Press translations [Japan]. Economic Series 0032, 1945-11-25.

Extracts:

SHINOYAMA: In TOHOKU Region, it is estimated that four or five koku of rice is being carried away illicitly by passengers of every train. Every man tries to escape the fate of the 10,000,000 people who, according to one State minister, may die during the winter.

NOZUE: It seems that farmers themselves do not feel happy about selling their products at black market prices, Moreover, many buyers are running very low on money. At times the buyer leaves, threatening not to return until he is starving.

SAWADA: To return to the problem of rice rationing, an agricultural leader in NIIGATA Prefecture holds that the nation can sustain the 3 go ration plan by practicing the following rules:

• 1.Farm rental must be paid in money or in foods other than rice.
• 2.Abolish stealing of rice by the Food Corporation and other intermediate agents.
• 3.Farmers should return to eating local products instead of rice, which is now becoming the practice

SHINOYAMA: Farmers generally are more concerned with the amount of rice they can retain and the acquisition of fertilizers than they are with the land question.

NOZUE: Farm leaders earnestly welcome the plan of creating land owning farmers. It is natural that tenants do not expend much effort in developing land that does not belong to them.

SAWADA: Moreover, the land owners do not resist the Government plan of land reform at this time. With the prospect of property taxes and a monetary land-rental system, they feel fortunate in disposing of the land. The problem of the shortage of fertilizer is very pressing. This year farmers used only two kan of sulphuric ammonium and 200 momme of potash; whereas formerly they used eight kan of sulphuric ammonium and two to three kan of potash per tan respectively. The priority established for the fertilizer industry is certainly a fitting measure.

ECONOMIC SERIES: 32 (Continued)

ITEM 1 (Continued)

ENDO: With regard to the question of inflation in the rural districts, the money that flows into those areas is mostly absorbed by the Agriculture and Forestry Bank. Moreover, farmers' incomes are not directly linked with their daily expenses, and on that account, they are not considered an important source of the national inflation. It is said that in SHIZUOKA Prefecture the biggest amount made by any single farmer during the war was 30,000 yen.

Extracts:

The 1946 budget amounting to 55,073,000 yen as drafted at the AICHI-KEN was approved at the regular session of the Prefectural Assembly on 24 November. It is 5,34,000 yen less than last years budget because of the discontinuance of wartime expenditures. No important appropriations to provide for the needs of this prefecture are included in this budget. Appropriations for food, silk-manufacturing and aids to repatriate servicemen are scheduled for inclusion in a supplimentary budget after the national policies have been determined.

Presumably, sweeping changes in future administration of education will be proposed in a measure by governor MONOBE. He was formerly Director of School Boards and is well acquainted with the educational needs of this prefecture.

Included in the new budget are salary increases totalling 225,300 yen for middle school teachers, 39,000 yen for primary school teachers, 75,500 yen for adult school teachers and 44,660 yen for lower-grade policemen. These increases correspond to raises of ten yen for middle school teachers, two and a half yen for primary and adult school teacher and five yen for lower grade policemen all of whose salaries are less than fifty five yen. There are included also appropriations of 3,240,000 yen for the making of woodland lanes and 1,362,000 yen for repairing roads and bridges. The latter two items are intended to reduce unemployment.

Summary:

Overstrained state finances will be relieved to a great extent by the abolition of the pension system for ex-servicemen. The Imperial Government has been directed by Supreme Headquarters to terminate by 1 February 1946, the payment of discharged allowances or service pensions to Japanese veterans except for disability compensation for those whose capacity for work is limited. Those who belong to any of the extreme nationalistic parties and those removed from office, or arrested by the Supreme Headquarters will naturally be excluded from such pensions.

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ECONOMIC SERIES: 32 (Continued)

ITEM 3 (Continued)

The system has been one of the banes of the state finance, though legally nothing had been done about it. Pensions and allowances have reached a staggering figure. In 1941, 672,000 recipients received 271,000,000 yen. This figure soared to 519,000,000 yen for 1,380,000 recipients. In September of this year, for 1,525,000 men, mostly veterans of this war before 1942, 582,000,000 yen is reported to have been appropriated.

