Another question that is expected to occupy the attention of the bankers' conference is that of a reconstruction loan, either foreign or domestic. It has already been reported that there are two schools of thought on the problem reconstruction—one that favours the immediate floating of a huge Joan in order to hasten the restoration of the destroyed towns, and the other that would prolong the period of reconstruction in order to allow Japan's productive industry to supply all, or most, of the districts' needs. The bankers of the country, with their usual policy of caution, may be included in the latter category, and that is particularly true of the bankers of Osaka. A spokesman declared thie other day that Osaka was stoutly opposed to a foreign loam. In the first place j it was unnecessary, Japan's oredit abroad being quite sufficient for her immediate needs. Secondly, he declared, the introduction of
fause inflation here, a particular-large amount of capital would ly dangerous action in view of the fact that Japan was only just beginning to recover from a period of the most exhausting depression. After the first period of reconstruction had passed. he added, should either the municipality of Tokio or Yckchama desire to float a loan, it would be advisable for the Government to guarantee the interest and principal. In connexion with a foreign loan, it has been suggested that the proceeds should at once hee pointed out that, bad though"
invested in materials abroad.
same spokesman, however,
the disaster was, it has been responsible for the destruction of less than a quarter of Japan's productive capacity, which is largely centred in this district, and that therefore Japan can in time produce a considerable portion of what is needed for the rebuilding of Tokio and Yoko-
Text read from the printed page and cleaned; old type leaves the occasional error.