Press translations [Japan]. Economic Series 0154, 1946-01-13.

Summary:

Silk is one of the important agricultural crops in JAPAN. There are many difficult questions concerning silk culture. The mulberry fields were cleared in large lots during the war, and there is also the competition between silk and nylon as collateral export goods.

One peculiar feature of silk culture is that only the large agricultural manufacturers are able to depend entirely upon domestic materials. It is noted in this connection that the acreage of all industrial crops except silk is only four per cent of the total acreage in JAPAN.

With regard to JAPAN'S rural economy, it must also be noted that it is functioning in an important role as the reservoir of the industrial labor of the Nation. Of course, the same tendency can be seen throughout the world. Nevertheless, strong family ties in JAPAN form units, which in turn form the basis for an industrial nation. As a result, the unemployed laborers are rather easily absorbed in agriculture. This fact not only increases the cost of agriculture but also obscures the real cost, of industries. This same condition may obstruct the normal growth of the labor movements.

JAPAN is now a fairly well industrialized country. Before the CHINA Incident the industrial production had already reached 70 per cent of all production, and 25 per cant of all those employed were engaged in industries. Here, at first, we will consider the size or the scale of industrial management.

According to the factory statistics of 1934, the scale of factories can be classified in percentages as follows: The "small" factories signify those having from five to 29 workers, and the "middle" and "large" factories from 30 to 99 and 100 and over, respectively.

The above figures illustrate the still predominant importance of the middle or small industries in JAPAN. The textile, rayon, machinery, and chemical industries have been highly modernized and are being conducted on a large scale. While small scale industries are mostly confined to wood and food manufacturing, cotton and silk weaving, porcelain, iron utensils, tools, bicycles, hosiery, dyes,

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chinaware, rubber goods, glass manufacturing, etc.

The smallness in scale of such industries is partially due to their own nature. Such industries can be carried on a small scale rather economically. At the same time, it can be said that the present stage of industrial development in JAPAN is favorable to those industries which can be conducted on a small scale.

The reasons for such development will be classified into the following chief items: 1. Abundance of hydro-electric power, which can be divided and conveyed conveniently; 2. Many products depend upon the domestic market, which requires minute adaptation of the sensitive taste or fashion, (that is, silk weaving of high quality); 3. Labor power can be easily obtained almost everywhere in the Nation; 4. The undeveloped conditions of labor unions; 5. Many small scale factories are still family owned and operated.

Summary:

Their newly accorded suffrage rights are sure to make women interested in taxation and the issuance of bonds, because of the close connection of these matters with commodity prices. The budget, of course, is an estimate of revenue and expenditures for a given period. It is put into effect only with the Diet's approval. A budget, especially our national budget, is difficult to understand, because it is only a parade of figures on paper.

Putting aside details, as a constitutional nation, we must be able to understand what is outlined in the budgetary figures appearing in newspapers, and forecast what the government policy is. Although politics often abound with exaggerations and rhetoric, they can be comprehended in their essence in the form of budget.

Needless to say, it is necessary for our accounting system to be reformed so that the budget may be understood by everybody. But at the same time, it is also required that the people increase their financial knowledge. Women must pay as much attention to the housekeeping account books of the Nation, the prefectures or smaller governmental units as of their own.

What is meant by the fact that there is a budget of over 10 billion or 20 billion yen this year in the general budget in addition to many other special budgetary accounts which are outside the general budget? The more governmental activities are extended, the more the budget ramifies itself into various forms of special accounts. This is more reasonable and convenient in view of the nature of greater governmental activities and sources of revenue. Strictly speaking, those special accounts should be taken up for consideration in the regular budget, but there are a greater number of various special accounts in our country than in others. The division of the budget into various special accounts has its own conveniences and inconveniences, especially in that it breaks up budgetary unification. The mutual intercourse of funds with various special accounts has made our budget less and less understandable to us.

A suitable example of this is the special account for extraordinary military expenditures. This account, unlike others, has no annual fiscal year nor annual settlement. The fiscal year's end for this

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account means the termination of war or emergency. This special account was set up for the Sino-Japanese War in 1937 and continued during the Pacific War. The account has not once been settled in the course of the war, and has not been made public under the pretext of military secrecy and unexpected contemporary expenditures.

The total sum of the budget includes the general budget together with the various special accounts. As mentioned above, these various accounts have mutual connections of funds, and the figures doubled in the budget by this mutual intercourse of funds must be deducted. The remaining sum is called the net sum of the budget. Apart from the net sum of the budget, gigantic funds go in an out the national treasury each year. This is the special account for special items and property. When we speak of the government budget, this special account must not be overlooked because it controls all economy and finance.

Summary:

The following is a discussion between a reporter of the ASAHI SHIMBUN and the finance authorities on the evasion of the property taxes to be levied in the near future:

Question: How about cash?

Answer: Some farmers are thinking of concealing their money by burying it in pots. Such action will only make them losers.

Question: How about deposits and savings, and national bonds and debentures?

Answer: All passbooks and all bonds or thin custody certificates will be stamped with the word "filed" (SHINKOKU ZUMI) after referring to the applications tendered by the owners, so that those which are not filed will be forfeited by the Government.

Question: How is it when property is intentionally dispersed or contributed?

Answer: In all these cases, the tax will be levied on the beneficiaries, or on the donors if the property was used by beneficiaries.

Question: How is it when a householder has transferred his deposit to his family in name?

Answer: It will be a vain effort as the tax will be imposed on the total amount of the deposits of his family.

Question: In case cash was converted into pictures and writings, curios, and precious metals, what then?

Answer: The tax will be imposed on the sellers, or the facts can easily be traced at the purchaser's end. The Government is not concerned with who pays the tax, as long as it is paid.

Question: How will those ancient pictures and writings, and curios, inherited generation by generation be appraised?

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Answer: We must rely upon the report submitted by the owners, but the value of well-known ones can be estimated by the experts.

Question: Are not the clothes, furniture and utensils subject to tax?

Answer: The tax will not be levied on those things necessary for one's livelihood.

Question: Is it not effet'e if the enforcement of the tax is delayed, in view of the wave of vicious inflation which threatens?

Answer: Early enforcement is desirable, but there is no fear of the evasion of taxes if delayed.

Summary:

"How the ten billion yen property tax is to be spent is the question to be clarified", MIZUTANI of the Social Democratic Party is reported to have shouted. The Government may hand back to some millionaires the money collected on the pretext of redemption of national bonds.

According to his opinion, this money should be used in order to enhance the standard of living for the masses.

Turning to the 20,000 yen exemption, he again objected strongly, charging that the limit set was too low and quite liable to be a burden to the masses. Unless, he insists, the attempt for redemption of national bonds is abandoned, the property tax will favor the capitalists. He advocates prompt confiscation of the property of the tax dodgers.

DISTRIBUTION "X"

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