ECONOMIC & BUSINESSREVIEW
12th

ANNUAL REPORT<ssl"gz""Åé/E

THE

RESEARCH INSTITUTE FOR
AND BUSINESS ADMINISTRATIONECONOMICS
KOBE UNIVERSITY

1965

Copyrlght, 1965, by The Research Institute forand Business Administration, Kobe University

Economics

KOBE
ECONOMIC & BUSINESSREVIEW
12th

ANNUAL REPORT/<itt".2•

THE RESEARCH INSTITUTE FORECONOMICS AND BUSINESS ADMINISTRATIONKOBE UNIVERSITY

1965

CONTENTS'
Special Depreciation and Reduced Entry ..........•• Susumu WATANABE

Page
1

EIectronic Data Processing System in Japan.........•.•..Minoru BEiKA

7

A Chronological Table of Modern Japanese Shipping-No. 2, 1800.kv1912 .....,...................•.•.•••Seiji SAsAKi

15

Overseas Operations of Japanese Business Enterprises in Brazil.............................................. Tadakatsu INouE

39

A Note on Economic Accounting for Government Sector '••••••••••••••••••••••••••••••••••••••••••...•.•.• Nobuko NosE

47

International Liquidity and the Tokyo Meeting of the International

Monetary Fund ..........................••••••Masahiro FuJiTA

57

Intersectoral Transaction Table with Endogenous Foreign Trade Sector in

the Indian Economy: 195S!56.............••••••••-Hikoji KATANo

73

The System of Reserved Members for Seamen before World War II
The Employment System of Seamen in Japan............................................Hiromasa YAMAMoTo

87

On the Automation of Banking in Japan .............•••••••Jiro ONo

97

A Presente Etapa do Desenvolv{mento Econ6mico do Japio.................,.........................Yoshiaki NIsHIMuKAI

111

Kostentheorie und dispositiver Faktor ..............Tetsuo KoBAyAsHi

121

Grundprobleme der Privatisierung................•.••••Masaya OKADA131

ENTRY
SPECIALDEPRECIATION AND REDUCED
Susumu WATANABE

I
There are various items in the tax law to be revised in accordance with therevision of our Commercial Code. But the notification of the Tax Amdinistra-tion Agency relating to the treatment of corporation tax in accordance with theenforcement of the Revised Commercial Code (December 31, 1963) whichshall be called hereunder "the Notification on Adjustment" only treatedthe adjustment of provisions concerning procedures, leaving substantial spheresto the future as a problem of the rearrangement of the tax law, for substantial

adjustment cannot be achieved through notifications without a revision of the
tax law. Accordingly, although problems of a reduced entry, special depreciation, reserve for bad debts alc, special allowance for bad debts alc, reserve for
profits comprised in accounts receivable alc, etc., are treated in the above-mention•-

ed notification, we find such adjustment of differences between the tax law andthe accountjng provisions of our Commercial Code postponed to the future, as
related to the valuation of inventories (including the problems concerning the"cost or market" basis), valuation of securities, etc. It is inevitable to leave thesettlement of problems requiring revision of the tax law to the future. In thefollowing, we are going to examine the problems of special depreeiation andthe reduced entry which are both treated in the above Notification on Adjustment•

According to the Notification on Adjustment, the amount of depreciation(inclusive of so-called special depreciation) in excess of a "reasonable annual
depreciation" provided by our Commercial Code (Article 285-3) is recognized as
an expense on condition that the excess is credited to a specified anowance, andas to the reduced entry, the amount which may be treated as an expense when
the reduced entry method is taken, can be included in expenses, if the corporationcredits that amount to a specified allowance (but either to a specified allowanceor to a specified reserve in case of nondepreciable assets), instead of taking the

reduced entry method.
On this point the following is the conclusion arrived at by rhe subcommittee

on the rearrangement of the tax law of the investigation committee on the tax
system.

"In case an amount corresponding to a reduced value is credited to anallowance, the tax law should recognize the amount as an expense. And in case

2

SUSUMU WATANABEof an amount credited to a reserve set up by the appropriation of profit, it shouldbe treated the same as an allowance, and adjusted on the return. In these cases,
depreciation deductible under the tax law should be calculated on the basis of
the remainder after deducting the allowance or the reserve from the book value.""As regards special depreciations when the amount in excess of the reasonable
depreciations is credited to an allowance or to a reserve, the excess shall be recogniz-

ed as an expense, in the same way as the reduced entry is taken." (Proposals
concerning the rearrangement of Personal Income 'I'ax Law and Corporation
Income Tax Law, December 1963, p. 72).
Thus, the Proposals concerning the rearrangement of the Tax Law allowed adepreciation in excess of a "reasonable depreciation" and the amount deductible
as an expense when the reduced entry method is used,• to be credited to a specified
allowance as well as to a reserve set up by the appropriation of profit, for it isopen to question whether to treat these amounts as allowances laid down underg287-2 of the Commercial Code. So long as there are two different opinions
as to the treatment of these amounts, it is not appropriate, we think, for the tax

law to prescibe only one of these alternatives. The above mentioned Notification on Adjustment only recognizes the treatment of specified allowances in thesecases (as regards reduced entry of nondepreciable assets either a specified allowanceor specified reserve is allowed), which must be regarded as an extremely arbitrary
dicision on the part of the tax law.

Such a decision will result in an interference of the tax lavv with businessaccounting, leading to harmful consequences. If the intention is that an amountcredited to a reserve set up by the appropriation of profit should be treated asa deduction by means of the tax law reform in the future, this intention shouldhave been made clear in a preamble or so, for otherwise an arbitrary interpretation

on an allowance provided by the Commercial Code would be forced by the tax law.
There is an objection to the treatment of specified reserve, saying, "the method
will lead to a most complicated and troublesome practice." But if the nature of

the reserve in each case is properly understood, the method does not seem tobring about such a complicated result. Even if such a complexity should occur,a reasonable method ought not to be rejected for that reason.
The above-mentioned proposals state, "it must be avoided that an accounting

procedure contrary to the Commercial Code should become more advantageousin the calculation of taxable income than a treatment conforming to the Code."
As is well-known, calculation of taxable income in our tax law is based on theconfirmed settlement of accounts. In this case the tax law should not require
its special treatment (for example, the reduced entry) to be reflected on financial

statements. Such a requirement is an unjustified interference of the tax law
with business accounring. Similarly, when the treatment as a specified reserve

SPECIAL DEPRECIATION AND REDUCED ENTRY 3
seems to suit the purpose of "judging the financial positions and operating resultsof a company", it is an improper interference of the tax law with business accounting to require to treat it as a specified allowance. Calculation of taxable income

should start from proper financial statements prepared with no regard to special

requirements of the tax law.

il
Is it a proper accounting method to credit an amount of charged depreciationin excess of a "reasonable depreciation" to an allowance under g287-2 of theCommercialCode? OurCorporateAccountingPrinciplesdistinguishesallowances
belonging to a valuation account from those having the character of liability,
dividing the latter into those which come under current liabilities and those of
the nature of fixed liabilities. Within current liabilities fall "those allowances
for a specified expenditure in the future, which will be used within a comparatively

short period", while "those providing for an expenditure to be made after aconsiderably long time" are counted as belonging to fixed liabilities. Here it
is made clear that allowances are set up to provide for a specific expenditurein the future. In this context, we understand that an expenditure means an outgo
of money or other goods or an accrual of obligations to be paid. Thus, allowances
credited on a balance sheet under the Corporate Accounting Principles are those

provided for expenditures in the future. Also, "Guiding Principles to theTreatment of Financial Statements Regulations" defines liability reserve as "aprovision for a specific expenditure in the future which is to be charged to thecurrent period and whose amount can be estimated." Generally speaking, anallowance has to fulfil1 the following conditions; (1) it provides for a specificexpenditure in the future; (2) that expenditure will certainly occur; (3) its amount

can be estimated with considerable exactitude; (4) there is good reason to charge
to current operation the amount put into the allowance of this period.

Under Article S 287-2, the Commercial Code stipulates that an allowancecan be set up in the liability section of the balance sheet in order to provide fora specific expenditure or loss. The Commercial Code says "a specific expenditureor loss", while the Corporate Accounting Principles do not recognize an allowance
providing for a specific loss, so there is an opinion that an allowance under theCommercial Code covers a wider range than that of the Principles. Contrary tothis opinion, we find another view regardjng "a loss" under the Code as being
included in an expenditure under the Principles, so that "an allowance to provide
for a loss falls within the range recognized by the Corporate Accounting Principles."We cannot agree to the latter interpretation, because "an expenditure" under
the Principles cannot be considered to comprise "a loss". At any rate, there

SUSUMU WATANABE

4

are in fact two kinds of interpretations on the nature and content of an allowance

under the Commercial Code.
The problem to be solved here is whether an depreciation in excess of a"reasonable depreciation" comes under the allowance stipulated by the Commercial

Code or not. If an excessive depreciation is due to expected obsolescence on
fixed assets, the excess will be justified as an allowance under the Code, when we
adopt a wider interpretation of allowance, because it provides for a specific "loss".

In this case, the amount of obsolescence should be charged against this allowance
when an obsolescence occurs. But, if it is fairly sure that the obsolescence willtake place, we can correct the remaining useful lives of fixed assets, so that itremains to be explained why an allowance due to obsolescence should be set
up and whether the amount put in the allowance of this period is appropriate ornot.

The problem of a depreciation in excess of a "reasonable depreciation",
however, does not usually have to do with the case referred to above, but with thecase of depreciation in excess of the proper burden of the period, i.e. the casewhere future depreciations are taken in advance. If we take the expression"depreciation" to mean all writing-downs of the book value of fixed assets except
devaluation, then writing--downs in excess of the reasonable depreciation also

belong to "depreciation". But since the important problem in periodic income
accounting today consists in allocating properly the costs of fixed assets to eachperiod, it must be answered why costs pertaining to future periods should becharged to a current period in advance. Even if allowances under the Commercial
Code, including provisions for "losses" too, cover a wider range than that of the
Corporate Accounting Principles, it does not follow that an excessive depreciation

charged in advance can be included in an allowance. In this case, an amountexceeding a "reasonable depreciation" does not aim at providing for expenditures
or losses, but at trapsferring future depreciations to this period, having no reason

to become a proper expense in this period. The part of depreciation taken inadvance is nothing but a retained profit from the viewpoint of periodic income

accountmg.
llI

In the preamble, the Notification on Adjustment says, "the Revised Commercial Code, however, is generally interpreted to deny the reduced entry, except incertain cases, making it open to question for the tax law to continue its former

standpoint formally." This remark leaves room for concluding that there arecertain cases where the Commercial Code also recognizes the reduced entry.
But, the Commerciai Code reguires that an acquisition or construction 'cost be put

SPECIAL DEPRECIATION AND REDUCED ENTRY s
on fixed assets, and therefore, the Code should be understood to disapprove a re-duced entry in any case. Perhaps the above preamble wanted to say that there
is no problem relating to the calculation of the amount of depreciation and costof transferred assets when the book value of assets after reduction (in the casereduced entry is allowed taxwise) coincides with the acquisition cost under theCommercial Code (to be sure, a problem arises when they do notcoincide). Strictly speaking, however, we find a problem in this case, too. It is sure that thebook value after reduction becomes the basis of calculation of the amount ofdepreciation and cost of transferred assets in the 1ax law, but the amount after
reduction is not necessarily treated as the acquisition cost. Reduced entry,
when allowed taxwise, is not compulsory, but the tax law only allows in certain
cases to make an entry by a reduced amount. Suppose, for instance, that a governmental subsidy has been granted and the acquisition cost under the Commercial
Code is considered to be the actual acquisition cost less subsidy. And if, in thiscase, a business did not take advantage of the reduced entry to its full extent, a

new problem arises relating to interpretations on the acquisition cost of theCommercial Code and of the tax law. Therefore, the Notification on Adjustment

should have shown a method of adjustment even in "certain cases" above
mentioned.
The Notification confers the same effect as the reduced entry when a corporation credits the reducible amount to a specified allowance (in case of nondepreciable assets, specified allowance or specified reserve), i.e., it allows the credited

amount to be included in expense. Therein underlies the conception that the
reduced entry is a sort of special depreciation and since special depreciatlon canbe credited to a specified allowance, the reduced entry, a kind of special depreciation, is allowed to be treated alike.

But, is it proper to regard the reduced entry as a sort of special depreciation?

Certainly, the reduced entry resembles depreciation in that it reduces the bookvalue of assets, which is the amount chargeable as depreciation thereafter. Compared with ordinary depreciation, special depreciation only changes the time ofrecognition of the expense, and is surely a sort of depreciation. Usually, however,charged depreciation has the effect of reserving current assets corresponding to
the amount of depreciation, so long as revenues are large enough to cover thatamount. But a reduced entry has not such an effect, because the reduced part,in effect, is excluded from the book value and the wear and tear on this part cannot

be included in income accounting any more. Thus, a reduced entry is not thesame as "special depreciation" in nature, but excludes the reduced part fromthe record, not reflecting its wear and tear on income accounting, Setting up
of a specified alJowance allowed by the new Notification brings about the same

effect asareduced entry, We do not insist thatastep should be taken to make

6

SUSUMU WATANABE

it possible to recover the whole acquisition cost through depreciation even wherea reduced entry is made. A reduced entry is well justified from the viewpoint of

the tax law. But it must be clearly understood that the reduced entry method(or the method of setting up a specified allowance instead of the reduced entry)

has not the same character as "special depreciation".
It is a mistake to regard a reduced entry as a kind of special depreciationand to conclude that an allowance in place of a reduced entry can be treatedas an allowance stipulated by the Commercial Code, on the supposition thata special depreciation conforms to an allowance under the Commercial Code.
An allowance in place of a reduced entry provides by no means for a special expenditure or loss. If the tax law wants to give the effect of a reduced entry even

where a reduction is not made, it should approve that effect when a corporation
treats it as a specified reserve (not a specified allowance), allowing a deduction of

the amount of the reserve from the gross revenue.
In this case it must be noted that while the ordinary reserve can be put
to another use changing the purpose, the purpose of the reserve set up instead of
the reduced entry cannot be changed, because a part of the fixed assets corresponding to this reserve is subject to wear and tear with the lapse of time, namely, thereal substance of this reserve is doomed to expire with the passage of time.
To sum up, for the tax law to govern the interpretation of allowance under

the Commercial Code must be avoided by all means. Granting that there is
the opinion that a special depreciation and an amount corresponding to a reduced
entry can be treated as specified allowances, the tax law should recognize not

only this view but also the treatment of those amounts as specified reserves,which was the conclusion of the subcommittee on the rearrangement of the tax
law of the investigation committee on the tax system.

ELECTRONIC DATA PROCESSING SYSTEM IN JAPAN
Minoru BEiKA

1

The number of electronic computers used in Japan is now nearly the sameas in European countries. Half of them are imported, chiefly from the U.S.A.,
while the other half are manufactured in Japan. Computers have been recently
equipped in many kinds of business enterprises and other organizations with great

rapidity. They are operated for both scientific and business use. The systemapproach of electronic data processing (EDP) has been studied by management
consultants and specialists in business enterprises, several organizations anduniversities. Such remarkable expansion of business mechanization in Japan has
been seen only within these last 10 or 15 years. The outline of the EDPS, its
characteristics, and its management problems in Japan is shown in this shortarticle.

ll

The punch card system machines (IBM and RR) were equipped in only 11
business establishments and 5 government and administrative ofices in 1941 in
Japan. In 1944, 10 out of 15 business establishments which had the PCS ma-chines, belonged to 1ife insurance companies, while the others were
manufacturing companies. After World War II, some of the large industrial
enterprises adopted PCS machines gradually, but the number of these enterprises

were few, because the economic conditions of Japan had not recovered to theextent that many enterprises could adopt the machines, the size of enterprises
was not so large, labour cost was relatively cheap while machines were relatively

expensive for them. In 1952, the government adopted the policy of reducting
business machines import taxes for the rationalization of othce management,in response to the enormous economic development in Japan. Since then, manylarge--scale business enterprises and other organizations rapidly adopted the PCS

machines. By 1961 there were 600 or over business firms and other organizations (about 8oo establishments) so equipped.

