MORATORIUM IN JAPAN.

New Zealand Herald, Volume LXIV, Issue 19620, 26 April 1927, Page 13

MORATORIUM IN JAPAN.

DOTATION THBEE WEEKS. STUPENDOUS TASK AHEAD. COUNTRY IN SERIOUS POSITION. By Telegraph—Press Association —Copyright. (Received April 25, 5.5 p.m.) A. and N. Z. TOKIO, April 24. A bank holiday was observed yesterday as a measure of precaution ia the present financial crisis. To-day this was followed by an Imperial Ordinance, which ordered a moratorium for three weeks, during which time there will be a 'complete suspension of all regular bank transactions throughout Japan. The Minister of' Finance, Mr. K. K. Takahashi, announces that there will bo no further artificial support of the yen, no further shipments of gold will be allowed, and the gold emba.rgo will not be lifted. The situation is unchanged except that it is passing from the hysterical stage to a bitter realisation of the new conditions for everyone, and of the stupendonsness of' the undertaking with which the new Administration is faced. The newspapers frankly assert that the situation is most dangerous, The crisis has not been reached unless the entire country has been, brought to realise that the permanent and conservative buildingup upon -the pre-war foundations must commence at once. The papers think that the process of reconstruction will last for 12 or 15 years. The consequences of the upheaval are that 29 banks have been closed. They had total deposits of £800,0(X),000. The situation as regards the exchange is not serious, but Mr. Takahashi is quoted as having said that the yen must be allowed to find an accurate level. Meanwhile all the larger businesses have stagnated. THE BROKEN ALLIANCE. MOMENT FOR RESTORATION. HOW BRITAIN MIGHT HELP JAPAN (Received April 25, 5.5 p.m.) A. and N.Z. LONDON, April 24. Mr. E. Ashmead-Bartlett, the Daily Telegraph's special correspondent at Shanghai, says Chinese affairs have been entirely overshadowed by the Japanese crisis. Baron Tanaka's declaration that Japan cannot afford indifference to Chinese affairs has given .relief and satisfaction at Shanghai as foreshadowing a stronger line of action against the Communists and more co-operation with the British. But the feeling has been engendered that the broken Anglo-Japanese Alliance remains the stumbling block to a renewal of the old cordial relations. "A high authority on Japan told me that now would be the right moment to restore Anglo-Japanese friendship by helping Japan to understand England by the latter guaranteeing a loan of £20,000,000, although she id financially embarrassed," says the writer. "This would be the finest investment possible. It would completely change Japanese public opinion and restore the lost confidence in Britain."