Press translations [Japan]. Economic Series 0253, 1946-02-03.

Summary:

The present economic condition of JAPAN since the termination of the war is chaotic, and we can only foresee the intensification of inflation. If the present economic condition continues in the same trend, no one can guarantee that JAPAN will not come to an economic collapse in the near future. The acute shortage of such vital products as daily divisions and coal has cost the general public as well as industrial producers into despair. Only black markets are prosperous, while the public manages to lead a strained daily life because they have almost exhausted their savings. In spite of the distressed condition of wage earners and salaried workers, soaring prices, daily commodities, and a flood of currency are witnessed every where.

In order to prevent JAPAN from falling into economic destruction, prompt and drastic measures must be taken. Concrete anti-inflation on measures must be enacted vigorously with the wholehearted collaboration of the nation. We have to achieve economic stability with appropriate measures to meet the situation.

I was given a theme on "Future Finance." and I want to analyze the ideal financial situation for JAPAN, after considering the important economic problems now being broadly disscussed, and the future movement of JAPAN'S economy as a whole. Some commodities are delivered directly from producers to consumers, while others are delivered to consumers indirectly through many processes of manufacturings during which period currency plays an intermediate role. The direct exchange of commodities is not the normal transaction in modern economics. In other words, currency is only an intermediate measure in the flow of materials from production to consumption, but a smooth flow of such materials can only be realized by means of currency.

It is the banks which from the vital factors among financing organizations in our country, banks in JAPAN are classified into the three categories of special, ordinary and deposit banks. Among the special banks are the Bank of JAPAN, the Industrial Bank of JAPAN, and the Hypothec Bank of JAPAN. Ordinary banks include those similar to the TRIKOKU Bank, the YASUDA Bank and the MITSUBISHI Bank Which are usually called the five or six big banks. It is a matter of course that besides banks, there are many other financing organs which transact financial affairs. They include trustee companies, mutual financing associations, post offices, the Government Post Office Life Insurance Bureau, etc. Pawn shops and usurers are also minor financial organs which

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ITEM 1 (Continued)

have much to do with the public. Life insurance corporations, development companies, security dealers, and ware house businessmen also conduct financial business.

It is only natural in the present economic situation to study means of improving the system, the structure and the method of business transactions from different viewpoints. I specially in view of the past process in the development of such organizations, it is urgent to introduce entirely new ideals for the economic expansion of JAPAN. Simultaneously, it is also necessary that these banking organizations and financiers resume their former status after getting rid of their wartime structure and attitude. The shifting of war time controls must be done, while financiers must change their ideals to peace time.

Though ordinances and regulations connected with the controlling of finance are being gradually shifted, and the systems and structures of financial controlling organizations are being either altered or cancelled, the banking organizations have not yet returned to their former status.

Extracts:

Consumers' Associations have recently sprung up to the satisfaction of the salaried class which is supplied with moderate price, necessities of life, by the elimination of the middleman. But most associations, established after the end of the war, being founded only on mutual agreement of members have no legal standing. They are also liable property tax. However, this levy on consumers' associations with assets in excess of 30,000 yen is being denounced as placing a burden on the masses.

The view on the subject disclosed by authorities of the First Section of the Ministry of Finance is as .follows: "The ministry is considering exempting from taxation consumers associations composed of town, village, or neighborhood associations etc., aiming solely at the mutual benefit of those concerned."

Full Translation:

With the increased importance of raw silk and the working days of sericulture in view, the Ministry of Agriculture and Forestry has decided upon a new policy. Under this new policy the cocoon raising farmers will be allowed an additional ration of rice amounting to one sho per kan of cocoons delivered to the government agents. At the same time the government will arrange a special alternative delivery plan under which the sericulturists will be allowed to deliver either rice or cocoons with an alternative ratio of one kan of cocoons to five sho of rice.

This latter decision was made because sericulture often affects the grain harvest. The additional rice ration to the cocoon raising formers will be given twice, half at the beginning of the sericultural season, and the remainder on the delivery of cocoons.

