Press translations [Japan]. Editorial Series 0110, 1945-12-18.

The financial organizations which played an important role during the war in soliciting savings, absorbing national bonds, and accomodating munitions enterprises, are now nearly suspendinging operations. On the one band, they have come to a deadlock in attracting savings, and, as is shown in the increased issuance of bank notes, the payments are increasing. On the other hand, movements of funds are very inactive on account of production stagnating. Though the banks are not responsible for such a situation after the defeat, they, on their part, have much to improve and readjust in conformity with new conditions.

If financial enterprises are to function fully under normal financial conditions which will be recovered in the future, and if they are to be successful in business in the unstable post war economy, they should make a fundamental re-examination of their condition and business methods. Recently the Treasury Ministry set up the Financial System Inquiry Committee, They should realize as early as possible a wholesale readjustment of the financial system in preparation for the property and increased property taxes to be exacted next year.

According to a business report of the Bank of JAPAN as of the end of November, the amount of bank notes issued was 47,700,000,000 yen and the sum of advanced loans was as large as 29,500,000,000 yen. Another report of the Financial Ministry reveals that the sum of loans advanced to munitions enterprises by their designated banks is estimated at 32,000,000,000 yen as of end of August and the sum of loans rendered to the city banks by the Bank of JAPAN amounted to 27,400,000,000 yen as of 24 November, This great dependence of the city banks on the Bank of JAPAN has been caused by the unreasonable disadvantage of the city banks in absorbing national bonds and advancing loans to munitions industries at the same time. It cannot be denied that excessive dependence of the city banks on the Central Bank is undesirable for healthy management of the Bank, though the Central Bank and the city banks should be in close co-operation with each other in many phases such as business and funds.

The direct cause of the increased loans of the Bank of JAPAN was the financing of munitions industries by the city banks. Therefore, collection of the loans on the part of the Bank of JAPAN must be preceded by calling in the loans advanced to munitions industries by the city banks. Moreover, the collection on the part of city banks can be assisted by indemnification from the government. Thus, most of the loans to munitions enterprises are only tunnel accounts between the Central Bank and there enterprises. Such unsettled

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accounts are, have the less, undesirable.

Although most of the loans to munitions industries were advanced to by the Bank of JAPAN, some portion was contributed from the accumulated funds, which are small in proportion but large in sum. This sets up a difficult problem which cannot be solved by indemnification. If these bad assets are not properly dealt with, it will not only endanger the foundation of financial organization, but will also be detrimental to the soundness of financial circles as a whole, Moreover, this problem which was caused by the war, end is still unsettled, will surely hinder the reconstruction of the post war economy. Accordingly, such accounts should he distinctly separated from the others and be disposed of in a special way. Each financial body should take measures of its own. such as clearing off these accounts with reserve funds. But this is not enough, All banks and financial bodies should cooperate for the solution and, as occasion demands ask for government assistance, as was the case during the financial panic and the great earthquake. The financial bodies which are to play an important part in the revival of post war economy should, first of all, liquidate all unreasonable matters which the war brought upon them.

Full Translation:

In World War II, the sum wasted on military preparedness and munitions by the countries has been estimated at 1,154 billion dollars, and the loss of property at 230,900million dollars. These sums do net include the costs end damages of the ten year Chinese-Japanese War. It is all too clear what a war today means economically to the human race. Further, when we think of the numerous lost lives and deformed persons, it is not necessary to argue here that the prevention of future wars is the greatest task for mankind.

Those responsible for World War II are being tried by the Allied Powers. This does not only punish legally the criminals who have invited the disaster of the war, but also leads to efforts which will abolish future wars by criticizing war itself through this punishment. Moreover, it is impossible for the old Axis Nations to evade the responsibility merely by the fact that special war criminals among them will be punished by the Allied. We believe that the complete performance of the POSTDAM Declaration is a minimum demand by the victors.

The crux of the problem, according to our views, consists in the fact that we Japanese should all not only completely carry out the Declaration, but should also make up our minds to do our best for the abolition of future war by criticizing this war and clearly acknowledging it as a crime. Only a JAPAN which is an advocate of world peace will be permitted to participate in international society. It is not sufficient that we are conscious of defeat, or think war unprofitable. Such considerations, if a definite reality is given to them, may be realized by any barbarous nation; but we Japanese should not stay at such a low level.

The fact that the victorious powers are making all efforts to abolish

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future war means that in spite of the Axis countries' defeat and collapse, there still is danger of the outbreak of war in the world. However, it is important for us to understand the fact that the greatest effort is being made to exclude this peril. Defeated JAPAN should net overlook this effort by the victorious countries. A sense of defeat and the idea that war is unprofitable has grown up spontaneously from the actual circumstances into which JAPAN has been placed. Therefore, as noted before, such criticism of World War II is too naive and vague to abolish future wars.

What we should do first is sternly criticize ourselves on the war. We must theorize, in order to do so, and such theories are not very clear in present day JAPAN. However much we may taste the bitterness of defeat, there will not be any criticism where there is no theory. Second, we can criticize war in general only through a criticism of World War II. A means for the abolition of war can be taken up with such criticism.

The world, under the atomic bomb, is being worried about its own contradictions and crises. Such contradictions and crises must be overruled by the co-operation of all the nations. However far it may he, we should not reject as imaginary the day when atomic energy, not as armaments will be made public to raise the level of life of all the nations and enormous sums of war funds will be expended for promoting the welfare of mankind. Truly, the most urgent think for our country is raising the level of theoretical discussion of World War II.

Full Translation:

What answer is there if one asks whether or not there is the freedom of speech in the Diet? The answer is: That the oppression by the military cliques has been completely liquidated. However, this fact is far from true. Superficially, in the Upper House, Mr. MIYATA previously upheld the total abolition of the House, and now Mr. OBARA is demanding great reforms in it, while the so-called new figures among the peers are saying what they please. This looks like freedom of speech. Actually, however, they are trying to swim in the current of the times, taking advantage of it, and are propagandizing for pardons for any prewar crimes, aren't they?

This psychology led then to avail themselves of militarism when it was in its glory. In other words, freedom to swim in the current is not freedom in the true sense of the word. In the Lower House, acting on the Farm Land Reform Bill, the parties other than the Social-Democratic Party an not necessarily approve of the emancipation of the farmer because of their conservative point of view. Despite the above mentioned fact, we have not so far heard of any opposing opinions from them in any papers or on any radio broadcasts'. That is because of their concession to the times and their concern over the opinions of the voters.

Some members of the Progressive Party criticized the turn to the left in radio broadcasting and said that they would discuss the problem in the session of the budget committee. Nevertheless, this project

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failed to attain full development. That was due to the same worry over criticism from the public. The government is forced to listen to campaign speeches which the representatives arbitrarily call interpellations. This can not to helped by the government of a defeated country. However the members must be prudent enough to distinguist liberalism from pointless questions so as to bring about genuine democratic politics. Progress and enlightment exist when a conservative expresses honestly his opinion in a debate with a radical. Nothing great can be achieved if we are militarists when the latter reign over us and democrats under General MacARTHUR without being conscious of it. Radicals esteem the opinions of conservatives. There lies freedom of speech in the true sense of the word, thus bringing about true parliamentarianism.

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