The Government of Japan has taken the extreme course of
relieving the financial crisis by' a banking moratorium. This will last for at least three weeks. Financial stresses had . been preparing the way for a crisis for a long time, but, as we recorded last week, the crisis was actually brought about by the refusal a the Privy Council to Sanction the late Government's proposal to help the Bank of Formosa. This bank had become involved by the failure of the Suzuki Company. The difficidties of the Bank of Formosa led to difficulties elsewhere, and there were runs on many banks. The moratorium is naturally causing embarrassment in Japanese industry, but it is undoubtedly having a steadying effect. Everyone who has followed Japanese affairs must admire intensely the coolness, the per- tinacity, and the evenness of temper with which the Japanese struggle against adversity. The earthquake must have cost them nearly a thousand million pounds. Japan will not be undone by panic. She will pull throtmzh, and will richly deserve to do so.
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