Press translations [Japan]. Economic Series 0123, 1946-01-04.
Date4 January, 1946
RepositoryRauner Special Collections Library, Dartmouth College.
Call Numbereconomic-0615
Call NumberDS801 .S81
Persistent Identifier
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ECONOMIC SERIES: 123
ITEM 1 People's Control Over Production and Distribution Needed - Article by Mr. KAZAHAYA
- Yomiuri Hochi
- 31 Dec 45. Translator: S. Kinoshita.
Summary:
Delay in the reconstruction of industry, due to sabotage by capitalists under the
direct control of the Government and the
great financiers, is creating a large number of unemployed. This mass of unemployed
is turning to black marketing. A temporary
boom was created by retirement allowances, but this has quickly passed away. Purchasing
power of the petty bourgeois has
reached its lowest limit. Commodities went beyond the purchasing power of the common
man and fell under the control of the
richer classes, including minor capitalists, and finally commodities were held by
financial capitalists as a means of
speculative bargaining.
Circulation of currency has greatly increased. Thus inflation is becoming prevalent
and the prices of commodities are rapidly
rising. The unemployed, war victims, salaried people, and the lower middle classes
will eventually be shut out from the
process of capital circulation. They are destined to fall to the position of the proletarian
classes. Such new differentiation
of social classes is an occurrence of the last quarter of this year.
I. Farm Land Reform
Farm land reform should form the feed of the democratic revolution of JAPAN, uprooting
all the semi-feudalistic foundations of
Japanese capitalism. But the reform law which passed the Diet is far from being of
revolutionary character. First, the law
makes the tenant's position unstable. Second, newly created landed-farmers are likely
to be reduced to a tenant farmers status
again due to the lack of funds for maintaining their newly obtained land. Third, the
law does not provide for establishment of
farming rights. Fourth, reduction of tenant rents is not attained by the new law.
It established a cash-payment system of
tenant rents, but the farmer's financial security is not assured against fluctuation
of commodity prices by this system alone.
Fifth, feudalistic remnants are not entirely uprooted.
The people of today are conscious of their position as a social class and are ready
to take advantage of any small chance of
reform as a step toward more radical reforms. One of the most important tasks of the
common people is to unite and direct this
class consciousness in line with the democratic revolution.
The farm land reform will bring forth a new differentiation within the farming class
and create a farming proletariat. This
farming proletariat, being incapable of sparing food for its own consumption, will
always be threatened by starvation, just
like the urban working people.
The Government and bourgeoisie are now attempting to set the urban people against
the rural farming people by shifting to the
latter responsibility for the food crisis. This is, in fact, nothing but an
ECONOMIC SERIES: 123 (Continued)
ITEM 1 (Continued)
outcome of the evil policies the Government and bourgeoisie had employed in their
own interests. If the situation continues
unchecked, grave consequences will manifest themselves before long. In this case,
the people should be warned of the
bureaucrats' attempts to recover their lost power by suppressing the people's movement
under the excuse of maintenance of
peace.
The working people must organize themselves into labor unions, industrially or territorially
under national unification. The
farming people must also be united and join with the urban working classes in fighting
against the forces opposing their
common interests. The people, including laborers, farmers, petty bourgeois, and salaried
people must unite to fight for the
people's control of production and distribution of food and other daily necessities.
II. Unequal Distribution Must Be Rectified.
As pointed out by Supreme Commander for the Allied Powers, food stuffs are not entirely
insufficient. They are concentrated in
the hands of the richer classes. The limited amounts of distributable foods and other
daily necessities should be given
preferentially to the non-propertied, working classes.
III. Democratic Character of Reparations.
Reparations will not deal a fatal blow to the reconstruction of the Japanese national
economy, as some bourgeois ideologists
insist. The group which suffers most because of reparations is the ZAIBATSU and not
those who wish to reconstruct industry
along democratic lines. In his 17 November interview with the press correspondents,
Ambassador PAULEY said that reparations
will contribute to the destruction of the ZAIBATSU, who are responsible for the outbreak
of the war. On the other hand, SCAP
ordered the Government to uproot all feudalistic and despotic suppression of the working
classes and to improve working
conditions. The people must keep a careful watch to see whether or not the properties
of the ZAIBATSU, as included in
reparations, will be rightfully delivered.
