JAPAN'S RUINED CITIES

Lake Wakatip Mail, Issue 3719, 16 November 1926, Page 2

JAPAN'S RUINED CITIES

AFTER THE EARTHQUAKE ECONOMIC REVISION A week after tho earthquake of September, 1923, when the smoke and ■fumes had partly cleared away from the eastern, coasts, careful observers asserted that Japan was crippled for twenty-five years to come. Such forecasts seemed well based when the damage was surveyed. Tokio ; the capital, almost completely demolished; Yokohama, a mass of ruins; wealth totalling £300,000,000 destroyed; the economic organisation and the finances of the country disrupted and weakened. It is apparent that the prophets were wrong. Almost (normal conditions have returned to Japan, according to travellers. Silk exports last year were the largest in the country’s history, quotations on Japanese bonds indicate a return of confidence, exchange is only two points off par, and the trade balance is almost at (normal.

Travellers returning from the Orient tell of an almost reconstructed Yokohama, new piers in operation far surpassing the ones destroyed, new construction proceeding at a rapid pace and along lines completely modern, in Tokio approximately 70 per cent, of the devastated area has been rebuilt, and the remainder only awaits the decision of the Land Settlement Commission.

Within three months after the earthquake tramways and railway services were again in operation mi Tokto, ami the water mains and electric connections had been restored. While a Land Adjustment Commission was determining ownership and rights in the devastated area another Commission set to work to draw up plains for a new city according to the most approved ideas. Because of the desire of the Japanese Government to assure that there would ho no loss of title or property without proper compensation, the work of the Commission proceeded slowly, and permanent rebuilding was for some time held np; hut this labor is now rapidly nearing completion, and a now Tokio, with broad, straight streets, adequate parks, and rectangular divisions, is .-.ppearing on the horizon. Japanese statesmen have seized this opportunity to reconstruct the economm organisation of the country so that it would harmonise with the industrial changes that have taken place since the turn of the century. Mr Hamaguchi, the Finance Minister, has recently pointed out that three of the knottiest problems hearing upon the financial and economic structure of '.ne country have already been solved —tax reform, tariff revision, and the reorganisation of the semi-governmental banks. There still remain to be readjusted the problems of the general credit situation and the improvement of tlie country’s foreign trade. Of these two foreign trade seems nearer to approaching normal. The foreign trade balance is one ol the most reliable barometers of Japanese prosperity. Japan has normally an unfavorable trade balance; before the war it was from 50,000,000 yen to 100,000,000 yen. This unfavorable balance is oilsot by various invisible imports ostimated between 200 and 000 million yen amuilly. Subsequent to ihe earthquake imports took a tremendous jump, due to receipts of lumber, and other materials needed for reconstruction purposes; while on the other hand exports almost ceased. The year 1021 witnessed an unfavorable balance of 010,057,00) yen

A'linonncemcnt lias just been ma.l' by the Ministry of Commerce that lor tfie first six months of 1920 the unlay urable balaneo amounts to 097,500.0' 51) yon, which compares with 518,000 000 you adverse balaneo for the first ;ix muntbs ol 1925 and (3(5-1,001 ,000 yen tor the corresponding; period ol 1924. Those figures arc considered do live, 'file first six months ol the vear is the season of lioavy imports; in .July the tide turns with the commencement of the outward silk' movement. hast year this title ran so heavy Dial the yoar-ond showed an unfavorable balance of only 2(57,008,05(5 yen, and if 'l.o silk crop proves as profitable Ibis .car as la<t (Ik; close of the year will nil no.'S a trade balance almost at normal.