A general's pension is from 2,500 yen to 4,350 yen. Privates with three years duty at the front draw from 150 yen to 168 yen. The allowance to bereaved families is set at half the pension the soldier would receive if he were alive. The Pension Financing Institution (ONKYU KINKO) will be abolished as superfluous.

The Pension System which started in 1868 has abruptly lost its major significance, relieving us of the heavy burden of supplying pensions for soldiers. The pension, however, still applies to civil service employees. They draw a sun equal to one third of the former income for only 17 years of service. The director of a Ministry Bureau with an annual salary of 4650 yen draws a pension of 1,550 yen a year. A Minister whose salary was 6,800 yen a year draws 2,266 yen.

A movement is underway to take up the problem of the pension system for civil service employees, and former, civilservice employees, in addition to the problem of social insurance Property Tax.

MASATAKA, Ota, chairman of the Post war Currency Committee (SENGO TSUKA IINKAI) of the Finance Ministry has proposed the initiation of the Property Tax and War Profit Tax, aimed at checking the inflation and reducing the disparity between the poor and the rich whose purses are swollen with war profits.

Though there no longer will be any military appropriation, by next year the total value of bonds issued in JAPAN will be 200 billion yen. Interest alone is estimated at more than 7 billion yen. The revenue from war profits and the capital levy are expected to increase from 70 to 80 billion yen, while Supreme Headquarters has estimated it at 100 billion yen.

The war profit tax is to be levied on assets which have increased during certain periods. Both individuals and corporations will be subjected to the burden. The lots between which taxable assets are to be calculated still remains to be worked out. There will be no tax exemptions.

But the program contemplated by the committee is a graduated capital levy up to 95 per cent, with exemptions for a fixed amount of assets. By assets is meant cash, securities and curios, — some of which are rather hard to evaluate. Other objects may be concealed, but everything taxable will be traced. Issue of the new yen currency will solve some of the expected difficulties.

A reasonable stock of the necessities of life will not be taxed. If, for example, a stock of rice is to great for normal consumption, a tax will be imposed.

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ECONOMIC SERIES: 32 (Continued)

ITEM 3 (Continued)

The organization of an income investigation committee is desirable before the tax in individual cases is determined. These two kinds of taxes will be levied only once and never repeated. The payment may be made in cash, national bonds, goods, or in any combination thereof. The taxes will be a great help in the redemption of national bonds.

Summary:

Revision of the Fishing Industry Law which was decided upon at the Cabinet meeting on 24 November will be submitted to the forth coming Diet session, and contains the following provisions:

The aim of the bill is democratize the fishing industry. Vigorous and autonomous action on the part of subordinate organizations must be encouraged. Thus the welfare of maritime producers will be promoted and, at the same time, food production will be enhanced.

This can be accomplished by the following measures: 1. Present system of appointing association officials by the government should be entirely abolished. Association officials including directors and auditors should be appointed at a general meeting of the association; 2. Necessary reforms will be made of functions of officials as well as on dictatorial powers of presidents; 3. The existing control by the administrative authorities on the fishing industry organizations will be abolished or curtailed. Regulations entitling the administrative authorities to force the establishment of fishing industry organizations will be abolished. Rules requiring fishing industry organizations to accept official directed dictates will be abolished. Administrative authorities will not be entitled to discharge association officials unless any illegal act is commited by them. Government approval of membership subscription, and so forth, will not be required of associations. 4. Fishery associations are to handle all matters relative to maritime production such as fishery rights, and, for the sake of their members, they are to handle the following matters: a. guidance and encouragement of fishery, b. autonomous control of fishery, c. increasing fish production, d. matters respecting fishing implement and facilities, e. prevention of and relief for members in case of maritime disaster, f. welfare of members, g. selling of products h. supply of fishing materials, i. wage increases for fisherman laborer and, j. deposit of members' savings; 5. The Fishing Production Association should strive for the development of fish products and handle the following matters: a. inspection of members products, materials, and production facilities; b. supply members with necessary material, c. supply funds to members and hold deposits of members' savings; 6. Prefectural fishing industry associations and the central aquatic industry association aim to develop the aquatic industry and assure prosperity to their members. They are to handle the following matters: a. sale of members' products, b. supply members with necessar materials, and finance or deposit members' savings.

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