed. with a score of companies ae Di­ The Government's rice, amounting rector, passed away. to 11,200 .acks, packed for export, 10. The Treasury Bills, amounting to wae shipped for Hongkong through 170,000,000 in all, were issued. the medium of the Mitsublshl Trad­ The Government decided to make Ing Company. the second loan, utilizing the re­ Representatives of steel producers, serves of the postal Insurance. at their regular meeting, decided The Tokyo Gas Company, at its not to change the selling prices of Directors' meeting, approved a steel materials for November and plan to lower the gas supply December deliveries. charges. '1. The Yokohama Specie Bank con­ The establishment of the Gifu Fede­ ducted a ¥7,1I00,000 gold Ihipment, ration of Porcelain and Pottery the total exports since th.e gold Manufacturers' Associations was ban removal reaching ¥52,1I00,000. sonctioned. The Commerce and Industry Office 11. The creation of the Political and notified the British soda ash pro­ Financial Administration Commis­ ducers of conditions on which the sion was approved at the Cabinet JaplUlese producers may .effect a meeting. compromise In connection with the The Cabinet approved the new Brltl.h producers' dumping In the budgets for the 1931-32 fiscal year. Japanese markets. The Imperial Ordinance to c:on­ The Kita-Karafuto Oil Company's nne the 1l9th session of the Diet oil sales contract with Soviet Rus­ on December 24 was promulgated. sia wos concluded. The second official estimate of the The Nippon Yusea Kaisha, at its 1930 rice crop wae announced. Directors' meeting, decided not to Mr. Bunji Suzuki, President of the declare ony dividend for the busi­ Japan Federation of Labour, issu­ ness term ending September 80, ed a statement on his resignation. 1930. The scope of the ric:e loans to be 8. The Japan Cotton Spinners' Asso­ made by the Central Depository of ciation decided to continue the exist­ Producers' Associations was ex­ ing curtailment rate for six months tended. after January, 1981. The syndicate banks for financing Negotiations for the merger of the the Keihan Electric Railway Com­ Toyo and the Godo Cotton Spin­ pany made their first c:ooperative ning Companies were concluded. loan, amounting to ¥3,OOO,000. JAPAN' AFTER GOLD BAN ILEMOVAL

The Tokyo G .. Compan, lubmit­ TIl. Superphosphate Proclueers' &"1 ted ita plan for the reduction of Ioclation, at an ntraordiDar, the gaa supply chargCl to the Com­ Dleetin" decided on the lDcreue 01 I merce and Industry IJlIice for the the curtailment rate b, II'" to Ollice', appronL 111% from November 20 to the end The Rayon Producers' Association of February, 11131. decided on the curtailment rata of The quotation of Tok,o StocIu., 16% for January, 1931, and 10% aew. regaiJled the noo level for February-March. IS. The Indnatrlal Rationalisation ,All Directors of the Karafuto In­ Bureau dralted a plaa to eontrol dustrial Compan, tendered their the nport eotton crepe .....vlng ID­ resignations. dast". The appointment of Mr. Momo­ The Tokyo Marine and Fire In­ suke Fukuzawa, former "Electric lurance Com pan, tentatlvel, de­ King" of Japan, &I the President cided to take over the Tatan-ama 01 the Hokokn Portland Cement Marine and Fire lnaurance CoDI­ Compan,. was tentativel,. decided. pan,. 12. The Industrial Rationalisation The San-cn Duploa Silk Pro­ Bureau 01 the Commerce and In­ ducer.' Aasoclatioa lD Sblauoka dustry Ollice announced the result Prefecture decided to Itop reelln, of ita fourth selection 01 Japanese operatlonl for 60 daYI from De­ products of superior qualit,. cember 29. The special committee of the U .... 1 .. Premlf'r Yuko Hamapcbl ... &11 employment Prevention Commis­ assaulted b, a ,outh belongin, to sion approved a plan to shortea a reactionista' group. the working boul'll &I a means of The FInance Ollice redeemed na­ preventing dismissala. tional bondi 01 IU,ooO,Ooo l8l:e value b, buying up ftoatin, lasa.. The Immovable Propert,. Associ~ in the Dlarket. tion proposed the Immovable Property Trust Debenture (a kind The Yokohama Specie Bank con-I 01 mortgage bond) Act plan. dueled a 17,100,000 gold shipment. The Pbosphorous Fertilizer Pro­ The Oaaka Portland CeDlent C&­ ducers' Aasoeiation tentativel,. de­ operative Sal.. AssociatIon "as cided on a plan for the unification established. of the fertilizer industry. 11. Foreign Mlnlater Baron ltiJare The Industry Commission, at a Shidehal'll ...&1 DIede Premier ad general meeting, approved the Interim. draft .,f ita repl,. to the Govern­ The Bleaching Powder Prodaeers' ment's enquiry regarding the aBi­ Auociation decided to Dlalntaia the Acatioll 01 lbe J apane&C' Iteel iD­ enrtailment rate 01 611% lor 1>0- duatry. ftmher. -11- .JAPAN AFTER GOLD BAN REMOVAL

The Raw Silk Classification Com­ Weavers' Alloclatlon In lahiaw. !Lin Ion held a meeting In Yoko­ Prefecture was sanctioned. hama. The spun silk yarn market witnas­ The Jlquldatlon 01 the Yachlyo ed a strong undertone. Life Insurance Company was com­ pleted. 18. The Government decided to en­ force the reduction of the interest The MltBublshl Dockyard Company rate on the emergency loans to announred the discharge of 2.600 lericulturiatL employees. The Deposit Depsrtment of the The Chiba Prelectural authorltiel Finance Office tentatively decided advised the local farm villages to to take over new debentures 01 the elfect voluntary and autonomous Hokkaido Development Bank, holding of uMulled and uncleaned amounting to Ill,OOO,OOO. rice. Syndicate banks for financing Quotations 01 miscellaneous shares the Tokyo Municipal Office decided advanced simultaneously and to make a cooperative loan of Ill,- Tokyo Stocks. new. reached 000,000 to the Office. '106.110. the highest figure since The Portland Cement Producers' February. 1930. Alsociation decided to maintain The revised regulations governing the curtailment rate of 153.8% the rebate of freight on export after December. goods were enforced. Basic Articles of the Kansa! Kyo­ 17. The Association 01 Agricultural do Karyoku Hatsuden Kaisha (a Warehouses passed a r.esoluUon cooperative power company lor demanding the Government's rice generating current by means of purchase based on the actual cost steam when water Is short in win­ of production. ter) were drafted. According to the Bank 01 Jspan's The Japan Cardboard Exporters' .urvey made on November Ill. the Alaociation was organized. average Index 01 the Tokyo retail The appointment 01 Mr. Taljiro prices was abrupUy lower than the Alano al President of the Alano previous month's figure by 8.S%. Portland Cement Company was The Shinshu Silk Reelers' Assocla.­ tentatively decided. tion In Nagano Prefecture passed iii Mr. Usaburo Yanagitani assumed resolution for reduclng the female the post of the Chairman 01 the operatives' wages and filed a peti­ Cooperative Industrial SurYeY As­ tion with the Prefectural authorI­ aociation. ties for the approval 01 the resolu­ The appointment 01 Mr.· Hirozo tion. Matsumoto, Director 01 the Ind.... The atabIishment 01 the Marusan trial Bank of Japan .. President -n- JAPAN AFTER GOLD BAN RElIOVAL