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Full Translation:

The direct sale of fish to consumers was discussed by all the parties concerned as a result of the direct sales of sardines at the TSUKIJI Market, and was decided to be applied only to dried sardines sold according to the "link system." Vegetable dealers have also decided to adopt the direct sales system.

Fish: Though the fish distribution to homes will be continued as before, linked dried sardines will be delivered by the bundle from the market to the manager of each Neighborhood Group through the Ku office. That is, this fish will be delivered to a responsible person of all the Neighborhood Groups in the presence of officials of the Metropolitan Office and personnel of the fish company and association. This fish will be heaped at a certain place assigned by the manager of the Ku office , and its total amount, price and ration per capita will be made public to members of the Neighborhood Group. The method of distribution will be left in the hands of each Neighborhood Group, or each Consumers' Association. Direct sale will begin on 3 February in KYOBASHI-Ku, NIHONBASHI-Ku and SHIBA-Ku, and in the other Ku in turn. If this system wins popularity, it will be applied to the sale of all fish.

Vegetables: In addition to distribution to homes, vegetables actually will be put up for general sale unlike fish at the TSUKIJI, KANDA, KOTO, FBARA, TOSHIMA, ADACHI and YODOBASHI Markets, as well as at the two new markets in the TAWA district. Approximately 500 Kan of vegetables, about 10 per cent of each day's arrival, or one Kan per capita will be sold in this way. The kind of vegetables on sale will be popular ones, and each vegetable will be classified into high, average, and low class. Wholesale prices plus less than 20 per cent profit will be the sales prices. The aim of this system is to lower the black market price by notifying the people what margin exists between standard prices and high prices by intermediate dealers, on black market prices. Sales will begin on 4 February, during afternoons, at the above-mentioned markets.

Summary:

Question: We, being engaged in public utility works, are quite eager to present a common front for the democratization of the Government machinery in close cooperation with the people. But how about asking the people to give us their full-support in our movements?

Mr. SUEHIRO: I think your efforts in this connection will be in vain because the people do not like strikes in public utilities which are closely connected with their daily life.

Question: Judging from what we have heard just now, we think that the Labor Union Law, under which employees engaged in public utilities are considerably restricted in their labor activities , is not worthy of existence, for true democracy does not mean such a partial treatment of the people by the law. Besides the Constitution has not been revised as yet. We can no longer tolerate such a law. We urge an immediate appearance of a popular republican government, thereby protecting the right of all workers, irrespective of whether they are engaged in civilian occupations or in public utilities. Could you tell us your opinion in this respect?

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ITEM 5 (Continued)

Mr. SUEHIRO I think you are quite right, and I am of your opinion. But at present, I think that even if the law does not prevent you employees of public utilities from calling a strike, your participation in strikes will be subjected to caustic criticism by the people whose daily life is closely connected with your work, just as you saw in the past the general strike of the OSAKA municipal street car workers. So, you must remember that as long as you engage in public utilities, your labor movement cannot obtain success without the full support of the people.

Question: We Communists cannot agree with your opinion. We cannot understand why the people attach the strike on the part of employees of public utilities of which they are actually taking great advantage. In our opinion, since most of the people consist of the working class, they have no reason to be antagonistic to the strike in public utilities. If all employees of public utilities carry out their strikes through their powerful labor unions, after making known to the public the reasons for their demands, I think they will never fail to obtain full support of public opinion. Don't you think so?

Mr. SUEHIRO: Yes, I think so. But I think the communists are too theoretical in handling problems requiring practical solution.

Question: Anyhow, if the law prevents employees of public utilities from carrying out their strike, well, what can they do otherwise? I think they need not be restricted, in their activity by such a law. They should do what they can even against such a law!

Mr. SUEHIRO: But I warn you once more, "such activity on their part will be regarded as violation of the Labor Union Law."

(to be continued)

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