Press translations [Japan]. Economic Series 0147, 1946-01-10.

Summary:

HYUGA Ken was a great timber producing prefecture and second only to HOKKAIDO before the war. A greet deal of the forest which was easy of access for transportation was cut down for military purposes. Still there remains a wide area, of virgin forest and the trees growing in these regions are good materials for architecture, ship-building, railway ties, and mines. Thus this prefecture holds second rank as it did before in the production of timber. Since the fixed price was abolished the timber price has gone up to three times as much as before. Therefore those who have been engaged in the timber industry are exceedingly glad and are expecting to make an enormous amount of money at this opportunity. Indeed some are busy making preparations to organize timber industrial companies and others are trying to coax the MITSUBISHI to make some investment, because they think it difficult to carry on this industry with small capital due to the rise in the price of timber. But past experience shows that the monopolistic investment of big capital has done a great deal of harm by preventing the development of local industries. Therefore timber-industry circles do not welcome the investments of big capitalists from the outside. Rather they are taking precautions against such an undertaking. There is a movement going on to combine all small local capital and make one big industrial concern in order to prevent outside capitalist from coming in. There is also a tendency to specialize and concentrate on one kind of timber only. Timber companies are specializing in supplying materials for ship-building, railway ties, coal-mines, or architecture. Timber-industry circles are of the opinion that the abundant timber resources should not be transported from within the prefecture for outside use, but that those resources should be utilized for reconstruction in the prefecture itself.

Summary:

The prevention of inflation is one of the most important problems confronting the nation for the year 1946. Since the removal of price controls on perishable goods on 20 November 1945, commodity prices have been soaring, and signs of an unprecedented vicious inflation are seen everywhere. Even in wartime portents of inflation were already seen and many counter-measures were taken. But all of them were in vain. It is feared that if the present state of affairs continues unchecked, the national economy will be undermined, and set well on the way to ruin. It goes without saying that all people must be warned against the dangerous economic crisis ahead. Nevertheless, it is regrettable that most farming people are liable to aid this movement toward greater inflation instead of doing their best to prevent it.

In this connection, Mr. IRIMACHIRI, President of the Commercial and Industrial Economic Association (SHOKO KEIZAI KAI), pointing out the rapid increase in the purchasing power of the general public of late, [illegible]ys that

ECONOMIC SERIES: 147 (Continued)

ITEM: 2 (Continued)

this tendency has been accelerated since the plans for the wartime Profits Tax and the Property Tax were disclosed to the public. He adds that the action most urgently needed at present is to collect all the fleeting currency and to freeze bank deposits, restricting with drawals exceeding the amount absolutely necessary for daily life.

Mr. TAKEMASA, Director of the AGATA Shipyard (AGATA ZOSEN KAISHA), says that the issuance of the new yen note is all right as a countermeasure. "But" he says, "in view of the present printing facilities, we cannot expect that the actual issuance can be mace before inflation will have been so extensive that even the new yen note will not be able to suppress this tendency. Therefore, it is most advisable to have the existing note stamped, and we should collect floating currency as early as possible.

Mr. YAMAMOTO, President of the SHIKOKU Bank, urging immediate enforcement of the Property Tax and the Wartime Profits Tax, blames the Government for the removal of ceiling prices without due preparation for what was sure to follow.

Mr. MORISAWA, super-intendent of the Taxation Office, also urges immediate enforcement of the two taxes. But, he says, the inflation will not be totally avoided by this measure alone, because the currency collected in this way, is likely to come back into circulation as rehabilitation money and Occupation Forces expenditures. He further adds that there is no other way to prevent inflation but to promote the production of commodities.

Mr. NISHIYAMA, President of UJI Electro-chemical Industry Company (UJI DENKI-[illegible]AGAKU KOGYO KAISHA), insists that the best way to avoid the inflation is to promote production by utilizing all reserve and stored materials.