of the Xarafuto Industrial Com­ Rice quotation. adnnced aimuJ. pany was tentatively decided. laneou,ly In .,.rlou, place, In 91ew The Tokyo Municipal Market re­ of th. Gonrument', declalo. to duced ita retail price of cleaned purchase 2,000,000 koku of new rice by 'I sen per 10 kilograms aU rice. round. Nine paper manufacturln, com­ 19. Banks decided on the conditions paniea, affiliated with th .. Japan under which they would make Paper Mauufacturerl' Aaloclatlon loana to canneries In order to en .. efFected the incresae of their Id­ ble the latter to hold 200,000 cuea lin, prlcee. of canned crab. RepresentaUn, of Ih' Oficea of th. The All-Japan Agricultural and Cabinet, at their Joint llleetlDg, ap­ Industrial Banks' Meeting 11'&1 proved the larp ,ted merger opened In Tokyo. ,cheme. The Deposit Department of the Gas ahares slumped limultaneously Finance Office decided to make a in .iew 01· the ,as rapply cbarges ¥30,OOO,000 loan to enable farmera reductioD b1 the Eyoto and tb. to hold unhulled rice. Tokyo Gae CompaDle, and the pro­ Mr. Ichizo Hayashi, Chairman of Jected reduction b1 mall1 other ,as the Osaka Rice Exchange. tendel'­ compuiee. ed his resignation. The Japan Central SDk Men', A.­ The Teikoh Nokal decided to pro­ ,oelatlon decided on a plan to coo­ mote the export of rice to Europe. duct a 'ilk campalp In tbe United States at the expellH of 110800,000. 20. The 28th meeting of the Rice Commission was opened. 22. The GOYel'llment decided to luue Mr. Jiro Yasuda, Vice-President of bonda for relinln, the Joblen far the Industrial Bank of Japan, teD­ the next ftKal year. dered hia resignation. The Waterworkl Bureau of the The labour diapute of the Toyo Tokyo MunJelpal Office diKbarged Muslin Co~P&D1 was .ettled. 118 employeee. The Rice CommissioD decided to The Goyerument Iron W orkl la purchase 2,000,000 koh of new Yawata decided to efFect further rice during December. eurtailment of operation. 21. The total production of .ugar b1 The Tobata Iron PoundrJ In Puko­ varions sugar manufacturing com­ oka Prefecture dilcharged 1" panies in Taiwan for the next year workera.. was ~timated at 12,650,000 picull. The Nippon E1ectrie Power Com­ The Nippon Electro-Cbemieal III­ pany'. Sterling lou Sotatlon ne­ c1ustl1 Compan1 discharged '00 ,otlatlolll, to the amount of £1,­ worken. '00,000, were oflicbIlT eODcluded.

-"~ JAPAN AFTER GOLD BAN REMOVAL

The Spun Silk Yam Producers' A .. 26. A comparatively heavy earth­ lociation decided to continue the quake occurred In Izu district existing curtailment rate ot 811% but Its effect on markets was rath­ tor lome time. er small. 28. The Tokyo Municipal Market The Yokohama Specie Bank in­ raised Its retail price ot cleaned creased Its official exchange rate on rice by 7 len per 10 kilograws. Bombay by 'fa to Rs. 137%. The joint committee of the Tei­ The Foreign Trade Bureau ot the koku Nokai, the Central Producers' Commerce and Industry Office Association and the Town and Vil­ drafted a plan to authorize the lage Masters' Association drafted a Government to adopt the flexible plan for readjusting farmers' debts. tariff. The Commerce and Industry Office 21.. The Industrial Rationalization issued a statement, explaining the Bureau decided on a plan to new caloric system tor the gas sup­ ,,>tablish regulations governing the ply charges. unification ot Industries. The contract ot the Kita-Karafuto The Kinkl Federation ot Mutual Oil Company's oil sales to the So­ Credit Companies held a general viet Russia was signed. meeting In Osaka. 27. Some sao jobless in Kyoto City The reduction ot the gas supply conducted a demonstration parade. charges by the Nagaoka Gas Com­ The Hypothec Bank decided to pany was sanctioned by the Gov­ make a loan, amounting to 13,000,- ernment. 000, to the Hidachi Engineering The Steel Material Producers' A.­ Works. sociation decided to maintain the New members of the Board of the existing curtailment rate of 110% Karafuto Industrial Company were for some time. selected. 211. The generalllleeting ot the Japan Director Keizo Kamitani of the Chamber of Commerce and In­ Toho Electric Power Company ten­ dustry was held In Tokyo. dered his resignation, following in­ The final plan tor the financial ternal trouble in the Company. readjustment of the Ensuiko Sugar The Nippon Steel Tube Company Company was drafted. started constructing a steel billet IIII'. Usaburo Yanagltani accepted factory. the offer of the post of Chainnan 28. The call money market somewhat of the Cooperative Industrial SUI'­ stiffened and the rate advanced to ny Association. Vii sen. The Osaka Cereal Dealers' Asso­ The general shareholders' meeting dation announced the classification of the Nippon Yosen K .. lsh. ap­ of the 1930 rice crop. proved the plan to declare DO divi-

-1&- JAPAN AFTER GOLD BAN REMOVAL

dend for the business term. r.ndin, Gila Export Rayoll TexUle Weav­ September 30. 1930. era' AllOdation. 19. The Finance Office dedded to t.­ The TOyG ucl the Godo Cottoll sue bonds. amounting to no.ooo .. Spinning Companleao at their gell­ 000. lor the relief 01 the JoblesL eral ahareholden' meetinp, ap­ proved the plan to elrect the merger The Artificial Fertilizer Producen' 01 the two CompanieL Association decided on " policy tG The South Manchuria RaU ••, control the 8ulphate 01 ammonia Company dedded OD the curtaU­ markets throughout Japan. ment rates 01 Its FuahuD coal mal'­ Mr. Tokusaburo Inoue. Chairman keting quantity .. '0110... 13% of the Osaka Sampln Exchange lor December and 10% lor and Brokers' Association, tendered hIa alter Januarr. resignation. RayOD doth pricea continued to ad­ The CivU Engineering Bureau 01 vance. the Tokyo Municipal Office dia­ I. The Oriental Development Com­ charged 70 employees. pany approved the ChoRnese farm­ en' plan to reluad their 10BDI to the Company with unhulled ri~ Ill­ December ,tead 01 money by the annual Ill­ 1. The Government redeemed the No. ,talment ".tem. 2 ,% Sterling Bonda 01 the Jap.. The banu' cooperative ",800.000 nese Government by buying them loan to the canneries wu officially up in the market to the extent 01 decided. the £1,93',600 fsee v,alue. The TohG G.. Compan'-. caloric The Industrial Products Classi!c.. charges .,stem wu .anctioned. tion Commiasion. at itl plenarr Mr. R,o.o Alano _umed the post meeting, approved 19 proposals re­ 01 the AlanG Portland Cement garding the dassification. Compan,', Vice-PresidenL The Japan Central Silk Men'. AI­ The Government annoUllCed the .ociation decided on minor detaila minor detaila about its pnrch... of about the enforcement 01 the .up­ 2,000.000 koku 01 Dew rice. ply control plan. The quotatious 01 IpUll .ilk yarn The Electric Bureau 01 the Osaka aoared by Irom ¥IJ to 110. Municipal Office effected the redue­ 6. The dOWilward tendency 01 wbole­ tion 01 its power and heat aupply sale prices wu IOmewbat cbecked charges. and the decliJle rate lor November, The quotation of Tokyo Stocka, compared with October, wu only lIew. witnessed heavy fluctuationa. 1.11%. So The Commerce and Industry Office The Industrial B&Ilk 01 J apall de­ aanctioDed the eatabliahment 01 the cided to make • 11.800.000 10aa .... tI ... JAPAN AFTER GOLD BAN REMOVAL

to the Tokyo Stock Exchange The Government Iron Worlul In Broker.' A.80c1ation. Yawata decided not to change its •• The Rice Commission, at Its .pe­ .elling prices of steel materials for e1al committee meeting, apprond January and February deliveries: the plan to adopt the "proportion­ The quotations of rayou textiles ate" rice price .ystem temporari­ witnessed a reactional decline on ly, the "proportionate" .y.tem be­ account of the previous heavy ad­ In, the calculation of a reasonable vance. rice quotation, based on the Index Rice quotations assumed an upward numben of the average rice quo­ tendency. tations for many years In propor­ 6. The short-term cooperative loans of tion to the average Index numbers the Mitsui Bank and other bank! of ,eneral merchandise. to the Tokyo Electric Light Com­ Regulations gonrnlng the Tre.. ury pany and the Nippon Electric Bill Issue by the tender .ystem were Power Company w .. decided. promulgated. According to the survey made by The Central Depository of Produc­ the Teikoku Nokai, the net produc­ en' Associations decided on Its low­ tion cost of the 1930 crop rice was Interest loan to Izu district de­ 127.29 per koku, the loss per koku, ,. ..tated by the earthquake. compared with the actual seIling The Unemployment Reliel Bond price, belng ¥l0.07. Issue, to the amount of '34,000,000, 'I. The Yasuda Hozensha (a holding was approved by the Cabinet. company) decided to lower the land The amalgamation of three flour rent In Tokyo and .enn other mills in Matsumoto. Nagoya, and eities. Nitta was tentatively decided. 8. The Statistics Bureau of the Cabi­ The compromise regarding the I.­ net announced that the total popu­ bour dispute of the Godo Keorl lation of Japan Proper ...... 64,400,- Kaiaha was reached. 000, according to the National The Daido Kalun Kalsha, (a ship­ Census conducted on October I, ping company) was established. 1930. Mr. MichiY08hl Sugawara, member The Finance Office decided to issue of the Upper House. assumed Dew Treasury Bills amounting to the post of the Gonrnor of the '5,1100,000. and with this projected Oriental Development Company. Issue the maximum amount of the Treasury Bill issue was reached. The total value of the listed shares on the Tokyo Stock Exchang re­ t. According to the Unemployment gistered a 1100,000,000 adnnce, Survey conducted on October I, according to a lurvey made on De­ Usa. the total number of the job­ cember 1, compared with one month less throughout Japan Proper before. reached B22,liZ7.