In Japan, some kind of punch card system equipment was devised by acertain engineer in 1908, taking ahint from the development in the U.S.A. It
can be compared with the Hollerith system of 1890 and the Powers system of

8 MINORU BEIKA
1907 in the U.S.A. But the machine was incomplete and did not develop further.
Practically speaking, the Powers system machines were imported by the National
Railway in 1923, and the Hollerith system machines by a manufacturing company

in 1925. These were the beginning of the practical use of the PCS machines
in Japan.

The increasing use of PCS machines in Japan is shown as foHovvs, by
the number of firms and establishments.
1. Number of establishments (firms) used PCS machines in Japan

1956 1957 1958 1959 1960 1961
Central and local
77( 38) 107( 44) 108( 45) 135( 48) 145( 58) 150( 57)administrative oMces 'Public utilities 23(8) 28( 13) 32( 17) 37( 22) 40( 24) 41( 25)
Industry and mining 94( 70) 110( 80) 149(110) 180(136) 266(188) 282(221)companles

Financial companies 21( 21) 26( 25) 34( 33) 43( 40) 57( 52) 67( 58)
Insurance companies 24( 22) 25( 23) 25( 25) 26( 26) 27( 26) 27( 26)

Others 16( 13) 23( 22) 32( 30) 58( 47) 133(123) 219(199)
Total 255(172) 319(207) 380(260) 479(319) 668(471) 786(586)
Bookkeeping and accounting machines, which are preliminary to the PCS
machines, are now very popular in large and small-sized business firms and otherorganizations in Japan, even if most of them are imported from American andEuropean countries. But these machines could be found jn fewer firms thanin the case of the PCS machines before the War. The enormous diffusion ofthese machines has been seen literally jn the last 15 years. They are now
used not only in industrial and commercial firms, but especially, are available forcustomer services in commercial banks, and city and town oMces. These
single purpose oMce equipments were beginning to be practjcally used already inabout 1880 in the business wor]d in the U.S.A. and European countries.
The following table shows the tendency of the recent jncrease in Japan,
although it is limited data only on large business firms who answered the questionnaire prepared by the Research Institute to which the writer belongs. The
table shows the number of business firms which adopted bookkeeping and accounting machines, by the years.
2. Number of business firms adopted the booklreeping and accounting machines1951 1952 1953 1954 1955 1956 1957 1958 1959

2(Only8 16
18 20 29 32 27 4
by data answercd to the questionaire)
The time lag of oMce machine use is very large between those countries

ELECTRONIC DATA PROCESSING SYSTEM IN JAPAN 9
and Japan. The business world of Japan adopted business mechanization from
simple oMce equipment to large-sized electronic computers, literally at one stroke,

during the recent 10 or 15 years.

m
Electronic computers were adopted by Japanese business enterprises andother organizations, not so late as in the case of the PCS machines, comparedwith European countries. The electronic computer was completed in 1946 in
the U.S.A. for the first time, after experiments with the large-scale relay systemcomputers since 1942.

Small-sized electronic equipments attached to the PCS machines were
imported in to Japan in 1953, but real electronic computers were used in 1958 forthe first time. Japanese computers were experimentally manufactured bydomestic industrial companies at first in 1954. For the first several years, mostusers depended chiefly on imported computers. In 1958, 900/. of the computers
in Japan were imported, but in 1962, half of them were manufactured by Japanesecompames.
3. Electronic computers used in Japan

1957 1958 1959 1960 1961 1962 Total:y(:,:O,pM.g?St/jdC :' ;' :-'i nyZ -2 "llS.(?•E,:.,?St,r" } ;• si l•28 ,g6g• ,ig8 lila,(?•s,:.22stZihc ii ,g li 1•i ,g•i i,ii;,(:•S:,.,eS,,tC i, l, i iS ,;7g ,i25i g,i5f
In 1963, it is reported that 12,OOO or more electronic computers were used jn
the U.S.A., 700 in West Germany, 600 in the United Kingdom and also in Canada,

and a little less than 600 in Japan and France. These data may be inexact
because of the rapid development in each country, but they show the recent
general tendency of computers. Electronic computers are increasing at a highrate in Japan as in European countries. (It is reported that 1,400 Computers
are used in 1964.)

M!NORUBEIKA

10

In Japan, most of the large-sized computers are imports from the U.S.A.
while middle and small-sized ones are more domestic products. Six electricindustrial companies in Japan now are manufacturing their own computers withthe encouragement of the government. But it is necessary for industries ofelectronic computers in Japan to depend on foreign technological development.
This industry in the U.S.A, had been greatry deve!oped not only by research anddevelopment activities of industrial companies, but also by the aggressive encoura-

gement of the government,
The greatest users of computers are financial companies. Several kinds ofmanufacturing industries also use them to a considerable degree such as chemical,

metallurgical, engineering, and electric machine industries. Large trading andcommercial companies are also now important users. Central and local governments, other administrative oMces, and universities are gradually adopting the

EDPS.
The electronic data processing centers have been developed in Japan for
middle and small-sized customers which can not have their own computers
economically owing to their sizes. The number of these centers amount to about
80 in the whole country.

These computer centers consist of several types of organizations. One
type is the suppliers service centers for their users. These centers are also usefulin sales promotion for their foreign suppliers and domestic manufacturers. One
type of center is the enterprises of the centers which are established for theirown business of computing servjces.
In an other type, some users who are equipped with large-sized computers,

engage in the computing business during the spare time of their computers.
Some public bodies set up computer centers for small businesses. Some groupsof middle and small sized wholesale firms intend to use computers jointly.

rv
Business mechanization in Japan showsi two characteristics. One is thetime element of its inducement, and the other is the size of the business and theindustrial structure of Japan.
The characteristic feature of business mechanization in Japan is generally thefollowing two ways. One is to mechanize a large quantity of routine clerical
works, and the other is to mechanize integratedly routine electical operations anddata processing for management. Each of them is not separate, but related toeach other. The division is useful for understanding the characteristics ofbusiness mechanization.
The former type is found in electronic data processing in fee calculating

ELECTRONIC DATA PROCESSING SYSTEM IN JAPAN 11
and billing of electric power companies and other public utilities corporations,and in data processing of routine operations in financial companies (banking,insurance, etc.), and of tax clerical operations in administrative oMces•
The latter type is found chiefly in electronic data processing of operationaland managerial clerical works in manufacturing companies.
In Japan, the size of firms is relatively not so large, and labour cost in theindustries is not so high as in the U.S.A. Therefore, oMce equipments of relatively

higher prices should be used more eMciently and effectively in Japan than in
the U.S.A. The simple mechanization of routine clerical works is found only invery large companies. Other largish and medium-sized companies have inevitably
used these computers intensively to integrate effectively their routine clerical

works and managerial data processing works. Originally, business mechanizationin Japan did not always proceed with the so-called labour-saving function. Evenin the PCS machine stage, several companies tried to use their equipment more
intensively in Japan than in the foreign countries.

Within the recent few years, economic conditions in Japan have developed
enormously and industrial firms have been confronted with a considerable labour
shortage. Therefore, business mechanization in Japan has also developed rapidly,

and many large-sized computers have been equipped in many firms and organizations as stated before.

Business mechanization in American and European countries has proceeded
for about 80 years in steps from single purpose oMce equipments to the present
electronic computers. On the other hand, every step of business mechanization

has been adopted at the same tirne by many companies and other organizationsin Japan. This time element or timelag has characterized the procedure andproblems relating to business mechanization and management in Japan. Because
method and organization of ofice management should develop gradually by steps

according to business mechanization. In other words, managements in theJapanese business world seem to be greatly energetic, but have been confronted

with many proper problems due to their unbalanced development.

v
As stated before, electronic data processing of a large quantity of routine
clerical works are found respectively in electric power companies, insurance

corporations, and banking businesses in Japan. Several insurance corporations were the pioneers in Japan in adopting the PCS machines before the War,and now many of them use large computers. Electric power companies havemechanized their principal routine clerical works as fee calculation and billing,and engineering calculating operations. And now they must try to use more

12

MINORU BEIKA

effectively the computer as a management too1, on the one hand, integrate businessautomation to process automation, on the other hand.

Bank automation seems now to be at a nevv stage in Japan. The principal
banks which are eager for higher mechanization, are now studying how to attainan on-linei-real-time system to serve their customers and to reduce their operating

costs. The principal banks in Japan have each 100 to 200 branches over thewhole country, different from the bank system in the U.S.A. Therefore, they
have hitherto proceeded with their business mechanization on the off-line-system
by electronic computers, and some of them have established their independent dataprocessing centers. And now they have begun to try to apply to on-line-real-timesystem to their multi-branch firms. A detailed explanation about the presentbank automation in Japan is shown in an other article in this Review.
Recently local governments and large and middle-•sized city administrative
ofices have interest in organization and method (O and M) technique of ofice

management which has been developed in the United Kingdom. They have
tried not only to improve their oMce works, but also to adopt more effective oMce

machines. But generally speaking, there are not so many local governments andcity oMces which have electronic data processing systems. Their mechanizedclerical works are now chiefly citizen taxes and utility services fees. OMces
which have not been equipped with any cornputer yet, have deep concern for
oMce mechanization. A detailed explanation of the mechanization of city oMces
was shown by an other writer in the previous Review.
In the cases of manufacturing industries, the computers tend to have been
operated to integrate multi-purposes even in the PCS stage in Japan as stated

before. In many cases, engineering and machinery industry companies haveapplied the EDP system in oMce works for material purchasing, stock control,

and production control. These improvements in oMce management have necessarily brought about the improvement of clerical works in their manufacturing
plants. Moreover, these improvement activities should be integrated to industrial

engineering activities on manufacturing operations in the plants. This is now
one of the important management problems facing our challenge. Improvementby the EDP system could not be confined in the oMces, and tended to exert its
jnfluence on improvement in the plants.
In chemical industry companies, the technological development of processcontrol by automation has gradually decreased clerical works in the plant, aside

from the original oMce management problem. And then information for effective
raw material purchasing and marketing activity should be given more importanceby the development of the process automation. The EDP system is expected toabsorb these problems.
At any rate the application of the EDPS to industrial companies in Japan

ELECTRONIC DATA PROCESSING SYSTEM IN JAPAN 13
has been up to now accompanied by improvement in their clerical procedure andothce organization. Up to the present, oMce procedure in Japan depended on
pen and ink literally, and othces had few oMce machines. During a very shorttime, oMces have introduced many calculaters, adding machines, duplicatingmachines, booltkeeping and accounting machines, PCS machines and electronic
computers almost at the same time. Therefore business mechanization is one of
the most important management problems and will give an effective chance formanagement improvement to the companies in Japan. As aresult, a considerable
number of industriai companies have succeeded in managemeut improvement bybusiness mechanization, on the one hand, but not a few have confronted diMcultmanagement problems arising from their business mechanization on the otherhand. Companies in which their top managements clearly recognized these
problems and actuated thejr organizations to go on the expected EDPS, tend tosucceed in their application. Companies in which their top managements did
not always support staff members to endeavor in their application, tend to be atsome deadlock relating to many human and organizational problems•
Apart from business applications, the computers have been utilized for
operations research, PERT (Program Evaluation and Review Technique) systemand other scientific uses. The computers are also expected to beused indocumentation services in research and development activities of industrial companies
in Japan.

vr
The concept of the Integrated Data Processing System (IDPS) and Total
System which have been developed by industrial companies in the U.S.A. during
these last 10 years, is now common knowledge not only to theoretical study, butalso to industrial application in Japan. System approach relating to electronic
data processing application have been promoted by coordination between industry
and university, though the theoretical approach in universities had not developed

so much in recent years. But now a considerable number of part-time schools
and seminars have been established for the development of middle management

and top management by many management associations. Many specialists,system analysts, planners and programers have been growing day by day, andplaying jmportant parts in management improvement in Japan.
But these activities for the study of the system approach tend to incline
toward the technological side and not to be always conscious of real management

problems relating to these system approaches. Accordingly there can be evennow found an considerable degree of gap problems between active studies ofthe system approach and real management activities in Japan. As a result it

14

BEIKA
MINORUmay be found that in some cases the company in which an excellent specialist
for EDPS has been raised, can not always succeed well in management improvement in its business application. The present problems for EDPS are found tocombine carefu11y the system approach and real mangement approach relating toorganization and human behavior, in Japan.

A CHRONOLOGICAL TABLE
OF
MODERN
JAPANESE SHIPPING -No. 2; 1800N1912
Seiji SAsAKIWith thanks for the many advantageous instructions and well-meantencouragement given to the preceding article, A Chronological Table ofModern

Japanese Shipt)ing---No. 1; 1600-1799, the author makes here a subsequent
volume til1 1912, the last year of Meiji. During these eleven decades a realmodernization took place, at least a change from the old style to a modern style.

There were two great historical turning-points, the reopening of the country toforeign coinmerce in 1856 and the Meiji Restoration in 1868. Both of them
doubtless relate to us the dawn of modern shipping business in Japan, but theactual movement started especially after the later revolution. In this meaning,
the great encouraging policies of the new Meiji Government and the progressive
efforts of every shipowner that were exhibited concentrically within the later
fifty years were the mainsprings in realizing the modern development of Japanese
shipping.

Althbugh it may be somewhat halfway to cut off this article at 1912, it isvery usual and significant in Japanese history. A chronology of the subsequent
period will be made in the future and be shown at another opportunity.

(1) Almost al1 the names of foreign visitors and ships were recorded only in the Japaneseletter. So, when translated they may be spelled wrongly. On this point theauthor welcomes any advice.
(2) Dates before 1873 are based upon the lunar calendar that was in use in Japan atthat tirne, except in a few special cases where the dates were clearly recognizedin the solar calendar.
(3) The year-name put in parentheses following the Christian era is the name of theJapanese era.
(4) To old unfamiliar Japanese place-names are added their present prefecture-names(or popular local names) in brackets.
(5) To compare with European shipping history some important chronological events
are added separately in main countries. (Marked by dotted 1ines).
(6) All the names of foreign vessels and their captains are not certain in popular
Japanese historical books. The author will make an effort to look them up inother records hereafter, whenever possible.

16 SEIJI SASAKI
1801 (Kyowa-1)
June Motojuro Tomiyama and others set up a national mark-pole on theisland of Urup on which was recorded the words, "Tencho Chikyu
Dai--nippon Hichi-zokuto"-it means "seven islands belonged to Japan
forever".
1802 (Kyowa-2)
Feb. 28. The Dutch captain, Waldenall met the Shogun.
...... (U. K.); The "Charlotte Dundas" made her trial run on the Clyde
Canal.
1803 (Kyowa-3)
May Hendrick Zuff, clerk of the Dutch mercantile house, promoted tocaptain (representative).

July 8 An American ship came to Nagasaki and requested to open commercial relations,

1804 (Bunka-1)
Sept. 7 N.P. Rezanov, the Russian envoy, came to Nagasaki for the purposeof returning Japanese castaways and requested to open commercial
relations.

...... (France); Coronation of Napoleon I (in December.)1805 (Bunka-2)
Jan. 26 The Shogun gave a warning order against Russian ships to every
clan.

Mar. 7 K. Toyama, the Shogun's envoy, met Rezanov in Nagasaki andrefused his proposal to open commerce.
Mar. 26 Rezanov sailed out of Nagasaki.

1806 (Bunka-3)
Jan. 26 The Shogun gave an order again to a number of clans on precautions
against the Russian ship.

Mar. 15 Hendrick Zuff came to Edo-Castle.
Sept. 10 Russian encroached on Saghalien.
...... (France & Holland); Loui, brother of Napoleon I, became the Dutch
Emperor.

A CHRONOLOGICAL TABLE OF MODERN JAPANESE SHIPPING 17
1807ipBrlYi}oa-7)Japanese guards were sent to s6ya [Hokkaido] in response to

the Russian invasion into Saghalien.
Apr. 25 Russians invaded the island of Etorofu.
Apr. 27 An American ship came to Nagasaki; this ship left the port after
a three-day stay.