MESSRS TAMAI, OZAWA, IBARAKI, SATO, MURATA, UEMURA, participated in the discussion. On the current inflation problem, Mr. T[illegible]expressed his view saying that the vicious inflation which is now facing JAPAN, must be checked by lowering the price of all farm products. He said: "Now that money has lost its value considerably, farmers should be aware that their savings will continue to diminish unless they lower the price of their products. At the same time any black-market transactions on form products should be stopped." He continued "In my opinion, the issuance of new yen which is likely to be put into effect in a few months, will not produce any effective result in checking inflation. On the contrary, I am sure this will ruin our national economy. In a situation like this, I believe that only by increasing production of all commodities, will the inflation be checked to a great extent."

Mr. OZAWA: Although the anti-inflation stop must be considered from two standpoints such as commodity production and money circulation, we must consider first of all how to carry out the increased production and money circulation, we must consider first of all how to carry out the increased production of commodities. So I propose that we establish powerful organizations in every prefecture consisting of various kinds of accessary to eradicate the principal cause of inflation. By urging that, I mean, the adequate disposition of Government compensations for war industries, and huge war profits gained by some ZAIBATSU.

Mr. SATO: I think, it is necessary to eradicate the principal cause of inflation. By urging that, I mean, the adequate disposition of Government compensations for war industries, and huge war profits gained by some ZAIBATSU.

Mr. IBARAKI: Such a problem cannot be easily solved by the recent price-cuts in some vegetables. Things are at such a point that despite the great amount of money held by both Zaibatsu and farmers, most people are suffering from the inflation.

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ECONOMIC SERIES: 147 (Continued)

ITEM 3 (Continued)

Mr. SATO: In fact, we must immediately take such measures as the complete employment in all industries and a big wage boost to all workers and employees, without any fantastic discussions.

Mr. OZAWA: Now that we are suffering from an absolute shortage of commodities, production should be carried through without control, even irrespective of the demand.

Mr. TAMAI: Under the present conditions, we cannot relieve unemployment by establishing new enterprises, but I am sure that about 15,000,000 unemployed will be able to have jobs if we reduce labor hours.

Mr. MURATA: Although the wage raise is desirable for workers, yet I wonder if that will not possibly promote inflation. On the other hand it is quite regrettable that ex-servicemen and discharged war workers have not yet shown any willingness to get jobs.

Mr. SATO: From the communistic standpoint, it is necessary to employ jobless workers by curtailing labor hours by two or three hours, at the same time raising their wages high enough to support their usual living standard. This wage boost should be carried out only by giving workers the accumulated wealth of Zaibatsu and other war profiteers. And this will be realized only by the appearance of the Popular Republic, not by the present Government.

Mr. UEMURA: Although Mr. SATO seems to urge that there is no bearing between wage boost and inflation, yet I wonder if the purchasing power accrueing from the wage raise could have a greater role in aggravating inflation than the accumulated wealth of Zaibatsu or other war profiteers.

Mr. MURATA: I think nothing is more fundamental than the purchasing power of the mass of the people in causing such a vicious inflation.

Full Translation:

Since the abolition of price controls on fresh foods, many commodities have appeared on the market, but the prices are much too high. Conscious of this state of affairs, the Metropolitan Police Bureau decided to enforce its ruling of the 20 per cent maximum profit system and investigated stalls and street vendors simultaneously from 25 to 28 December. Their investigation disclosed that there were 250 offenses among vegetable merchants. The majority of the cases were dismissed with a warning to the offender, but four persons were arrested because of their practice of profiteering. They will be punished under the Excessive Profiteering Act Restriction Order. All four were arrested at the street market of OHOI.

The first case is that of K. YA[illegible]MOTO of SHINAGWA-KU who purchased 6.5 kan of green onions at CHIBA for 15 Yen per kan and sold them at 10 Yen per bundle which contained one third kan each, thus seeking a profit of 70 per cent. In the second case, U. OHOYAMA of the same district, was selling burdock costing him 25.20 Yen at 40 Yen per kan. Finally, Z. TAKEDA and S. MATSUO sold green onions worth 20.40 Yen a kan at 40 Yen a kan.

Some 173 fish vendors were reprimanded for their objectionable conduct. The majority of them were warned because of their profiteering, because of their neglect in affixing price labels, or for their practice of selling commodities by the bunch [illegible]they should be sold by wright. The Police Bureau will severely restrict marketing at TENDON, NIGIRIZUSHI, and similar places where rice, barley and other restricted grains have been sold.

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