Press translations [Japan]. Editorial Series 0037, 1945-12-01.
Date1 December, 1945
translation numbereditorial-0168
call numberDS801 .S82
Persistent Identifier
EDITORIAL SERIES: 37
ITEM 1 A Directive for our Financial Reconstruction - Yomiuri-Hochi - 27 Nov 45. Translator: [illegible]. Kato.
Full translation:
The Allied Commander's directives for our economic reconstruction have importance
in affording an effective step for our
Government in the salvation of the people groaning under the pressure of inflation.
The financial condition of our country is
now at a head because of the absence of conversion from a war finance to a peace finance.
The Government, representing the
wealthy, who enjoy a great deal of benefits on the prestige of the past, is now obliged
to look idly at the crisis brought by
inflation, Moreover, the Government imprudently undertook to pay indemnities to the
munitions industries.
This attitude of the Government in protecting war profits to maintain economic balance
has hurt the feelings of the Allied
Nations and has brought over our country financial control, such as the prevention
of bond issue, the prohibition of giving or
obtaining credit, of giving subsidies, of the execution of financial rights, including
revision for taxes, and the prohibition
of disposal or disposal by sale of immovables, including land, and both public and
Government enterprises. Thus our Finance
Ministry is reduced to the status of o. person under attachment of property. Financial
Minister SHIBUZAWA's responsibility to
our country is indeed great.
The Allied Commander's directives for the rebuilding of our finances as seen in the
establishment of a thorough war profit
tax, of a progressive property tax and in the suspension of pensions for ex-servicemen
has importance in rebuilding financial
JAPAN now that the finances of our country have coma to a head. Depriving the munitions
industries and capitalists of wartime
profits is not only an effective step for the prevention of inflation but will also
prove to be on effective measure for the
equalization of wealth and will cause public applause.
The present social condition is abnormal since there are wealthy people with abundant
necessities and poorer classes, some of
whom every day fall victim to starvation. Inflation makes men brutal, and the present
inflation has caused a great gap between
the rich and the poor and has, moreover, reduced our morality. If we continue in this
state any longer, we are sure to be
ruined. Therefore we should lose no time in trying every means to check inflation
as soon as possible. Through this
achievement, we shall be saved from inflation and from immorality.
EDITORIAL SERIES: 37 (Continued)
ITEM 1 (Continued)
In carrying cut these measures, the emphasis should be laid on the issuance of new
yen, which involves the absorption of all
private cash, and on complete control over food and other necessities.
Stops should also be taken to smash attempts to disguise property and war profits
or to elude the payment of taxes. Collection
of taxes must be a subject of study. Future expenditures are expected to increase
because of the expenses of unemployment and
rehabilitation work. A deflation policy, then, should be adopted by the Government
for the purpose of maintaining economic
balance. Our financial activities should be carried out on the basis of solid economy
reduced to meet the needs of the moment.
This is only possible through a powerful administration expected in the democratic
government. We desire a speedy realization
of such an administration.
The suspension of the payments for the ex-serviceman is justified in our present
financial condition. However this will give
rise to social unrest. As a remedy for this, the Government is planning to establish
a social insurance system for the general
public. Involved in the carrying out of this plan is the co-operation of both the
Ministries of Finance and Welfare. Strict
supervision over the Government and the ruling class is necessary in their actions.
ITEM 2 A War Profits Tax and a Property Tax - Nippon Sangyo Keizai - 27 Nov 45. Translator: K. Hirata.
Full translation:
General MacARTHUR' s Headquarters ordered the Japanese Imperial Government to set
up a war profits tax and a property tax. The
former tax seeks to convince the Japanese people that war does not pay. Yielding over
one hundred billion yen in total, the
two new taxes will aid in lifting the burden which Japanese militarism has forced
the rest of the nation to bear and provide a
basis for the reorganization of JAPAN's postwar finances. Thus, it is needless to
say that they are of [illegible]at importance from, the standpoint of our national economy and finance. We have not
yet been clearly
informed of the details. However, the public concern and anxiety over the new taxes
will be [illegible]since
not a small number of our nation must pay, and consequently our financial authorities
must not fail to pay more serious
attention to the counter measures to be taken.
As to the method of paying taxes, it would be better to let payers report prior to
payment. However, it is fundamental to
change the idea of our nation that they are forced to pay and let them pay willingly
by getting them to understand the
necessity of it. Furthermore, it is important to attain the proper aim of levying
by giving payers every aid without
interfering with the reorganization of the economy of defeated JAPAN.
The tax program contemplates a grad[illegible]l property tax at rates which go up to seventy per cent. Not a
small number of persons are expected to pay both taxes at once, but a property tax
should be imposed upon what remains after
reducing the amount of the war profits' tax. Furthermore, it is the most difficult
task to value property
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EDITORIAL SERIES: 37 (Continued)
ITEM 2 (Continued)
fairly. The difficulty will differ according to movables or immovables, cash, etc.
So a determined effort will he required to
make a thorough elimination of property. At it the same time it is necessary to give
special consideration to war sufferers.
It will be necessary to recognize delay of payment and payment in kind, but it is
desirable to minimize the period of delay to
any possible extant by reco[illegible]percent in bond[illegible]. It is also necessary to
take adequate measures to adjust changes in property values caused by fluctuations
of monetary value.