-11- JAPAN AFTER GOLD BAN REMOVAL

The Railway Ollice decided on Ita was 110,890,000, according to th" budgets for the 1931-82 1lacalyear. National Cenlu conduded Oil' The Finance Ollice approved the Odober 1. 1930. Immovable Property. Trust Deben­ The leparatioll of the Cottolll ture Act draft plan. Splnnin, Department of the TOJo' The reply 01 the unification com­ Muslin Company from the Co~ pany wu decided. mittee of the Industrial Rationali8~ tion Bureau to the Government'. Rice quotations Oil exchangea: enquiry regarding -the unification Ilumped to the '18 level, dia-i of industries was decided. couraged b, the Government'a, buyln, price. The tentative agreement between the British and the Japanese pro­ The Kanto Sted Material Pro­ ducers about the alleged 8'oda ash ducers' Assoclation decided tol dumping in the Japanese market maintain the ae1lin, price for the was reached. Febrnary delivery at I8S per ton. Stock markets witnessed buoyant 12. The Nippon Striped Cotto. business and Tokyo Stocks. new, Cloth Exporters' Asaodation rued exceeded'111. • petition with the Government, askin, to revile the regulatioDl 10. The Yokohama Specie Bank in­ ,overnin, the llnlficatioll of the creased its ollicial exchange rate striped cottoll cloth we&YIn, in­ on ShanghaL dustry. The Daido Electric Power Com­ The merger of the KelJo Stock pany decided to establish the Nan­ 14arket and the Jinsea Rice Ex., kai Electric Power Company with change. both located In CholCD, an authorised capital 01 13,000,000. was provisionally .igued. The Japan Central Silk Men'~ A&­ Stock quotationa .Iumped reae­ lociation, at its general meeting. tionall,. recommended Viscount Ta~tsu 18. The Rice Commission, at ita pie-, Makino as President 01 the A&­ nary meeting. decided to adopt the; lociation. ""proportionate" rice price .,.tem The copper producerl' association u a meana to Ix the reasonable in Japan received advice from the rice quotation temporarily. 11.S. association to Join the Inte... The Dames of warehouea, at national Copper Output Curtail­ which the delivery of rice pu ... ment Agreement. chased by the Government was to The Government announced ita take place, were announced. buying price of the Dew crop rice. U. The Suiyokal (0 88IOclation of 11. The Statistics Bureau 01 the copper producen anel deale... In Cabinet aunounced that the total Japan) studied the American ad-, Dumber 01 the Japanese population rice to participate In the Intern... , JAPAN AFTER GOLD BAN REMOVAL

tional Copper Output Curtailment decided on a plan to rationali&e the Agreement and decided on the shipbuilding Industry of Japan. monthly copper output-cut after Canneries, engaged In fishery iD January, 1931, as 12%, calculat­ the northern waters, cooperatively Ing on the basi. of the October decided to reduce their canned production. crab output for 1931. The Teikoku Nokal flied a petition The Kansal Enamelled Ware Ex­ with the Government, asking for porters' Association was estab­ the Government'. further purchase lished. of rice. The Tokyo Municipal Assembly ap­ 16. The Railway Office decided to proved the plan of the Electric start 60me projects for the pul'­ Bureau of the Municipal Office to pose of relieving the jobless. lower the light and power supply The 32nd meeting of the fund charges. utilization committee of the De­ Brunner, M'lnd & Co. (Japan) posit Department was opened and Ltd. announced the Increase of the several plans for the fund utill­ sulphate of ammonia price by ¥3 Ilation were adopted. per ton. Communications Minister Matajlro 19. The Finance Office announced Koizuml explained the seml-official that 1290,935,000 In gold flowed telegraph and telephone company out of Japan for the first 11 plan at the Cabinet meeting. months of 1930. 1'1'. The Harbour Commission adopt­ Railway Bonds, amounting to 18,- ed a plan to repair the harbours In 800,000, and Chosen Enterprise Sakata, Fushikl and Wakayama. Bonds, amounting to 13,881,6.50, The Finance Office drafted a plan were issued. to revise regulations governing the The names of the members of the SIIVlOgS banks and mutual credit Financial Commission were an­ companies. nounced. 18. The necutlve committee of the Mr. Hisama Oyama, Vice--President Legislative Commission finished the of the Tokyo Chamber of Com­ draft for revising the Commercial merce and Industry, tendered his Code of Japan. resignation. The Bank of Chosen's Vladivostok 110. The sentence was given by the office was closed, following the So­ Court in connection with the Echi­ viet Government's Interference with go Railway and the Yamate Ex­ the Bank's Ruble exchange busi­ press Electric Railway scandals. ness. Governor Keizaburo Kato of the The shipbuilding committee of the Bank of Chosen issued a state­ Industrial RationallaatioD Bureau ment iD connection with the

-11- .JAPAN AFTER GOLD BAN REMOVAL SOYIet authorities' blgb-bandecJ The result 0' th. Government'. action a ffectlug the Hank'. purchase 0' the Dew crop domeatic Vladivostok office. rice was announced. The agriculture lOc:iety In Takaoka The rebate 01 the 'relght on the City passecJ a relOlution to poet­ Indian raw eottoD W8I decided II pone the payment of 110% of the '1.4.0 per bale. year-encJ accountl for lOme time. 13. Some fOO labouren, who IlIicJ The establishment of two spot rice been emplored In the State Hlgb­ markets in Ibaraki Prefeeture W81 way construction In Yamanubl officially sanctioned. Prefecture lor the purpo.. 01 re­ The Artificial Fertilizer Producen' lievin, the lobles.. were cUJmlssed .uddenly. Association W81 establisbed. The Financial Commla&lon approv­ Application8 for the Government'. ed the draft plan of the Immov­ purcbase of the 2,000,000 koka of able Propertr Trnst Debenture Act new rice were closed. IUId three other plallL 11. The round-table meeting of the The Shinano Bank, wblch bacJ beeD Labour and the Capital representa­ cloled, announced that It wou14 re­ tives W81 beld at the official resi­ 'und petty deposit&. dence .of the Home Minister in co.. The Yokohama Raw SUk Ellporten" nec:tion with the draft plan 0' the M8ociation passed a reaolution Labour Union Law. demandin, the restrictioD 0' the The Chugoku Bank was estahllab­ reeler" marketin, quantity. ed as a result 0' the amalgama­ The trouble among the Directon tion 0' the Dai-icbl Godo Bank IUId 0' the O.aka Electrle Rallway, the SanJo Bank in OkaJama Pre­ Company WII settled. fecture. It. The l19tb ....Ion of the Diet was 22. Mr. Masatake Nakauo, Vice-Min­ convened. ist~r of Communication8, resigned The eucutive committee of the K~ and the appointment of Mr. Keijiro 0'0 Club declded to continue the Nakamura In 8ucceaaion to Mr. anti-Labonr UDion Law movement. Nakano was tentatively deeided. Banu declded to maintain the The Commerce lUIel Induatry Office nistin, Interest rate on lo&Da drafted the Commercial Auociation against the security 0' Immovables Act. for tbe Int half of 19IL The Sobara Bank In Gila Prefec:­ The site 'or the Munldpal Central ture began to refund petty deposit&. Market la Sapporo and Ive other Mr. T8UDeo Kanemitlu W81 reeom­ dtiea WII deailllated by the Gow­ mended 81 Vic:e-Preaident of the ernment. - Tokyo Chamber of Commerce IUId The IDcorporation ." the An•• JDduatrr. CaDDery Company. with • ..pltal -M_ JAPAN AFTER GOLD BAN REMOVAL

