Press translations [Japan]. Economic Series 0019, 1945-11-26.
Date26 November, 1945
translation numbereconomic-0099
call numberDS801 .S81
Persistent Identifier
ECONOMIC SERIES: 19
ITEM 1 Disposal of Silver Commected From People in War Time - Nippon Sangyo-Keizai - 17 Nov 45. Translator: T. Okamura.
Summary:
The total amount of silver collected in a nation-wide movement launched by the government
for the munitions industry, between
October of last year and March of this year aggregated 277,380 metric tons, 267,270
metric tons of which was offered by the
general public, and 10,353 metric tons from silver dealers.
Of the total, 38,938 metric tons were allocated to the Aircraft Ordnance Board of
the Munitions Ministry for the manufacture
of axle assembly parts, while the remainder was left untouched in the mint because
of damages sustained by melting
equipment.
Of the metal delivered to the munitions Ministry, only a small amount was used, since
the Ministry still had access to its own
stock.
Silver bullion left in the mint was turned over to the Bank of JAPAN at the command
of UNITED STATES Army Headquarters.
One-third was sent to the IS[illegible]Light Metal Industrial Company (KINZOKU KOGYO KAISHA) for refining.
The rest is to be used at the mint when refining apparatus has been repaired.
The silver in question will be bought by Gold Fund Special Account Section after
which it will be used either as exchange for
imports or as indemnities, depending on instructions from the UNITED STATES Army.
Some of silver which the Gold and Silver Transaction Corporation collected from silver
dealers will be utilized in the
manufacture of souvenir articles for American soldiers. Silver coins collected during
the campaign totaled eight million yen,
which are now being stored at the Bank of JAPAN.
ITEM 2 Commerce and Finance Ministry Bureaucrats Asked to Reflect on Their Grave misdeeds
- Yominuri
Shimbun - 17 Nov 45. Translator: T Kitagawa.
Summary:
Desperate and imprudent bureaucratic national control of business began in November
1936 when "The Essentials of the New
Economic System" was drafted by the KONOD Cabinet. This bill intended to insure the
armed invincibility of the nation, abolish
laissez-faire economy, and control the national economy as a unit.
Even before their premulgation these "essentials", met with frequent
ECONOMIC SERIES: 19 (Continued)
ITEM 2 (Continued)
objection, and were modified as a consequence. But since the outbreak of the war
against the UNITED STATES, the original plan
was, in fact, forcibly practiced. The "Essentials", together with the National Mobilization
Law, produced powerful
bureaucratic economic control. Its abuse has been so thoroughly discussed that the
only thing left is its complete
abolishment.
During the enforcement of "the essentials" JAPAN experienced ceaseless tragedy. Wholesalers
as well as merchants with small
funds were mercilessly forced to close their shops or merge with some other larger
enterprise. The textile industry, the life
blood of JAPAN, was destroyed to provide Japanese armed forces with a trivial amount
of metal, without the slightest
consideration to postwar reconstruction. In addition to this the SUZUKI Cabinet, resigned
to JAPAN'S inevitable defeat,
exposed the whole land to endless bombing.
Commercial Organizations Must Be Revived.
Discussion on recovery of the shipping business, shipbuilding, marine products, industry,
and textile industry will proceed
after several cabinets have been organized and dissolved. Our present consideration
should be confined to abolition of fixed
prices, the widely practiced control system, and the recovery of destroyed distribution
agencies, such as groceries and fish
mongers, to improve the food situation.
Compensation for Wartime Industry.
The Japanese armed forces forcibly converted almost all industries into munitions
plants without any consideration for postwar
reconversion. This has placed JAPAN in another difficult situation, that is, indemnities.
The Commerce and Industry Minister disclosed in a paper on 1 November that indemnities
would amount to roughly 42 billion yen.
This payment will have an incalculable effect on industry and finance. But it is reported
that property taxes and surplus
property taxes will bring in 60 billion yen in revenue. Other taxes and, proceeds
from the disposition of government owned
properties, and the abolition of government enterprises, will, we hope, be sufficient
to meet the cost of indemnities, Allied
occupation, and relief for war victims.
ITEM 3 Summary of Articles in all Newspapers on Reactions to Abolition of Price Control - All papers - 18 Nov 45. Translator: Lt. Matsumoto.
Summary:
The significance of the abolition of price control of perishable food is that it
allows free purchase by dealers, but limits
their profit. The new measure will enable the populace to buy fresh fish and vegetables,
which heretofore had been going only
to the rich. Purchasing of vegetables directly from the farmers is no longer illegal.