May 21 Russians invaded Saghalien again.
May 29 Russians invaded the island of Rijiri and burnt the oficial ship
belonging to the Shogunate.
...... (U.S.A.); Robert Fulton built the paddle-steamer, "Clermont".

i808 A(pBrU. n lk3a-5 kinzo Mamiya and Denjiro Matsuda set out for their Saghalien

Exploration for about three months from S6ya [Hokkaido]. Mamiya
traced the east coast while Matsuda explored the west coast.

July 13 R. Mamiya reached Saghalien to make the second exploration;
he went to the Siberian Continent crossing the "Mamiya Channel"
with some Saghalien aborigines.
Aug. 15 (s.c. Oct. 4) The "Fehting", British ship, entered Nagasaki; sheleft the port on the 17th inst. From asense of responsibility for thisaffair, Y. Matsudaira, Nagasaki magistrate, committed suicide.

1809 (Bunka-6) 'June The Japanese given name of Saghalien was changed from "Karafuto"(or, "Kabafuto") to Kita Ezo (northern Ezo, or north island of
Hokkaido).
July 2 (or 11) R. Mamiya arrived at "Deren" rowing up the Amur.

Sept. 28 R. Mamiya came back to S6ya after his fifteen months exploration.

1810 (Bunka-7)

Mar. 15 Captain H. Zuff met the Shogun.
...... (France & Holland); Netherland was annexed to France.

1811 (Bunka-8)

May 22 The Korean envoy came to Tsushima-Island.
June 4 Two Russian ships and eight Russians, Golohnin and others, were
captured by the Japanese authorities on the island of Kunashiri.
...... June 16 (s.c. Aug. 4); The English occupied Vatavia.

18 SEIJI SASAKI
1812 (Bunka-9)

Aug. 14 Kahei Takadaya and his vessel "Kanxe-maru" were captured bya Russian ship,-her captain was Ricordo,-and were sent to Kamchatka.
...... (Europe); Napoleon's Siberian campaign.
...... (U. K.); Henry Bell built the steamer "Commet".

''
1813 (Bunka-10)
May 25 The Russian Ship, (Captain Ricordo), came to Kunashiri andaskcd for the release of Golohnin and other Russians through K.
Takadaya.
June 29 Under order of English Java Viceroy, RuMs, two English ships,"Charlotte" and "Marina"-commander, Waldenal-came to Nagasaki
and attempted to take over the Dutch mercantile house. But, H. Zuff,
the Dutch representative, refused flatly and made them return home.

1814 (Bunka-11)
Feb. 28 H. Zuff met the Shogun.
...... (Europe); Abdication of Napoleon I.

1815 (Bunka-12)...... (Europe); The War of Waterloo.
1816 (Bunka-13)

Oct. An English ship came to Okinawa and asked to open commercial
relations.
...... (France); The appearance of the first French steamer "Erise".
•••... (U.S.A.); A trans-atlantic liner service was opened by the Black Ball

Line.
1817 (Bunka-14)

Sept. An English ship came to Uraga.
Nov.3(s.c. Dec. 10) H. Zuff left Japan after his 19-years service. Yan
Kok Browhof became the next Dutch captain (representative). (.Oct.
18th, 1823)...... (Germany); A steamer liner service was opened on the Wesel.
1818 (Bunsei-1)

May 13 Goldon, an Englishman, and his ship came to Uraga and asked
to open commercial relations, but was refused.

A CHRONOLOGICAL TABLE OF MODERN JAPANESE SHIPPING 19
1819 (Bunsei-2)...... (U.S.A.); The trans-atlantic navigation ofthe"Savannd'.

1821 (Bunsei-4) 'A Dutch ship imported the first camel (transported to Edo).
1822 (Bunsei-5)

Apr. 28 An English ship came to Uraga to demand fuel and water.
.,.... (U.S.A. & France); A trans-atlantic liner service was opened between

New York and L'Havre.
...... (Brazil); Independence of Brazil.

1823 (Bunsei-6)
July 6 (s.c. Aug. 11) Franz Balthaser von Siebold, German, came to Nagasaki
as the doctor of the Dutch mercantile house.(-ebDec. 5, 1829)...... (U.S.A.); Declaration of Monroeism.

'
1824 (Bunsei-7)

May 28 The crew of an English whaling-vessel landed at Otsu-hama,
Hitachi [lbaragi Pref.] and demanded fuel and water. They were
captured.
July 5 The crew of an English whaling-vessel landed at Takarajima,
Satsuma [Kagoshima Pref.] and took on some cattle.
July 11 The captured English crew were released.
......(U.K. & Europe); A steamer liner service was opened between Englandand the Continent.
1825 (Bunsei-8)

Feb. 15 Enactment of an order to repel foreign ships.
May An English ship appeared off the coast of Mutsu [Iwate Pref.].
1826 (Bunsei-9)...... (Germany & U.S.A.); A liner service was opened between Bremen

and New York.
1830 (Tempo-1)...... (France); July Revolution.

...... (Belgium); Independence of Belgium.

20 SEIJI SASAKI...... (U.K.); The opening of a railway between Liverpool and Manchester.
...... (U.K. & U.S.A.); A sailing-vessel liner service was opened between

Liverpool and New York.
1837 (Tempo-2)
June 28 The American ship, "Morison", attempted to enter Uraga andwas bombarded.
...... (U.K.); Establishment of the Peninsular and Oriental S. N. Co.

1838 (Tempo-9)...... (U.K. & U.S.A.); Trans-Atlantic navigation of steamers. ("Sirius"and "Great Western").

1839 (Tempo-10)
Edward Flanzissan came to Japan as the new representative of the Dutch
mercantile house. (.1842)'

1840 (Tempo-11)...... (China); Outbreak of the Opium War. (.1842)...... (U.K.); Establishment of the Cunard Line.

...... (U.K.); Establishment of the Pacific Steam Navigation Company;
the company began service between England and the west-coast of SouthAmerica with two steamers, "Chili" and "Peru". They were the firststeamers to navigate the Pacific Ocean.

'
1842 (Tempo-13)Ju]y 24 The amendment of the order to repel foreign ships; hence forth
foreign ships were given bunker, water and food.

1843 (Tempo-14)
Peter Albert Beque came to Japan as the new representative of the Dutch

mercantile house. (.1845)
An English ship came to Okinawa and surveyed Yaheyama and Miyako.

1844 (Tempo-15 & Koka-1)
Mar. A French ship came to Okinawa and asked for mutual trade.
July 2 (s.c. Aug.15) The Dutch warship "Parenpan" (Comander; Copus). entered Nagasaki (left port on the 14th of October.).

A CHRONOLOGICAL TABLE OF MODERN JAPANESE SHIPPING 21
Aug. 8 The Shogun accepted a letter from Dutch Emperor Willem II;• herecommended to open the country.
...... (U.S.A.); An Arnerican ship opened a 1iner service between Kwangtung(Canton) and Hongkong.
184S (Koka-2)
Mar. 12 An American ship came to Nagasaki to return Japanese castaways.

May 15 An English ship came to Okinawa and forced the opening of
mutual trade.
June 1 A return letter to the Dutch Government; the Shogunate refused
the recommendation to open the country. (This letter was given to
the Dutch representative on the 15th of August.)
1846 (Koka-3)
Apr. 5 An English ship came to Okinawa.
May 11 An American ship drifted ashore at the island of Etorof.
May 27 Biddle, Commander-in-chief of the American India Aquadron,came to Uraga in command of two warships and asked to enter into
diplomatic relatjons, but was refused.

June 7 Biddle left Uraga.
Three French war-ships came to Nagasaki (left on June 9).
June 28 A Danish ship came to Uraga.
Aug. 23 An English war-ship came to Okinawa.

Aug. 29 The Japanese Emperor ordered the Shogunate Government tostrengthen shore defenses.
Joseph Henry Le Faithson came to Japan a$ the new representative of the

Dutch mercantile house. (->1850)
1847 (Koka-4)
June 26 A Dutch ship told that English ships might come to Japan.
...... (U.S.A.); Establishment of the Pacific Mail Steam-ship Company.
,..... (Germany); Appearan,ce of the Hamburg America Packet Fahrt A.G.
1848 (Kaei-1)
Mar. Foreign vessels made frequent appearances to the north of Tsushima.
May 7 American seamen who were the crew of the whaling-vessel, "Ratiga",were castaway on Hokkaido and were sent to Nagasaki.
...... (U.S.A.); U.S.A. took California away from Mexico.

22 , SEIJI SASAKI
1849 (Kaei-2)
Mar. 26 The American warship, "Preple", came to Nagasaki to receive theAmerican castaways.
Apr. 8 The English ship, "Marina", came to Shimoda and Uraga.
This spring defensive preparations for the sea were discussed actively inJapan.
Dec. 25 The order for coast defenses was given to the clans.
...... (U.K.); Repeal of the British Navigation Act.

1850 (Kaei-3)Mar. 15 Joseph Henry Le-Faithson, Dutch Captain, went to Edo-Castle;
It was the last reception by the Shogun to meet the Dutch representative.

Apr. 16 English seamen drifted ashore at Atsugishi [Hokkaido] and weresent to Nagasaki.
June 11 A Dutch ship that just entered Nagasaki communicated the hopeof the U.K. and U,S.A. to open commercial relations with Japan.
D.C. Rosee, came to Japan as the new representative of the Dutch mercantile

house.
...... (U.S.A.); The American Congress decided on the development of the
Orient and the opening of Japan.
...... (U.S.A.); Establishment of the Colins Line.
...... (U.K.); P. & O, Co. opened a liner-service between Hongkong andShanghai.
1851 (Kaei-4)

Jan. 3 An American ship returned Manji o Nakahama, a Japanese shipvvrecked person, to Okinawa.
...... (France); Establishment of the Messagerie Maritime Company.
...... (Europe); Opening of a cable betvveen Dover and Calais.
1852 (Kaei-5)

Jan. 17 An English ship came to Okinawa.
June 5 Yan Hendrick Dwkel Kurtius, Secretary of the Dutch Indiangoverner-general, came to Japan as the new representative of the Dutch
mercantile house and brought a letter from the Indian-governer-general.

June A Russian ship came to Shimoda.
1853 (Kaei-6)

Apr. 19 Matthew Calbraith Perry, an American commodore, came to23
A CHRONOLOGICAL tltABLE OF MODERN JAPANESE SHIPPING

Okinawa in command of four warships.
May 8 Perry came to Ogasawara-rslands in command of two warships.
June 3 Perry came to Uraga in command of four warships.
June 9 Perry gave an autograph letter of the U.S.A. President to the
Tokugawa Shogunate.
June 12 Perry left with the promise of coming again the following year.
June 27 American warships came to Okinawa from Uraga.
July 18 Euphimius Putiatin (or Evfimii Vasilievichi Putyatin) Russian
admiral, came to Nagasaki in command of four warships-flag ship
"Diana".
Aug. 19 Putiatin gave a governmental Ietter to the Tokugawa Shogunate.
Sept. 1 Russian troops landed on Saghalien with the aim of occupation.
Sept. 15 Proclamation for releasing the prohibition against building large-sized vessels to clans.
Dec. 5 Putiatin came again to Nagasaki,

Dec. 25 Perry came to Okinawa.
1854 (Kaei-7 &-Ansei-1)
Jan. 8 Putiatin left Nagasaki with the promise of calling again.
Jan. 16 Perry came to Uraga in command of six warships.
Mar. 3 (s.c. Mar. 31) Signing of the Kanagawa-Treaty with Perry (on the
opening of two ports, Shimoda and Hakodate to the U.S.A.).
Apr. 17 Perry visited Hakodate.

May 12 Perry came back to Shimoda.
May 22 Signing of the supplement to the Kanagawa-Treaty.
Aug. 23 Signing of a friendship treaty with England.
Oct. 10 Permission for the Dutch ship to enter Shimoda and Hakodate.
Oct. 15 Putiatjon came to Shimoda.
Oct. 24 The Russian warship, "Diana", in which the Russian mission wasgoing abroad, wrecked badly: The ship was repaired at Heda-no-Ura,
Izu, [Kanagawa Pref.]Dec. 21 Signing of a friendship treaty with Russia. Opening of threeports, Shimoda, Hakodate and Nagasaki, to Russia.
1855 (Ansei-2)

Jan. 5 Exchange of the oMcjal Japanese-American Friendship Treaty.
June 8 Dutch Emperor presented the steamer, "Soomping", to the Tokugawa
Shogunate;-this was the first steamer in Japan and her name was chang-

ed to "Kanho-maru".

24 SEIJI SASAKI
Aug. 28 Stering, English Admiral, proposed to present a steamer.
Dec. 23 Signing of a friendship treaty with Holland.
18S6 (Ansei-3)

Apr. 22 A schooner, so-called "Kimizawa-style", was built.
July 3 Townsend Harris, American Consul-General, came to Japan. (.Mar.
27, 1862)...... (U.K.); Establishment of the Anchor Line.

'

1857 (Ansei-4)

May 26 Signing of the "Shjmoda-Treaty" with Harris.
July Establishment of the Nagasaki lron-factory.
Aug. 4 Putiatin came again to Nagasaki as the Russian envoy.

Aug. 5 Pompe van Meeldelfort, Dutch naval surgeon, came to Japan;:ge, tlasU6glh)t EUrOpean medical science and physical science. (...sept.

Oct. 20 Harris met the Shogun,
Dec. 24 Additional opening of four ports, Edo, Osaka, Hyogo and Niigata,to the U.S.A.
A steamer, so--called "Ninoura-style", was built in Nagasaki.
1858 (Ansei-5)Mar. 20 The Emperor's government ordered the Tokugawa Shogunate notto sign the Japanese-American Commerce Treaty.
JUnemle9rceT\;eaTtyO.kUgaWa Shogunate signed the Japanese-American comAug. 10 Signing of the Japanese-Dutch Commerce Treaty.
Aug. 11 Signing of the Russo-Japanese Commerce Treaty.
Aug. 20 Signing of the Anglo-Japanese Commerce Treaty.
Aug. 23 Tadanori Mizuno was sent to the U.S.A. as the Shogunate's
envoy.
Sept. 3 Signing of the Japanese-French Commerce Treaty.
1859 (Ansei-6)

May 4 Rutherford Alcock, English Consul-General, arrived at his post.

(.Feb. 29, 1862) 'May 28 Three ports, Kanagawa, Nagasaki and Hokodate, were formallyopened and permitted to engage in foreign trade with five countries;

England, France, Holland, Russia and the U.S.A.

25
A CHRONOLOGICAL TABLE OF MODERN JAPANESE SHIPPING

Aug. 10 P. Duchesne de Bellecourt, Frerich Consul-General, arrived at
his post. (.Mar. 24, 1864)
Aug. De Witt, Dutch Consul-General, arrived at his post. (->June 4, 1863)'
1860 (Manen-1)
Feb. (s.c.) The "Kanrin-maru", Japanese warship-commander; Kaishu(Rintaro) Katsu-,set sail for America; this was the first crossing of
the Pacific Ocean made only by Japanese people. At this time Masanori

Shimmi, the Shogunate's envoy, went to America on the Arnerican
warship, "Poxohatan", in order to exchange ratifications of the Japanese-

American Friendship and Commerce Treaty.
June 17 Signing of the Japanese-Portugese Commerce Treaty.
Dec. 14 Signing of the provisional Japanese-Prussian Treaty.
1861 (Bunkyu-1)

Feb. 21 Russian warships dared to occupy the island of Tsushima. They
left there on the 15th of August, when the English warships attempted

to drive them away.
June Proclamation for permitting both the owning and building of largesized vessels and of buying foreign vessels for the whole nation.

Dec. 22 Yasunori Takeuchi and his mission started from Yokohama to
Europe on an English warship.
1863 (Bunkyu-3)

May 10 Choshu-han bombarded Arnerican warships at Shimonoseki.
May 26 Choshu-han bombarded Dutch warships at Shimonoseki.
June 1 American warships bombarded Shimonoseki.
June 5 French vvarships bombarded Shimonoseki.
July 2 English squadron (seven warships) bombarded Kagoshima.
Dec. 29 Signing of the Japanese-Swiss Commerce Treaty.
1864 (Ganji-1)

July Establishment of the Kaigun-Sorensho (Shogunate's Navy
Aug. 5 The allied fleet of England, France, Holland and the(seventeen warships) bombarded Shimonoseki.
1865 (Keio-1)
Sept. 19

Leon Roches, French Minister, proposed that the

School).

