ITEM 1 Note Issue has broken the 60 Billion Yen Mark - Mainichi Shimbun - 16 Feb 46. Translator: T. Kitagawa.

Summary:

The Bank of JAPAN Note issue which was 59 billion yen on 9 February increased by 400 million yen by 12 February, by 300 million yen on 13 February and 200 million yen on 14 February. The total issue as of 14 February amounted to 59 billion and 989 million yen and before the noon of the following day finally reached the 60 billion level.

Meanwhile, the Bank's advance to city banks on 14 February amounted to 42 billion 675 million yen. The present swollen circulation of bank notes, thus, is the result of the expansion of credit by financial institutions and the drawing out of money on deposit, and is not of a public - financial nature. The fact will further be affirmed by the report of 22 member banks of TOKYO Banks Association (TOKYO GINKO KYOKAI SHAIN GINKO) including the TEIKOKU Bank stating that they had lost 2 billion 300 million yen of money deposits during the period from last October to the end of January 1946, while their advance during the same space of time had increased by 7 billion and 795 million yen.

The explanations for the situation are reported to be the following.

The general withdrawal of money to meet the high cost of living

The demand for currency for the conversion of money into goods for the evasion of the war profits and property taxes, or for concealing assets.

The demand for funds necessary for industrial conversion into the form of plants, materials hoarding, or for speculative purposes on time deposits or special frozen deposits as collateral.

The demand for more currency for the increased running expenses including a rise in salaries. This tendency is causing much difficulty in the management of banks. The tremendous amount of money in circulation has contributed nothing to productive activities so eagerly needed by the Nation but has been flowing into the consumer field resulting in the furtherance of the dreaded inflation. If things are left to take their own course the money-to-goods movement will be intensified, breeding sky-rocketing prices. The vicious inflation will shortly lead to national economic collapse.

The Government is being seriously requested to take the following steps:

ECONOMIC SERIES: 318 (Continued)

ITEM 1 (Continued)

ITEM 2 Law Co-operatives Will Be Put Into Effect Shortly - Yomiuri [illegible]chi - 16 Feb 46. Translator: Y. Kurate.

Summary:

It is reported that the Government, is enacting the Law on Cooperatives for a sound and healthy development of co-operatives. By enforcing the Law, the Government is expected to bring about drastic reforms in the machinery of Co-operative Asssociations so as to prevent illegal action on the part of managers of the associations and to meet consumers' demands as much as possible.

ITEM 3 Rice in Stock Slightly Increases in Principal Cities - Nippon Sangyo Keizai - 16 Feb 46. Translator: T. Mitsuhashi.

Full Translation:

The amount of rice purchased by the Government up to 10 February reached 12,134,000 koku, which is 46 per cent of the allotment. Although the rice delivery is still inactive, the amount of rice stored in principal cities is not so low in quantity as anticipated. In TOKYO, there are more than 110,000 koku as of 13 February, which is equivalent to a 14 days' need.

The actual amount of rice in principal cities is as follows:

ITEM 4 Fundamental Reform of Taxes -Commodity Tax will be First - - Nippon Sangyo Keizai - 16 Feb 16. Translator: T. Mitsuhashi.

Full Translation:

The Minister of Finance is working out plans on taxes as part of a unified economic policy which will stabilize commodity prices and own national life. The fundamental reform of taxes is being considered, as the present taxes, which were established to cover war expenditures, became inadequate for our national life. The reform will be made on the taxes for property, commodities, amusements, eating and drinking, and special activities.

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ECONOMIC SERIES: 318 (Continued)

ITEM 4 (Continued)

The Ministry of Finance intends to ask for approval of a tax reform from the Diet. If the issuance of an Emergency Ordinance is impossible, the revision will be limited to an ordinary Ordinance. The rates of exemption on the A class commodity tax ( retail tax) will be raised first so that the tax may not be imposed on daily essentials but on luxuries.

If possible, reduction of the admission tax would be made in some way. Next year's budget requires more than a two billion yen increase in the revenue on taxes to cover deficits. The regulation of increased taxation and peacetime taxation is essential to the reform of taxes.

ITFM 5 Minimum Wage Plan To Be Based on Living Cost - Existing Total Wage Restriction System will Be Abolished - Naipichi Shimbun - 16 Feb 46. Translator: H. Sato

Full Translation:

In order to secure a minimum standard of living for the people, the Government has been planning to revise the existing wage control decree, establish a minimum wage, and abolish the total wage restriction system which does not meet the present situation. The plan, has been completed and it will be submitted to the final decision of the Central Wage Committee Meeting (CHUO CHINGIN IINKAI) which will be held shortly.

Chief points of the present revision are as follows; (1) Minimum wages were fixed on the basis of living costs giving due consideration to the counter-measures for inflation which are under preparation by the Government; (2) The difference between the minimum wages of men and women was decided upon; (3) Grading was made in the minimum wages according to the living costs in the various localities.

Following the present revision of the wage system, revision of salaries will also be made. Suggestions also were made by the Finance Ministry for the establishment of maximum wages, but it has been decided that to establish maximum wages would not be feasible and would be against the principle of democracy.

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