The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, NOV. 22nd, 1923. THE JAPANESE DISASTER.

Hokitika Guardian, 22 November 1923, Page 2

The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, NOV. 22nd, 1923. THE JAPANESE DISASTER.

Thf. Japanese disaster, in loss of life and property values, Ls tho worst calamity that ovor has bofnllen any country excepting war and social revolution, but while inflicting terrible losses upon ToUio, Yokohama and the neighbouring district it has not to any very soiious extent affected, the industries ot the country. Ctifortuiintely for tho property owners the U'-sses were- to only slight extent covered by insurance, the experience of insurance companies in tho San Francisco earthquake and fi;e having prompted them since to insert clauses in their policies which expressly except losses resulting from earthquakes. This is a perfectly legitimate practice when policies aie intended to cover ordinary fire hazards only and charges are j.ct adjusted to the earthquake hazard. The latter is almost uni.asurablo at a inlv wliicll the public

would care to ] ay, because of the difficulty in determining and distributing the risk. The effects of the disaster outside will he felt through various and more or less opr using influences. The most obvious etfeet is the demand for building materials and goods to take place of the stocks dost|oyod. Bum tier juices are stronger under tliis influence, and no doubt a large amount of steel and hardware will be imported. On account of the absence of insurance funds, it is probable that the Japanese Government \\ iIJ grant a loan of credit for reconstruction purposes and that a loan will to offered in Now York and London. It is interesting to note that it the losma had keen, covered by insurance in New York and London companies, the latter would have sold reserve securities in order to make j ayim-iits, while in the

absence of insurance, securities will he sold likewise. I’hll-. so far as the mon-ey-market is concerned, the ofle. i is about tin* same. In either ease modern finance distributes the immediate burden, which will lie ultimately covered by the earnings of tile properly replaced. It is well worth noting that the value of national character stamds a I‘coplc in gdetl stead in an emergency like this. The value of exiVnia] Japanese bonds was disturbed slightly for a day or so. while the extent of disaster was unknown, but quickly recovered. Japanese credit commands coiiiidem-e in all financial markets, primarily because nobody doubts the intention of the Japanese people to pay, says an American financial journal.