Though only to a modest extent, the gold outflow from Japan to the United States is being offset by a similar movement to Japan from Shanghai, says an article in the <"Japan Times & Mail." A prominent exchange bank has recently brought over from Shanghai Y.1,- 300,000 in gold in three shipments of Y.100,000, ¥.350,000 and Y.650, 400 and chances are said to be fair or this influx continuing for some imo as the foreign exchange pos between the two countries is in favour of a sustained movement, of that character This situation is contrary to the earlier estimate made in Japan for pronounced outflow of the yellow metal to China after the resumption of gold payments. The gold exodus from Shanghai fiated in January of this year by a leading Japanese bank which carried that metal in sizeable quantity America, Very likely many other banks will be follo is the example eet cly the two Jap: banks. Such gold. from Shanghai, which comes in the form of bullion, is Janded in Kobe, loaded in motor tricks and forwarded to Osaka to delivered to the Government Mint, It is stated that banks bringing over the bullion are sugh' ly better off than buying Shanghai drafts on Japan, as the cost of gold, coa freight, insurance, landing, drayage and other incidentals, total up below the cost of the drafts at the present rate of exchange.
Japanese exchange banks Shanghai have considerable amount of surplus credits the result that exchange rates on Japan continue stiff and near by drafts ave most dificult to obtain, This situation has led up to their buying gold for shipment to Japan. The pi vent depreciation in bar silver accountable for numerous Chinese selling gold ornaments and other articles which is accountable for a steady flow of such articles from the interior to Shanghai to facilitate banks buying gold at this time.
Gold shipments from Japan to Amerien have become spasmodic of Jate and, though less important, the Bank of Japan is slowly replenish: ing its reserves of gold. Gold mining firms of Furukawa, Sumitomo, Japan Industry and others are sell> ing modest lots of yellow metal to central bank these days,
Text read from the printed page and cleaned; old type leaves the occasional error.