U.S.A.,

Shogunate

26 SEIJI SASAKI
should punish the Choshu-han.
Sept. 21 The allied foreign fleet came together to the Bay of Osaka forthe purpose of pressing the Emperor's government which would notagree to sign all treaties with foreign countries.

1866 (Keio-2)

Feb. 29 The Tokugawa Shogunate approved free trade with foreign.
countrles.
Apr. 8 The Tokugawa Shogunate approved studying abroad.
June 21 Signing of the provisional Japanese-Belgian Commerce Treaty.
Oct. 12 Hidemi Koide and his mission, started out for Russia. (He cameback on the 11th of May 1867.)

Dec. 7 Signing of the provisional Japanese-Danish Commerce Treaty.
1867 (Keio-3)

May Takeaki Enomoto brought the "Kut'yo-maru" home from Holland.
May 25 Opening of Hyogo-port.
July 13 Signing of the formal Japanese-Belgian Commerce Treaty,
Sept. A regular steamer service was first carried out by the "Kisho-maru"(517 ton) between Edo and Osaka; so-called "Joki-Hikyaku-Sen" by
Jirosaku Kano.
Sept.NOct. Small steam-boat services,-"Oiran-maru", "Inasge-maru",
etc.-appeared in Tokyo Bay; they navigated mainly between Edo and

Yokohama.
Oct. 14 Resignation of Yoshinobu Tokugawa, the last Shogun.
In this year the Pacific Mail Steamship Co. (U.S.A.) opened the San Francisco

IHongkong line.
1868 (Keio-4 & Melji-1)
Jan. Restcration of Imperial Rule.
Jan. 30 Foreign ministers met Emperor for the first time.
Apr. 11 Capitulation of Edo-fortress.
Apr. The "Naniwa-maru" (steamer) engaged in regular navigation between

Edo and Osaka.
Sept. Edo changed its name to Tokyo.
Sept. 27 Signingofprovisional Japanese-Swedish and Japanese-Norweigan
Treaties.
Sept. 28 Signing of the provisional Japanese-Spanish Treaty.
Nov. Tokyo became the capital. Emperor moved from Kyoto to Tokyo.

A CHRONOLOGICAL TABLE OF MODERN JAPANESE SHIPPING 27
rn the spring many small steam-boat services appeared also in Osaka Bay;

mainly between Osaka and Kobe.
...... Opening of the Suez CanaL

1869 (Meiji-2)

Jan. 10 Decree on buying foreign vessels by the clans.
Signing of the provisional Japanese-German Commerce Treaty.

Feb. 22 Opening of commercial oMces, so-called "Tsushoji", in every
port. These oMces managed commercial business, especially foreign
trade.

Feb. The Nagata Shipbuilding Factory began to build small wooden
European-style steamer.

Apr. 4 (s.c. May 19) The Port Rule of Osaka was enacted.
Sept. "Ezo" changed its name to "Hokkaido".
The commisioner of Hokkaido colonization opened up a new route bet•-

ween Hokkaido and the mainland with two European-style sailing
vessels, "Kanrin-maru" and "Shohei-maru". The next year the steamer,"Koshin-maru" was added to their fleet.

Sept. 7 Signing of the Japanese--Austrian Commerce Treaty.

1870 (Meiji•-2)

Jan. Enactment of Merchant-ship Regulations; these were special regulations
in order to establish the "Kaiso Kaisha" which was the first steamshipcompany in this country.
Jan. Every fuedal barrier was aboiished; it meant free communicationin the country.
Jan. Telegraph service was first opened between Tokyo and Yokohama.
May Japanese railway bonds were issued in London.
July Enactment of Postal Regulations.
Sept. A telegraph service was established between Osaka and Kobe.
Oct. Yataro Iwasaki founded the Tsukumo Shokai; this was the origin of
his further shipping enterprise, so-called Mistubishi Kaisha-there
were some main changes-the Mitsubishi Shokai (14th of March, 1873),
the Yubin Kisen Mitsubishi Kaisha (February, 1875), and at last it
became the Nippon Yusen Kaisha (N.Y.K. Line) of today.
In the first part of this year, the Pactac Mail Steamship Co., American,

opened a new liner service from Yokohama to Shanghai via Kobe andNagasaki.

28 SEIJI SASAKI
1871 (Meiji-4)

Jan. Shirobei Fukijima established the Kaiso-Toriatsukai-sho in succession

to the above-rnentioned Kaiso-Kaisha.
Mar. Postal service was opeped between Tokyo and Osaka (Kyoto).
Apr. "Kosan-maru", the first iron-ship, was built in Osaka,-there isanother opinion that the "Nirg' ata-maru" (64 g.t.) built in Niigata in thesame year was the first Japanese iron-ship.

Apr. The Nagasaki Iron Factory changed its name to Nagasaki-ZosenKyoku (Dockyard) and belonged to the government Industry Ministry(Kobusho).
July 4 Signing of the Japanese-Hawaiian Commerce Treaty.
July 29 Signing of the provisional Japanese-Chinese Commerce Treaty.
Aug. The Nippon-koku Yubin Jokisen Kaisha was established in succession to the Kaiso-Toriatsukai-sho.

1872 (Meiji-5) •May Telephone service was established between Tekyo and Osaka.
Oct. The first railway was opened between Shimbashi (Tokyo) and Yokoharna.
Oct. The Nagasaki Zosen-sho changed its name again to the Nagasaki
Seisaku-sho (engineering factory).

Oct. The Yokosuka Zosen-sho changed its position from Kobusho (Industry

Ministry) to the Navy Ministry and also changed its name to Navy
Arsenal.

Oct. 8 Tomomi Iwakura went on a mission to Europe.'(came back in
September, 1873)
Dec. 23 Adoption of the solar calender. (Disuse of tlie lunarcalender).
This day is just the same as the lst of January, 1873.
1873 (Meiji--6)

Apr. 30 Signing of the formal Japanese-Chinese Commerce Treaty.
Aug. 21 Signing of the provisional Japanese-Peruvian CQmmerce Treaty.
1874 (Meiji-7)

Apr• 4 The Japan-Formosa War (ended on May 22).
By this war the Mitsubishi-Shokai received its first developmental
chance.

May A railway was opened between Osaka and Kobe.
Sept. Enactment of the Telegraph Regulations.

A CHRONOLOGICAL TABLE OF MODERN JAPANESE SHIPPING 29
1875 (Meiji-8)

Feb• The Mitsubishi Kaisha opened a liner service between Yokohama andShanghai with four steamers-Kanakawa-maru, Niigata-maru,
Takasago-maru and Tokyo-maru-; it led to hard competition with
the Pacific Mai1 (American).

May Toshimichi Okubo, the Secretary of State for Home Affairs, made apresentation on shipping policy; he proposed to give exclusive protection to a single steamship company, the Mitsubishi Kaisha.
(The new shipping policy was decided in August.)
June Dissolutjon of the Nippon-koku Yubin Jokisen Kaisha.
Sept. 15 The Mitsubishi Kaisha was given the fiTst decree (charteredletter); the company gained a large subsidy (250,OOO yen) and was given
many ships without compensation. By this aid the Mitsubishi won overthe Pacific Mail.

Nov. The Mitsubjshi Kaisha opened its Okinawa line.
1876 (Meiji-9)

Feb. The Peninsular and Oriental Steam Navigation Co. opened a newservice, HongkonglShanghai/Yokohama line, and challenged the
Mitsubishi Kaisha. After a severe struggle the Mitsubishi won overthe P. & O.
Sept. 15 The second decree (chartered letter) for the Mitsubishi Kaisha;by this the subsidy was divided among several lines, not in the form ofen bloc. •Oct. 15 Tomiji Hirono opened the private Ishikawajima Hirono Dockyard-the origin of the Ishikawajima Heavy Industries Co. Ltd.
1877 (Meiji-10)

Feb. A railway was opened between Osaka and Kyoto.
Feb..•vSept. The Satsuma Rebellion.
Successful military transportation during this war gave the second but

greatest developmental chance to the Mitsubishi Kaisha.
1878 (Meiji--11)

Mar. Establishment of the Central Telegraph OMce.
Apr. Shozo Kawasaki established the Kawasaki Tsukiji Dockyard inTokyo;-the origin of the Kawasaki Dockyard Co. of today.
1879 (Meiji-12)

Jan. The Mitsui Bussan Kaisha imported the first steamship, "Hideyoshi-

30 SEIJI SASAKI
maru" (696 g.t.); she was used to carry Miike coal to Shanghai.
Oct. The Mitsubishi Kaisha opened the Hongkong line.
1880 (Meiji-13)

Mar. Shozo Kawasaki established the Kawasaki Hyogo Dockyard.
Aug, The Tokyo Fuhansen Kaisha (salling-vessel company) was established.
Aug. The Tokyo Kaiin-Ekisai-Kai-seamen's association- was established.

Nov. M. Matsukata, the Finance Minister, took up the readjustment of
paper-currency.
1881 (Meiji--14)

Feb. The Mitsubishi Kaisha opened its Nagasaki!Vladivostok Line.
Apr. Edward Hazlett Hunter, an Englishman, established the Osaka Iron
Works;-origin of the Hitachi Shipbuilding & Engineering Company
Ltd.
Nov. The establishment of the Nippon Tetsudo Kaisha (private railway
company) was approved.
1882 (Meiji-15)
Mar. 14 Hirobumi rto departed for Europe in order to study the constitu--tion of many countries.
June Establishment of the Bank of Japan.

July 26 Establishnent of the Kyodo-Unyu Kaisha; this company was thestrongest competitor of the Mitsubishi Kaisha and was given largescale support by the government.
Nov. Taisuke Itagaki and Shojiro Goto set out on theirjourney to Europe.

,..... (Germany); Establishment of the Hansa Steamship Company.
1883 (Meiji-16)

May The Kyodo-Unyu Kaisha opened a liner service between Kobe andYokohama, so that there was a historically severe competition on thisroute between this company 2nd the Mitsubishi Kaisha.
Establishment of the Hakodate Dockyard Co.
The "Kosuge-maru", wooden steamer of 1,946 ton, was built in the Nagasaki
Dockyard; she was the first large-sized steamer over 1,OOO ton made inJapan.
1884 (Meiji-17)

May 1 Establishment of the Osaka Shosen Kaisha (O.S.K. Line); theA CHRONOLOGICAL TABLE OF MODERN JAPANESE SHIPPING 31
company was a combined organization of 55 shipowners and their 95 smal1

steamers.
1885 (Meiji-18)

Oct. 1 Establishnent of the Nippon Yusen Kaisha (N.Y.K. Line); thiswas the union of the Mitsubishi Kaisha and the Kyodo Unyu Kaisha.
Oct. Prohibition of building large-sized Japanese-style sailing vessels oversoo koku.
Dec. The "Yamashiro-maru" (2,528 g.t.) which belonged to the N.Y.K.
carried the first 988 Japanese immigrants to Hawaii.
Dec. 22 Enforcement of the cabinet system; H. Ito became the first Prime
Minister.
1886 (Meiji-19)

Feb. 29 Conclusion of the Japanese-Hawaiian Friendship Treaty in which
the Japanese were permitted to go to Hawaii freely. (It was promulgatedon the 2nd of June.)
May 12 The N.Y.K. concluded through-cargo-transportation contracts
with the P. & O. and the Pacific Mail.

Oct. 21 The "Normantol", British steamer, sank off the coast of Kishu[Wakayama Pref.]Oct. The governmental Hyogo Dockyard was lent to Shozo Kawasaki; it
was sold to him the next year-origin of the Kawasaki Kobe Dockyard.
Nov. (or Dec.) S6ichiro Asano established the Asano Kaiso-ten as his private
enterprise of shipping business under the great support of his patron,

E. Shibuzavva; the firm bought the second-hand steamer, "Bellona"(1,138 g.t.)-built in Germany-, and changed her name to "Hinodemaru." She was one of the earliest large-sized tramp-steamer, so-called"Shagai-sen".
1887 (Meiji-20)

May Promulgation of the private railway act.
The (Nada) Seiko Kaisha was established by some of the stronger NadaSake-makers and owners of sailing vessels. (There is another opinion
that the firm was established in June of 1886.) Though at first it was
only an union of many old sailing vessels, it began gradually to own
steamers after the Sino-Japanese War.

SEIJI SASAKI

32

1888 (Meiji-21)

Apr. 28 Nisaburo Hiroumi, the founder of the present Hiroumi Steamship Company Ltd., bought the steamer, "Esmeralda" (615 g.t.), fromthe A.T. Leinell Co. (English) for $39,OOO; her name was changed
to the "Hohuriku-maru". She was the most famous snip among theearliest ShagaFsen.

Establishment of the Seshu Nada-shuka Kogyo Kaisha; Some Nada-Saka
makers established this company and bought three steamers-"Seshumaru" (1,631 g.t.), "Sekkai-maru" (902 g. t.) and "Setsuyo-maru"(1,099 g.t.).

Oct. Enactment of the beacon-rule.

Nov. Signing of the Japanese-Mexican Commerce Treaty.
Dec. The Nagasaki Dockyard changed its name to the Mitsubishi Dockyard.
1889 (Meiji-22)
Jan. Michihisa Baba, the founder of thebought the steamer, "Sharoro-maru"
Feb. Promulgation of the constitution.
July 1 The Tokaido Line (railway) waspresent Baba Steamship Co. Ltd.,(1,030g. t.).

opened to traMc.

1890 (Meiji-23)

Oct. Enactment ofs hips nationality

rule.

1891 (Meiji-•24)

June The N.Y.K. abolishedSept. 1 The Tohoku Line(sailing-vessels.

railway, private)

Was opened to traMc.

1892 (Meiji-25)

Nov. 30 The Japanese warship, "Chishima" collided with the English
steamer, "Rabenua" and sank off the coast of Fukae [Ehime Pref.]Establishment of the "Nippon Kaiungyo Domei-kai"; it was the firstunion of Japanese shipowners (steamers) except the N.Y.K. and the
O.S.K.
About from this year the special terms, "Shasen" and "Shagaisen", were usedamong our shipping circle; essentially the former meant steamers ownedby the "Big Two", the N.Y.K. and O.S.K, and the latter meant othersteamers owned by all private shipowners, even though it was often
described that Shasen were liners and Shagaisen were tramps.

A CHRONOLOGICAL TABLE OF MODERN JAPANESE SHIPPING 33
1893 (Meiji-26)

Ju!y 1 Enforcement of the commercial law.
Nov.7 The N.Y.K. opened its Bombay Line as the first ocean route; thefirst ship, "Hiroshima-maru" (3,276 g.t.) started from the port of
Kobe on this day.
Dec. The N.Y.K. was reorganized as a joint-stock company.
Establishment of the Mitsubishi limited partnership (Mitsubishi& Co.); the company operated the Mitsubishi Dockyard and soon owned steamers.
Attheend ofthis year the total tonnage of Japanese steamers was 167,490
g. t.; the Shagaisen had about 25 percent, 40,OOO g. t. in all, while the

N.Y.K. had 45 steamers, 64,157 g. t. (in September).
1894 (Meiji-27).

Aug. The Sino-Japanese War. (-->189S)

Oct. 22 Signing of the amendatory Japanese-Arnerican Commerce &Navigation Treaty.
Dec. 1 Signing ofthe amendatoryJapanese-Italian Commerce & Navigation
Treaty.
1895 (Meiji-28)

June 8 Signing of the amendatory Russo-Japanese Commerce & Navigation
Treaty.
July 16 Signing of additional agreement on the Anglo-Japanese Commerce & Navigation Treaty.

Aug. 20 Signing of the amendatory Japanese-Peruvian Commerce &Navigation Treaty.
Oct. 19 Signing of the amendatory Japanese-Danish Commerce & Navigation Treaty.
Nov. 5 Signing of the Japanese-Brazilian Commerce & Navigation Treaty.
...... (Germany); Opening of the Keel Canal.
1896 (Meiji-29)

Mar. 15 The N.Y.K. opened its Europe Line; the first ship was the"Tosa-maru" (5,402 g. t.).

