The Cordova daily times., 1920-07-29

1dSIeu lOUS SlUC0 the OuCUTodk Ol Iu0 war and was not ready to realize the necessity of business curtailment and the contraction of credit trans actions.
 'tIn the meantime repeated panic
 nave occurred in the stock market since about the middle of last April causing panicky slump in the cot
 ton cloth. rice and silk market.
 which was considerably disturbed. The financial circles have since then been placed in state of depression and still remain more or less par alyzed. The government, leading bankers and financiers are doing their utmost for the relief of the disturbed financial and economic situation and at the same time taxing their nerves to find proper measures for providing against any similar occurrence in the future.
 "The late financial depression has dealt a severe blow to our economic world. This must be admitted. But it did not go to the length of affecting the stability of our economic world or of checking it's future development. The harm done to the economic inter- ests by the late financial depression will be healed in a no distant future. The blow will, I believe prove good and timely warning to our manufac- turers and merchants to arouse them from the idle dreams of buoyant bus mess of the past and eventually serve to nip in the bud the unsound elements of our economic circles; in deed, the present misfortune may turn out future happiness.
 "The future of our national indus try calls for no pessimism; it is bound to attain more development. The present tight money should be re- garded as a phenomenon reflecting the late financial depression and not as it's cause, which properly speak ing was brought about by the unsOund and unhealthy business boom and un- natural growth of the speculative mania consequent upon the sudden in- crease of demands for goods and soar ing prices. The growth of business enterprises which included not a few cases of unsound an unstable under takings, has led to the recent de- pression.
 '"To check the growth of such spec ulative business mania and to provide against it's baneful result in the fu- ture, the Bank of Japan twice in- creased it's official rate of interest and discount last autumn by way of warning the financial circles but many unsound elements of our busi- ness circles, failed to appreciate and understand the warnings of the auth critics and continued to indulge in business projects of more or less spec ulative character. The result was the recent panic as was anticipated by the government and intelligent elements of our business circles.
 Those who suffered the severest blow through the depression and stringent money were mostly un- healthy elements, while many busi- 1 ness establishments of sound and sta ble financial standing were the least affected. In short, the financial de- pl ession has singled out unhealthy | elements of our business circles and l served to open a new aspect of our business world. Such being the case, l do not hesitate to declare that both the government and the Bank of Japan have not the least idea of with drawing the specie holdings In the American market on account of the recent financial depression because we respect the close monetary rela- tions between this country and the United States
 T think that the development of industry and the econ omy of consumption are two great of the post-bellum eco homie measures which must be the policy of the worlds powers in dealing with economic affairs after the war. My particular wish is that the United States will utilize her re- advantage for the post-bellum eco- homie adjustment and contribute to the qualification and reorganization of the worlds economic interests.
 Japan, also, wishes to do her best to contribute to the qualification