Industrial promotion in the Edo period
As agriculture and commerce grew, pre-modern manufacturing such as handicrafts andfood processing also began to develop. Each region created specialized products which weremarketed all over Japan. For example, tea, tobacco, wax, indigo, salt, knives, sword, pottery,lacquer ware, silk, cotton, soy sauce, sake, paper, cut stone, medicine, and chemicals weretraded widely. Emergence of these regional specialties was mainly the result of private effort,
but in some cases the support of local governments also made a difference.
In order to enrich the local population and increase the tax revenue, many hans promoted
local industries, and some even succeeded (Nishikawa and Amano, 1989). Here are someexamples: Yonezawa Han (adding value to local inputs)—When Uesugi Yozan (1751-1822)
became the daimyo of Yonezawa Han in Northeast Japan, the han finance wasbankrupt and samurais and farmers were destitute. Retainers even considered closing
the han and returning it to the Bakufu. Yozan introduced austerity measures,
encouraged research and learning, and promoted industries. He repelled theconservative faction who opposed his reform. He opened new farmland and installedirrigation. His main strategy was to add value to local materials instead of selling themin raw form. Aoso, a plant material for high-quality textile, was transformed into finishedkimono by importing weaving technology. Mulberry plantation was encouraged for
producing silk kimono. Lacquer trees were planted to manufacture lacquer ware andwax. Safflowers were introduced to produce orange dye. Thanks to Yozan’s reform, theeconomic situation improved and Yonezawa Han was able to repay all the debt.
 Tokushima Han (indigo)—Farmers produced indigo along the Yoshino River inShikoku Island and their output gradually grew. But indigo distribution was monopolized
by Osaka merchants who imposed high interests on loans. In order to protect local
farmers and encourage local merchants, Tokushima Han created an indigo exchangeand provided financial and distribution services. The Bakufu objected to this move,prohibiting official bodies to engage in such activity. In reality, the Bakufu wanted toprotect Osaka merchants who contributed financially to its coffer. In response, the han
privatized the indigo exchange and other services.
 Takamatsu Han (sugar)—This local government, also in Shikoku, issued local paper
money to promote various industries but its attempts generally failed, and its moneydepreciated. After many failures, the han finally succeeded in pilot production of sugarfrom sugar beets and commercializing the technology. As sugar production greatlyincreased, the han encouraged inter-han trade to expand the market. But again, theBakufu intervened to discourage such trade not brokered by Osaka merchants.
 Satsuma Han (trade gains for military buildup)—Satsuma Han in southern Kyushu
was also broke with huge debt in the early 19th century. Zusho Hirosato (1776-1849),
Satsuma’s high official, adopted austerity and implemented administrative andagricultural reforms. He intimidated merchant lenders into rescheduling Satsuma’s debt
1

for 250 years with no interest, which was practically cancellation. He started hanmonopoly of sugar trade with southern islands as well as illegal trade with China viaOkinawa, both of which were very profitable. After international trade was resumed in1859, Satsuma Han vigorously traded with China and the West, and purchased newtechnology including blast furnace, cannons, western ships and latest guns. By building
wealth and military capability, Satsuma Han later played the leading role in toppling theBakufu and establishing the Meiji government.
Other hans were also successfully engaged in industrial promotion of one kind or anotherincluding Choshu Han (paper, wax), Akita Han (silk and silk dress), Hizen Han (pottery, coal)and Higo Han (lumber, silk). In the late Edo period there was dynamic competition among
hans to supply nationally marketable products which was either privately driven or policytriggered. Industrial promotion combined with fiscal reform was the key to the survival of
impoverished hans. But we should not forget that there were also many hans which were lessinnovative and fell deeply into economic difficulty and debt. These hans borrowed large sumsof money from private merchants but never repaid.
Thus, at the local level, some hans produced economic leaders who solved the domain’s
fiscal crisis, promoted local industries and actively engaged in domestic (and laterinternational) trade. This is in sharp contrast to the central government which was throughout
unable to propose any policy to support and tax the growing national economy. Japan at theend of the Edo period was ripe for a new set of economic visions and policies which weremore proactive than those put down by the Bakufu leaders.

2