Press translations [Japan]. Economic Series 0035, 1945-12-02.

Summary:

New methods of cultivating sweet potato roots by utilizing the wasted potato roots and vines have been introduced in several prefectures. These methods will be introduced throughout the country for general utilization without using up potatoes for seeding purposes as has been done so far. With aggravation of the food situation, the importance of sweet potatoes as a vital foodstuff has been increased, and even potatoes formerly used for seeding purposes have to he used for food.

Experiments in the use of roots have been conducted in NIIGATA, KAGOSHIMA and CHIBA Prefectures, while the use of waste vines was taken up in SHIZUOEA Prefecture. The results proved to be very satisfactory in both cases. Consequently various potato companies will launch a grand scale movement for the introduction of these new methods.

Roots to he used for seeding purpose must he taken from those cultivated in spring, the main roots under the ground being preferrable. Vines five inches long just out of the earth are also suitable, but all parts of vines excepting only the top parts are also utilized. The best harvest times for the products attained by planting the waste roots or vines are considered to be about 20 October in TOHOKU Districts, about the end of October in KANTO Districts, western parts of the TOICAIDO, and the CHUGOKU Districts, and the end of November in KYUSHU and SHIKOKU.

In the storage of potatoes thus produced, a temperature of three or four degrees below the average storage temperature is admissible, but moisture is strictly to be avoided.

The speed of growth after germination is slower compared with those planted in ordinary ways, and care must be taken to let then absorb nourishment from the surface of the earth as soon after budding as possible. In YAMAGATA or NIIGATA prefectures, they usually put fertile soil on the surface of the round, for this purpose.

ECONOMIC SERIES: 35 (Continued)

Summary:

Amid the well-clad and well-fed, the starving and the general decay of public morals, inflation marches on mercilessly. The Government has decided to draw off all undue war profit from war time profiteers and as much cash as possible from the rich through the proposed property tax. The opinions of MAEO, former First Section Chief of the Tax Bureau, on the property tax, and of YAMAMOTO, Chief of the Investigation Bureau of the Bank of JAPAN on the new yen are as follows:

The Property Tax: There are two ways to check overwhelming inflation. One is devaluation of money and the other is decrease in currency. The property tax, on accumulated income, is going to be levied in an attempt to bring about the latter. A report will be made by every one regarding the cash, bank deposits, houses, lots, farmlands, hereditary household curios, rice or charcoal they have on hand, as well as the money loaned to others. The necessities of everyday life are the only things to be exempted. A special Investigation committee will be established to estimate impartially the property, taking each household as a unit. A progressive tax up to 70 per cent will be levied, with the percentage rising sharply for wealthier people. Consideration will be given to the size of families and war sufferes. Maximum properties owned by a household for exemption from property tax is yet to be studied.

Revenue from the Property Tax and the War Profit Tex combined is estimated at more than 100 billion yen, which will meet the future redemption of national bonds. The decrease of currency thus brought about will eliminate black market operations, causing lower prices and more stabilized life.

The new yen: The property, to be considered taxable, when the property tax plan is put into effect covers an extensive range, from real estate to cash on hand. But cash is most elusive to check on as taxable property. The major object of the new yen is to investigate this type of property. The value of the current paper yen will be nullified the instant the new bills are issued. The bank that receives old yen in exchange for new ones will report the owner's name to the tax office. In 1944, BELGIUM experienced a similar procedure. The Bank of BELGIUM collected the then current paper money ranging from sums of 100 francs to 10,000 francs for conversion into new currency. Those failing to be exchanged were put out of circulation. The maximum to be immediately paid back to individuals in her case, was 2,000 francs for every body. The bank held the balance, if any, and 40 per cent was paid later in installments. The remainder of the bank credits was frozen as undue war time profit subjected to high rate tax. About 8.7 per cent of the legal currency, or 10 billion francs failed to be exchanged.

Financial institutions will have some trouble while the exchange is in progress, but it should not be of a serious nature.

Full Translation:

The Government has deliberated over the pressing question of repealling The National Mobilization Law and The War-time Emergency Measure Law in line with the POTSDAM Declaration and has decided to introduce a bill on the subject before the present extraordinary, Diet in the Cabinet conference on 27 November.