of '1,882,000, by the Yagl Shoten, Mitaubiahi, the Dai-ichl and the the Toyama, the Showa and the Sumitomo Banks, made their co­ Nippon Cannery Companies, which operative loan to the amount at are engaged In lI.hlng In the ea.t­ 18,140,000. ern .ea at Karatuto, wu decided The Tokyo Fire Insurance Com­ upon. pany's new Insurance business ot The Tokyo Electric Traders' Allo­ five kinds 11788 sanctioned by the d.tion drafted a plan tor prevent­ Government. jng unfair competition and lubmit­ The treight on the Taiwan sugar ted the plan to the Industrial Ra­ trom Taiwan to Japan Proper wa. tionalisation Bureau. decided 81 10.17 per picu!. Tha Inaugural meeting ot the Dal­ 27. The allotment ot the Central Gov­ do Kalun Kalsha 11781 held. ernment's subsidy to the local gov­ The Agriculture and Forestry ernments for carrying out the Office announced the result at itl State Highway construction with a survey on the prices at tarm pro­ view to relieving the jobless wa. ducts. decided on. The establishment at the Japan The Tondabayashl Bank. which Federation at RIce Dealers' Asso­ had been closed, decided to make ciations was decided on. the repayment of deposita to the The Government's buying prices of extent of 6% all round. Ialt and camphor and their seillng The allotment of the Central Gov­ prices were announced In the Offi­ ernment', )ow-Interest )oans to the cial Guette- local governments for making the IS. The Wakayama Sangyo Xaisha rice purchase, amounting to. 130,- (an Industrial company) was creat­ 000,000 In all, was decided on. ed 81 a means to promote the finan­ The Ryoetsu, the Mitsuda and the cial readjubtment at the Wakayama FushikJ Banks decided to refund t8rd Bank. petty deposits. The party ot operatives, which COD­ The total number of banks (head trolled the Kyoto Electric Appara.­ offices only) throughout Japso de­ tu, Manufacturing Company', two creased to 897, whereas the all­ factories on account ot the non­ Japan banks numbered 1,163 at the payment ot wages by the Company, beginning of 1929. 11788 eventually dissolved. 29. Marquis KiD-ichl Komura, Vit'e­ IS. The Education Office decided to Minister of Overseas, passed a .. ay. lower the starting salary of the The Bank of Japan's eonvertible middle Ichool teachers. Dote issue exceeded 11,",00,000,- The syndicate ot bank~ for financ­ 000. Ing the Tokyo Electric Light Com­ According to the Hypothec Bank's pany, consisting 01 the Mitsui. the lurvey, the paymenta called 01' for -n- JAPAN AFTER GOLD BAN REMOVAL

stocks and other securities durin, The Bank of Jspan'. convertible 1930 amounted to 11,035,000,000, note lleue contracted to 11,810,4 the lowest Ilnce 1918. 000,000. 80. The Sino-Japaneae Telegraph The Int tranladlona for 1981 Agreement 11'88 provlaionally lign­ were conducted In e:uhanrer ed. throughout Japan, but bulnell 011 these counter markets, ellcludinr 81. Mr. Zenjiro Horikiri, Former raw Iilk ellchanrea. 11'81 Inaetln.: Mayor of Tokyo, assumed the POlt The NltrogenoUl Fertlllaer ~' of Overse88 Vice-Minlater. ducers' Alloclation decided to la­ According to the Bank of Japan" creue Its .ellla, price by I len. I account brought forward, the con­ The Finance Office announced that vertible note issue wa. on the ellporta and Importa of Japan Pro­ 11,600,000,000 level per for 1930 were 11,469,850,00(', The Government's order 11'88 issued and 11,1145,0111,000, reapecUveiy: to the Bank of Chosen'. Vladivo.. the exc_ of Importa beln, In,-; tok office staff me'mbera to with­ 225,000. draw from that City immediately. ,. The Yokohama Specle Bank fD.1 creased Its officlal exchange ratr on Shanghai to Tls. 1411 In view January of the unprecedented slump of the 'London bar .ilnr, Bpot. by '1111 1. Mr. Sadahiko Nakane 11'88 reelect,. to 18 1l/16d. ed Director ot the Bank of Japan. 8. The Bank of Japan'. convertible 6. The Soviet Government declined to note lasue .hrank to the 1I,100~ consider the Japanese Govern­ 000,000 level ' ment's pr"test in connection with The Government'. .andion of the the trouble concerniDg the Bank rice trauaction8 81 to kind on the of C~os(;n'l VladivOltok office. Tokyo and the Olaka spot markets f. All the Japanese residents in wu tentatively decided. Vladivostok decided to withdraw The Japan Central Silk Men'a AI­ from that City. lOciation, at Ita classification com­ The introduction of ;he Local Tu mittee meeting, decided to adopt ,Ad Bill and the Local Tu Re­ the proposed claBBification ITltem. striction Ad :Bill is the 69th - The Finance Ollice announced that sion of the Diet waa decided upon. Japan'i trade with China durin, The Yokohama Specie Bank In­ 1930 resulted In an excess of ex-' creased its official exchange rate on porta over Imports by 1121,1100.- Shanghai by Tls. 8 to Tls. 1.. in 000, which wu apprOlllmately nOr' view of the heavy slump of bar sil­ 000,000 smaller than the previoUS year. ver in London. -.. - JAPAN AFTER GOLD BAN REMOVAL e. The Railway Office decided on the The Finance Office tentatively de­ use of ¥71,060,000 railway Improve­ cided to increase the maximum ment funds for the 1931-82 fiscal amount of the Treasury Bill issue year. from ¥l150,000,000 to ¥230,000,ooo. The Finance Office decided on plana The meeting of the Azuma Cannery and allotment for converting the Company's promoters was held Rnd high-Interest loans, which were the purchase of the participating fioated during 1980-81, Into low­ companies' assetil was decided on. interest ones. An agreement was reached between The Finance Office announced that foreign and Japanese nitrogenous It would issue new Treasury Bills, fertilizer producers. amounting to 1100,000,000, by the tender system. The foreign trade of Japan Pro­ Jnpanese sugar shares simultane­ per for the first 10 days of Janu­ ously soared In anticipation of the ary witnessed an unusual excess of Successful conclusion of the World exports over imports by ¥7,091,OOO, Sugar Curtailment Agreement. although January is considert'd the Uimport" ~eason. 10. The Yokohama Specie Bank in­ ('reased Its official exchange rate on 11. Sunday. Just one year after the Shanghai to Tis. 1111. gold embargo was removed.

-'1- vm Study of Demanded Devaluation of Yen T HE Government', gold ban re­ any preparation to cope with the moval at the original parlt, .ituation therealter, except the mani­ point 01 SU% on January II, pulation to raise the Yen's exchange 1930, wal criticized In the 89th .e.. quotations In the open market. bu­ .lon 01 the Diet In view 01 the Ing been unaware of the facts that lact tbat one ,eal' bal already the world depression would develop elapsed alnce the epochal financial further adversely and the bar allver nperiment 01 Nippon W&l conducted quotations would register tbe unpre­ and general buslnes. I. still In the cedented alump. depth' of continued depresalon. "In other words, the ban W&l re­ Wal It premature to remove the moved, selecting the worst time, &I gold banP Wa, the embargo lilting the actual conditions after the big at the parlt, point 01 SU% Improper financial event proved, because Nip­ to meet the altuatlon' The Itudy 01 pon's export has been seriously afFect­ this question Is very Interesting. The ed. There Is no means of relieving solution 01 such. problem, bowever, the continued depression at present. is very dUB cult-almost Impossible unless an (\pportunlty Is given to the "The gold ban removal at a new Opposition to enable the Party to parity point b&l several virtues &I conduct the gold ban removal at • well al defects, although such action new parltJ point. that Is to lay, to Is demanded In some quarters from effect the devaluation 01 the Japan­ the Government. I am not the ab­ ese currency In the foreign exchange, solute admirer of a new parity point. ond the results of both cases are then but It Is lome what Indiiferent. I compared with each other. think, to Ignore the question by de­ claring, like Finance Minister Junn~ So far &I the study Is concerned, the author haa great Interest in an­ luke Inoue, t:lBt the demand i5 non­ alyaing the views of Bome opposi­ sense and that It would lead the tionists on tbe gold ban removal at Japanese ftnancial circles to an ulti­ the original parity point of $-'9%, as mate failure. he has alread, reviewed the economic "It is ratber a serious problem ~onditions of Japan alnce ber gold and the adoption of sucb a plan will em bargo lifting. be unavoidable. if no other means Is Mr. Chulo Mitsuchl, ex-Finance efFective In restoring Nippon's eco­ Minister of the Selyukal Cabinet. In nomic conditions and a certain me .. • book entitled "Correct View of sure for 80 doing Is imperative." CAlnditions in Economic EmergencT' (in Japanese)·, writes a8 follows. Thus Mr. Mitsuchi Is not aD ~ "The Government carried out the lolute oppositionist to the golel ball lifting of the gold embargo without removal at the parit' point of $69%.

