Press translations [Japan]. Editorial Series 0289, 1946-01-23.

Full Translation:

It is well known that students' scholarship is presently very poor. This testifies to the fact that militarists ignored not only the meaning of a student's life but the essence of education.

The war finished disastrously, but the students are expected to become the support of the new JAPAN. However, the wartime educational system remains as it was. The quality and type of education should be rapidly improved in accordance with the fundamental policy of education.

First, the return of high school courses to the three-year system is desirable. It is against the country's interests as well as that of the students to permit the present high schools students, lacking in intellectual power on account of the compulsory labor during the war, to matriculate at a university in their present state. Supplementary education for six more months is meaningless to them.

Moreover, the textbooks now in use would only make the level of their scholarship low. Therefore, these textbooks must be revised and made as substantial as they were before the war. We know well that the Department of Education carried out many outrageous policies in schools during the war.

Aware of how to govern themselves and the real meaning of a student's life, all the students want to devote themselves to their studies. Therefore, we desire ABE, the new Minister of Education, to carry out good measures to correct the old educational policy and make it possible for us to enjoy a student's life.

(By OKADA, Munetaka, a student in TOKYO)

What we fourth year students of middle schools ask Minister of Education, ABE to carry out is the return of middle school courses to the five-year system. Recognizing the lowered standard of our scholarship and culture because of the war, we ourselves are making efforts to elevate the standard of our attainments. However, we are afraid that, if the present fourth year boys complete the middle school course this March, the Japanese standard of culture will suffer.

It is a matter of regret that, with no consistent ideas about the significant revolution, many boys, whose sole object is to get high marks, would leave school. We are now thrown upon the horns of a dilemma.

EDITORIAL SERIES: 289 (Continued)

ITEM 1 (Continued)

Therefore, what we hope for is nothing less than a radical change in education. We want to have school for one more year. We assert that we shall make ourselves ready in that one year to create a new civilization and era.

(By OKADA, Susumu, a middleschool boy in TOKYO)

I desire Education Minister, ABE to make the present student life a comfortable and significant one. First, the pressing need is to establish the five-year system on the middle school course. With the war's end, this problem was taken up together with the three-year system in the high school course, but it is still undecided.

We hear that temporary and supplementary instruction will be held at high schools, and the day for the entrance examination to high schools will be delayed until June or July in order to check the lowering of the scholarship of middle school boys.

It is commonly acknowledged that those who will save JAPAN from distress in the future will be the young students of today. Accordingly, I think that such a temporary step cannot meet the present serious situation. That will produce a dearth of well-educated people in the future of JAPAN.

In my opinion, it is reasonable that only capable boys should enter a school of higher education, and the remainder ought to develop their real ability for one more year.

(By KOBAYASHI, Risuke, a demobilized student in TOKYO)

I hope you are a great idealist as well as a cool-headed realist. Although one cannot live without bread, one should not live by bread alone. We cannot live without either bread or ideals. I remember that, as naturalism had a great vogue, you who headed the list of Dr. NATSUME, Soseki's disciples, said that one must not take a view of life as it is, but as it should be.

"Give us bread and ideals" is the actual cry of the Nation. Regarding many problems from the Emperor system down to the strike of a small factory, the Nation is at a loss as to what to do. If matters go on at this rate, such a beggar's spirit will spread throughout the Nation.

In accordance with the removal directive issued by General MacARTHUR, nearly 20,000 persons are to be removed from public office. Many young people, who would fill up the vacancies and be at the helm of the new JAPAN, are puzzled as to what course to take. Please lead us and brighten our prospects! I ask you to make the best use of our ardor for the establishment of a new JAPAN.

