Moratorium Ended

The Imperial Government completed triumphantly last week a fortnight of incessant labors to alleviate the Japanese panic (TIME, April 18 et seq.). Since extraordinary legislation seemed requisite, His Imperial Majesty Tenno Hirohito convoked in haste the first Parliament which he has opened since his ascension to the throne (TIME, Jan. 3). Bills were rushed through and signed by the Tenno, authorizing the Bank of Japan to extend swift aid to banks threatened with a "run." Finally, the new Premier, Baron Tanaka, secured the appointment of Junnosuke Inouye (perhaps the most internationally prominent Japanese banker) as Governor of the Bank of Japan.

With the nation's fiscal structure thus buttressed, the Government abstained from extending its 21-day moratorium permitting Japanese banks to suspend payment (TIME, May 2). When the moratorium expired last week no runs were reported. Confidence had been restored. . . .

A further bill passed by the Imperial Parliament authorized the Bank of Japan to lend up to 200,000,000 yen ($99,700,000) in order to restore financial institutions in Formosa which went bankrupt amid the panic.