JAPANESE ECONOMY

Wairarapa Times-Age, 27 August 1938, Page 6

JAPANESE ECONOMY

SERIOUS FALL IN EXPORTS HEAVY DRAIN ON GOLD RESERVES. POSITION OF INCREASING DIFFICULTY. (Recd This Day, 11.40 a.m.) V LONDON, August 26. Reports are reaching the city that the Japanese finances are subject to an almost unbearable strain. The official trade figures, which show a decline in exports of 21.5 per cent for six months, do not tell the whole story, as they include exports to the yen block countries. The “Statist” estimates that genuine foreign exports have slumped at least 38.9 per cent. The import surplus, which Japan had actually to pay from her small foreign exchange and gold reserves, is fully twice as large as the trade returns suggest. It also appears, in contrast to the official statistics, that Japan has lost from 50 to 60 per cent of her gold reserves since the war with China began. The general belief is that a sharp deterioration of Japan’s economic position is likely in the near future.

CALL ON HOUSEHOLDS. SCRAP IRON FOR MUNITIONS. (Recd This Day, 11.35 a.m.) TOKIO, August 26. A nation-wide drive for scrap iron from households for munitions has begun.