The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-04-22
The Who and Why in Japan's Crisis

There is little likelihood of any radical change
Of policy toward China on the part OF japan
through the switch of ministries
True General the Baron Giichi Tankaka is far
more war-like than Premier Wakatsuki, resigned
whose place he takes. But he is wise enough to
know that Japan's present program is UNNECESSARILY
wiser than it was when in 1915, she attempted to
make a vassal of that country by forcing President
Yuan Shh-Kai, to sign the notorious "21 demands"
Today Japan is mistress of Manchuria through
her control over Chang Tso-Lin, Manchurian war
lord and Dictator
Furthermore, by virtue of her position there and
in Korea all north China is strategically under her
thumb.
There is nothing to be gained by strong arm
methods in China today Peaceful penetration by
the system suggested above is winning for Japan
far more than she could hope to acquire by force.
If she can only keep China divided, and therefore
weak, another couple of decades at most will see
Manchuria, and perhaps portions of eastern Mon
golia, Koreanized.
Here then, is the only menace offered by the
fall of the Toxic cabinet. The premier, General
Tankaka, will be his foreign minister as well, and
may see fit to intervene in way to prevent the
much desired unifcation of China as called for
by the Canton or nationalist program.
The danger is somewhat enhanced because a
uJIl0 eAClIeHeuC III Culud dC might serve
to attract the attention of the Japanese away from
troubles closer at home-the financial and economic
troubles which led to the Wakatsuki cabinets resig-
nation.
The crisis dates back to the great earthquake
Of 1929 when 100000 people were killed; Toxic the
capital and worlds third largest city, laid in
ruins and Yokohama, chief port, was wiped out.
Business, of course, suffered. The government
realizing much that is generally considered good
security, had been wiped out told the banks to be
bit enent with their loans, promising to make good
possible losses up to approximately $5OOOOOOO.
Naturally considerable loose lending resulted
Business houses that were hardly hit at all by the
quake accommodated with large loans. Then
as the time drew for the government to make
good its promise to take of the worthless quake
notes, and bills introduced in the Diet with
that in view, political football was made of the
issue and the public began to learn that perhaps
all was not we'll
Quietly, at first, depositors began to withdraw
their money from some of the banks In January
the first failure. The Hiroe banks closed
Withdrawals increased. The Watanabe bank failed
in February More the banks. Then in
rapid succession the Akaj, Nakai, Hachijushi Naka
zaWa Mural, Sauda, Senyo, Gamo, Ashinaomi and
other banks went under, carrying with them many
dependent enterprises. Finally the great govern
ment back bank of Taiwan (Formosa) closed its
its doors and the famoue silk house of Suzki Ltd
suspended.
Meanwhile the man in the street began to feel
That he was about to be made the goat If the
government redeemed a lot of worthless quake notes
he would have to pay the bill in taxes There we're
stormy mass meetings in the public parks
Then came the resignation of the cabinet and
the rise to power of General Tankaka Which is
ahnI fxyoor
general cleanup of the banking mess which has
disclosed so many garng faults in the system And
there will probably be large grants of public moneys
which the japanese small fry will not cotton to- So
the new government will doubtlessly find it's hands
full at home without seeking more troubles in China