INSURANCE CLAIMS

Evening Post, Volume CVI, Issue 127, 26 November 1923, Page 7

INSURANCE CLAIMS

CHEAP LOAN TO COMPANIES.

TOKIO, 23rd November! The Government's proposal for the settlement of the long-pending insurance question, purports to be a 2 per cent, loan to the insurance companies, amounting to the equivalent of the 10 per cent, of the claims against,the companies, which the companies will pay. The companies are to create an organisation to which all will subscribe, to guarantee the redemption of the loan. Final details are expected to be settled after a conference of representatives of all the companies. The reconstruction estimates, which have received the final sanction of the Cabinet, closely approximate the figures recently cabled (705 million yen). The amount is expected to be raised by a loan on the domestic market, which, it is believed, will be able to fina-nce it, according to a statement by the Minister of Finance, who added that, if foreign loans were needed, they would be issued only to preserve the balance of trade. Such an issue is considered unlikely for the next two or three years. The estimate of 705 million yen does not include amounts to be raised by the Tokio and Yokohama municipal bond issues,, but includes interest thereon. These municipal issues are estimated at 173 million yen. '<