It is hardly necessary to say that war profits are unpardonable and should be taken
away from all Japanese firms and
individuals in view of the fact that we deny war itself and that we as a whole nation
must beer the burden of surrender.
Nobody will raise any opposition to one hundred per cont war profits' tax on all war
industries. However, it is like crecking
a nut to determine what are real war profits. Speaking; in extremes, by war profits
is meant that which was gained by the
whole nation during the war. But General MacARTHU's Headquarter reveals that the Japanese
farmer, laborer and small business
man will be permitted to retain legitimate savings. In addition to these, the Japanese
Government should clarify the concrete
standards regarding who are exempt from paying taxes or deductions. For instance,
it is apparent that it is small or
middle-sized firms converted from private enterprises rather than the so-called big
ones and also the brokers or black market
dealers rather than those who worked and saved honestly that gained illegally huge
profits and fattened themselves during the
war. In view of these facts, the authorities concerned should strive not to cause
our nation to complain about another public
injustice.
ITEM 3 Air Out Financial Circles - Yomiuri-Hochi - 28 Nov 45. Translator: H. Furukgwa.
Full translation:
Now that the war responsibility of leaders in every fiele is being severely pursued
by the people all democratic movements in
every circle concentrate on the expulsion of their leaders on charges of war responsibility.
For the present, however, war
responsibility cannot be pursued on a legal basis. It can be done only from the point
of social justice. When a leader has no
sense about the present social conditions, no moral sense, and does not feel his war
responsibility, he may regret the demands
of his subordinates. However, if he should dare to resist the voice of the people
and the current of the time to the last, the
accomplishment of a bloodless, democratic revolution will be delayed so ouch longer.
At present, the pursuit of the war responsibility of financial leader is inactive
compared with that in other fields. This is
largely due to their powerful position sustained by the possession of capital by which
they are trying to shirk their war
responsibility with no idea but to defend themselves. So long as the financial or
industrial leaders still hold their
positions firmly, those who have been supporting to g such as the directors of war
industries, financial directors,
ex-bureaucrats, arid military men are extremely shameless, show no sign of self reproach,
and are still sitting at
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EDITORIAL SERIES: 37 (Continued)
ITEM 3 (Continued)
their posts doing nothing. How can the war responsibility of financiers be clarified
by such means?
The inactivity and dullness in the financial circle is rooted in this fact. Now is
the time to pursus the war responsibility
of financial leaders, such as those who are leaders or directors of control associations,
key industries, big banking firms
and finance control associations, especially among those who have risen from, the
ranks of officials or military [illegible]en. We persist in maintaining that the reconstruction of our industries can be accomplished
speedily
only by the wholesale resignation of those leaders whose posts would be open to their
juniors. We must prevent sabotage by
government officials and financial leaders which may be regarded as an obstacle to
the reconstruction of our industries. They
are trying to maintain the old regime and seek their self-interests. Thus, they endeavor
to shift the burdens caused by the
defeat on the masses, or make strenuous efforts to conceal their property in order
to he exempted from the taxation on war
profits or property. Naturally they are never earnest about the reconstruction of
industries, establishment of democracy or
the increase of production. Nothing is considered except the maintenance of their
position, influence and property. They
insist on the freedom of capital, but the substance of democratic revolution is never
understood by them. They are extremely
stubborn.
At present it is laborers who desire to reconstruct industries speedily. It is the
masses who are now to rise in order to
eliminate unemployment and social unrest and to stabilize the national economy. If
the bureauerats and financial or industrial
leaders should idle away their time without thinking of the future, the economic system
of JAPAN will meet a catastrophe. The
present situation is the sign of national ruin.
The present democratic movement in the formation of labor unions results from the
sincere will of the people who wish to save
the country from ruin. They want to exclude the old financial leaders who obstruct
the rehabilitation and increase of
production for profit. They are desirous to participate in the management of enterprises
through the employees' union with a
view to the thorough socialization enterprises.
No must pursue the war responsibility of old leaders who stand in the way of domocratization
and force them to retire In such
a way, bloodless revolution may be attained. For example, look at the present situation
of coal production. This is the
clearest proof of the inaction and inefficiency of bureaucrats, control associations
and directors of ZAIBATSU firms. Of
course, there may be various kinds of obstacles in increasing coal production. However,
there must he measures taken if the
maintenance of coal production is necessary as the basis of all other industries.
In the securing of laborers, if the
coal-mining enterprise is nationalized through complete democratization and socialization,
and better conditions, of labor,
including a good supply of food, is given to the coal[illegible]iners, there must be many demobilized
soldiers or unemployed laborers who will flock to coal mines willing to work.
In other matters such as the improvement of the price control system,
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EDITORIAL SERIES: 37 (Continued)
ITEM 3 (Continued)
or the distribution of food, it will be for easier now than in wartime to conquer
these obstacles if the Government and
employers work with great enthusiasm. The fundamental evil is the sabotage by the
capitalists who manage these enterprises.
The dissolution of the ZAIBATSU is only the beginning in the revamping of finance.
[illegible]e Insist
loudly on the necessity of new measures which will revamp the spirit of the financial
circle with sensible democrats replacing
the bosses me old loaders who have been the virtual rulers of the financial world.
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