Mar. 24 Enactment of the Act for encouraging navigation.
Enactment of the Act for encouraging shipbuilding.
Apr. Enactment of the (Marine) Ship-Inspect Law and the regulation of

OMcer.

,

34 SEIJI SASAKI
Apr. 4 Signing of the amendatory Japanese-German Commerce & Navigation Treaty.
May 2 Signing of the amendatory Japanese-Swedish Commerce & Navigation Treaty.
Signing of the amendatory Japanese-Norwegian Commerce & Navigation
Treaty.
June Establishment of the Toyo Kisen Kaisha; S. Asano established thislarge-scale liner company in place of the above-mentioned Asano Kaiso-ten.
June 22 Signing of the amendatory Japanese-Belgian Commerce & Navigation Treaty.
July 21 Signing of the amendatory Sino-Japanese Commerce & Navigation
Treaty.
Aug. The N.Y.K. opened its North-American Line from Kobe to Seattle;
the first ship was the "Miike-maru" (3,308 g.t.).
Aug. 4 Signing of the amendatory Japanese-French Commerce & Navigation Treaty.
Sept. 8 Signing of the amendatory Japanese•-Dutch Commerce & Navigation Treaty.
Oct. 3 The N.Y.K. opened its Australia Line; the "Yamashiro-maru"
set sail from Yokohama as the first ship.

1897 (Meiji-30)

Jan. 2 Signing of the amendatory Japanese-Swiss Commerce Treaty.

Jan. 26 Signing of the amendatory Japanese-Portugese Commerce &Navigation Treaty.
June Establishment of the Uraga Dockyard Co.
Sept. 2S Signing ofthe amendatory Japanese-Chilean Commerce & Navigation Treaty.

Oct. The Toyo Kisen Kaisha opened its North--America Line (to San
Francisco); the first ship was the "Nippon-maru" (6,048 g.t.).
Oct. Enforcement of the gold standard system.
Dec. 5 Signing of the amendatory Japanese-Austrian Commerce & Navigation Treaty.

1898 (Meiji-31)

Feb. 3 Signing ofthe Japanese-Argentine Friendship, Commerce & Navigation Treaty.

Feb. 25 Signing of the Japanese-Siamese Friendship, Commerce &A CHRONOLOGICAL TABLE OF MODERN JAPANESE SHIPPING 35
Navigation Treaty.
June Organization of the oMcial Marine Board (Kaiji-Kyoku).
June Signing of the International Postal Treaty.
1899 (Meiji--32)

Feb. TheN.Y.K.joined theJapan/Europe Freight Conference; the N.Y.K.
ship was permitted to enter London on her homeward journey.
Apr. The Osaka Iron Works opened its shipbuilding department; theorigin of the present Hitachi shipbuilding & Engineering Co. Ltd.

June 1 Signing of the Japanese-Greek Friendship, Commerce &Navigation

Treaty.
...... (Europe & Africa); The Boer War (->1902).
...... (China); The Nonh China affair (.1901).

July 17 Enforcement of all amendatory treaties.
Sept. The O.S.K. opened a liner service from Kobe to North China.
1900 (Meiji-33)

Jan. 18 Signing of the Japanese-Congo Freindship Treaty.
Mar. 28 Signing of the Japanese-Spanish Preferential Commerce Treaty.
Dec. 28 Enactment of the Inspect Regulation of Ships.
1902 (Meiji-35)

Jan. 30 Formation of the Anglo-Japanese Alliance.

The Setsu K6gyo Kaishatombined company of the Seshu Nada-shuka
K6gyo Kaisha and the Seiko Kaisha-was reorganized into a jointstock company "Tatsuma-shokai"; the origin of the Tatsuma SteamshipCo. and its succeeding Shin-Nippon Steamship Co.
1903 (Meiji-36)

Apr. 29 The Mitsui Bussan Kaisha opened an independent shipping depart•ment, so-called "Mitsui Senpaku-bu."

Nov. Establishment of the Japanese Shipowners Union (Nippon Senshu
Domei-kai).
Karnesaburo Yamashita bought into the "Kisagata-maru" (2,372 g.t.)
and became a shipowner; the origin of the Yamashita Steamship Co.
1904 (Meiji-37)

Feb. 10 The Russo-Japanese War (.1905)

36 SEIJI SASAKI
By this war the N.Y.K.'s Europe Line (in January), Bombay Line andAustralia Line (together in April) were stopped temporarily.

'
1905 (Meiji-38)
Dec. The Toyo Kisen Kaisha opened its South-America (west-coast) Line.
1906 (Meiji-39)

Oct. The anti-Japanese movement in San Francisco.
Nov. Establishment of the South Manchuria Railway Company.
1907 (Meiji-40)

Mar. Establishment of the Harima Dockyard Co.
Apr. 1 Establishment of the Nishin Kisen Kaisha (Sino-Japanese SteamshipCo.).
1908 (Meiji-41)

July Building of new large semi-passenger-boats (8SOO g.t.-class); thefirst ship was the N.Y.K. "Kamo--maru" (8,524 g. t.) built at the Mitsu-

bishi Dockyard [Nagasaki].
The Mitsubishi Dockyard (Nagasaki) built also the first large turbine
vessel, "Teayo-maru" (13,454 g. t.) in this year; she vvas owned by the

Toyo Kisen Kaisha with other two same-class vessels, "Chlyo-maru"
and "Shunyomaru". They were used in its North-America Line.

'
1909 (Meiji42)
Mar. Enactment of the Subsidary Act for Ocean Line (Enyo-koro Hojoho); it was enforced the next January.
July 3 The O.S.K. opened its first ocean line from Hongkong to Tacoma.
1910 (Meiji-43)'

Dec. Lieutenant Shirase and others started to explore the South pole on

the wooden vessel "Kainan-maru".
1911 (Meiji-44-)

June Establishnent of the Yamashita Steamship Company. (unlimited
partner ship).
May Establishment of the Meiji Kaiun Co. Ltd. (Meiji' Shipping Co.).
Sept. 16 The N.Y.K. opened its Calcutta Line; the first ship, "Nikawamaru" (3,782 g. t.), set sail from Kobe on this day.

A CHRONOLOGICAL TABLE OF MODERN JAPANESE SHIPPING 37
Through this year the amendatory Commerce & Navigation Treaties weresigned with many countries, included the U.S.A., Sweden, Norway,
Germany, France, and the Netherlands.
1912 (Meiji-45 & Taisho-1)'Mar. 10 The "Kanagawa-maru" (6,151 g. t.), a N.Y.K. Iiner for Europe,
set sail from Kobe taking on board the first Japanese immigrants forthe east coast of South America.
Apr. Establishment ofthe Chosen Yusen Co. (Korea Mail-Steamship Co.).
July 30 Demise of Emperor Meiji; the beginning of the Taisho Era.

Oct. Formation of the Nanyo Yusen Gumi (association); the originof the Nanyo Yusen Kaisha (the South Sea Mail-Steamship Co.)
Nov. Establishment of the Hinode Kisen Co. Ltd. (Hinode SteamshipCo.)-e um-e e- tr

At the end of 1911 (Meiji-44) the total tonnage of Japanese steamers
amounted to 1,854 vessels and 1,375,083 gross-tons. The "Shasen" held about
540,OOO g.t. (about 40 percent); the N.Y.K. owned 70 vessels and 287,077 g.t.
the O.S.K. 108 vessels and 149,937 g.t. the Toyo Kisen K. 9 vessels and 77,114

g.t. and the Nissin Kisen K. 12 vessels and 27,398 g.t. On the other hand,the fleet of about 700,OOO g.t. was the so-called "Shagaisen". The rest, about

100,OOO g.t. belonged mainly to the government. The main members of the
Shagaisen-shu (owners of Shagaisen) who owned over ten thousand gross tons
were as follows;
vessels

namegross tons

The Kishimoto Steamship Co.

1038,836

The Tatsuma Steamship Co. (limited partnership)
The Harada Shoko (limited partnership)

15

36,32915

32,479The Mitsui Bussan Kaisha
Keizo Oaki

27

31,697

14

21,951The Itaya unlimited partnership

6

19,297

Nisaburo Hiroumi
The Okazaki Steamship Co.
Kentaro Kishimoto

7

17,8688

16,9305

14,629The Mitsubishi limited partnership30

14,263

Eizo Hachima
The Nippon Shosen Co.
Fujisuke Yamamoto

6

13,5294

10,441(quoted from4pp• 360..i361

of thef

10,099Nippon Kaiun Kokok. u Shi)OVERSEAS OPERATIONS OF JAPANESE BUSINESSENTERPRISES IN BRAZIL
Tadakatsu INouE

I
There are two groups of "Japanese" business enterprises in Brazil. One
consits of Brazilian chartered corporations which were established by Japaneseimmigrants in Brazil now numbering 550 to 560 thousand. The Bank of SouthAmerica in San Paulo City is a representative one. Kunito Miyasaka, thefounder and chief executive of the bank, is an immigrant who settled in Brazil

after his graduation from Kobe Higher Commercial School, predecessor of
the present Kobe University, in 1913. The bank is now being operated with some

fifty branches and more than three thousand employees. Besides the bank,there are also several financial institutions, some warehouse companies, andmany trading companies. rn addition there is a rapid growth of manufacturingconcerns founded by Japanese immigrants. According to a recent report
prepared by the Japanese Consulate General in San Paulo, the number of suchindustrial enterprises in the San Paulo area amounts to twenty-five. They
are expected to develop by leaps and bounds in tune with the rising tide of industrialization in Brazil, though their average size is still small.

Besides these business enterprises fostered by Japanese colonists, there isanother type of "Japanese" enterprise in Brazil, which we are going to discussin the following pages. They are Brazilian chartered business corporations

owned and managed by Japanese companies for the purpose of engaging inforeign trade, banking, and manufacturing in Brazil. Among the trading companies, there are Kanematsu do Brasil, Marubeni-Iida do Brasil, Mitsubishi Shoji

do Brasil, Nissho do Brasil, and Nichimen do Brasil. In the field of banking,there are the Sumitomo and Tokyo Banks. And, as the most striking group,
there is a number of industrial enterprises which were established largely from1955 to 1960. Chiefly located in San Paulo, the leading industrial state in the

country, they are producing a variety of products as follows. ,Toyobo do Brasil, a wholly privately-owned subsidiary of the leading Japanesecotton spiming company with the same name, is now operating two mills with
about 30,OOO spindles. Besides this company, there are three cotton and one
woolen textile companies. They are Kanebo do Brasil, Tsuzuki, and Nichiboin San Paulo, and Kurabo do Brasil in South Rio Grande.

40

TADAKATSU INOUE

In relation to the textile industry there is Howa do Brasil in San Paulo which
is now producing about 2,OOO looms a year with an employment of seven hundred.
Toyota do Brasil, a Brazilian corporation owned and managed by the biggest
automobile company in Japan, is producing jeep-type cars near San Paulo City.
In the field related to the automobile industry, NGK do Brasil, a producerof spark-plugs, stands out sharply above its competitors.
Ishikawajima do Brasil founded in 1959 as a Brazilian-Japanese joint venturein the field of shipbuilding is making a great contribution to Brazilian economy.
The modern shipyard in Rio de Janeiro built nine steamers of 79,800 tons dead-weight in four years from 1961 to 1963.

The Minas Gerais Iron and Steel Company (Usinas Siderurgica de Minas
Gerais S.A.), commonly called USIMINAS, is another Brazilian-Japanese
joint undertaking. While its furnaces and mills in Itabira, Minas Gerais, withan annual capacity of 500-thousand tons of steel ingots are stil1 under construction,

they produced 187,222 tons of coke, 217,800 tons of pig iron, 73,468 tons of steel

ingots, and 43,443 tons of plates in 1964.

Besides these, there are Yanmar Diesel Motors do Brasil, a well-equipped
manufacturer of small-sized engines, Marukyu Agricultura] Machinery, a subsidiary of Kubota Iron Works of Japan, Mitsubishi Heavy Industries, a subsidiaryof a well-known Japanese corporation engaged in the boiler business, Niigata
Engineering, Jatic Electric Machinery, Tamura Electric, Sadkin Lamps, Pilot Pen
do Brasil, Nagaoka do Brasil, Ajinomoto do Brasil, Taiyo Fishing, Northern
Brazilian Fishing, a subsidiary of Nihon-Reizo, and others.
llBrazil occupies the most important position among foreign countries into
which Japanese capital is flowing. By September 1961, Japanese investmentsof all types in foreign countries amounted to $440,OOO,OOO. Ofthe sum, $190,OOO,
OOO or about 43 per cent went to Latin America, most of which was to Brazil.

The high position of Brazil with regard to foreign investments by Japanese,most of which took place from 1955 to 1960, is the result of sereral reasons. The
existence of a large number of Japanese immigrants who have established a good
reputation and considerably high social standing among Brazilians must have beena favorable factor for investing companies. The huge area filled with unexplorednatural resources and the unlimited possibilities of the country must have been at-

tractive to Japanese investors. The immediate cause, however, which promoted
the flow of Japanese capital into the country was the policies for the industrializationof Brazil of the Kubitschek Administration which was formed after the fall of
President Vargas in 1954. Protection to encourage home industries have made

OVERSEAS OPERATIONS OF JAPANESE BUSINESS 41
ENTERPRISES IN BRAZIL

it diMcult for foreign manufacturers to export their finished products to Brazil.

It was then only natural that some Japanese companies whose products had
markets in Brazil should decide to set up factories in that country. This is truein the cases of Pilot Pen do Brasil, Yanmar Diesel Motors do Brasil, Toyota do

Brasil, NGK do Brasil, and rshikawajima do Brasil. Favarable treatment
given to foreign investments which would contribute to the industrializationof Brazil has been another effective inducement for investing companies. Take,for example, the Act for Implantation of Automobile Industry in Brazil in 1956.
Foreign manufacturers who would set up and operate production operations forautomobiles in Brazil were to be guaranteed a special favor for the importationof neccessary equipments and parts for a given period from 1956 to 1960. Toyota
do Brasil, NGK do Brasil, and Yanmar Diesel Motors do Brasil are companies
which were established under the stimulus of this law. In the same manner,
Ishikawajima do Brasil and Niigata Engineering took advantage of the MerchantMarine Fund of 1958.
As we have just seen, Japanese investments in Brazil are much larger thanin any other country. However it is still small as compared with the total foreignbusiness investments in Brazil. Among the one hundred biggest enterprises in
Brazil, fifty-four are foreign-ovvned companies, while only two vvere establishedwith the participation of Japanese capital and management.

llI
Brazil has no legal restriction on the proportion of holdings by foreigners
in almost all its chartered corporations. This should be compared with most of
the South East Asian•countries whose attitude towards foreign capital has beenso susplcious that holdings of foreigners have generally been limited not to exceeda majority. Appreciating such conditions, the parent companies in Japan haveusually adopted a policy of establishing wholly privately-owned subsidiaries in
Brazil. Still there are several companies which prefered to set up and operate
their overseas operations as joint undertakings. Among them, Ishikawajima do
Brasil and USIMINAS, both of which were designed along the 1ine of national
policy, are joint enterprises in which government authorities of Brazil joined withJapanese interests in subscribing for shares. Pjlot do Brasil, NGK do Brasil,

Niigata Engineering, Howa do Brasil, Sadokin Lamps were other groups ofjoint enterprises in which leading Japanese immigrants in Brazil owned stock andelected directors.