-101- JAPAN AFTER GOLD BAN REMOVAL but he attacks the Finance Minister of the gold esport, II the fundamental on the fact that preparations were In­ remedy for the economic depres.lon ,ufficient for carr:y\ng out such a big of Nlppollo althoagb be doe. not eon­ :financial experiment. sider the devaluation of the Yen It is rather unreasonable, however, ablolutely Deceuary.- to blame the Government for the fact The .tabllll:atlon of the Yen'. es­ that the gold ban removal was con­ temal value, without adopting any ducted at the worst time, because D~ manlpulatiollo I. the basic Idea of Mr. body anticipated that unprecedented Muto, that I, to lay, the gold export slump of the bar silver quotatioDi wUI be prohibited for lome time In would occur several times during order to see what la the actual n­ one year after the ban lifting and the teroalvalue of the Yen and then the world depression would develop far­ parity point wll1 be bed at the ,tabl- ther adversely. 1ized rate. He writes further as fol- Many American economists pre­ 10w.J dicted that the buciness recover:y ''The patronage of Japanese pr~ would be witnessed in the autnmn of ducts, the Industrial rationallsatiollo 1930 but their predictions came to and other Ideall.stlc measuret wUI not nothing. Japan, therefore,· was un- remedy the recent unfavourable ,itaa­ fortunate to see such an unfavour- tion of the Japanese economic clr­ able international situation after the des. realization of her long cherished de- "The only remedy lor thl. sltaatlon,: sire of resuming the gold standard. I think, la the alteration 01 the GOV-I As good luck would have it, she la emment', financial policy, In acco,.. still "surviving" despite the gold ban dance with whlcb the gold ban re­ removal at the worst time. Nippon moval 11'" earried out at the origlnali may be rather congratulated on this' Iparity point of "9%. I do not de­ fact of "surviving" instead of bank- mand from the GOVernment IUlecondi ruptcy, which might have been the prohibition of the gold esport thought­ destiny of Japan, had the embargo lessly like lOme other opPOlitlonlsu. i been lifted without. 80y preparation -What I urge on the Government lsi to cope with the situation thereafter. that the the Yen's eschange rate ofl Mr. Sanjl Muto, President of the ,U%, which was realized bT the Gov", Kokumin Doshikai (a businessmen', eroment', manipulation .. Mould be reo" political party), who is an absolute duced to the International actual valal admirer of a lower exchange rate for of the Yello whlcb may be considered the Yen, in his publication on the natnral and reasonable from the view" subject of ''Illusion of Finance Minis­ point of the Dormal foreign "cbange' ter Inoue" (in Japanese), says that "'I do DOt, however, insist OD thc' the stabilization 01 the Yen', exchange fact that the parity point Ihould be' rate at a lower point than at present, reduced. The lowering of the Yen'l1 after conducting • second prohibition excbange rat.: to • certam estent ani: - .._ 711-91 -101 ... JAPAN AFTER GOLD BAN REMOVAL the .tabll1zation of the rate at a lower merchandise or property, which had point than *490/& 18 Imperative In order the value of n,500,OOO before the gold to enable the Japanele Industries to ban removal. This Is a heavy blow preserve competitive power against to the borrower. Even the creditor the foreign Industries a. well as to will be atrected, If the debtor is un­ check the abrupt decline at the com­ able to refund the loan on account ot modity prices at home. the decline ot the value of the deb­ tor's assets. "In order to know what Is the actual external value of the Yen, the tem­ It must be mentioned, however, that porary prohibition of the gold export the second prohibition ot the gold n­ will be necessary. Prior to effecting port, although Mr. Muto demands It. the second prohibition of the gold would cause the external value of the export, however, the Government will Yen to fall abruptly, also having a' have to listen to the views of the considerable etrect upon the financial authorities on this problem. circles of Japan, whereas the markets, "I may suggest," Mr. Muto goes on, have been lomewhat stabilized 01' have "thnt the Government, the Dank at become accustomed to the higher n­ Japnn, the Yokohama Specie Dank, change rate, tollowing the resump­ and other exchange banks should co­ tion of the gold standard at the origi­ operatively carry out this important nul parity point. financial experiment. What Is the .ctual external value "When the world depression Is over 01 the Yen, then? Is there any actual or it is nearing the end or a proper external value ot the Yen without per­ time comes, the Government should mitting the tree export at gold? There remove the gold ban at the original will be no justified external nlue of parity point at $-&90/& or at a new the Yen, judged from the theoretical pnrity point a little bit lower than the viewpoint. when the gold export is original parity point, or establish the prohibited. It is impracticable, there­ goid exchange basis permanently. This tore, to find out the actual interna­ should be decided on In accordance tional value of the Yen, though Mr. with the conditions at home and Muto would do so, by prohibiting the abroad at that time." gold export for some time.

The recovery of the original parity The actual external value of the I point of $·'90/& by the Government's Yen will be witnessed only when the manipulations has caused the com­ free export of gold is permitted, be­ modity prices to slump heavily and cause the Yen's external value is equal the financiul circles are generally a~ to the actual value of gold. The legal fected, according to Mr. Muto. parity point. however, may be reduc:­ \ For Instance, the borrower ot n,­ ed, if the lower nchange rate is de­ \000,000 has to refund the loan, ob­ sired in order to ~he~k the fall of taining n,ooo,OOO by disposing at the commodity prices.

-101- JAPAN AFTER GOLD BAN REMOVAL

Theo the actual edemal value 01 "II the GOVfrnment eondurll the the Yen or gold will be againJt the prohibition of the gold uport and natural tendency on account 01 the removel the ban after a proper time manipulation 01 reducing the legal at a new parity point of about ,to, parity point, unleliS it I. followed b, It will be able to obtain new finan­ the lowering of the grain of gold for clal re.ourc.. and to carr, out III the Yen. This Is, however, a great constructive meaanre. In order to pro­ loss on the part of the national mote trade and Indu.t" and allo to finance, particularly Nippon'. lntema­ reline the Jobl .... tional accounts, although the com­ "For Instance, according to the modity prices ma, go np to .ome Bank 01 Japan'. accounll brought eItent. forward 011 August 2, 1930, III specie In that event, the question will r&­ reserve. amounted to 1880,000,000. main lUI to whether Japan Ihould ap­ Thll will become '1,056,000,000, cal­ preciate the value of the currency or culated on the basil of about $~O per the value of commoditie.. Shortage flOO or the Yen', d .... aluatlon by of gold II constantly felt in Japan and about 20%. Then the Government Nippon will be nearer than enr to will be able to obtain the new finan­ bankruptcy if the gold euhange cial reaource. to the ntent of 11'111,- rate il fixed at the lower point. 000,000. Judging from these facti, Mr. Muto'. "Al"Cordin, to the Bank accounts view is far from practical. on th~ lame day, the total of III eon­ Mr. Kamekichi Takahaahi, one of .ertible note Issue and the commer­ the leading economists 01 Japan, i. a cial banks' deposits with the Bank of conspicuous oppositionist to the gold Japan was fl,U5,000,OOO. The rate ban removal at the original parity 01 the specie reserves against the note point 01 $490/& and he haa.o far Issue and deposita, therelore, .... published hi' views on thil problem 61.'15%. II thil percentage 11 to be .everal times in daily and monthl, maintained for some time, eYen after Journals. the gold ban remoTaI at the new pari­ He believes that the .econd pro­ ty point, the Bank will be able to hibition of the gold export II im­ Issue the convertible notes and to re­ perative, judging Irom the present ceive the commercial banks' depOliti economic conditions of Japan. He to the total amount of 11,'110,000,000. favours the furtber removal of the "Then tbe Bank 01 Japan will be ban at a new parity point 01 about able to "lake OYer new national bonds $~O as a means to cope with the con­ to the extent 01 '285,000,000, because tinued depression and the relief 01 Its tinancial powrr will not be affect­ the jobless. . ed at aU by shouldering .uch a beav, In a book entitled "Essa, on See­ burden. The ~tral GOYernment hal ond Prohibition of Gold Export" (in 10 far issued It,U8,ooo,ooo worth 01 Japanese)-, .Mr. Takahaahi writea l1li Datlonal bonds and the local goyem­ followll menta have Issued booo. to the nteat