However, the question is whether the
farmers will be willing to ship more produce to the urban areas.
With emphasis placed on production of staple foods, the production of vegetables
by truck farmers in the suburban areas all
but stopped during the war, but the new measure may be an inducement for a return
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ECONOMIC SERIES: 19 (Continued)
ITEM 3 (Continued)
to truck farming.
Some check system on final distribution should he established. Establishment of consumers
co-operatives is desired. Sale
prices should be controlled by placing price tags on goods, periodic investigations
by neighborhood association committees,
and by broadcasting market conditions.
Increase in production of fruits is not expected for a year or two due to the condition
of fruit bearing trees brought about
by lack of fertilizer and care.
Prices of marine products may stay around the present black market rates temporarily.
The fishermen are in need of fuel for
their boats, and also of fishing nets.
Coments by the TOKYO Vegetable and Fruits Distribution Control Association and Marine
Product Distribution Control Association
are as follows:
Since much of the urban population is living in the country, most vegetable produce
is consumed there. Transportation is still
a big problem. As for purchasing prices of the wholesalers, the farmers may insist
on auctioning their produce to better
regulate the wholesaler's purchase price. Free trade may bring about equal distribution,
but if retail prices become too high,
the system of selected distribution may be applied. On the whole, a slight increase
in vegetable consumption by the general
public is envisaged.
Fish may become abundant around April to June of next year. The price may rise, but
consumers will have a choice to suit their
purses. The situation may require that fish in greatest demand be put in general distribution,
but expensive marine products,
such as sea bilam (TAI), lobster and crab, may have to be put on restricted distribution.
Official control of sales prices hampered the free flow of marine products into TOKYO.
Now, with the abolition of control,
TOKYO money will bring fish into the city. However, sales prices may jump to five
or six times the control prices.
Vegetable prices are expected to rise, but direct sale to the consumer by the farmer
is predicted because of the daily rise
and fall in market prices. Vegetable and fish peddlers are expected to appear on the
streets again.
SAITAMA-KEN does not expect an increase in trade because the production of vegetables
in that prefecture has fallen to 30 to
40 per cent of normal.
CHIBA-KEN expects an increase in local trade now that the sales will be made to the
highest bidder.
YOMIURI quotes a statement made by KAWAI, Vice-minister of Agriculture and Forestry,
on expected result of abolition of price
control:
"A temporary rise in prices is inevitable, but according to economic laws they should
settle before long. Circulation of food
should
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ECONOMIC SERIES: 19 (Continued)
ITEM 3 (Continued)
improve. If not, the new system must be revised to meet the situation. The control
on processed marine products will be
removed before long."
TOKYO SHIMBUN quoted a statement made by ISHIHARA, head of metropolitan Bureau of
Economy: "The aim of the abolition of price
control is to increase the delivery of vegetable and fish into the city. We expect
the full co-operation of the Farmers' and
Fishermens' Associations.
"Increase in the supply of fish may be expected, but sudden increase in the supply
of vegetables cannot be expected."
TAKANO, in charge of Perishable Food, Metropolitan Bureau of Economy, asserted:
"With the abolition of price control, the Price by Agreement of the agricultural
region may become the controlled price. The
present condition of farms may not permit an increase of produce in the markets. However,
the farmers who have been
speculating on the abolition of control may now ship their vegetables."
Statement by TOKYO Vegetable and Fruits Control Corporation (TOKYO SEICA TOSEI KAISHA):
"If the farmers had been raising vegetables according to land quotas the market condition
might have improved, but at present
a large portion of the vegetable fields are used for rice and wheat growing. Furthermore,
the storm which swept neighboring
prefectures in September has caused considerable damage to vegetable crops. Unless
the dealers in the city offer better terms,
most of the vegetables will go to local markets."
Statement by TOKYO Marine Product Control Corporation:
"This may necessitate bidding by the consumer co-operatives for the amount of fish
they need. It may end up in compulsory
acceptance by the consumers of the cost paid out by the co-operative, whatever the
price."
Statement by TOYAMA, Vice-president of TOKYO Central wholesale market:
"The abolition of price control was inevitable. Some are in favor of complete free
trade, but I think it will be better to
retain control of final distribution. Otherwise, only the rich will be able to buy
fish. Prices may settle somewhere between
the controlled price and the blackmarket price, but increase in shipping by the farmers
can not be expected."
DISTRIBUTION "X"
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