IV. Property Tax and Wartime Profits Tax.
The same can be said concerning the property tax and the wartime profits tax. Some
bourgeois ideologists insist that these
taxes, depriving the capitalists of their accumulated capital, will bar the reconstruction
of capitalistic industries. But
this is not the case. The new taxes do not mean a lack of capital. The capital is
to be invested in peaceful industries to
raise the living standards of the people by means of a democratic people's government.
The Allied Powers expect a democratic
government to be established as promptly as possible. The working masses should exert
their best efforts for building up such
a government, even if only for rebuilding industry. This is the only way to establish
JAPAN as an independent state in
international relations.
ITEM 2 Key to Industrial Reconstruction - Nippon Sangyo Keizai Shimbun - 1 Jan 46.
Translator: S.
Kinoshita.
Summary:
With the beginning of the new year we must do our best to get rid of confusion and
despondency in our industries and to
fulfill the important duty of reconstructing the national economy of a peaceful JAPAN.
The aimlessness and despair attendant
upon defeat, combined with the shortages of food and coal, greatly retard the progress
of industrial revival.
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ECONOMIC SERIES: 123 (Continued)
ITEM 2 (Continued)
Industrial circles, accustomed to bureaucratic control during the war, failed to
resume independent operation with the ending
of the war. Consequently, unfavorable conditions have appeared, such as capitalist
sabotage, increasing numbers of unemployed,
mounting inflation, and decline of transport capacity.
This year we must strive persistently and energetically to overcome these unfavorable
conditions by restoring and increasing
productive capacity. The reconstruction of the Japanese national economy should be
made along lines of economic democracy. For
this purpose, all deep-seated feudalistic elements in the economic structure, and
all the obstacles which have arisen since
the war, must be eliminated as promptly as possible. The Government should give up
all bureaucratic controls, and the
capitalists should establish, independently, the co-ordination of industry.
Second, the food and coal crisis must be overcome. The coal shortage was seriously
aggravated in the second half of last year,
becoming thereby the greatest factor in the decline in production. Effective measures
should be taken for promoting the
production not only of coal, but also other essential staple materials.
I. Conversion of War Industry into Peacetime Industry.
No appreciable progress has been made in industrial reconversion due mainly to the
fact that the Government's indemnification
is still pending for most of the companies engaged in war industries. Therefore, it
is advisable for those companies to
establish new companies, leaving the old ones untouched, and using the production
facilities and materials of the old
companies to produce consumer goods.
II. Restoration of Minor Enterprises.
Enterprises on a minor scale will be the industrial form most suitable for future
JAPAN. However, it is regrettable that no
measure has been taken by the Government for the restoration and encouragement of
small enterprises. For this purpose, drastic
revisions should be made of the existing Commerce and Industry Organization Law. Financial
aid and technical guidance should
be given to small enterprises and, at the same time, the unrestricted establishment
of enterprises should be prevented.
At present, small enterprizes are worried about the competition of street vendors
and co-operative unions. If the situation
continues unchecked, these small entrepreneurs will surely become incapable of maintaining
their existence.
III. Form of Enterprise Must Be Studied.
Democratization of economy has been realized by dissolution of the ZAIBATSU and the
organization of labor unions. Relations
between capital and labor have become quite different from those of the old days.
Labor's participation in management through
collective bargaining under the Labor Union Laws is the most characteristic example.
A situation is bound to arise in the
future when employees will take over the management of an industry from its owner
because he is incapable and unwilling to do
his duty.
Whether or not the existing form of private enterprise is suitable for basic industries
such as coal mines, iron-foundries,
transportation, communications, banking, and electric power, requires further study.
In deciding this problem we must consider
what kind of form is the most efficient and reasonable in promoting productivity.
The immediate establishment of a price
policy by the Government, and the establishment of an organization for the independent
co-ordination on the part of private
entrepreneurs, will surely help industrial circles to get rid of existing confusion.
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