Press translations [Japan]. Economic Series 0334, 1946-02-20.
Date20 February, 1946
translation numbereconomic-1438
call numberDS801 .S81
Persistent Identifier
ECONOMIC SERIES: 334
ITEM 1 Principles of the Economic Reconstruction (Series of Articles No. 5) by WATANABE, Tae. - Tokyo Shimbun - 19 Feb 46. Translator: R. Aoki.
Summary:
There is still pervading a curious belief about the inflation. It is based on the
orthodox theory of natural harmony and holds
that, though it is destructive, inflation automatically holds curing elements within
itself. That is, the diminution of
exchange rate encourages exportation, and the increased exportation in turn tends
to reestablish the money-goods relationship
of a country. It is true that the German inflation of 1922-23 contained within its
process an element of economic recovery.
However, since the present war was started, the economic order of the world has entirely
changed, and now the economic system
is under world wide control. In the financial and monetary aspects the same will be
seen also in the conclusion of the BRETTON
WOODS Agreement, for instance. This international monetary agreement guarantees foreign
exchange credit to any member state,
but at the same time disavows all forestalling international transactions of any state.
Under such a circumstance JAPAN, even after being allowed to participate in the international
trade will not be able to resort
to the radical self-healing measures of dumping and the devaluation of yen and so
forth. Thus even though we may wish to
uphold the capitalistic economic system of the nation, the method of recovery must
be greatly different from those that had
been used by other countries in the past.
In order to remedy the present monetary confusion, we must first know the causes
of it. They are (1) the expansion of the
munitions industries out of porportion to the economic capacity of the nation, (2)
the budgetary deficit of the Government due
to the reckless spending of the army and navy, and finally, (3) the loose extension
of credit by banks under government
guarantees. Various financial remedies for these developments have been inaugurated.
To me, however, the remedy for the
present crisis must be based upon the principle that the financial factors must be
taken as rather secondary and auxiliary
ones.
More specifically, the principle I uphold here is to give special weight to the psychological
will of the producers, i. e.,
the industrial workers and farmers who are directly concerned with production, and
the finance must be taken as a factor just
to assure the industrial activities of the above factors. In short, it is a reverse
of the old view which considers finance as
the primary factor and the workers as rather far remote factors of economic activities.
In my opinion, the processes of production should be arranged, in the order of importance, as follows:
ECONOMIC SERIES: 334 (Continued)
ITEM 1 (Continued)
- 1.Make an estimate of consumption capacity in accordance with the working faculties of the people.
- 2.Make the production plan in view of the above consumption capacity.
- 3.Produce, collect, transport, and deliver the goods.
- 4.Foster foreign trading.
- 5.Set in motion the financial operations in order to execute the above processes.
(To be continued).
ITEM 2 Unloading Capacity Is Key In problem Of Food Imports - Mainichi Shimbun - 19 Feb 46. Translator: H. Shindo.
Summary:
The first and second shipments of imported wheat are due to arrive at YOKOHAMA by
the good offices of the Allied
Authorities.
Our unloading capacity holds the key to the import of wheat or other staple foods.
The Ministry of Transportation, therefore,
is speeding preparations at the ports of NAGOYA, YOKOHAMA and ODARU, for the unloading
of the wheat to be imported. OKOHAMA's
port is expected to land 10,000 tons of wheat from a Liberty ship in four days, for
which suction pumps of the NISSHIN Milling
Company are to be made ready. The Ministry has been informed that NAGOYA's port will
be able to unload 5,000 tons of wheat in
lots by barge in three days. An official has been dispatched to ascertain how ready
the port of ODARU is. Although the matter
is still under consideration, 10,000 tons of wheat are expected to be unloaded in
a week.
ITEM 3 The Finance Ministry Busy Explaining "Restricted Deposit" - Asahi Shimbun - 19 Feb 46. Translator: S. Kinoshita.
Summary:
In view of the big influence the Government's new emergency economic measures have
on the people's life, the Ministry of
Finance authorities have been summoning representative of business, financial institutions,
and other various economic and
financial organizations since 17 February in an effort to direct and guide them with
regard to the operation of the new
measures. As a matter of fact, some local banks and post offices are at a loss as
to what to do with the new composite
ordinances, as no authoritative and detailed instructions have reached them as yet.
So that new yen-notes and necessary
official instructions may reach financial institutions in outlying localities before
25 February, when exchange of the new
yen-notes with the old ones begins, air mail will be made use of with the aid of the
Allied Forces. On the other hand, in
order to avoid misunderstanding on the part of the general public, the Finance Ministry
will publish explanatory information
on the new measures within a day or two.
Moreover, it is announced that the Ministry of Finance has set up today an inquiry
office to give due guidance to the general
public on the subject, and in ease of need, expert officials will be dispatched to
street and neighborhood association. It is
also
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ECONOMIC SERIES: 334 (Continued)
ITEM 3 (Continued)
scheduled that Finance Minister SHIBUZAWA will make a tour of OSAKA and NAGOYA to
drive home to those concerned the purport of
the new measures.
Having been hurriedly drawn up, the new measures contain many imperfections which
are to be revised and solved as the occasion
demands. The following are explanations of some practical questions:
(1) Salaries and wages to be paid in February.
Complying with Article 15 of Ordinance Number 13 relative to the new yen, all salaries,
wages, and allowances are to be paid
in the old yen notes in February. Neither the Government offices nor civilian, organizations
can postpone pay days for the
purpose of paying in the new-yen note. If the payment is made from deposit s of new
notes, this rule does not apply.
(2) Living expenses of farmers and fishermen.
Farmers and fishermen are free t o obtain cash, as they are treated as "entrepreneurs".
The money the farmers have received
already for rice delivered is made a restricted deposit, but the money they will receive
after 2 March for rice to be
delivered hereafter is made free deposit. Additional payment for rice at 150 yen per
koku due to the rise of the Government
purchase price will be made in new yen notes. It is held reasonable to freeze half
of the amount to be paid for rice to be
delivered hereafter. As for fishermen, some part of the proceeds of sales may be frozen.
(3) Doctors, retail dealers, etc.
Being treated as independent "entrepreneurs," these people are free to obtain cash.
Remunerations for writers are also paid in
the new yon after 3 March. However, if the remuneration is of the kind to be paid
periodically in set amounts, it should
receive the same treatment as salaries and wages.
(4) Exceptions to cash limits of salaries and wares.
When salaries, wages, and allowances are paid by the withdrawal of restricted deposits,
they should be within a limit of 500
yen per person per month. However, under the present regulation, no limitation can
be put on payment of these items if they
are paid from cash on hand. Such an event may happen in the case of large retail businesses
such as department stores where
large amounts of cash can he accumulated. Due steps should be taken for suppressing
such an event.
(5) Small currency.
One step should be taken to prevent small amounts of currency from being hoarded.
(6) Exchange of the new yen notes for the old ones.
Exchange of the new notes for the old ones is to be handled by the Bank of JAPAN,
civilian banks, credit associations, and
other financial institutions specified by the regulation. During the period from 25
February to 2 March the notes will be
exchanged within a limit of 100 yen per person. The Government hopes that
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ECONOMIC SERIES: 334 (Continued)
ITEM 3 (Continued)
the exchange of this period will be made through neighborhood associations for convenience.
Deposits of the new yen may be
registered in the same pass book as other deposits but they should be distinguished
from others in some proper way.
(7) Prize money of lotteries.
Prize money of lotteries after 3 March is to be paid in the new yen notes.
DISTRIBUTION "X"
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