Press translations [Japan]. Economic Series 0326, 1946-02-18.

Full Translation:

The influence, of the emergency economic measures on the housing problem, is of importance especially to war-sufferers. The Deposit Freezing Ordinance, is the most essential problem for an individual who wants to build a house at his own expense.

Even at present, individuals have found it very difficult to get funds for house-building after the housing loans were restricted. It is actually impossible for an individual to build a house even now. This tendency will be noticeable later, Some may have been able to obtain enough materials through illegal trading, but such persons are very few.

Therefore house-building must be carried out with Government funds only. That is to say houses may be built only by (1) The Housing Company (JUTAKU EIDAN) and the Rent House Association (KA[illegible]IYA KUMIAI), which are under the control of the War Damaged Area Rebuilding Institute (SENBAI FUKUKOIN) financed by Government funds; (2) the Provincial Government with loan-bond, and Government funds; (3) Other public organizations which can obtain Government funds.

The most important business of the war Damaged Area Rebuilding Ins[illegible]te is to build simple houses. It has build 60,000 houses already. By [illegible]it will have build 30,000 more The people will not buy even these [illegible]houses because of lack of funds. Most houses will be rented to them.

Full Translation:

Notes of the Bank, of JAPAN amounting to 60,539,000,000 yen were in circulation on 15 February 1946. The issue of new yen aims to reduce the issue of the Bank of JAPAN notes to about half of the 60,539,000,000 yen for the tin being, to less than 23-28 billion yen by the end of March 1946. That is, the new yen notes can be changed for old yen notes at the ratio of 100 yen per man and the whole sum for 75 million men and women amounts to 75 billi[illegible]yen.

The domestic espenses for 50 million household are estimated at 10.5 billio yen for March 1946 at the ratio of 700 yen per household. The whole sum of ready money for pay and ready cash by financial agencies is estimated at 5 to 10 billion yen.

The prices of fresh groceries are to be reduced to 1/3-1/5 of the present prices. The prices of dairy goods are to be reduced to about 1/3 of the present prices.

ECONOMIC SERIES: 326 (Continued)

Extracts:

The Government has decided to promulgate both the Food Emergency Measure Law (SHOKURYO KINKYU SOCHI REI) and the Food Control Revised Law (SHOKURYO KANRIHO KAISEI), as an Imperial Ordinance, in order to hasten the delivery of rice by the farmers to the Government and to ensure smooth dist[illegible]on to the general consumers. The Government, however, wishes for the [illegible]ers to deliver rice voluntarily. If a farmer fails to offer his rice, [illegible]ponding to the quantity of allotment, to the Government by 31 March, and instead hoards it or sells it at blackmarket prices, he will have his evil ways pointed out to him by the food inspector, chief of the village of town, and the head of the agricultural society. Then if the farmer pays no attention, a warning letter will be sent to him from the Govern[illegible], and finally, his hoarded rice will be bought compulsorily by the Government. If he opposes this step and does not obey the order, he will be condemned to penal servitude not exceeding 3 years, or fined a sum not exceeding 10,000 yen.

A consumer who obtains rice through unjust registration or commits any other offenses against the proper distribution of rice will be sentenced to penal servitude not exceeding 5 years or fined a sum not exceeding 50,000 yen. The law prohibits the selling or buying of rice by consumers and the selli[illegible]of rice to blackmarket dealers through brokers. Unless a man has a certificate from the Prefectural Governor, he can not handle even one she of rice. A person who illegally urges farmers to withold rice from the Government is to be condemned to penal servitude not exceeding 3 years or fines a sum not exceeding 10,000 yen. A person who demands rice or barley, farming instruments, medicines, etc, as wages, will be punished, as well as the farmer who agrees with the offer.

If the Government finds rice or other food hoarded illegally, the Governmen will order the owner to sell it to the Government. If the owner does not obey the order, he is to be punished according to the law, In order to enforce these steps effectively, the Home Ministry Authorities are to exert their utmost efforts and punish, without hesitation, the persons who commit offenses against this law.

Concerning this, MIZOFUJI, the Sectional Chief of the Police Bureau at the Home Ministry, spoke as follows, to a MAINICHI reporter:

Question: "What is the attitude of the economic police toward these emergency measures?"

Answer: "They are most important, and will decide whether or not the recon truction of the people's livelihood becomes possible, Consequently, we intend to increase the activity of the economic police system."

Question: "In what way will you treat a person who goes cut to the country to buy food from farmers. What is your opinion on the barter of staple food-stuffs?"

Answer: "A person who obtains staple food illegally from farmers will be punished. Persons, or groups of persons, carrying a large quantity rice, and habitual criminals are to be punished, shall not search private houses nor shall we punish travelers carrying one or two she of rice. Conceing the barter of staple foods, the new law will be applied, not only to the producer, but also to the other party."

Question: "Do you think blackmarket dealers will be hard hit in the future

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ECONOMIC SERIES: 326 (Continued)

ITEM 3 (Continued)

Answer: "Goods indispensable for daily living will be distributed, not sold on the market. Kitchen-knives, safety razors, and hatchets will be placed on the open market, but at controlled prices. Perishable foods, which are not included in the law, will be sold in the open stalls.

Summary:

As part of the combined measures taken by the Government in order to stabilize the peoples' livelihood, the Commerce and Industry Ministry has announced measures in regard to: (1) the Emergency Disposal of [illegible]Goods Ordinance; (2) the Notification of the same Ministry relative to the above ordinance; (3) the outline of the Government Purchase of Hoarde Goods; (4) the measures for the control over Peoples' vital necessities.

Needless to say, an increase of materials is essential for the execution of these combined measures. It is necessary that along with the securing of food the resumption of industrial production should simultaneously be promoted. Accordingly, it is anticipated that [illegible]easores for increased production to cope with the emergency situation and the temporary Postwar Economic Disposal Ordinance necessary for the enforcement of the former, will shortly be announced after being approved by the parties concerned.

The emergency measures including the restriction of drawing bank deposits, savings, etc. will inevitably cause temporary confusion as well as a stand still in production in industry. As a result, it is expected that the production of production will have to suffer at least a three month setback. Consequently, it is worthy of note that the exposure and purchase of hoarded goods will play the biggest role luring this period.

Most emphasis has been placed on textiles and other manufactured goods in the projected measures to be taken relative to the disposal of hoarded goods. Raw materials, however", are of lees importance, Control is chiefly aimed at those who have illegally bought these goods from military establishments or other organizations by taking advantage of the general confusion following the termination of the war, or on those who have made speculations in these goods in anticipation of inflation or the impo[illegible]of the property tax, etc. The Government is planning to purchase these goods forcibly in order to ensure their proper re-distribution. They will be used as collaterals to secure the delivery of food, for the relief of repatriates and raid-victims, as well as for the promotion of increased production of staple industries, etc. All the owners or possessors of these goods in excess of the necessary quantity for the purpose of product sales and consumption, should report the necessary items by the fixed date Government will purchase such goods at proper prices (not at black-market prices) after checking the stocks. An inspection will also be made by the administrative authorities or appointed purchasing agents as the occasion demands even after the submission of the said report.

As for the measures for the control over vital necessaries which have a direct relation to the stabilization of the people's livelihood, the distribution organizations will be readjusted. Along with this step daily necessities, especially staple necessities such as clothing, pane, kettles and soap, will be subject to the proper control over production as well as distribution prices, so that these goods can be distributed to the ultimat consumers. As for other vital necessaries, a plan will be adopted to wipe out the black-market by establishing ceiling prices 50 to 6o per cent cheaper than the present black-market prices.

DISTRIBUTION "X"

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