Press translations [Japan]. Editorial Series 0248, 1946-01-15.
Date15 January, 1946
translation numbereditorial-0780
call numberDS801 .S82
Persistent Identifier
EDITORIAL SERIES: 248
ITEM 1 Black Markets - Provincial Newspaper Chugoku Shimbun (Hiroshima) - 8 Jan 46. Translator: B. Ishibashi.
Summary:
Much black marketing has appeared in our country with the end of the war. Some people
argue against them, while others defend
them. However, I think that at present, it is too early to conclude that the black
market serves no purpose at all. In fact,
people there can buy freely many necessary commodities which can never be supplied
through official channels. Hence, it is
highly welcomed by some of the people, because this enables them to live their daily
lives comfortably than would otherwise be
possible. The people had been living under poor conditions throughout the war. It
is only natural that they should now utilize
the black market without consulting their pockets. Rather, we sympathize with them.
If we take those consumers into
consideration, it would be impossible to argue that the black market should be abolished
at once.
However, it is a lamentable fact that recently black marketeers have come to impose
more unreasonable prices than ever on the
people, taking advantage of their position as suppliers, with the result that our
people's livelihood is about to be ruined.
Moreover, they have gone far beyond the limits of supplying necessary commodities,
and as a result, the people's livelihood is
threatened with becoming all the more rotten, idle, and degenerated. For example,
there was recently reported a case of open
gambling and the illegitimate sale of basic foods, which are badly needed by the general
public.
The gambling was perhaps affected, to some extent, by the recent sale of lottery
bonds. However, aside from the question of
whether lottery bonds should be sold or not, that such a vicious act as gambling is
done openly during the daytime in the
markets is bound to affect seriously the mental conditions of the people in general.
Also, the sale of basic foods should not
be overlooked, particularly when the Government has strictly prohibited it , in order
to give effect to the delivery of rice
to the Government.
The above two cases are representative of the evils which exist in the black markets
at present. With these situations under
consideration, it can be said that the black market has come to a stage at which its
better elements are going to be disrupted
by its vicious elements. It is most necessary that it be supervised and developed
before the present conditions have become
more serious. However, supervision and development of the black market does not necessarily
mean its abolition. The elements
which help living conditions should be fostered more than ever, while the vicious
elements which are bound to destroy our
nation must be eliminated.
EDITORIAL SERIES: 248 (Continued)
ITEM 1 (Continued)
To put it into effect , an official market system should be established in cities
and towns, by reorganizing the existing
black markets, or another system set up to make the black marketeer reflect on their
own mistakes by forming a self-governing
association of their own.
In short, the conversion of the black markets into "sunny" markets is necessary.
Only then will our people be able to buy
necessary commodities there at reasonable prices and utilize them in their everyday
life. It is to be hoped that the
Government will take appropriate measures immediately.
ITEM 2 Taxes; Rapid Collection and Proper Usage - Provincial Newspaper Shinano Mainichi Shimbun (Nagano) - 12 Jan 46. Translator: I. Hotta.
Summary:
The Finance Minister has disclosed details of three new taxes, the Property tax,
the Individual property increase tax, and the
Corporation war Profits tax. By this plan, a revenue of 100,000, 000,000 yen is expected
to be obtained. Properties valued at
less than 20,000 yen are exempt from taxation. Those who possess property valued at
more than 30,000 yen will be taxed and the
rates of the tax vary from ten to seventy per cent. The individual property increase
tax will be levied on property valued at
more than 50,000 yen and the highest rate of this tax is 100 per cent. The decision
of new taxes is certainly revolutionary.
However, it proves that we are facing a serious crisis caused by inflation. The life
of the people will never recover from
depression without drastic measures.
Nevertheless, once the property tax was rumored, currency was exchanged for goods,
deposits were withdrawn from banks, and the
property tax, which was enacted to contro1 inflation, produced the opposite result.
In order to prevent the evasion of
payments and to insure its fair enforcement, it was also decided that insurance and
annuities are also to be taxed and that
currency will be exchanged into new currency to tax cash holdings. It is a remarkable
change that punishment for tax evasion
will include imprisonment, what is most important, however, is the immediate enforcement
of these laws.
These three taxes will be collected once during the 1946-47 fiscal year. However,
in order to render them more effective and
to prevent the growth of inflation, the Government has decided to collect taxes according
to the report written, a month after
the date of investigation, and settle accounts afterwards. The effect of this revolutionary
tax procedure will be lost unless
it is performed rapidly enough to check the growing inflation. It is therefore necessary
that the Government co-operate with
the people. The Government should also consider a moratorium since deposits will also
be taxed.
It is said that a revenue of 100,000,000,000 yen is to be used as a sinking fund,
but the government must not do such a thing.