(By SUWA, Junichi, a man without a regular occupation in YAMAGATA-Ken)

Full Translation:

The Bank of JAPAN expressed its opinion in the person of Mr. YAMAMOTO, Yoneji, chief of the Board of Investigation, that the redemption of bonds by revenue from the property tax is much the same as cancella

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EDITORIAL SERIES: 289 (Continued)

ITEM 2 (Continued)

tion of the property tax payers' holding bonds. This argument is based on the following points:

1. The civil banks will be obliged to ask the Bank of JAPAN for a loan, giving bonds as security, in order to meet the withdrawal of deposits to be paid for the tax. When the redemption of bonds comes into force, the loan from the Bank of JAPAN is paid back automatically with the bonds as security. These bonds will be cashed thereby, and no profit will be available for the civil banks. 2. In case the tax is paid with cash on hand, no effect will be felt by the civil monetary organs. 3. When the tax is paid in kind, and the Government sells it, the case is the same as if the purchaser of Government articles pays the property tax with a deposit or cash. Such being the case, the Bank of JAPAN says, all the property tax payers contribute their bonds to the State in the end, in proportion to their respective property. The above argument can fit the case only when the Bank of JAPAN can have all the bonds in its hands at the tine when the national bonds are repaid by the revenue obtained from the new taxes, including the property tax. In this case, the payment of taxes affects the redemption of national bonds in the hands of the Bank of JAPAN. So it may mean, as the Bank of JAPAN argues, the contribution by the tax payers of their national bonds in proportion to their property.

However, can it possibly happen in such a case as stated above? The problem lies in the respective positions if the deposit, which will be used to pay the property tax. About the same amount of national bonds with the deposit withdrawn will be duly transferred to the Bank of JAPAN if the tax is paid by means of the withdrawal of deposits. That is, the moving of national bonds to the Bank of JAPAN will take place in accordance with the payment of taxes.

In the case where the tax is paid by cash, or in kind, the bonds are not moved, and they still remain in the hands of the civil monetary organs. When the Government gets the lands, houses and increased stocks by the payment of tax in kind, and sells these, the movement of national bonds to the Bank of JAPAN will also take place.

Can we imagine, however, a case where lands and houses, amounting to tens of billions of yen, can be all sold? No, we cannot. It is already difficult to estimate the amount of deposit to be withdrawn to pay the taxes. Since payment in increased stocks is permitted to the corporations, and a respite or payment in kind is also allowed, it cannot be supposed that so large an amount of deposit will be withdrawn. Accordingly, it is reasonable to think that a considerable number of bonds will still remain in the hands of the civil banks when the redemption of bonds commences. So, it is clear that the monetary organs will profit by the redemption of the bonds which they hold.

Another important problem is the compensation to the munitions firms. According to Mr. YAMAMOTO, the interpretation of this is that; by having a deposit of 100 yen in a bank, 50 or 60 yen of it is in the form of national bonds and 20 or 30 yen is the loan to the munitions companies. In other words, it is nothing but a gain of the civil monetary organs through cashing the loans which have been considered non-redeemable. Judging by common sense, it can be said without error that the above facts favor the bankers.

In brief, the matter is as follows: For every 100 yen of bank deposits, about 40 yen will be withdrawn to pay the taxes. At the same time, the same amount of 40 yen of national bonds will be moved to the Bank of JAPAN and be cancelled thereby. The remaining amount of 20

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EDITORIAL SERIES: 289 (Continued)

ITEM 2 (Continued)

yen of national bonds held by the banks is to be returned and cashed. In short, the bank deposit of 100 yen will be decreased to 60 yon and the cash in the hands of banks increased to 50 yen. Both the national bonds and the loans to munitions industries and scarcely negotiable an there is little hope of them being redeemed. By cashing such bonds or loans, the assets of the banks will doubtless be increased. With this abundant cash, the banks are obliged to invest it again. Herein exists the danger of increasing the inflation.

It is a self-evident truth that the social influence of financial capital will be relatively strengthened, provided that the revenue obtained from the imposition of the property tax is used in the redemption of national bonds. The Bank of JAPAN expressed its opinion, in the person of the chief of the Board of Investigation, and answered such questions. The view of the Bank of JAPAN manifestly represents the interests of financial capital. Hence, we can find the reason why the nationalization of the Bank of JAPAN is necessary for its democratization.

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