Press translations [Japan]. Editorial Series 0061, 1945-12-05.

Full translations

The most important contemporary economic problem facing our country now concerns the reopening of industrial production. The confusion due to the suspension of the munitions industry is not yet cleared, nearly three and half months after the termination of the war. Almost all the plants in the country are entirely out of work. Even the few factories still working use a small portion of their equipment and consequently production in JAPAN is probably quite small in quantity. Coal mining, which is nearly on the brink of disaster, illustrates the miserable situation of all Japanese industries. Since economic life cannot be stopped even momentarily, the suspension of production is of such significance that it cannot be ignored.

Considering the present circumstances, General MacARTHUR issued a directive on resuming production of civilian goods with the desire of promoting the transformation of industry. Although the will of the Allies became clear by this directive, and the movement for the reopening of production is expected to become gradually active, the problem is not of such simplicity that it can be solved by this alone.

At present, leftists criticize capitalistic sabotage of production, and the capitalists in turn refer to sabotage by labor. However, it is necessary for us to sincerely and critically investigate the cause of the present situation before we denounce each other. The substance of the problem requires clarification.

First to be noted is that the Government lacks a precise plan. For the transformation of war industry or the beginning of production, a complete blueprint for the future is required by the capitalists. Although some people insist that future production can be carried out without such a grand scheme, it is still unlikely for one to begin work on an enterprise of considerable scale, net to mention small factories, without a firm belief in its success. For that reason, the advance in production of civilian goods cannot be expected while the ideas of the Government on reconstruction of industries remain unclarified.

This is especially true of the reparations problem and the limits upon industry to be decided by the Allies. For instance, the source of the entrepreneurs present difficulty lies in their poor supply of raw materials, the abundance of which in the future cannot be expected. When the entire plan for the future is made public, the anxiety for material supply will be eliminated and the reopening of production will inevitably begin. Therefore since it is impossible

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for the civilian alone to attain this we hope that the Government will be farsi[illegible]hted in negotiations with the Allies: and take proper steps on the management of the industries .

Second, the Government should consider that its wartime controls remain in force, and immediately eliminate these portions unnecessary or harmful to the reopening of production. We cannot understand the reason for such vicious laws as Regulation of Company Accounts, the Lumber Control Law, the Fund Readjustment Law, et al. The retention of such laws may prove to give rise to popular distrust of those control laws which are necessary and efficient. Therefore these measures must be speedily acted upon.

Third, it is noticeable that financial capital is indifferent to the reopening of production. The financial capitalist hestitates to loans when the deflation policy begins. Especially at present, when their loans to war industry cannot be called in because of the freezing of capital; the financial capitalists have no interest in new investment and became rather cautions. This attitude of financial capitalists obstructs the reopening of the fertilizer industry and other chemical industries. The defensive instinct of financial capital is the cause for this attitude. Therefore it is inevitable that measures will be taken to make compulsory loans. Furthermore, fundamental policies which will make public the function and management of financial capital should be considered.

Fourth, the difficulty pertaining to industrial capital. This difficulty is the inability of industrial capitalists to commence their activity because of the nominal increase of capital. Many companies have lost large portions of their substance by war damages, and they balance their accounts by insurance money, indemnities and special deposits, etc, They cannot be expected to restore their normal state until their fictitious capital is cut off and they resume with a reduced capital, because an enterprise based on capitalistic principles cannot be carried on without the assurance of future dividends. Also, industrial capital can hardly be expected to pay dividends for many stocks which still exist in expanded wartime amounts.

The main causes which make industrial capitalists hesitate are the heaviest property tax over known, the enactment of the Labor Union Law and the radical surge of the proletarian movement. In view of the capitalist montality it may be not unreasonable for the capitalists, who did not even recognize labor unions in their management, to see only fear and unrest in their future. But the above-mentioned facts will never be an obstacle to the reopening of production when the capitalists realize the time sense of economic democratization now under way. These financiers who do not realize this should retire and yield their posts to younger men.

Lastly, is the question of the masses who cannot sustain their life even by labor, and consequently, are going to avoid labor in despair. Much can be said on this question. We propose that the following measures be taken to allow those people who work to live: A large scale increase of wages, and direct connections with food distribution; the setting up of a labor duty system by the establishment of labor unions, with the principle of "those who don't work should not [illegible]oat".

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Not only the Government, capitalists and workers but the whole Nation has the duty of resuming production. Each person must well remember that production should not be suspended for a day or even for a moment in spite of the defeat. It is strongly desired that the nation rise and unite for this purpose.

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