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Press translations [Japan]. Editorial Series 0037, 1945-12-01.
Supreme Commander for The Allied Powers. Allied Translator and Interpreter Section.

translation-number: editorial-0168

call-number: DS801 .S82

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No. 168 Date: 1 Dec 45


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.

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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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HomePress translations [Japan]. Editorial Series 0037, 1945-12-01.
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