Perth Amboy evening news., 1923-12-27
HASKLN;S
LETTER

mefce nave MADE a survey OF the
situation, adding up the losses and
considering the measures which have
been taken to restore the economic
situation. Their report shows how
IL is possible for a well organized
and determined people to cope with
even so terrible a disaster as that
which overlook the island people last
fall.
To thoughtful students of human
affairs there seems to be another
very important lesson in the Japa-
nese recovery. 1t lies In comparison
with the war destruction in Europe.
Tremendous destruction was caused
by the armies of both sides in the
European war and while reconstruc-
ton of the devastated regions has
proceeded apace, it has apparently
been much slower than the recon-
struction in Japan.
The difference appears to lie in
the respective origins of the disas-
tors. The European destruction was
the act of men and the mending
process has been retarded and in
tereepted by conferences and con-
troyersies concerning who was TO
blame for the damage. 1t has been
made the subject of political discus
| Slbil anu IttIlIlIlfidllOu lit LNOIlO
over and there have been attempts,
both sincere and vindietive, to make
various groups and nations pay the
cost. There is not yet n general
agreement as to just who is to blame
and probably never will be.
In Japan there has been no such
confusion. The earthquake was UNI
mistakably an act of God or of Ma
ture. The blame can be placed on
no political party, on no nation, on
no national or racial policy. The
damage has been done, and in a
sense 1t has been a greater and more
sudden damage in intensity than
anything done in Europe. But there
has been no occasion for parleys to
fix blame, to assess ~reparations, to
take measures against repetition.
With one accord the Japanese, aided
by the people of the rest of the
world to some extent. have buckled
down to the task of building up anew
what the catastrophe destroyed.
That the rebuilding and ~rehabilita-
tion will be swifter than European
reconstruction has been in the past
or is likely to be in the future, is
a foregoing conclusion. Japan is
fundamentally no richer than the
tOuIllI1tSa has no IlOlC
people. The difference seems to lie
wholly in the fact that in Europe
there is difference of opinion about
who is to be blamed for it all; in
Japan none. The comparison sug-
gests the possibility of applying the
Japanese state of mind to the Euro
pean problem.
A Billion Dollar Loss
Tho Enuarnn,ant aiIruau n1anpG thn
destruction of property in Japan at
1866, 000, 600 yen, or nearly a bill
lion dollars. Some of this wealth
may not readily be replaced, but the
survey has segregated items of loss
to the value of 1,461, 600, 900 yen
which a be replaced, largely by
human effort rather than by new in
lvestment of wealth in materials. This
much loss fell on what had been
produced by the labor of men and
women. More labor will replace 1t
and this labor is being enlisted.
The rebuilding of houses has be-
gun on a large scale, a committee
of American lumbermen having gone
to Japan to arrange for the export
there of American materials.
The banking situation in Japan
was well organized to meet the dis
aster and within a brief time after
it occurred, the big banks ~reopened
and it was announced that the Bank
of Japan, holding $500, 900, 600 in
gold, would assist any smaller banks
which resumed business so that the
financial machinery of the country
would continue. The Japanese peo-
pie as individuals are thrifty. Postal
savings deposits aggregate more than
IGkEn nnn nm ar Z I n nor % nita Tho
japanese national debt is divided
into internal and external divisions,
the internal of Sal, 006, 900 exceed
ing the $685., 900, 600 external debt,
This means hat the country is not
easily disturbed by pressure of for
eign creditors.
The insurance situation has caused
some uneasiness In Japan. The dis
aster fell heavily upon the insurance
companies and there has been some
question as to whether fire insur-
ance companies are liable for losses
due to an earthquake. Some poll
cies contained an outright earth
quake clause carrying an exemption.
After conferences with the govern
ment. there has been a compromise
proposal that the companies pay at
once 10 per cent. of losses. on the
condition that they receive from the
government a substantial loan for a
long term at low interest.
Foreign Companies Affected
Many of the Japanese companies
had placed Reinsurance with for
eign companies, principally in Eng
land, to the extent of SO per cent,
of their liability. The same diff
Guilty over the type of the disaster
has arisen with these companies.
? Insurance liability of the com
r panies, IL they are held to pay for
- the earthquake losses, would amount
to approximately a billion yen. On
the 10 per cent. basis, approximately
100, 900, 900 yen will be paid. This
1.-THE government report shows, can be
e paid and still leave the companies in
2 a strong position.
The disaster itself and the sub
I sequent difficulties over the earth
quake clause in insurance policies
. has led to the suggestion hat earth
S quake insurance of a special type
be made compulsory in Japan. The
= government itself would go into the
4 against earthquake losses.
The Tokyo Chamber of Commerce
has petitioned the Government Il
organize a semi-offlcial earthquake
insurance company. The petition
contains the suggestion that thu
government take over the existinl
companies to start with. The pro
c posal is that there be n cpmpulsor!
charge of 8 yen per house per an
mum for all Japan. This would pro