Review of the Shanghai exchange market for the week' ending May The lethargic state in which the Jocal exchange market had been for} tome time was abruptly ended or May 19, when it became apparent that natural factors were adverse to the {oo rapid improvement of the value of the yen, The recent financial evisis in Japan, which had been overconie with remarkable skill and success, nevertheless left wounds open which could not be healed by proclamations or regulations. While the Japanese press tries to put the Blame on Kiukiang Road and Wall street, it appears that the authorities Rave decided that the nursing of the yon by artificial means would the constituting a very costly experiment, the lasting results of whicn might at beat be problematical. would therefore appear that the Tokio authorities have adopted the policy of watchful waiting,—guaxding, however, against undue depreciation brought about by specul: tive sales, Ju such an event the Government is sure to intervene.
The removal of the embargo against free shipment of gold from Japan, originally contemplated for this summer, has now to be postponed ale ghina. The yen is left] to find its natural level. In view of the approaching silk season ani the consequent favourable trade balance, combined with the hermonious working together of all parties in problems of national importance, the expectation is jus! fied that the yen will regain equilibrium by degrees,—bartinz tthe eventual unexpected appearance of new. unfavourable factors.
Our local: speculators have tat tained, and even, augmented; thole oversold yen: position, the part of which is covered by either gold bars, U. S. or £ purchases. 'The size of the gold dealers yen position on May 21 is estimated to aggregate 65 million yon, of which: out 20 million yen have a counterpart in U, 8, $ or, while the hi Tance of 45 million' yon is either leavered by gold bars, or else open. Taking into consideration that the yen was quoted on May 16 at 47.
U. S. while, on May 20, the Lowest cross-rate from Kobe came through as 452 U. S. $ for 100 yen, it will be observed that there was depreciation of 4 per cent.
'At the close of the voted at the mean rate of 46.8 'The movements of silver during' the week were less eventful, "for fluctuations in London, New ' York and Bombay were moderate. Ad.
es from abroad do not depict silver prices as strong. The largest support which the white metal has at the moment is centered at Hang~ chow, where the mint continues to consume about 220 bars per diem. In spite of the uninterrupted production of new silver dollars, the market price of the latter continues above the The pos virtually unchanged. Exchange!
tlements for exports, though nct excessive in volume, are more frequent than exchange requirements for imported goods—apart from special doeses of merchandise which have to be brought here.
Text read from the printed page and cleaned; old type leaves the occasional error.