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Press translations [Japan]. Economic Series 0324, 1946-02-18.
Supreme Commander for The Allied Powers. Allied Translator and Interpreter Section.

translation-number: economic-1406

call-number: DS801 .S81

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No. 1406 Date: 18 Feb 46


ITEM 1 Financial Circles Seem to Hail the Government Emergency Measures - Asahi Shinbun - 17 Feb 46. Translator: Y. Kurata.
Full Translation:
Now that the economic situation has bordered perilously close to a general collapse of capitalistic economy as a result of the current vicious inflation which threatens the very existence of the people, financial circles seem to hail the Government's new economic program which includes three imperial ordinances providing drastic economic control by virtually freezing bank accounts, requiring conversion of currency into new bank notes by 7 March, and, the distribution of foodstuffs through authorized channels. They expressed their intention of sparing no efforts to collaborate with the Government in bringing about as much desirable development thereof as possible. It cannot be denied, however, that such collaboration as mentioned above is possible only when the government steps are subjected to a keen criticism on the part of financial circles. So, the some circles, being quite anxious lest the government stops give birth again to wartime bureaucratic controls, expressed the following view in regard to the future development of the Government control policies:
"For all its composite nature, the government economic steps seem to vary according to the policies of the Ministries concerned. Accordingly there are many differences among these policies, although all of them aim to curb the present inflation. For instance, the Ministry of Finance sets up a new price level based upon the prices of such staple commodities as rice and coal, while the Ministry of Commerce an Industry works out the official price of necessities on the basis of black market prices, thus reducing the profits of medium and small entrepreneurs practically to a collapsing point. On the other hand, the Ministry of Welfare guarantees the minimum wages of workers, but, at a time like the present when wages are apt to go up by the one-sided demands of workers, should the Ministry take no steps in this respect, this would no doubt result in a general bankruptcy of all enterprises and consequently would undermine the very existence of capital. So serious is the present situation, it is up to the Ministry of Welfare to curb the upward trend of wages by restricting wage payment to an extent far greater than 500 yen which is provided by the imperial ordinance, so as to restore a healthy management of enterprises."
It goes without saying that the key to the success of the Government's composite economic: steps lies in increased production in all Industrial fields. What is directing the greatest attention of all financial circles in this respect is matters concerning industrial funds and institutions to carry out production. So, they insist upon the necessity for the Government to lose no time in taking the following measure in this connection:

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ECONOMIC SERIES: 324 (Continued)
ITEM 1 (Continued)
The immediate set-up of the Reconstruction Finance Company.
The putting into effect of the compulsory advancement system so as to make necessary funds available to all entrepreneurs.
The distribution of the revenue accruing from the property tax to industry.
The abolition of all bureaucratic controls over civilian industries. Along with this, a strong opinion is gaining ground among the same circles in regard to the urgent necessity of readjusting present industrial controlling corporations introducing a new suitable system so as to move towards early industrial development.
So may be clearly understood from the above, so poor is the Government's political power, that it is obvious that the present Government is too weak to carry out its composite emergency economic measures . We hope that the Government is wise enough to set up a committee consisting of representatives of every political party as its help in putting into practice its emergency measures more effectively. Yet, not until the appearance of a new Government following the general election, will a fundamental solution to the present economic problems be possible.
ITEM 2 Extraordinary Property Investigation - Nippon Sangyo-Keizai - 17 Feb 4 Translator: T. Okamura.
Objectives: - The extraordinary property investigation ordinance-is objective is to fix the date of investigation for the Property Tax Law, and to conduct investigations on properties owned by individuals and corporations, in line with the enactment of the Financial. Emergency Measure Ordinance as well as the Ordinance providing for the deposit of Bank JAPAN notes, in order to contribute to the promulgation of such new taxes as capital, levy aimed a t the elimination of [illegible]profits, reconstruction of the national economy.
The date of investigation: - The date of investigation is fixed at 3 March, 1946.
Reporting of Monetary Property and Contracts: - Those who possess the following properties, and contractors of the? following contracts, are requested to report to their competent revenue offices on their properties and contracts: Bank deposits, postal deposits, reserve funds, and trust (hereinafter to be called only deposits), excluding those deposits made in territories other than JAPAN (HONSHU, HOKKAIDO, SHIKOKU, KYUSHU and their adjacent islands, hereinafter to be called only JAPAN), and other deposits designated by the Minister of Finance; all national and local bonds, debentures, shares, and investments, other than those made in territories other than JAPAN, and those designated by the said minister; all life insurances whose payment of premiums is made, all contracts of trustee, negotiable securities, mutual financing contracts, other than those made in territories other than JAPAN, and postal pension contracts; bills or cheques other than for which payment is designated to be made in territories other than JAPAN, and designated revenue stamps and postal money orders. These reports are to be submitted by 2 April, 1946, to the revenue offices either directly or through post-offices, banks, trusted corporations or agricultural associations. In submitting those reports, reporters are required to show or attach documents certifying to their names and addresses.
Submittance of Lists of Properties by Corporations: - all corporations on which is levied the corporation tax under the Corporation Tax Law, and other corporations and public welfare corporations on which is levied the special corporation tax under the Special Corporation Tax Law, are required to submit by 2 May, I946, to their

