The arrangement now successfully carried through between the Japanese Goverament and fourteen of the leading backs of Japan, for the conversion of 100,000,000 worth of domestic bonds from five to four per cent, is undoubtedly s feather in the cap of Marquis Kat The scheme has been in the air for some time; in fact the Prime Minister's financial pro-|° gramme for the past two years can be shown to have been gradually leading ap to this step. But the proposal was only formally put before the Tokio bankers on January 26, and it is addition matter for congratulation that the negotiations shoald have been completed so quickly and easily, When the Osaka bankers were called in, on the 29th, they showed, at first, a disposition to object that the time was not ripe for the conversion. But this objection was waived at a farther ineeting on the following day. As regards the bankers' commission, three per cent was at first demanded; bat here also, as our Tokio correspondent shore, the bankers eventually consented to a substantial reduction. One change only has been made in the Gorernment's scheme, namely, that the nnredeemed period has been extended from five years to ten, The reason for this, as the "Japan Daily Mail informs us, is that the bankers anticipate a farther fall in the market rate of interest, and fear that the holders of the new bonds may find themselves confronted with another com sion if the non-redemptive period is fixed at only five years. This spprebension was justified by the knowledge that the present conversion is merely a scheme are, broadly speaking, burden on the taxpayer ment is successfully to be pashed forward, she must be enabled to obtain cheap capital. Over and above these reasons there strong feeling that Cariously enough the Japanese native papers do not seem as yet to have commented widely on the arrangement; and of those that have, the Nippon predicts a gloomy fature for the new bonds. This opinion, howe. opposed to that of the bankers we are told, are unanimous in anticipating s transaction profitable roth to themselves and to Japan, Feb. 8,
Text read from the printed page and cleaned; old type leaves the occasional error.