-10'- JAPAN AFTER GOLD BAN REMOVAL

of 91,218,000,000. A. a relult 01 the No, Dever. 0. the cODtrary, they devaluation of the Yen by about 20%, would lose their &88ets by about 20%, the actual value of these DatioDal aDd although their debts might be written local bonds will fall by 1900,000,000 all by about 20%. It IJ rather a Illla­ and '256,000,000, respectively. cODception of Mr. TakahashI, the "If the present rate of the bODd author considers, that the people IJsue IJ to be malDtalned for .ome would be able to .houlder more bur­ time, Dew bODds may be Issued within dens due to the devaluation of old the amount of the total devaluation, bODds. that Is to say, ¥1,156,OOO,OOO. The This IJ Dot a real InfiatioD 01 cur­ actual burdeD of the people will Dot rency, because the total actual value change at all, even If '0 many Dew 01 currency i. uDchaDged, compared bond Issues are made by the CeD­ with before the devaluation, but It tral Government and the local gov­ would have an ell'ect similar to the erDments In order to cope with the infiatioD of currency npOD various uDfavourable situation." markets. It would be Impracticable Would the Government be able to to expect the realization of leveral obtain such Dew financial resources cODstructive measures, Including the by conducting the devaluation ot the reiief of the jobless, although Mr. Yen' The author har; doubts about Takahashi does Dot think 10. Mr. Takahashi's view on thlJ point. To go OD in detail, the author con­ If the value at the YeD were redue­ .iders It cODveDleDt to summarize the ed by about 20%, the quotations 01 viewpoints of various oppositionlstlt commodities would advance by about aDd aDalyze them straight to the point 20% from the theoretical viewpoint, without meDtioning the Dame of the although the actual rise would be individual essayist and also without much smaller than 20%. making direct quotation. of tbelr At the same time, the Bank 01 views. Japan's loans would be depreciated by According to the oppositionists. the about 20%. As the actual value of mainteDance of the present gold the money Is Its purchasing power, Itandard (parity at $-i9o/e) will lead there would be no change in the total Nippon to a finaDclal panic. the climn value of Nippon" currency, even If of an industrial crisis. They further the number of notes and coins were point out the unfavourable effects of In('reascd as a result of the redue­ Japan's gold ban removal at the ori­ tion of the value of the unit, while ginal parity point of $-69o/e on ber the quotations of commodities were finance as follows: advanced. 1. Abrupt decline in the market value I. Would the people receive the lUll­ of commodities, shares, and im­ plus funds from the Central Govern­ movable property. ment or the local governmeDts If the 9. Heavy decrease in quantity as well devaluatioD of the Yen were ell'eetedP as value of aalea of these rommodi-

-101- JAPAN AFTER GOLD BAN REMOVAL ties, shares" and immovable pro- do not hayc .ufficlent workln, fund. perty, following the wane of the through failure to collect their loan •. public purchasing power. The continued disposal of mortga-: 8. Marked shrinkage of public credit gel by banks wllJ cau.e the depo.ltorl

on account of the forced reduction to become uneasy about their money. I of capital and Increase of debts In The consequent run. on banu will order to cover the loss, following finally lead the financial circle. to a I the preceding two facts. panic. 4. Difficulty of collecting 10an9, on The Japanese financial circle. are, the part of creditor bank.. Difficul­ now apparently quiet, accordln, to ty of paying even interest, on the the oppositionists, thanka to the .uc­ part of borrowers. cessful vemng of the actual .Ituatlon IS. Decrease of the Bank of Japan'. by the Goycrnment'. constant financi­ specie holding; following the con­ al relief of the commercial bank.. tinued gold outflow. Decrease of These unfavourable facts, which commercial banks' deposits with the were pointed out by the oppositionists, Bank of Japan, because these com­ are not lolely due to the gold ban mercial banks have had to withdraw removal at the original parity point, their deposits with the National the author believes, but we may as­ Bank in order to cover the shortage lume that the lifting of the gold of their working funds, following embargo at the parity of ""0/. I. the unsatisfactory adjustment of partly respon.ible for the aforemen­ their credits and loans. tioned results. At least, It accentua~ cd the declining tendency of the com­ 6. Steady decrease of the commercial modity price., to the great dIsappoint­ banks' working funds. Shift of de­ ment of producer.. posits from small banks to large Some young member. of the Sel­ banks. Thus small banks are fac­ yukai, Opposition Party, In 11130, ing a crisis. passed a resolution demanding from The small banks are now on the the Government an Immediate ban on verge of a critical situation, according gold export, In view of the continu­ to the oppositionists. They declare ed outflow8, and the later removal that a tremendous financial panic will of the embargo, after a proper time, occur in Japan, if the present un­ at a new parity point because they favourable situation develops a step considered that the gold baD remoy­ further. al at a new parity point (lower thaD For instance, banks _ill have to '4.9%) was the oo1y way to relien dispose of mortgages (both documen­ the JapaDese IndU8trfal, commercial tary securities and immovable pro­ and financial circles from the preaent perty), which are held against their depression. 0, loans, at unreasonably low prices if This view is IOmewhat mlsleadJng, they are asked to refund deposits anel because the world-wide depressioD

-10'- JAPAN AFTER GOLD BAN REMOVAL

wu greatly responsible for the afore­ 20%, compared with the prescnt qu~ mentioned unfavourable results. It tations. II doubtful that Nippon would be able This will cause the value of hold­ to escape the prevailing depression ings of raw materials and manufac­ by adopting a new parity point In­ tured goods to rise by about 20%. stead of the original parity point of thereby greatly relieving the produc­ $4.9%. cers from difficulties following the These new parity supporters do slump of the market quotations, ac­ not take the expected unfavourable cording to the new parity supporters. effects of the second prohibition of Banks will also become somewhat 'the gold export on Nippon's finance easy about their loans, because the 'Into consideration, although the em­ market value of mortgages against bargo may be effected for only a short which their loans were made will be­ , time. This is very serious and the come higher by about 20'70. I new parity supporters should recall Loans made by banke and trust the unfavourable situation before the companies and their documentary gold ban removal prior to demand­ security holdings totalled about ¥18,- Ing the second prohibition of gold ex­ 900,000,000 at the end of 1930. The port from the Government. application of the 20% recovery As the gold ban removal has al­ theory on one half of the amount, ready been effected, It should be con­ if it is too much to assume that the tinued for some years until a definite market value of all the mortgages judgment of the results of the finan­ would advance by about 20%, will cial experiment has been made, even make the value of mortgages increase If the lifting of the embargo at the by as much as ¥1,890,OOO,OOO. original parity point may seem. to The increase of the value of mort­ lome oppositionists. a failure. gages may be far larger than ¥1,890,- In this respect, Mr. Mitsuchi is 000,000, because the original value of 'wiser than other oppositionists. it mortgages, against which the ¥18,- seems, to the author, as he says the 900,000,000 loans were made, should second prohibition of gold export be greater than the total value of the should be avoided as long as possible loans from a commercial viewpoint. f until it becomes an ultimate measure The new parity supporters further \ to cope with the situation. because declare that banks and trading com­ he knows what will happen after the panies will be able to see favourable second gold ban. results, equal to their financial ad­ What are the remedies offered by justment by the reduction of capital, the new parity then? According to dividend. payable loans and export the new parity supporters, the mar­ prices by about 20%, without mak­ ket value of documentary securities. ing the actual reduction. if the gold commodities and immovable property ban is removed at a new parity point will reactionally advance by about of about "0. In addition. these