Joint undertakings with Brazilians or Japanese immigrants have often beenaccompanied with subtle human relationships. Let us take, for example, someof the joint enterprises with Japanese immigrants. The resident managers

TADAKATSU INOUE

42

dispatched by their parent companies who have been trained and acquainted withmore advanced administrative techniques in postwar Japan have been inclined tohave a preconceived idea that the practices in Japan are always right and to force

them on their fellow managers who have been conditioned to the slow pace ofBrazilian business. On the other hand Japanese immigrants in positions of management who have passed through bitter experiences in the foreign Iand have been
apt to assume an air of superiority, to despise the poor Portuguese of the newcomers,

and to regard the successful overseas operations of Japanese business enterprises

as their past efforts as immigrants. The result has been antagonism among themanagers which has brought about conflicts and delays in business decisions.
Confronted with such troubles, one of them was reorganized into a wholly privately--

owned subsidiary of its Japanese parent corporation.
But one must not conclude ffom these facts that joint undertakings should

be rejected as devices for launching business in Brazil. The subtle humanproblems may be solved by making greater efforts to promote mutual understanding
between the two interests. It must be noticed here that there is a tendency among

Japanese subsidiaries to open their securities to Japanese immjgrants so as tobetter their relationship with the community.

rv
Each company engaged in business abroad must take into account the specificnature of problems arising from such operations. First, it must be seriously

influenced by the general climate of opinion on "foreign-owned or-managed
company" in the nation concerned. Secondly, it must be confronted withproblems involved in setting up and operating production operations in a culture,political system, economic conditions foreign to it.
As to the first problem, the situation in Brazil, particularly under the admini-

stration of President Juseelino Kubitschek, was generally favorable to foreign
investors including Japanese investing companies. As we have seen, there wereno restrictions on the proportion of stock holdings and the participation in mana-

gement by foreigners and no restrJ'ants on the remittance of dividends and redem-

ption of capital funds. The only important restriction for a foreign-owned
corporation was the conditions of employment under which two-thirds of all
employees had to be native workers.
It is true, however, that the situation was somewhat changed in the last yearsof the administration of Ex-president Joio Goulart who adopted radical policies
chiefly to gain the favor of trade unions. An act to restrict the remittance ofdividends was enacted and some foreign-owned public utility corporations wereexpropriated by the government. But this administration was overthrown last

OVERSEAS OPERATIONS OF JAPANESE BUSINESS 43
ENTERPRISES IN BRAZIL

year by the outbreak of the revolution led by the military forces. It seems likelythat the national feeling toward foreign investors will continue to be moderate.

As to the second problem, Brazil challenged the ingenuity and skill of the

management of investing oompanies. There were no Japanese books dealing
in detail with business conditions in Brazil and no consultants or attorneys

versed in such problems. Each company had to proceed on a trial and error
basis, and there were plenty of errors.

As has so often been the case, the dispatched Japanese managers wereembarrassed by the difl;erent nature of labor and personnel problems encounter-ed in Brazil. In some companies, the more advanced nature of the Labor Law
in contrast to the inferior work performance capacities of the workers became thechief source of trouble. For example, in a cotton textile mill, some workers whoneeded a good round sum might displease their supervisors in every way andforce them to take the final measure for discharge. Their intentions were obviously
to exploit the provjsions of the Labor Law under which any worker discharged aftera service of one year without anyjustifiable reason was to be compensated by adismissal allowance in proportion to the length of his service. In other cases,
the different structures and functions of trade unions in Brazil required the special

attention of Japanese managers. Broadly speaking unions in Brazil are ineffective at the local level. They play a relatively weak role both in handling theworkers' grievances and in negotiatjng collective agreements with managements.
In other words, they have not reached maturity as agents for negotiating company-level collective agreements. In turn, trade unions in Brazil point toward
political action as the prime means for achieving the goals of labor. This was
especially true in the days of Ex-president Goulart, when Japanese managers were

frequently frightened by political radicalism among unions. Somewhat morecommon has been the question of the general attitude of Brazilians toward work.

Cultural attitudes summed up in Japanese maxims "Time is money," "Theearly bird catches the worm," "A hard worker is a stranger to poverty" are notso highly valued in Brazil, partly because of cultural differences and partly becauseof the conditions associated with industrial development, the two being related tosome degree. Generally speaking, work, especiaUy physical labor, is viewed
with disdain, while leisure and the pursuit of other satisfactions are consideredmore important. Thus the dispatched Japanese managers might become irritated while supervising workers who did not feel impelled to work either by thecompulsions of inner conscience or the pressurs of social sanction.
Besides the labor and personnel problems, there arose many questions in thefield of production, marketing, and finance. As to production, Japanese companies in Brazil were frequentiy embarrassed by the lack of local suppliers who
could meet quality requirements for the necessary parts and materials. Thus,

44

TADAKATSU INOUE

some had to reluctantly start with self-production of the articles in question,
while some took the more patient method of training local suppliers by sending
their engineers or by granting their jigs and tools or by both. In the field offinance, problems centered about how to get credit for a working capital. As
is usual with developing countries, the deposited amount in Brazil was much smaller

than in advanced countries. Sometimes, banks were founded and operated
chiefly for the purpose of granting credit to particular groups of enterprises, In
addition, the government set a )imitation on the amount of private loans furnishedby commercial banks in order to let more funds flow into key industries andto curb inflation. These conditiQns have made it diMcult for Japanese producers
in Brazil to get credit for a working capital as well as for expansion. Thus, it is

not unusual for a manufacturer to open accounts with as many as twenty to thirtybanks,v
Building upon each other's experience, Japanese concerns in Brazil seem tohave developed from a stage of experimentation to a stage of stabilization, though

they have not reached a$tage Qf complacency yet. This will be highly appreciated by both the Brazilian and Japanese Governments who have much interestin the industrialization of the developing country. Then, how do these overseas
operations benefit the investing companies in Japan?
1. As to dividends, ordinary monetary returns on foreign investments, they
got nothing after the enforcement of a Brazilian act which virtually prohibited theremittance of dividends. At present, however, this does not seem to be a serious

problem for those parent companies who are anxions to expand their Brazilian
subsidiaries through reinvestment of profits rather than for gain.

2. As an effect of their investment in Brazil, some could promote theirexport business on very faverable terms. This was the case of Japan USIMrNAS,
a Japanese investing company to USIMINAS, and Ishikawajima-Harima, parent
company of Ishikawajima do Brasil. The former exported furnaces and mills
valued at about one hundred million dollars and the latter parts and materials
amounting to about seven million dollars without tariff duties.

3. Some Japanese subsidiaries in Brazil successfully demonstrated thesuperiority of their products just among foreign-owned and-managed competitiors

including the U.S. and West German manufacturers. As a result, their parent
cempanies in Japan gained a good reputation on their products all over the world.

4. Those employees who returned from subsidiary corporations in Brazil
where they, as resident managers or engineers, gained various experiences onoverseas operations wou!d bring an international sense, ideas and visions to theirOVERSEAS OPERATIONS OF JAPANESE BUSINESS 45
ENTERPRISES IN BRAZIL

Japanese parent companies whose activities are becoming more and more international.

5. By setting up their subsidiaries in Brazil, Japanese manufacturers could
obtain a firm and enduring footing in the Brazilian market which would sooner orlater shut out almost all foreign-made products by the development of industriaIization in the country.

A NOTE ON ECONOMIC ACCOUNTING FOR
GOVERNMENT SECTOR
Nobuko NosEI

INTRODUCTION
Many governments are more or less handicapped in devising a comprehensive
fiscal policy because they lack the elementary tools for the national budget. As
we see later, in the Japanese budget system, the situation is the same as in othercountries. It is neither easy to get economic information nor to analyse thegovernment's economic role from the budget because its form and structure arebased on traditional principle and serve for accountability control.
Since the pioneering work of Sir John Hicks gave a solution tQ budget reform,ieconomic accountants have tried to give a model for the economic account forgovernment sectors and are still trying on his line of thought.2 Obviously theseattempts are very fruitfu1 because a prerequisite of social accounting is needed to

set an economic accounting for the government sector. But the attempts arerather narrow because their analyses are limited to national income accounting
only. In estimating the multiplier effect of the budget in the inter-industry level,

we must take a step further: to inquire the principle of economic accounting forgovernment sectors from the inter-industry accounting point of view.
In this note, we should like to make clear the character of the present Japanesebudget, secondly we should like to show how to rearrange the central government
account from the national income accounting point of view, and thirdly, we would
iike to see how to rearrange the budget from the inter•-industry accounting view.
pomt.
ll

THE JAPANESE BUDGET
The present Japanese budgets3 intend primarily to serve as an instrument
for legislative and executive control over the collection and disbursement ofpublic funds. In this paper, we should like to limit our interest to the central

government's budget.
First of all, the basic accounting unit is the administfative unit. The accounts

NOBUKO NOStE

48

of all administrative units, i. e., departments, are grouped into three main categories-the general account, the special account and the account of public undertakings,
all of which are basic subsector accounts of the central government sector.

The general account is the budget for recording basic revenue, i. e., tax andbasic expenditure on government service in a proper sense, such as defence, civil
service, etc. The special account is the budget for recording the uses of funds for
special activities, for example, controlling prices of foods, the mint and social

insurance service and the sources of funds. In the Japanese budget system,
there are 41 special accounts to record the revenue and disbursement of special
government activities which are a mixture of the activity of government economic
policy with that of quasi-public undertaking. The account of public undertakings
is the account for the 13 public undertakings, for which funds are provided by
the government. The principle of classification for the special account and theaccount for public undertakings is as follows: The units to be classified under theformer must be controlled strictly by the general government; They have also a
responsibility to account for Parliament and any surplus from them should beappropriated to the Exchequer. On the other hand, the units to be classified

in the latter are independent of the control by Parliament and may decide
how to appropriate their surplus; these rights are authorized by law. So far, theprinciple for sectoring the two accounts is institutional.

The Japanese budget system is mainly composed of the above three accounts.
In addition to these, two other statements are provided for subsidiary purposes:
One concerns financial transactions covering one fiscal year and the other theestjmates of government investment and its source of funds. A brief summaryof the Japanese budget is as follows:

Main budgets 1. General account
2. Special account
3. The budget for public undertakings
Subsidiary statements 1. The statement of government long term transaction
2. The estimates of government investment andits source of funds.
Second, we must make clear the principle of measurement of the governmenttransactions recorded in the budgets. The accounting period of the Japanesebudgets begins on lst of April and ends on 3lst of March, so that the revenue andexpenditures are recorded as based on a`fiscal year'. The figures are recordedby so called `cash basjs' because the main purpose of budgets is to serve to accountability control. Moreover, the activity of the government should be observed
and measured on the fiscal year basis, on the principle of annuality. As for themeasurement of capital formation and capital consumption, the government ac-

A NOTE ON ECONOMIC ACCOUNTING FOR GOVERNMENT SECTOR 49
counts do not express the figure because they do not keep accounts of capital
items and current items separately in the usual manner and they do not measure

depreciation of the capital assets. 'Third, we must investigate the account form of the government. The accountform shown in Table 1 is the account for accounting purposes. The alternative
form shown in Table 2 is the account for government activities from the viewpoint of the performance of the government. Needless to say, in analysing the
economic activities of the government, the latter is more useful. But, as Table 2
shows, there is no clear-cut classification between current transactions and capitaltransactions. Therefore, its usefulness is limited because we can guess neither

the figure of government savings nor government investments.
Table 1. The General AccountWages and salaries

Tax and stamp duties

Travelling expenses

Revenue from monopoly proceed

Current expenditure for goods and services

Trading profits

Expenditure for equipment

Revenue from selling of properties which

are government owned
Subsidies

National debt

Transfers to the other accountMiscellaneous revenue

Miscellaneous items

Surplus carried over from the previous
fiscal year

Total

Total

Table 2. The Expenditure of the General Account
1. Expense of ministries and other bureaus

2. Grant to the local government
3. Defence service
4. Reparation and other obligation

5. Maintenance and development of land
6. Invostment and subsidies to the private industries

7. Educational service
8. Social securities

9. Pensions
10. Redemption of national debt
11. Reserves
12. Miseellaneous

13. Total

NOBUKO NOSE

50

The characteristics of the budget mentioned above show that the Japanesebudgets are useful for accountability control only, and as a corollary it is necessary
to reform the budget so as to rearrange the figures based on the economic accounting

viewpoint in order to show the functions of the budgets economically meaningful.

m

THE ACCOUNTS OF THE GOVERNMENT SECTOR IN NATIONAINCOME ACCOUNTIING
The main purpose of national income accounting is to express the transactions
which relate to national income circulation by sector accounts in a calendar year.
In this accounting system, the principle of accounting design based on Keynesian

identities (YEC + I, YEC + S and SEEI) and the principle of measurement(accrual principle, the princip!e of real capital maintenance intact, etc.) are ap-

plicable for getting the accurate figures of inverse matrjx of national income
accounts.
As for the accounts of the government sector, first, it is necessary to makeclear the contribution of the government to national production, the current
consumption by the government sector, the transfer, savings and investments
by the government sector. Second, it is needed to express the transactions by
the government sector with non-government sectors-business sector, household
sector and the rest of the world. As the first step for reforming the budget, it isreasonable to confine our attention to the first problem only.
First, the accounts of the government sector recorded in the budgets must
be classified based on the principle of the national income accounting system.
As we have seen in the previous section, the Japanese budgets consist of three typesof accounts. Obviously, the general account refers to purely public administrative

purpose only, so that it does not contribute to GNP at all. On the other hand,the account of public undertakings refers to the productive activity of the public
sector, so that it is necessary to apply the form of the production account of theprivate business sector. Then we have a problem of classifying the special
accounts which are a mixture of multi-functions of the quasi-administrative
activities (i.e., social security, maintenance and improvement of land, etc.) withthose of the quasi-business activities (i.e., saving and finance, control of special

goods and funds, etc.). For national income accounting purposes, we have to
divide the special accounts into the administrative accounts and public undertaking

accounts. The accounts which are applicable to the quasi-public administratjve
activity should be consolidated to the general account and the accounts which
are applicable to the quasi-public undertaking activity should be consolidated

SECTOR51
FORGOVERNMENTACCOUNTINGA NOTEON ECONOMIC
with the account of public undertakings. An example of the former is the special
account for social insurance and of the latter is the special account for national
hospitals.

Second, we must reform the budget in line with the national income accounting.4 As shown in the standard national income accounts by the U. N.sor by the O.E.E.C.,6 the central problem remains that of gearing the budget
so as to record the correct government saving (current account surplusldeficit).
For this objective, the following adjustments are needed: (a) The receivable-payablebasis must be applied, (b) separation of current transactions from capital transac-

tions and also from transfers have to be taken into account and (c) imputation of
accrued revenue and cost about properties which are government-owned should beconsidered. We must solve two problems concerning the above problems: Oneis how to treat the expenditure for defence purposes, and the other is what rate of

imputation should be used. The temporary solution suggested by the S.N.A. andManual is as follows : Regarding the first problem, the solution is to treat all govern-

ment expenditures, except the expenditure for permanent buildings in marriedquarters, as current expenditures. For the second problem, a market rate istaken as the imputation rate, and the market rate is the interest rate of the long-term national debt for imputing the value added by the government properties.
In addition to these problems, depreciation allowance based on current
replacement cost basis should be calculated.
The last problem is to design the account for the government sector. As
for the account for public undertaking, it is reasonable to apply the account of

the business sector. Hence, we must reiterate the form of account which is applicable to the general account and to the special account. This account systemshould have wo parts: currentaccountandcapitalaccount. Thebalancingitemof the current account is current surplus/deficit (saving/dissaving) and that of
the capital account is change in liquidity assets. The capital account is in turn,
composed of two parts: real transactions and financial transactions.

The structure may be written as follows:

Table 3.

Current Account

1. Direct tax revenue

1. Expenditures for goods and2. Indirect tax revenue

2. Current grants and subsidies

3. Property income
4. Current grants from

3. Current grants for overseas
overseas

4. Imputed cost

S. Imputed income

5. Depreciation allowance

Balancing item

Current surplus/deficit(Saving/Dissaving)

sevrcesNOBUKO NOSE

52

Capital Account
1. Current surplus/deficit

1. Fixed asset formation

2. Depreciation allowance

2. Stock adjustment

3. Capital transfer

3. Capital transfers and gifts

4. New borrowing
5. Repayment of loans to authority

4. New lending
5. Loan repayment by authority

Balancing item

Change in liquid assets

If it is necessary by reason of the complexity of any transactions adding to theabove two accounts, a subsidiary current account and a subsidiary capital account
are used.
In the first place, all activities of the government are recorded in the above

accounts under their proper items based on the department level. Then, following their functional characteristics, the accounts have to be consolidated and trans-

actions between each account (transfer items) may be cancelled out. In keeping this consolidation process as comprehensive and accurate as possible, it isrequired to apply the same accounting basis and rule in each accounting unit.

