Shortly after the outbreak of the China affair, the Government decided to maintain' the Yen at 1s. 2d, at all costs, Mr, Kaya, the Pinanee Minister, after consultation with his predecessor, Mr. Yiukl, now Governor of the Bank of' Japan, carried out a revaluation of Japan's gold reserves and created 'a fund" with the '¥.147,000,000 book profit so obtained to enable the adjustment of international accounts, According to an explanation made in the Diet, ¥.827,000,000 worth of gold was shipped during the period between March and July, 1937, The Japanese Government refuses to dis lose the amount shipped under the newly created gold account, but it {surmised in many quarters that some '¥.300,000,000 more has been shipped, If 80, the total gold exports In 1937 totalled '¥.600,000,000,, Tu view of the fact that many parties had been making undesirable Imports, taking advantage of the un-Ucensed, limit. of Y.1,000, the Government cut down the limit to ¥.100 in December, 1937.
In view of the fact that the Yoko~ bhamo Special Bank alone Is allowed to make use of the overseas fund jereated by gold shipments, other banks find it extremely dificult to continue business. The exchange business is in fact virtually contralzed to the Yokohama Specie Bank, and open market operations are now severely. restricted,—Reuter, soon recover, He considered that President Roosevelt's announced intention to control commodity prices was a great disservice to world prosperity, which depended on good prices.
"I believe, however, that America will revert from that' attitude," Vi Ht] count Home added, "and the world Zi] in the middle of 1937."—Reuler.
will return to the position it occupied
Text read from the printed page and cleaned; old type leaves the occasional error.