The budget for the current year shows the need of still more reconstruction expenditures,
reparation expenditures,
compensation expenditures, etc. The new taxation is taken from the people's property,
and the revenue should be used for the
people, We may well say that the taxation aims at the propertied classes only if the
revenue is used as a sinking fund.
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EDITORIAL SERIES: 248 (Continued)
ITEM 3 The Property Tax - Asahi Shimbun - 14 Jan 46. Translator: H. Furukawa.
Full Translation:
A large property tax plan which is scheduled to save Japanese economy from collapse
was disclosed on 10 January by the Finance
Ministry. This tax plan is divided into three sections, i.e. a property tax, an individual
property increase tax, and a
corporation war-profit tax. The revenue anticipated from these taxes amounts to approximately
100 billion yen, or one quarter
of the total national wealth of just over 400 billion yen. Nearly two million people
will come within the scope of these
taxes. We can imagine how far-reaching these taxes are. The necessity for this property,
tax can be seen in that it aims at
capital levy and was planned by the well-known conservative ministry.
At the end of last year, the note issue of the Bank of JAPAN finally reached 55 billion
yen. This is three times more than a
year before. The cause of this expansion of currency is the hasty purchase of goods
due to the fear of a property tax ironic.
One reason why the people's subsistence has been exposed to danger is due to the abolition
of government control on fresh food
last fall. The bureaucrats must be blamed bitterly for the present situation.
At any rate, the signs of vicious inflation are apparent to everybody, and now the
matter cannot be neglected even for a
moment. Moreover, social antagonism becomes more severe through the development of
inflation. The behavior of the wealthy
class, especially that of war-profiteers is so unpardonable that the anger and fury
of the poor, war-sufferers, and jobless
people now reaches its height. The budget for the next fiscal year shows a nominal
surplus of 500 million yen. It is clear,
however, that the budget will show a deficit when a supplementary budget is required
to meet reparations, compensation for
overseas industries, the recall of Japanese currency, and the cost of the occupation
for us.
The inflation can never be stopped by financial measures, but will be even increased
by them. The situation cannot be helped
at all while things go on in such a way. The emergency measures of a property tax
is required to absorb purchasing power,
social equalization of income and the stabilization of state finance. We doubt whether
the people or even the Government have
a perfect knowledge of this affair.
First, the people are making strenuous efforts to conceal or waste their properties,
to say nothing of exchanging money for
articles, or withdrawals of deposits, since the property tax plan was reported. We
don't know how to criticize their ugly
behavior. This ugly behavior is the result of their ignorance. The authorities are
confident enough of defeating the ordinary
methods of evading tax by a modern taxation system. This can be judged from the deposit
report system lately announced. It's
efficiency is such that the authorities cannot be trifled with.
Some of the people who are so selfish must be required to reconsider. They should
ponder deeply whether they prefer the levy
of a property tax or inflation. They may hold their property temporarily by concealing
it or exchanging it for things, but the
collapse of inflated economy will oblige them to lose all. Then, what is to be said
of the attitude of the Government? It is
reasonable for the people to be warned of a property tax, by an announcement, three
months before its details are disclosed.
However, since the situation has become
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EDITORIAL SERIES: 248 (Continued)
ITEM 3 (Continued)
such as it is, the Government should carefully consider whether the present situation
can be neglected or not. The sooner the
limitation on the withdrawal of deposits and the payment system on rough estimates
is carried out, the better.
By the way, we can hardly understand the attitude of the Government in adhering to
the payment of indemnities to the munition
firms. We don't touch here on the problem of the suspension of indemnities [illegible]which we have
repeatedly discussed. It is manifest to everybody that the munitions companies will
get a big profit if an indemnity amounting
to 46.5 billion yen were paid to them. A total sum of 25 billion yen is to be obtained
from them.
Although some indemnity is to be collected in the form of individual property tax
or property increase tax, this does not
indicate a nationalization of indemnities. Therefore, it depends only in the Government's
attitude whether the property levy
will be made really effective or not. It is financial capitalists who are most favored
by the Government's compensation. They
can withdraw their loans from munition firms. The financial capitalists who hold 90
per cent of the total amount of national
bonds, are also the biggest beneficiaries of the 100 billion yen obtained from the
property tax.
In the enforcement of the property tax, however, full co-operation of financial capital
is necessary in order to supply funds
to enterprises so as to continue productive activity. In such various but closely
connected circumstances we feel, keenly, the
necessity of a radical reformation in the financial system, in order to administer
the property tax.
The financial capitalists must be prevented from special favors. It depends in the
resolution and awareness of the Government
and the people. The danger of economic collapse can be averted at the last moment
by carrying out the property tax plan
effectively . Let us think about this problem sincerely and thoroughly.
DISTRIBUTION "X"
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