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ECONOMIC SERIES: 35 (Continued)

ITEM 3 (Continued)

Imperial ordinances in conformity to The National Mobilization Law and The War-time Emergency Measure Law are being repealed one after another according to circumstances. The Government will repeal the two Basic War-time Control Laws, except for necessary ordinances, within six months after the extraordinary Diet session.

Summary:

Real production of charcoal was around 500,000 metric tons during the past six months from April to October, 1945. It is only 20 per cent of the usual annual production and has been reduced by more than 10 per cent as compared with a corresponding period of the previous year.

To tide over this winter, the Agriculture and Forestry authorities have decided to launch a movement for increased production and shipment of charcoal and firewood during the forth coming two months, December and January. Four measures have been set up for this purpose as follows:

• 1.The producer's price has been raised by 86 per cent for charcoal and by 140 per cent for firewood, both above actual official prices. The new producer's prices to be effective from 29 November follow: hardwood charcoa1, 8.80 yen; common charcoal, 8.00 yen; pine charcoal 7.90 yen; dust charcoal 6.15 yen; all per bale or 15 kilogram. Herd firewood, 1.30 yen; common firewood, 1.15 yen; pine firewood, 1.15 yen; all per bundle.
• 2.A special rice ration for the producers will be granted at one go for every bale of charcoal supplied, or for every 15 bundles of firewood, in addition to the ordinary ration of 2.1 go. Sake, saws, rubber-soled tabi, etc. will also be distributed to special suppliers of charcoal and firewood from self-use during the period of this movement.
• 3.For shipment to the devastated cities, such as KEIHIN, CHUKYO, HANSHIN, a supplementary charge will be allowed, namely, two yen additional for on bale of charcoal and 30 sen additional for one bundle of firewood.
• 4.Control on prices of wood will be removed.

With a view to facilitate supplies of lumber, the Restrictive Regulations of Lumber Distribution were improved on 26 November by the Agriculture end Forestry authorities as follows:

• 1.To abolish the Enterprise Permission System so as to free the establishment of trades.
• 2.Collection and distribution of lumber within a certain district will be 1eft in the hands of each governor. The Local Lumber Company will take charge of it when lumber is to be shipped out of each district.
• 3.The lumber reserve of the Local Lumber Companies will be transferred to the Official House Furnishings Supply Organization for distribution to meet urgent demands.

(The food policy of KANAGAMA ken):

The KANAGAMA ken plan to set up branch offices at SAPPORO and SENDAI to secure food on the spot. This is due to the fact that a substantial

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ECONOMIC SERIES: 35 (Continued)

ITEM 4 (Continued)

pert of the food must he transported from outside of the prefecture. The sum of 27,900 yen is being included in a new budget to cover this expense.

ITEM 5 Bank Deposits in Relation to Property Tax - Nippon Sangyo Keizai - 28 Nov 45. Translator: R. Aoki.

Extracts:

It is reported that from the time the rumor of the levy on profits and the property tax got around, withdrawal of money from banks increased in an effort to convert money into non-monetary assets or to divide up a deposit account into a number of smaller accounts. In view of such a development the present editor interviewed an official of the TEIKOKU Bank. The following is the opinion of the official:

"It is true that in my bank, also, new deposits of relatively small account, that is account, that is up to 4,000 yen or 5,000 yen have been increasing recently. It may be guessed that this is to evade property tax or to prepare for restrictive measures which might be imposed on the drawing of money in case the new yen notes are issued But since It is almost certain that the taxation offices will examine individual reports on bank accounts comparing them with the list of depositors submitted by all banks, the total amount of bank accounts of individual tax payers will be detected by the government. If names of other family members are used, a transfer tax or inheritance tax will be imposed.

"The new yen note is said to be ready for issue when the time for property tax enforcement is set. In order to restrict the circulation of these notes it is said that the bank will be directed to mark the amount of the issue on the rice ration pass-books of individual depositors, such a measure signifies restriction of payment by banks. I personally feel that any measure of restriction on withdrawing money from banks will rather stimulate unnecessary drawing.

From a banker's point of view, the freedom of withdrawing money should be maintained, for this win increase deposit. The government must formulate some means of convincing people that, after all, the money deposited with banks is most beneficial to all parties concerned."

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