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ECONOMIC SERIES: 324 (Continued)

ITEM 2 (Continued)

competent revenue offices the lists of properties and balance sheets as of the property investigation date. Corporations other than public welfare ones are to submit a statement of profit end-loss covering to period from the start of the fiscal year of the investigation to the date of investigation.
Application of the Reports on Movable Properties Owned by Individuals for Business Use: - Those who are engaged in commodity selling, manufacturing and contracting businesses and whose commodities, products unfinished products or raw materials are valued at over 5,000 yen, are required to submit the reports on their movable properties, as well as on the amounts of their credits and debts. These reports are to be submitted by 2 April 1946 to the revenue offices. The value of such movable properties is to be in accordance with the current prices at the date of investigation.
Questions and Examination: - The chiefs of the revenue offices or their agents may issue queries or may conduct examinations of those [illegible]corporations which are liable to submit lists of properties, and of individuals who are liable to submit reports on their movable properties for business use.
Punishment: - The Government may entrust the post offices, banks and other banking organizations to receive there reports and to check their statements. Those who violate the provisions in these ordinance shall be punished, either by way of fine or imprisonment.

ITEM 3 Influence of the Financial Ordinance on Stock Exchange Seems Slight - Nippon Sangyo Keizai - 17 Feb 46. Translator: Z. Konishi.
Full Translation:
Since the announcement of the Financial Ordinance, the stock exchange has been expecting general purchasing power and rate of the turnover of various undertakings to decrease. The chief points called in question are as follows:
After the exchange of new yen notes, general purchasing power will be restricted; therefore investment in bonds depending on unlimited purchasing power will probably cease.
Since the settlement of accounts has to be done by transfer of frozen funds, capital for accounts seems free from difficulties. In this way, the bonds will not be affected seriously.
The general business companies will not undergo a basic change owing to the ability to purchase necessary equipment and raw materials etc. by transfer of frozen funds. But as purchases must be made at the official price, unless the general commodity prices are stabilized these companies may meet with temporary difficulties. However, this point may be a little doubtful if one considers the present operating conditions in these companies.
Dividends of available investments of 17 February are to be paid by transfer of frozen funds.

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As regards the above items, the recent Financial Ordinance does not seem to have affected the stock exchange much. Particularly because the stock exchange has shut down, such steps as business suspension or delay of accounts, which were carried out after the big KANTO Earthquake and during the financial panic in 1927, are not being taken. The recent Ordinance only restrict s payment of financial business debts, and so its meaning is rather different from a moratorium. Accordingly shareholders and investors, need not speculate immediately on the financial situation. During the financial panic in 1927, it

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ECONOMIC SERIES: 324 (Continued)
ITEM 3 (Continued)
was decided to control the buying and selling of stock.
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HomePress translations [Japan]. Economic Series 0324, 1946-02-18.
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