IV

THE ACCOUNTS OF THE GOVERNMELZVT SECTOR IN IIZVPUTOUTPUT ACCO UNTING
The main purpose of inter-industry accounting is to provide the picture ofinter-industry flows of intermediate products for obtaining the stable inputoutput matrix and the capital matrix as well.

The principles and rules of inter-industry aceounting7 - the sectoring
principle, the principle of accounting design and of measurement of productsmay serve to this objective. Since inter-industry accounting has a character ofa real accounting, some of the main principles are the same as those in national
income accounting: i.e., separation of current transactions from capital transactions

and from transfers, accrual basis, imputation for non-market transactions, calendar
year basis, principle of real capital maintenance are all applicable to inter-industry

accountmg.
However, the other principles are different from those of national income
accounting. Firstly, sectoring of the economy is required to express the divisionof sectors in more detail, and the flow of products have to be divided according

to industry. Furthermore, for analysing the stable cost structure, the main
product of industry should be considered as homogeneous. Subsidiary products
have to be transferred to the industry producing them as the main product, andA NOTE ON ECONOMIC ACCOUNTING FOR GOVERNMENT SECTOR 53
by-products should be recorded as the negative inputs of the relevant industry.
Moreover, the rest of the world sector is required to be divided into two categories :competitive import and complementary import. The objective of input-output
analysis in the form of input-output accounting is to depict the mechanism ofinter-industry flow of goods and services based on pure technical relationships.

The saving-•investment relationship and consumption function, which are deter-

mined in final demand sectors through economic behaviours, are given fromoutside of the inter-industry relationships. Therefore, it is not necessary to

set appropriation accounts in input-output accounting system. The designof accounts is different from national income accounts as will be shown later.
Thirdly, as for valuation of goods and services, special treatment of net indirecttax is required because it is desirable to estimate inverse matrix in terms of pro-•

ducers' costs. Therefore, net indirect tax should be broken down according tocommodity, complementary import, competitive import, etc. Hence, theaccounting principles for the government sector, which have to be taken into
account from the input-outpur accounting point of view, may be summarized in thefollowings :First, the expenditures of budgets should be broken down by industry inthe sense mentioned above. Second all current and capital transactions of thebudgets should be devided in such a way as to make clear the distinction between
the current government expenditures and capital expenditures to industries andthose to the rest of the world. The dividing principle of current transactions

from capital transactions is the same as those of national income accounting.
Therefore, the same rules are applicable: for example, military expenditures aretreated as current expenditure. Third, we must investigate the Japanese budget

structure which consists of the general account, the special account and theaccount for public undertakings. As shown in section II, the sectoring principleof the Japanese system is purely institutional. But, as shown above, for inputoutput accounting purpose, the basis of sectoring can be purely economic activities.

Then, the budget structure should be reformed in such a way that any accounting
unit, of which activity has its counterpart in the private business sector, has tobe transferred into the relevant private industry. For example, the educational
service of the government can be omitted from the Japanese budget system andbe consolidated with the educational service industry.s All of public undertakings
have their counterparts in the private sectors and all of quasi-productive sectionsof the special account produce real goods and services, so that the government
sector is reduced into the sector which merely provides pure public administrative
services and maintains social capitals.

Next, we must consider the accounting structure of the government sector

from the input-output accounting view-point. As shown in Table IV, mainNOsENOBUKO54

accounts are the current expenditure account and the capital expenditure account.
But these accounts are different from the government accounts of national income
accounting, because for input-output analysis it is only necessary to get informa-•tion about the government current expenditures and capital expenditures toindustries and households. As mentioned above, appropriating activity of thegovernment, especially current surplusfdeficit, is not necessary for input-output

accounting. The government current appropriation account does not appear
explicitly. It is, say, a shadow account which provides the fund to the current
Table 4. Current Expenditure AccountCurrent goods and serviÅëes

Funds for current government

Net indirect tax

expenditure transferred from

Employment

government current appropriation

Depreciation allowanceaccount"xComplementary import
Total

Total

"This account is identical to thecurrent aÅëcount shown in Table 3.

Table 5.

Net Indirect Tax AccountNet indirect tax levied on competitive

Total net indirect tax which is transferred.IMPOrtto government current appropriation

Net indireet tax levied on industries

account

Net indirect tax paid by households

Net indirect tax paid by government(which is levied on government consumption)
Net indirect tax levied on complementary.ImportNet indirect tax levied on replacement
expenditure in industries
Net indirect tax levied on replacement

expenditure in households
Total

Total

Table 6. Social
Extension expenditure for social capital

Capital

Account

Funds which is transferred from depreciation allowance account as the residuals of

replacement expenditureFunds for extension which is transferredfrom government capital account
Total

Total

A NOTE ON ECONOMIC ACCOUNTING FOR GOVERNMENT SECTOR 5s
Table 7. Replacernent AccountReplacement expenditure to industries

Funds for replacement expenditure which
is transferred from depreciation allowanceaccount

Tota!

Total

expenditure account and to the capitat expenditure account. The current expenditure account and the capital expenditure account are supplemented by thenet indirect tax account, and the replacement of the social capital accountrespectively.

The input-output accounts for the government sector are more sophisticatedthan the government accounts for national income accounting. It is a prerequisite

for keeping the input-output accounts for the government sector to keep thenational income accounting as exactly as possible.

v

SUMMARY AND CONCLUSIOIV
From the above considerations, we obtain the following conclusions.
1. The Japanese budget which consists of the general account, the special
account and the account of public undeftakings are useful to serve to Parliament
in aecountability control because its sectoring principle, valuation principle,
design of the accounts are convenient for the purpose of firiancial control.
However, we can not expect to obtain the economic information from the budget
at all.

2. From the national income accounting point of view, it is needed to reformthe budget and the principles as foUows: ,(a) The accounting system should
be divided into public admmistrative sector and the public business sector.
(b) Accrual basis, imputation of non-rnarket transaction, calculation of capitalconsumption by the replacement cost basis should be applied. (c) The
government accounts should be consisted of the current account and the capital
account. These principles serve to get the figure of the government saving andinvestment, so that we can get an informatiQn for estimating the multip!ier effectof the budget.
3. From the input-output accounting point of view, it is required to reform thebudget as follows in line with the inter-industry basis: (a) The accounting
system should be divided into pure public administrative section, social capitalformation section and transfers to private businesses. (b) All revenues andexpenditures of budgets should be broken down by industries, household sector,

NOBUKO NOSE

56

competitive import, complementary import and export. (c) The government
account is required to be consisted of the current expenditure account and thecapital expenditure account. These principles may serve to provide an information for estimating the multi-sector multiplier effects of the budget.
The principle considered above is also applicable for all local and provincial

governments. In Japanese economy, the role of the governments, the central
government and the local governments, is considerably important. Therefore,
it is very important and necessary to estimate the reasonable figures of the multipliereffect of the budgets and of the multi-sector multiplier effects of the budgets.
To this extent, it must be the first and most important step for this objective to

make the exact government account from the view-point of economic accounting.
Moreover, the introduction of the economic accounting into the budget has

another merit: Following the method of economic accounting, the reformed
budget may depict the figure of value added and that of resource used up in eachdepartment, so that these figures provide a true measure of the eficiency of the
public policies.g

Above al1, it is obvious that many fruitfu1 results could be expected in in-

troducing the method of economic accounting principles into the government
budget based on the input-output accounting system.

REFERENCES
1. J. R. Hicks, The Problem of Budgetary Reform, 1948.
2. F. S. Bray and R. Stone, The Pb'esentation of the Central Government Accounts, 1948; U. K.

Hicks, Publde Finance, 2nd edition, 1955, pp. 329-351; U. K. Hicks, British Public
Finances, Their Structure and DeveloPment 1880-1952, 1958, pp. 142-•168; United Nations,
Budgetary Structure and the Ctassilllcation of Accounts, 1951 ; United Nations, Government

Accoanting and Budget Execution, 1952; United Nations, A Manual for Economic andFunctional Classtfication of Government Transactions, 1958; United Nations, A Handbookof Public Admindstration: Current Concopts and Public Practice with Special Reference
to Developing Countries, 1961.
3. Ministry of Finance (Japan), Japanese Public Finance (Nippon no Zaisei), 1963.
4. As for the first attempt for rearrangement of the Japanese budgets : see, The lnterim Raportof the National Economic Accounting Committee (Kokuminkeizaikeisan-Iinkai Kisoshiryo,
Chukan Hokoku), The Institute of Economics, Economic Planning Board, Tokyo, Japan,
Vol, 2, 1962, pp. 9-55.
United Nations, A System of National Accounts and Supporting Tables, 1953.
6. 0. E. E. C., A Standardixed System of National Accounts, 2nd edition, 1958.
7. W. D. Evans and M. Hoffenberg, The Inter-industry Relations Study for 1947, The Review
of Eceno2nics and Statdstics, May, 1952, pp. 97-142; J. R. Stone and G. Croft-Murray,
Social Accounting and Economic Models, 1959; A ComPutable Model of Economic Growth(University ofCambridge: The Department of AppliedEconomics), 1962, pp. 12-23, 34-36.
8. Ministry of Trade (Japan), The Inter-industry Relations: St"dy for Japanese Economy
by the Input-Output Tdblas for Japan, 1955, 1962, pp. 254-257.
9. U. K. Hicks, Public Finance, op. cit., pp. 346-348.

INTERNATIONAL LIQUIDITY AND THE TOKYOMEETING OF THE INTERNATIONALMONETARY FUND
Masahiro FuJITAI

At the Annual Meeting of the International Monetary Fund in Tokyo, on
September 7,1964, we heard about many recent international monetary situations
with regard to international financial co-operation. But there is much to wonder,
regarding the various discussion based on the present international liquidity
problem, since the central governors and their associates have formally or informal-

ly for a number of years been attending the monthly meetings of the Bankfor International Settlements in Basle, and other organizations.
Mr. Robert V. Roosa stated that the difference expressed in Tokyo were notunfortunate or accidental results of any failure in communication or of understanding; they were not expressions of suspicion or 2mbition by one country or another;

they were instead an open invitation to every interested person everywhere to
begin to participate more fully, alongside representatives of the various governments, in a fundamental analysis of some of che issues which have arisen as those
governments have attempted, thus far behind closed doors, to survey the possible

long-run course of the international monetary system.

At the same time, we have the remarkable announcement made by the
Ministers and Governors of the "Group of Ten" in Tokyo on September 7.
That is to say, it is the following communiqu6: 1. 0n the occassion of the Annual

Meeting of the International Monetary Fund, the Ministers and Central Bank
Governors of the ten countries (Belgium, Canada, France, the Federal Republicof Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom, and the
Unjted States) participating in the General Arrangements to Borrow, met under
the chairmanship of Mr. K. Tanaka, Minister of Finance of Japan. Mr. Pierre-Paul Schweitzer, the Managing Director of the International Monetary Fund,
took part in the meeting, which was also attended by the Secretary Generalof the Organization for Econornic Co-operation and Development (OECD),
the Genera! Manager of the Bank for International Settlements (BIS), and thePresidentoftheSwissNationalBank. 2. TheMinistersandGovernorsreviewed
developments in the international payments situation and received reports fromtheir Deputies on plans and procedures being developed for carrying out decisions

58

MASAHIRO FUJITA

taken in the Ministerial Statement of August 1, 1964. These include the study to
be made in working party 3 of the OECD on the adjustment process, the study by
the Deputies on the creation of reserve assets, and the arrangements being madeto strengthen international monetary co-operation through "multilateral surveil--lance." They recalled their views expressed in the Ministerial Statement ofAugust 1, 1964, supporting a prospective increase in Fund quotas. 3. The Ministers and Governors also reviewed with the Managing Director of the Fund andapproved a working program initiated by the Deputies to consider the attitudeof the participants toward the renewal of the General Arrangements to Borrow, on

which decisions must be taken under the provisions of these Arrangements by
Oerober 196S. Thus, the former is a proposal for increasing the International
Monetary Fund quotas, the latter is a proposal for creating new reserve assets
or new reserve currency. Needless to say, the controversial points of internationalliquidity were made clear by remarkable discussions in the past several meetingsof the International Monetary Fund.
llFirst of all, we must examine the nature and components of internationalliquidity. rnternational liquidity consists of all the resources that are available tothe monetary authorities of countries for the purpose of meeting balance of
payments deficits. Such liguidity ranges from assets readily available to resourcesthat become available only after extensive negotiation. It may take many forms;
reserves of gold and foreign exchange; other assets that can be mobilized in caseof need; facilities to draw on the International Monetary Fund or to borrow fromother international institutions; various arrangements with foreign central banks
or governments to borrow. It also includes, conceptually, such elements, notreadily subject to statistical measurement, as a country's capacity to borrow in themoney markets of other countries and, for a reserve center, the willingness of othercountries to accumulate further holdings of its currency.

Two classification types of international liquidity have come into use inrecent years. The first distinguishes between "owned' reserves and borrowing
facilities; the second between liquidity that is available automatically or without
prior conditions that significantly restrict the user's right access, and liquiditythat is available only on prescribed or negotiated conditions as to use or as topolicies to be pursued by the country using it.
But, these two classifications do not quite coincide. Liquidity of wholly or
virtually unconditional nature would at the present time include holdings of gold

and foreign exchange in freely convertible currencies, gold tranche positionsin the International Monetary Fund, and in many instances, bilateral mutualINTERNATIONAL LIQUIDITY AND THE TOKYO MEETING OF THE 59
INTERNATIONAL MONETARY FUND
credit or swap arrangements. Most other forms of international liquidity fallin the conditional category, though in some instances the degree of conditionality

involved may be slight.
In considering the bearing of the supply of international liquidity on the
promotion of adjustment processes, however, the International Monetary Fundauthority's opinion pojnts out the following careful two points.

1. The determination as to whether the available supply of liquidity isadequate or inadequate must always be a matter of judgment, and a collective
judgment is particularly diMcult to arrive at because the balance of advantage,at any rate in the short run, may be different with respect to, and in the opinionof, different countries. Action in the liquidity field which absorbs unemployment

in one country may promote excessive demand in another, and change in the
supply of international liquidity is likely to involve some transfer to resources,

at least temporarily, between countries.

2. International liquidity is heterogenous in character and the need for
it at any time cannot be expressed in asingle over-all figure. Whether or not

a common objective of economic policy would, on balance, be promoted by alarger world total of liquidity depends on many factors, such as its composition(as between gold, foreign exchange, credit facilities, etc.), the way in which it isdistributed among countries, and the manner in which any increase would be
brought about.
In another aspect, we can find that reserves consist of three components:(a) gold, (b) foreign exchange, almost exclusively key currencies, in western Europe

mostly dollars, (c) credits, granted or potentially by international agreement,
therefore having the character of "conditional reserves." Moreover, these eredit
arrangements can be (1) multilateral and institutional, as the International

Monetary Fund drawing right and stand-by arrangements; they can be (2)multilateral and incidental as to borrowing arrangements; or they can be (3)strictly bilateral. So, gold and foreign currency contain the category of "genuine

reserves". In foreign currency, also, part of reserves will therefore always
consist of currencies that are convertible into gold, as with the dollar, or of cur-rencies of those countries with whom the bulk of trading is effected, as in thesterling area. Especially, foreign currencies are "genuine reserves" in so far
as the holder is autonomous in his decision with regard to their use, but since
there is always an element of confidence with regard to their exchange value
they are well characterized by the term "fiduciary". Potential credits are an

enlargement of the reserves of debtor countries, and as such desirable. The
three possible components of reserves thus have totally different aspects as tofreedom of use, transferability, profitability, and exchange risk.
Generally speaking, two types of classifications in the international liquidity

60 MASAHIRO FUJITA
theory have come into use. The first is the imported quantity theory, the second

is the balance of payments theory. The former shows that there are proportional
relations between the growth ratio of reserves (gold and foreign currency andfacilities) and world imports, in other words, it emphasizes the existing functional

relation among the above-mentioned two factors.
On the other hand, the latter shows that international liquidity depends
upon the swing range of balance of payments in a country, in other words, itemphasizes the strength in disequilibrium of the balance of payments.
The various reformal plans will derive from the first type, the modjfied
or strengthened plans will come from the second type.
If there exists the following formula between the demand for internationalliquidity and the supply of international liquidity, the change in internationalliquidity will be explicit.

