Statement From Finance Minister Expected: Gold Shipments to America Osaka, Nov. 20.
The gold policy of the Japanese Government may be definitely set forth by Mr. Kataoka, Minister of of Finance, on the occasion of the annual meeting of the Bankers Association to be held in Osaka on November 27.
Recently there is. increasing demand for the immediate removal of the ban on gold export. The reasons they enumerate may be summarized as follows:
1, Export season is about over.
2. Silver is becoming steadier.
3. Foreign speculation in Yen is decreasing. If this favourable opportunity is allowed to slip they, fear the Japanese exchange might again go down, On this very question an important conference was held recently at. the Treasury Office in Tokyo, Besides the officials of the Financial Department, the Governor of the Bank of Japan' and the President of the, Yokohama Specie Bank were pre!' sent, Mr. Inouye, the former Minister of Finance, was also called Afterwards, Mr, Kataoka stated that the Government was making preparations, and that he would consult with bankers and business men before taking action, He said not: only the Government, but everybody, must be prepared for the return to gold standard, In preparation for the removal of the embargo, the Government will continue to make shipments of gold to the United States. For this purpose the Treasury holds 73 million yen available. At the present rate of shipments, this amount will last several months, and if this Government gold is exhausted, they whi probably draw upon the reserves of thy Bank of Japan, In addition to these special shipments from Japan, some people advocate the arrangement of credit in America to the extent of $100,- 000,000 gold in order that the embargo may be lifted immediately without disturbing the money market, in Japan, No Prospect of Lifting Embargo Mefore Next August Nov. 24.
Reuter learns from a very reliable source that the Government does not intend to lift the gold embargo till August, 1927, prior to which it Propose:
1 further to lower bank rates.
2.—To increase the sinking fund, 3.—To ship another Yen 75,000,- 000 specie to America.
4—To adjust the outstanding earthquake bills amounting to Yen 208,000,000.
This done, it is considered safe to remove the embargo in August, when Japan's foreign trade normally begins to show a favourable balance.
Later.
Four million yen specie will be shipped to America on November 28 on the T. K, K. Shinyo Maru, Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.