-10'- JAPAN AFTER GOLD BAN REMOVAL banks and trading companis appar­ by about 20%. 'ollowlng the devalua­ ently can maintain their capital and tion 0' the Japanese eurreuey b, diyidend rate. about 20%. The remedies 01 the new parity are In thla cue. however. the grain of lurther divided into three kinds. that ~Id 'or the Yen mUlt be lowered, III to say. permanent or continual re­ otherwlle the unit value 01 Ifold In medy. temporary remedy and mo­ Japan will become lar lower than mentary remedy. The items to be other eountrial and Nippon will be included in the penn anent or coo­ placed fa an anlavounble .ltaaUoo. tinual remedy are as lollowsl Not only the prices 01 raw materl. 1. About 20% reduction 01 debts. als Imported but a1ao thc quotation. 2. Aboul 20% reduction 0' capital 01 raw materials produc: 1 In Japan and dividend rate. (The equiva­ will advance by about 20%, ·rom the lent 0' such reduction; DO actual theoretical viewpoint. AI the author lowering takes place.) remarked in an earlier paragraph, 11 a. Reduction 01 taxes. railway 'al'Clo the devaluation 01 the Japanese cur­ postal and telegrsphic chargea and rea~ by about 20% takes place, that rent lor land. Ia to .ay. not only the edemal ..Iue but alao the Intemal value 01 the Yen .. Some reduction wages and 0' Ia reduced by about 20%. salaries. Under the heading "temporary re­ The commodity price advaDce and medy" the lollowing two itema ma, the natural debt drpreclation are coa­ be Included: .idered to be effective in checking temporarily. Dot permanently, the 1. Some reduction 01 wages and I' coming Gnaaclal paule. Thll view II salaries. partly true aad effective la checking B. Reduction 01 the prices 01 raw the difficultial 0' the industrial aad materials produced in Japan or to tlnancial drclea. be used in Japan. What will become 01 their receiv­ The momentary remedy include.. able loans, even I' the value 0' their 1. Advance 01 the price. 01 raw ma­ mortgagal advaaces' It mlllt Dot be terials imported and ,oada manu­ overlooked that the actual value of lactured with the imported raw their receivable loan. will drop In materials. proportion to the rise of the mort­ I. Comparatively 10- prices 01 raw ,age value. materials produced in Japan and Isn't It all the lame, If the actual low cost 01 manufacturing goadl value of mort,..aI 'allI by about, Irom them lor export. 200/0 (WhCD the, are converted into In short, the remedies claimed 'or money). although the markel q1lota­ the Dew parity are the advance 0' tiou 0' mortgagetl ma, rile b, about' the commodity prices by about 20% 20% , Re,arding the dlndend. the and tlu! Datural redUCtiOD 0' clebts aharcholdera wW be clever CDOII,h to -181- JAPAN AFTER GOLD BAN REMOVAL

Dotlce that the purchaaing power of Takahaahl beloDg, to the lupporters their receivable money is much lower of the .econd measure, while Mr. than before the devaluation, even It Muto favours the first plan. the amount of the receivable money and the rate of dividend may be the Further measures aa to the gold ban removal are proposed by the new .ame, compared wltb before the de­ valuation. parity. supporters aa follows. It i. lomewhat unreaaonable, the 1. The prohibition of gold export author consider., to declare that the should be declared by the promul­ exporters will be greatly benefited by gation of a law or by the Emer­ the reduction of uport prices by gency Imperial Ordinance. In about 110% aa a result of the de­ both casea. immediate action iI im­ valuation, because the advance of the perative so that the foreign ex­ quotations of raw materiala and change will not rise abruptly before manufactures by about 110% will the prohibition is declared. oft'set the expected reduction of the 9. The Government should issue a foreign exchange rate by about 110% statement that it will lift the gold from the theoretical viewpoint, al­ embargo at a reasonable exchange though the price advance may be less rate. than the exchange rate fall. There S. The Government should take steps will be no benefit of the devaluation, to maintain the exchange rate at. ucept the stabUization of the exter­ say. between $·U and $-'2, if the nal value of the Yen In the export Yen begins to fall below a reason­ business. able rate. The stabilization of the foreign es­ .. The legal external value of the change has already been realized as Yen or the Dew parity poiot should • result of the gold ban removal at be fixed as sligh tly below the the original parity point of $49"4. market quotation, which would be :What Is more favourable iI that the stabilized for about ooe year, uternal value of the Yen Is now while the internal price level aod .tabUiaed at a comparatively high wages were adjusted. At the same quotation 01 $49%. There iI then time, the gold embargo should be DO necessity of eft'ectlng the devalu.... removed at the new parity point. tlon of the Yen. The Dew parity lupporters further How do they figure out the new say that the restriction of foreign in­ parity point of the YenP Their views vestments. payment of foreign loans are roughly divided Into three. that Is and import of foreign capital by the to say. the stabilised quotation for a Japanese eommercial and industri

-101- JAPAN AFTER GOLD BAN REMOVAL found in studying the proposed me ... Thla II lomewhat Ideallatie and im­ urea for the removal of the gold ban practicable, particularl, for Japan, at a new parity point. because Nippon hu man, excluAv.! No manipulation ill to be adopted commodltlel luch u riee, mlao anel! in connection with the Yen quota­ .hoyu. the prlcel of which c:annot ~e tion, according to Item I of the pro­ compared with the pricel In Occi­ posed measures. Then the quotation dental c:ountrlel. The purchasing is supposed to move at about $4.1 or power parlt, theory ma, be adopted $402, for instance, in accordance with between the Occidental c:ountrle .. or the Government'. announcement that between the Oriental c:ounlrl.., be­ it will stabilize the Yen at between cause the necellarlel In these c:onn­ $U and $402. In that event, the triel are almollt the lame or much quotation will never become markedly alike. higher or lower than the hoped for In addition, the c:ommodit, prlcel Dew parity point. - In other conntrlel are .upposed to According to Item 8, howeveT, the be ltabilized forever, according to Government must use manipulation these new parlt, supporters, while to maintain the Yen quotation at be­ the prlCei in Japan alone are to ad­ tween $4.1 and $402, if it f1uduate. vance u a result of the devaluation' violently, contrary to expectation, of the cumner. ,,-hereas no artificial measure was to The purchasing power parit, point be adopted in connection with the for­ of the Yen ma, be fixed at $4.1 when eign exchange. the index Dumber of the average The domestic price level is SUpp08- c:ommodit, priCei in Japan II 140 and ed to rise in accordance with the de­ that In the United Slalel II 12 •• cline of the foreign exchange, while When the U.S. index Dumber falls the world commodity prices, even the further to II', while Japan" index commodity prices of the silver .tan­ Dumber II lupposed to be atationary, dard countries, are supposed to be the purchuing power parit, point of stabilized, according to the new the Yen will become about $31. Con­ parity supporters. trary to thilo the purehuing power Th us Items 1 and a are inconsis­ parit, point of the Yen will adYance tent, while the supposition that the to $"Va, wheD the U_S. index DUm­ world commodity prices, even the ber Nel to 18', whUe Japan'. index numbeT fa .upposed be statlonar,. prices in the silver standard coun­ to tries, will be stabilized during the Admitting that the c:ommodity period, is impracticable. These new priCei In the two c:ountries are on the parity supporterll seem to base their .ame tendeucy, the purchasing power views on the theory of the purchasing parit, point will Dot ,et be Btabl1ized. power parity, which is to be decided becanse the rate of f1uduatioD will in accordance with the index DUm­ dilrer between the two c:ountries. beTS of two countries' commodity Particularl, In Nippon, the higher prices. c:ommodilJ priCei are desired" accord- -uo- JAPAN AFTER GOLD BAN REMOVAL

lng to the new parity lupporters, percentage was smaller by 6%, com­ hence the lifting of the gold embargo pared with the expected advance, fol­ at a lower parity point I, demanded, lowing the fan of the exchange rate .while the world tendency of COID­ by 10%. The decline of commodity modity prices Is downward. prices by 5% In the United States be­ Where Is the virtue of the gold tween 1928 and 1929 was partly re­ ban removal at a new parity point, apons!ble for the comparatively small It the Itllbilization of the foreign ex­ advance of the Import prices in Japan. change II not realized? Commodity The recent Yen quotation has been prices are mostly subject to the for­ $4.90/0, whereas It was a8 low as $.Jot, eign exchange. Do they now still ex­ In June, 1929, the increase percentage pect the higher prices of commodities being about 12%. The decline of com­ to last forever? modity prices during the period was Thus the fluctuations of the com­ as heavy as 19.3%. The drop of the modity prices and the consequent dif­ export prices was sharper, being ference of the Index numbers between '1.2%. The decline of the import two countries by 20 will cause the pur­ prices was also acute, being U.5%. chasing power parity point to change by $7%. The foreign exchange, there­ Taking the 13% drop in the U.S. fore, will undoubtedlY become an ob­ commodity prices during the period ject of speculation and the Govern­ Into consideration, the advance of the iI1Ient will not be able to maintain the Yen by 12% should cause the import intended reasonable quotation of the prices to fan by 25%, but the actual decline was 8 ... 5%. k" en unless It endures heavy losses in ~xchange operations. In addition, the Thus it is now found that the 20% ~ew parity point will prove to be reduction of the parity point would artificial, which is far from the actual not cause the advance of the domes­ !xtemal value of the Yen. tic prices by the same rate as the new , Will the new parity cause the d~ parity supporters expect. mestic prices to rise? This is the most How about the documentary sec­ important problem, because the new urities? Will the quotations of bond. parity supporters intend to relieve the and debentures advance abruptly as a Japanese business circles of price de­ result of the devaluation of the Yen. cline. The Yen quotation in June, No, they will not, because they have 1929, was $-1.4, whereas it was $4.9 in not so far witnessed such a sharp de­ March, 1927. This is a decline by cline as stocks on account of the fact 10%. The commodity prices in Japan that they are something like cash, the witnessed an average fall by \U% periodical payment of interest and the during the period, whlle they should refunding of the principal having been register an advance, according to the· assured. theory of the new parity supporters. The payment of the principal and The prices of imported goods alone Interest, however, will be made in the rose by '% during the period, but the new money (lower value). whereas the

