Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-27
RAW SILK SLUMP
WRECKS JAP BANK
Heavy Demands by Spectators
Force Suspension Of Yoko-
hama institution

Toxic, May 81. - Tho suspension
Monday of the Seventy fourth Bank of
Yokohama. in which Sobei Mogi was
the principal shareholder. was followed
Tuesday by the suspension Of the io-
kohama Savings Bank. Of which NJ.
Mogi is president. The Seventy fourth
Bank was heavily interested in trans
actions in silk. cotton yarn and cotton
cloth.
Tho recent slump in raw silk caused
heavy demands upon the bank by silk
spectators. who were dependent upon
the bank for support, and who had been
obliged to pay additional margins. The
Bank of Japan, which had advanced
20, 1000, 600 yen to the Seventy fourth
Bank, ceased TO advance funds to the
institution. believing that the time for
an adjustment had arrived. The di-
rectorS, II is said, expect TO settle by
offering their personal property and
securing the assistance of other insti-
tutions.
The Mogi Bank. on which O sympa-
thetic run was started after tho clos
ing Of the Seventy fourth Bank. re-
| ceived assistance from the Bank Of
japan and did not have to suspcnd
payments. The suspension of the Sew
enty fourth Bank, it was expected in
commercial quarters. might affect one
silk exporting firm which had con
nections with the bank. Jinosuke
Inouye, the governor of the Bank Of
Japan, predicted to the press that II
would have no serious effects In other
| directions
To- suspension Of the Seventy fourth
Bank OF Yokohama. controlled By
Sobei Mogi, was regarded as important
because it was connected with oppra
tionS in silk. Japans chief export &c
America. The official statement of tn,
suspension announced that the bank hnt
been closed for only three weeks. tc
permit of the examination and adjust
ment of its affairs. The suspension i'm
mediately forced the rc-closing of tn,
silk exchange. and the newspapers at
tributod the ensuing slump in tho Toki,
and Osaka stock markets. whore thr
principal shares fell from 10 to 30 ven
to the suspension Of the Mogi nstitu
tion and reported liquidation il
America.
The conservative English languag,
newspaper. the Herald Of Asia. in dis
cussing the economic situation today
says that apparently unlimited crpdi
had been extended by the banks. re.
sulting in wildcat speculation and tn,
inOrdinate extension of enterpriscs-aI
unwise policy. comments the newspaper
which Sabnormally inflated the nationa
currency.
1t points out that the issue Of note
by tho Bank of Japan for tho first fou
months of 1920 were the highest in it,
history. The loans. at times, il says
totalpd 100. 900 900 yon. whiIc the note
issued exceeded 300 900 900 ven. %
nearly five times the pre-. war volume.
THE Slump.' continues tn" news
= paper. lis warning that a limit mus
b" set upon loans and speculation.
takes an optimistic view of the stu
alton. however. aud predicts a recover.
to stable conditions.
4 conference has been held of rep
rcspntatives of the copper miners. cX
portcrs and importers. with a view t
the relief of the copper market. II wa,
resolved to restrict production. discon
tinuc importations and discourage thu
cXportation Of accumulated material
also. to provide funds for purchasin,
stocks offered at loss.
The enormous war expansion of tho
Japanese match industry has expert
Cnccd n serious setback, foreign order,
having greatly diminished The manu-.
facturrrS have decided to reduce thoil
output one half.