Press translations [Japan]. Economic Series 0192, 1946-01-21.

Summary:

Daring the war, investment policy in the deposit department was to maintain a rate of approximately 70 per cent national bonds and 30 per cent local credits (SHIKIN). Since the issue of national debts is to be decreased from now on, an increase in the investment in local credits seems inevitable even if the Government takes steps to purchase the national debts owned by the Bank of JAPAN, as it did in November and December.

Whether the investment ratio for deposit funds is to be restored to its pre-war state, or to equal national debts and local funds, entirely depends on the actual supply and demand situation with regard to Government funds, and on the situation at the department of postal deposits and other departments. The Government policy for solution of this problem will be discussed at the Application Committee Meeting (UNYO-IINKAI) to be held in March.

Decreases are expected in national bonds, guaranteed bonds, and loans of special banks, foreign securities and debts, other overseas loans, and general leans. On the other hand, local securities and bonds, various loans for local public associations, loans, and bonds of special banks will increase considerably. These increased investments will be employed for the various capital funds which are available for such things as general enterprise, manufacturing industries, rehabilitation works, and reclamation of farm-lands.

ITEM 2 Repa[illegible]ent of National Bonds With Property Tax Revenues - Yomiuri-Hochi - 20 Jan 46. Translator: H. Sato.

Summary:

The repayment of national bonds with the revenue of property taxes amounting to 100,000,000,000 yen is causing a great deal of adverse criticism on the part of the general public. This policy means a relief of financial capital and the protection of the interest of capitalists of wartime enterprise. The reasoning of public opinion is as follows:

Repayment of national bonds (with property tax revenues) to made on the nominal grounds of the safety of deposits and savings, results in the safety of the capital of financial organizations. Compensation for the lasses of munition companies finally results in the protection of loaned funds of the banks.

ECONOMIC SERIES: 192 (Continued)

It will conform with social justice and, at the same time, meet the purposes of financial reconstruction to cut off the payment of camouflaged capital such as national bonds to the munition companies, and to take other steps to preserve the safety of small depositors.

If compensation amounting to 43,000,000,000 yen ware paid out for the losses of monition companies and a smaller amount were levied as a corporation property tax, it would mean, on the whole, protection of the capitalist class.

Against this opinion, the Bank of JAPAN expressed its view as follows: Financial organizations do not buy national bonds with their own capital hot with deposits; and if withdrawal of deposit begins for the payment of a property tax, financial organizations will have to borrow funds from The Bank of JAPAN, [illegible]these bonds as security. As a result of the payment of national bonds, the securities, are converted into liquid funds and the loan from The Bank of JAPAN is repaid. It does net mean any profitable business for the financial organizations.

Non-payment of the principal and interest of national bonds and abolition of compensation for the lasses of munition companies is advocated by the Communist and Social Democratic Parties. But bank capital is chiefly made up of deposits and the real capital of a bank (such as paid-up capital and reserve funds) does net amount to mach. November 1945 bank deposits amounted to 122,700,000,000 yen; funds of the loan section amounted to 49,100,000,000 yen; while the total of paid-up capital and reserved was 2,700,000,000 yen). Therefore, payment of the national bonds with taxes means that deposits will equal zero. Continual compensation for munitions companies and payment of the principal and interest of national bonds are not in the interest of financial organizations, but are a protection of deposits and savings.

Summary:

The people are now crying for democratization of the Neighborhood Group (CHOKAI) as well as the Neighborhood Association (TOMARTIUMI). The Tokyo Government Office has abolished the official regulations over the former to meet the wishes of the people. Both associations had been controlled by the Imperial Rule Assistance Association (TAISEI-YOKUSAN-KAI), and have had to work cut heavy official tasks such as sale of bonds and air-raid defense. This time of freedom has permitted the Associations to come back to their rightful position. The one thing remaining is what direction these Associations mast take. They should return their official tasks to city offices and their participation in distributing daily necessaries to stores and shops. Instead, they mast exert themselves for the improvement of culture, sanitation, health, and fire-protection. During this food crisis, however, the Associations are still repaired to act in the direction of daily life. A consumers' co-operative must be organized, dishonest

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ECONOMIC SERIES: 192 (Continued)

ITEM 3 (Continued)

registering of the number of families must be prevented, end fish distribution mast be handled by the Associations. The Associations must put up with this sort of trouble for a while until the situation is improved.

Full Translation:

The four great ZAIBATSU, MITSUI, MITSUBISHI, SUMITOMO and YASUDA, have been ordered to be dissolved by the Supreme Commander for the Allied Powers. The Holding Company Liquidation Committee (JIKABU KAISHA SEIRI IINKAI) is to be set up for settling accounts. It has been informally arranged that Mr. [illegible]AKANE, Sadahiko, former president of SANWA Bank will be appointed chairman of the committee by the Ministry of Finance with the approval of the Allied Headquarters. His chairmanship will make the formation of the committee more rapid Stooks owned by the four holding-companies will be brought under the custody of the committee. With legal proceedures taken, the four companies will undergo their own formal dissolution. It may be said in this connection that oversea stocks owned by the four companies will be held in the charge of the committee until the disposition of the stocks is decided upon because of the formally undecided war reparations policy.

Summary:

There will be a labor meeting held at the Aviation Building (KIKO-KAN) on 27 January advocated by the JONAN Labor Union Council (JONAM RODO KUMIAI KYOGIKAI). This council intends to unite all KANTO district labor unions and unorganized labor, by the will of which various questions, such as stabilization of livelihood, greater production of goods, the food crisis, etc., should be given a full and complete solution.

Prier to this meeting, a preparatory conference was held on the 20th of this month daring which these items were taken up for resolution:

• (1).Formation of an ag regate labor union law.
• (2).Annulment of labor income tax.
• (3).Formation of governmental social insurance of various kinds including unemployment insurance at the expense of capitalists.
• (4).Greater production of goods by laborers themselves and accusation of negligence in this matter by capital.
• (5).Opposition to forced rice-delivery and spurring of the production of farmers' necessities by labor unions.
• (6).Organization of vertical labor unions representing different industrial groups. - 3 -

•   ECONOMIC SERIES: 192 (Continued) ITEM 5 (Continued)
• (7).Formation of a committee to aid in netal and other strikes now in occurance in the KANTO District.
• (8).Collective bargaining of united labor unions.
• (9).Desire for a united front between the Social Democrats and the Communists.
• (10).Opposition to any company unions and demand for freedom of action and unions of Governmental industry laborers independent of Government control.

The democratic united labor front has rapidly spread among urban and provincial districts since the mutual contacts by Social Democrats and Communists. This preparatory conference is an epoch-making movement in the development of a united labor front. Attendance at the conference included representatives from 50 unions with a membership of 300,000. Still unorganized laborers in KANTO District will be persuaded to enter this conference. A powerful united front will arise when the formation is completed. The above mentioned resolutions stand for a common political and social program. It is asserted that the crisis should be tided over by the strength of the working class itself. The conference must be considered a great step in the course of democratization.

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