'A flutter has been caused in local financial circles by an editorial in the "Kokmin" (nation), one of the most powerful and widely-read dai-Hes in Japan, which flatly characterized the recent loan for $22,000,000, entracted in the, United Siates on Bank of Japan, "a direct, betrayal of international faith." The last session of the Imperial Diet author-ned. the National Treasury undertake the burden of guarantee ing certain industrial lonns in the following terms:- "The Government is authorized to guarantee both principal and inter-ort of a loan which shall have for its purposes the conversion of the National Bonds of December 12, 1618; transferring to the Industrial Bank of Japan the burden now shouldered by others."
The recent loan granted to the Industrial Bank of Japar, according to a public statement made on August 13, 1924, wa to general current bank purposes, which include the promotion of industry in Japan," while it w stated that "particularly time, when the recently luxuries tariff gives protection to the manufacture of certain lines of goods in Japan, ready money with which to enlarge and improve industrial plants is needed." Such Purposes are in perfect harmony with the terms whereby the United States Government extends approval to loans.
'The authority granted to the Government by the Imperial Di however, strictly mentions the National Bonds of December, 1918, namely, the Nishihara loans' made to China, so that it is reasonable to inter' that a portion of the 822,000,000 loan raised in the United States on behalf of the Industrial Bank of Japan will be devoted to the bonds issued for the ra_loans, On the other hand, it ix a fixed and inviolable condition of the American Goverrment that no loan in the United States can be used for the purpose of controlling Chinese resources in any way. It is this clash in the statements made that has caused the Kokumin to tax the Japar Government with bad faith, and to question the legality of the ment's guarantee if the loan is used connexion the Nishihara loans. The paper further states that it would have been impossible to secure this money in America if it had been known that the proceeds, er part of the proceeds, would be devoted towards the conversion of the Nishihara loans to China.
Mr, Tnouyé, besides going to America for the purpose of rai teans to be used in connexion wit the reconstruction of the devastated regions, also went to Europe, and of the opinion that the conditions Burope ate far from promising a roseate solution in the nest future, despite the success attained through the Dawes report Britain, stceording to him, is the one bright spot in the whole picture, while he declares that the immediate aftermath of the successful London conference will be to resuscitate Ger= nan industry by the employment of American capital for that purpose.
"Factories ate springing up Li "American financiers cooperate with German, industrialists the resuscitation of Germany. wi The Minister of Finance, considerably flurried by the charge that the Industrial Bank and the Treasury had stooped to a subterfuge, declares that such is not the case at all. According to him, the terms of the contract signed in the United States stipulate that the money be used "for general current bank purposes which include the promotion of industry in Japan." 'The redemption of the Nishihara loans, he maint part of the bank's business and that, thus' there is no violation of faith at all.
That this loan will be used towards the redemption of the Nishihara Joan bonds, ¥.50,000,000 of which fall due on' November 15 this year. seems to be clear from a statement made to press reporters by ister of Finance. "The extra ferdinary session of the Imperi
Text read from the printed page and cleaned; old type leaves the occasional error.