-111- I.A.PAN. AFtER GOLD BAN REMOVAL loani were obtaiDed In the mODey of tsUon. recovered remarkably at the higher ..lue. Thla Is equiYaleut to end 01 1II8G-the JapaneBe Goyem­ the reduction of the prlaelpal and ID­ ment'. ,old baa remoyal, which Ill­ terest payment, on the part of the bor­ dudea the preparatory meuurea ad­ rowers, aacl the horrowen alone will opted .ince July, 19211, WU Dot .olel, be benefited by the devaluation. The responalble lor the drop 01 .tcic:k quo­ quotation of theae .ecnrltia may tation. at alL rather be ineliDed to fall In yiew of The Inftation 01 the currenc,ln the the·: devaluation. past leYerai yean and the maladJust­ Will the market quotatiOD. of .locka ment of bUline.. condition. durin. advance? Yes, but temporarily, be­ that period .hould be heJd reaponsible cause the favourable ed'ecta of the lor the abrupt laU 01 the .tock quota­ lower exchauge rate. and the con­ Itions, wtead 01 the ,old ban remon) sequent higher commodity prica OD at the original parity point of '''%. the eamiDg power of the compania The recovery 01 the .toek quota­ ·will not lut long. tion. to the Ind of January. J929, Then the Btock quotations will make will Dot be realized by reducing the a reactional decline. These quotation. panty point 01 the Yen by 20% or '0, are to be stabilized in accordance with but a drastic cut by between 71% aacl the business resalta of their reapective 80% will be neceasary. Can Japan companies for .ome time, at leut for cndure .uch a drutie redudloD of the one busines. term. The lncreue per­ parity polut fM the .ake of the .tock centage of the .tock quotation. afte. quotations' Should Japan .tabWae the realization of a ncw parity point, the Ihare market at .uch hen, ..- therefore, will be much amallel' than pense 01 the lorelgn exchanger the actual advance of the commodity No, ablOlutdy not. There Ia no Deed prieeL of reducing the yalue of the Yen. The In addition, the finanelal cODditiOD' world adm1t1 it. So far a. the .tack of the Japanese commercial and In­ quotstioDl are eoncerned, the devalua­ dustrial compania mostly haYe beeD tiOD of the Yen i. uUDeCeaaery, be­ unfavourable due to the long apeD of cause the quotatioDl wiD rise by 1m­ the "inSatioD period," many com­ provia. the ftnaDcia1 eoudition. of panies baving been established durin, yanou. compame. or b, other finan­ the period of the War boom and hay­ cial policlea of the Government wtead ing neglected to write od' the Yalue 01 of b, the devaluatiOD of the Yeo. their assetL The actual Yalue 01 POI' 1DIta-. the Itock quotatiou their capital, therefore, i8 now rather generally were higher Ia Decembu. amaller than during the "mSatiOD 11130, compared with the preYiODI period." . • montbl, due to the low interelt rate Supposing that the anrage drop 01 ln the 0peII market and the couequeat the stock quotationa aince Jme, 1929, reductioD of the oflldal rediKount wu 1i0~thODgh lOme atoek qu~ rate br the Bank of lap.. aacl alIO -w- JAPAN AFTER GOLD BAN REMOVAL

the Government', relief loan. to the Manufacturing and trading com­ commercial banks, whieb have financ­ paniea will be most benefited bl the ed the commercial and industrial com­ reduction of the Internal value of the panies. Yen, because they ma,. be able to re­ According to the new parity sup­ cover their business, following the porters, the reduction of debt. by invisible reduction of their capital, about 110% will be effected a. a re­ dividend and payable loans and the .ult of the devaluation of the cur­ consequent adjustment of their ac­ rency. Thi. i. very terlous, because counts. it might cause the Japanese financial The purchasing power of the peo­ circles to be upset. ple, however, will be stationary, if it In the feudal days, sueb a policy does not faU, and it will by no means 11'81 adopted by the Government in cause these companies to become order to relieve the borrowel'l of active. 'What is the faYourable effect their financial difficulties from the of reducing the debts on the market 80clal welfare viewpoint. The rela­ then? Is tbe reduction of debts ab­ tion between the creditors and the solutely necessary for present dal debtors wa. 'fery simple at that time, Japan? but the recent extensive connections There is no reason at present that alllong them do not allow such un­ debts should be reduced at the ex­ reasonable high-handed adjustment of pense of the public uneasiness. The accounts. proposed reduction of the Internal Surh forced reduction of loans. at value of currency for the sake of the the expense of the creditors, is some­ financial readjustment of commercial thing like Communism and it is un­ and industrial companies alone .. 1! desirable In time of peace. The pub­ quite unreasonable, because there are ',lic will become uneasy about credit other means than the devaluation of and the stability of the money mar­ the currencl in order to place them kd will be constantly affected. on a sounder financial basis. Depositors with banks and trust It is not too much to say that the companies, holders of postal savings, devaluation of the currency in ae­ bonds, debentures and insurance poli­ cordance with the proposed measures \ ('ies will suffer a heavy loss If the is something like "civilized te... internal value of the Yen Is reduced rorism," especially if the Government permanently, though the borrowel'l dares to do such thing when the will be relieved of their debts In ac­ actual internal and external yalue of ('ord.met' ,.'Ith the rate of ,.eduction. the currency is not ao low. Banks, trust and Insurance com­ panies, and other financial organi.... The author. however, is not ab­ tions will not suifer, any great loss, BoluteIy opposed to the measnre o. because the reduction of their reee!,.. devaluation, because the adoption of able sums will be covered bl that 01 such measure should be made in Be­ the payable amounts. cordaace with the situatio_ot oulJ' -u.- JAPAN AFTER GOLD BAN REMOV At.

the domestic conditions but allO the made by the Gold Delegation of the \ world circumstances. Finandal Committee of the League' The devaluation of the currency of of Nation•• a' country regardiess of world con- In addition, the slump of the bar ' mtions will be followed by disastroul aIlver value and the Increasing tarl! rI results, although it II a' valuable competition are great obstacles In the move from a theoretical viewpOint. way of world economic reconstruc­ So far as Nippon's present tinan­ tion. Therefore drastic measures, cial conditions are concerned, the the author considers, are Imperatiye author considers it wiser not to adopt In order to rellne the world trade such a measure, because Japan can of the pre.ent depression. go without the help of a currency reform for a longer period. The drastic measurea, wbleb Ihould A more serious question Is how be lnuroatlonally adopted a. olher· wise they will be Inetrectlye, are the long she will be able to maintain the abolition of tari! and the consequent gold standard. She will undoubtediy freer trade, the remonetization of find it difficult to keep the gold stan- lilver as a result of the adoption of dard in the, future-maybe in the die- bimetallism or the abolition of the tant future-in view of her small gold .tandard and the total disarma­ gold holding, compared with. ~e ment of the Power. for lOme YeIlH, United States, France and BritalB, '§Y flve yean, or the outbreak of a the limited gold supply to Japan and ar between the advanced manuf«­ her annual unfavourable trade, uring cOllntries, although the last balance. e ia undesirable and should be It is unfortunate for Nippon that avoided as long as possible. she has bad to adopt the. gold atan- The author conslden that the study: dard in accordance w~th other of these questions ia more Imminent Powers, . although Ihe 18 greatly for Nippon than the demand for the handicapped in ti~~ncial resources, devaluation of the currency, because particularly in acqumng gold. we must think of Japan'. situation The world competition in acquil'- in the world finance of a distant fu­ ing gold is getting keener and keener, ture Instead of considering only the although the "gold fetishism" i. op- tinkering with the present unfavoul'­ posed by many ecouomists. This may able aituation. Thil ia the funda-I be unavoidable as long as great im- mental problem, not only for Nippon portance is attached to the metal. but elso for other countrie.. The abnormal accumulation of gold The author will not give hi. fur- in some parts of the world, the con- ther view on these problems In thl. sequent partial world circulation of article, because he belieYe8 that there gold, and the expected decrease of will be another .opportunity for 80, the new world gold supply are partly doing and he think. It hil duty to responsible for the continued world p~nt these qUe8~on. for tbe public depression" according to the 'lI"ey conSlderation at tblll time.

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