Y= Y+ Fe+Fd (1)Y=C+ S=C+ Mc +I+ Mi+Fa +G (2)Y=-C+I+X (3)

X+Fe+Fd==X+Fa+G=X-M+ Fe + Fd==Fa +G (4)X-M+ Fc+Fd==Fa +G (S)Now, we must consjder the importance in changing the motive of X-M
and G. [where Y, Y, Fe, Fd, S, C, Mc, I, Mi, X, F., G, mean: national income,net national products, net foreign revenue, net foreign grants, saving, purchaseof consumer goods, purchase of imported consumer goods, purchase of investment

goods, purchase of imported investment goods, exported goods, net foreign loan,international liquidity reserves (gold and foreign currency level.)]Still, the imported quantity theory shows as follows,(where C mean gold and foreign currency, k stands for reserve ratio and
M is imported amount.)

So, G= kiY (7)(where Y, i mean; national income, propensity to import.)

Furthermore, we have the following equation as to the measure of internationalliquidity in a country

L==R'Rmin+FO+FP'ARmin• (8)(where L, R, Rmin, Fo, Fp, ARmin mean: international liquidity in a country,
gold and foreign currency reserves, minimum limits of R, oMcial financiability,
private finance, increased amount arising from F.)

INTERNATIONAL LIQUIDITY AND THE TOKYO MEETING OF THE 61
INTERNATIONAL MONETARY FUND

m
Mr. Piere-Paul Schweitzer, the Managing Director of the International
Monetary Fund, pointed out in his opening address at the Tokyo Meeting thefollowing two points. In regard to international liquidity the outstanding featureof payments trends during the past year has been the reduction of basic imbalances

and the calm on the exchange markets. Consequently, this has become a very
suitable period for considering the longer-term problem of the best means ofproviding adequate liquidity for the world.
During the past year, the Fund has intensified its studies of internationalliquidity. These studies have, we believe, done much to clarify the nature of the

problems and to help in finding satisfactory and acceptable solutions. The
Executive Directors have devoted a key section of their Annual Report to a statement of their findings and their conclusions. Chapter 3 of the Report sets out
the broad issues of international liquidity. Chapter 4 deals with the particularrole that the Fund now plays in this field and the even larger role that it could

play in the future. There has also been close and fruitfu1 cooperation during
the year between the Fund and the group of senior oflicials of the ministers offinance and central banks of the ten countries that articipate in General Arrange-ments to Borrow. The report of this groupwas recently made public as an annex
to the statement of ministers and governors of these ten countries.

Out concern about internatjonal liquidity-its level, its composition, andits distribution-arises from the objectives which guide our policies and which

we hope to see achieved in world economy. These objectives include highlevels of employment and an adequate rate of economic growth, freedom of tradeand payments from restrictions, and reasonable price stability. Measured against
these criteria, the record of the two decades since the end of the war, although

not perfect, cannot be considered unsatisfactory. Much has been achieved:a tremendous expansion of world trade; the convertibility of all major currencies;
greatly reduced reljance on restrictions and on bilateralism; considerable, thoughstill insuMcienf, progress in the developing countries; high levels of employment;
and avoidance of the extremes of inflation and deflation in most areas of the world.
The record looks even better if we recall the experience of the twenty years after theend of World War I. We want to ensure that the liquidity conditions for the
future will be such as to make it possible for us to earn a similar verdict, or evena better one, during the next decade-although we fully realize that action in
many fields other than that of liquidity will be necessary to achieve this end.
In the past decade a large part of the supply of international liquidity arosein the form of ljquid claims on the United States, associated wirh the U.S. balance

MASAHIRO FUJITA

62

of payments deficit. It is unlikely that the payments deficit of the United States
will contribute to the creation of reserves in the future on the same scale as it

has done in recent years, and this would not indeed be desirable. Increased
reliance has thus to be placed on other, more deliberate, measures to provide
international liquidity as needed. It is obvious that any new developments in thisdirection raise many economic, technical, and also political problems. They
deserve and will receive the most careful study, and Mr. P. Schweitzer does nothere want to anticipate the outcome of such a study.
However, at this time'Mr. P. Schweitzer does wish to direct particular attenrion

to two propositions of a general character that are contained in the Report of the

Executive Directors and that have Mr. P. Schweitzer's strongest personal support.
In the first place, while thinking about possible reform of the present monetarysystem, we must rernain continually aware that this system is very much a going
concern. Its benefits have been great and continue to be great. In our efforts
to supplement and improve this system, we must continually be conscious of theneed for orderly development.
Secondly, where decisions are taken to create and administer liquj.dity bydeliberate international action, it is particularly important that the advantagesof the multilateral institutional approach be kept in mind. An internationalorganization provides the forum for a balanced consideration, and hence the bestreconciliation of the various objectives in the international financial fields as
they affect al1 countries.

Since international liquidity in the form of reserves and access to credit
comes into play when a country's international payments are in surplus or deficit,

any consideration of the role of liquidity or its adequacy must pay particularattention to the manner in which disequilibra arise and the policies that are to
be followed to eliminate them.
In this connection, let us draw particular attention to the importance ofwhat has been caned "conditional liquidity". That is liquidity that is available
to countries on the understanding that they will follow constructive policies
to elim;,nate their payments deficits. The main source of conditional liqujdity
at present lies in the member's drawing rights on the Fund in the credit tr2nches.

Next, as for the role of the International Monetary Fund, Mr. P. Schweitzer
considers as follows.

The discussions that have taken place during the past year in the Fundand elsewhere have led to the conclusion that there is case for an increase inFund quotas and hence in the conditional liquidity to which members have access.
As the Governors know, the question of quotas would, in any case, come up for
consideration in connection with the quinquennial review to take place during
1965. Schweitzer strongly feels that an increase in the quotas of Fund members

INTERNATIONAL LIQUIDITY AND THE TOKYO MEETING OF THE 63
INTERNATIONAL MONETARY FUND
at an early date is, at the present time, bothjustified and necessary, and Schweitzer

urges the Governors to give it their most carefu1 attention. If it is also the viewof the Governors, as Schweitzer has every confidence it is, that such an increasein Fund quotas is appropriate, the Executive Directors will no doubt be able toprepare proposals for concrete action both to raise the quotas of the Fund membership as a whole, and to introduce special additional quota increases for individual

countries whose present quotas are out of line.

There may also, over the long run, be a need for action to increase theunconditional liquidity of members. The Fund's Annual Report gives sometechnical and tentative indications of various ways in which this could be achieved

through the mechanism of the Fund. This is not a question for decision at thjs

time. As the Executive Directors have indicated, it "would require carefulconsideration from many points of view before any decision could be reached as
to whether it would be appropriate for the Fund to undertake such operations",
and it is their intention "to give these matters further study in the period ahead."

The Fund staff will also co-operate closely with the Study Group which has been
set up by the ten participants in the General Borrowing Arrangements to investjgate possible methods of adding to reserves by some form of international actjon.
It is now twenty years since the new framework of an internationa! monetarysystem was conceived and embodied in the Art;cles of Agreement of the Fund at

Bretton Woods. Although it would not be reasonable to expect the existing
system, or indeed any system, to be perfect, it has proyed eminently workable andadaptable to changing circumstances. It is, however, approprjate that after
twenty years the system should be given the examination that is now taking place.
Mr. P. Schweitzer is sure that, as a result of the work that is being done, theinternational monerary system will emerge strengthened and even better equipped
to serve the interests of the communjty of nations jn accordance with the objectivesof the Fund.
Therefore, as above-mentioned, the Managing Director's address made theoMcial opinion clear as to the authorities' position of the Fund. First of all, he

explains about the present adequacy of liquidity as follows: the adequacy orotherwise of international liquidity is an important determinant of the ievels ofworld trade and economic activity. International liquidity should not, of course,
be regarded as a sort of money which finances international trade: this is financed
by normal trade and banking credits granted in national currencies. But consisting
as it does of resources which governments hold or which are available to them tofinance payment deficits, it has important implications for all countries' domestic
financial policies.

In many cases of didiculty, including those caused by short-term capitaloutflow, much of the burden of adjustment can properly be allowed to fall on

64

MASAHIRO FUJITA

the countries' gold and forejgn exchange reserves, that is, on their immediately
availably supplies of international liquidity. But, in other cases, it may be thatstringent policy measure, both internal and external, may have to be taken. In
some cases, the second course of action may be forced unnecessarily on authorities

who find that, owing to international liquidity, they do not have the leeway
to permit the reserves to take the strain. Measures unduly restrictive of economic

activity may thus have to be adopted. Of course, in other cases, effective policy
measures are essential.

The excessive availability of ljquidity is also to be avoided as it reduces
the discipline of the payments position and encourages postponement of necessary
corrective action.

Our recent studies have led us to the conclusion that international liquidity
is at the present time adequate. In this case, the rate of increase of reserves overthe next 10 years or so appears likely to fall short of requirements. The growthof international trade may possibly slacken from the almost 6 per cent rate of
the past decade, but it certainly should not be less than 4 per cent per annum.
Also, it would not be safe to assume that there would be any reduction in themagnitude of payments disequilibra relative to the volume of trade. So muchfor the demand for international liquidity. On the supply side, reserves areunlikely to grow much more rapidly than 2.5 per cent per annum, especially since
their generation through increased holdings of dollars as a result of U.S. payments
deficits is likely to slow down. When this is set against the fairly conservative
estimate ofa4 per cent increase in world trade, it is not diMcult to see why theFund believes that it is necessary to continue and possibly to broaden international action directed toward creating international liquidity.
It seems to us that the task of ensuring an adequate supply of liquidity does

not require any drastic overhaul of the present arrangements, which are based
primarily on the use of gold and reserve currencies, supplemented by drawing

rights on the Fund. The smooth working of these arrangements has not been
without its problems and dificulties, but, on the whole, in the last twenty years

has served the world well.
According to the International Monetary Fund authorities, the total volume
of international liquidity is adequate and the ratio between the world oMcial
gold, foreign exchange (currency) reserves and the total world import in the freeworld was 51 per cent at the end of 1957, 21 per cent in 1913, 42 per cent in 1928,

100 per cent in 1937-38, 91.2 per cent in 1948, 65.6 per cent in 1958. And theAmerican ratio of total world international Iiquidity was 49 per cent in 1948,
32 per cent in 1958.
On the contrary, Prof. Robert Trifin estimates that when the rate of trade
growth in the free world is 3-6 per cent from 1958 to 1967, the requisite increasjng

INTERNATIONAL LIQUIDITY AND THE TOKYO MEETING OF THE 65
INTERNATIONAL MONETARY FUND
amounts of currency (monetary) reserves sums is $ 12.7-24.1 billion, the estimation amount of increasing monetary gold is regarded as optimistic when $ 1O billion

and pessimistic when 4 billion.
So, when Prof. TriMn presumes the above sum to be $7 billion, the shortagc
of international liquidity may be estimated at the level of 6-7 billion. Consequently,

TriMn announced the New World Central Bank System that has a new banknote issue right; this is the famous "Trithn Plan" for reforming the International

Monetary System.
But, TriMn regarded the rate of economic growth that will be based on the
average rate of world trade growth as 4-5 per cent and 6 per cent. In addition
to these estimation of the International Monetary Fund of 30 per cent, he measured

43 per cent, 35 per cent, 26 per cent and the requirements for internationalliquidity were calculated as$ 18.5 billion in 1958.

rv
The typical doctrine of Continental Europe is clear in the following addressof the Finance Minister of France, Valery Giscard d'EEtaing.
The world monetary system must be set in concentric circles: the first one
bejng gold, and then second, if necessary, recourse to detiberate and concerted
creation of ejther reserve assets or credit assets. The inner circ]e is gold.

The importance of the role of gold does not arise from any charm inherent
in the metal itself but from the following fact: as Iong as the present situation
prevails, with separate national sovereignities throughout the world actg'ng freely
in the monetary field, without recours to earbitration and certainly not subject

to coercion, reference will have to be made to gold, the only monetary element
outside the scope of government action.
While noting the basic ro]e of gold, vv'e do not believe that the pace at which
it is mined will spontaneously adjust its volume to the needs of the world, the rapid

technological transformation of which may be observed here more clearly than anywhere else.

Thus it may be necessary to seek out supplementary sources for supplying
owned reserves.
The basic disrinction has rightly been made between credits for balance of
payments, such as those so usefully granted by the Fund under Mr. Schweitzer's
inspiring management, and the creation of fiduciary means for supplying reserve
assets.

Internally, the action of the Fund might be compare to that of a bank which
grants credits to help its customers bridge over temporary diMculties.
On the other hand, the creation of reserve assets would be akin to the role

66 MASAHIRO FUJITA'

of a central bank whose operations are geared to the general needs of an economy.

If and when fiduciary means must be added to gold, they should be issued inaccordance with objective rules and through mutually undertaken action.
In Mr. Giscard d'Estaing PIan, three considerations should underlie thestudies to be made on this subject:
1. If such reserve assets are, over the long run, to be added to, and possibly
substituted in part for gold in its present function, they must be of an objective

nature, governed by strict rules concerning their creation and volume.
2. As there is always temptation to accumulate an oversupply of world liquidities, cautious regulations would be required in order to assess the need for sucha creation and to adjust its amount.
3. The group of those with whom would rest the responsib{lity and burden
for such operations with the Fund and with due regard to the interest of theworld community as a whole.
To sum up: first, under present circumstances, gold remains, in our minds,
the basis of the international payments system.
Secondly, if the need were to arise for an increase in the amount of owned
reserves, there should be a concerted and limited recourse to additional fiduciarymeans, instead of to the uncertainties and instabiljties of the gold exchange
Table 1. Gold Holdings of IMF and Main World Countries ($ million)

U.S.A
Germany (West)FranceSwitzerland

U.K.

1953

1958

1964 (Dec.)

22091

20582
2639

15388
4149
3632
2532
2307

325
617
1458
2263

750
1925

2807
1086
1050
1270
1078

India

346
737
776
986
176
18
247

IMF

1702

1332

2425

World Total(exclude Communist Sphere)

36250

39"5

43020

U.S.S.R.

6700

8000

9000

Italy

Netherlands

Belgium
CanadaSouth Africa
Japan

1434
1007

211
54
247

592
290
247

Source: I.M.F., International Financial Statistics, Nov. 1964, International Financial

News Survey, Jan. 196S.

2104
1621

INTERNATIONAL LIQUIDITY AND THE TOKYO MEETING OF THE 67
INTERNATIONAL MONETARY FUND
standard. Such a substitution should be brought about gradually and not by
disrupting the present system, which, under present circumstances, provides
an adequate safeguard for the functioning of international payments. Indeed, it
is normal that various central banks will go on keeping, in their reserves, dollars,pounds sterling, or French frances, owing to the particular financial relationshipthey maintain with the countries issuing currencies.

So, we do not support wholeheartedly, but can understand suficiently thisplan (new reserve assets plan).
However, we want to more deeply know the true value of this plan that takes
a serious view of gold as the international currency more than any other theory.

v
Then, we have the following various proposals in Japan. The Yanagida
group study report should be most carefu]ly studied as one of them. So weagree to the proposal in which the International Monetary Fund quotas are to be
substantially increased, but this plan has four other points: 1. "Balance of
payments discipline" to be further strengthened for promoting world economic

expansion, 2. Re-appraisal of gold holding policy to be made, 3. Problemsof developing countries to be seriously considered, 4. A clear orientation toward

establishnent of internationally managed monetary system to be made and acloser co-operation of businessmen for this purpose to be enhanced.
As for the substantial increase of the International Monetary Fund quotas,

these groups have strong interest. This proposal is as follows:-The supply
of international Iiquidity must be increased in order to meet the demands of the

expanding world economy. But, such an increase would not be fu11y attainedby relying mainly upon owned reserves under the current gold exchange standard
system. The increase of borrowing facilities shouldconstitute the core ofthecountermeasures. Borrowing facilities can be increased by credit extension
activities between ccntral banks. We must cope with the speculative movementsof short-term capital which will be activated much more in the future. For thispurpose, some short-rerm, bilateral and dynamic credit extension activities between

central banks wil1 be very effective. However, in order to increase the liquidity
to such an extent as will be required for the sound development of world tradeand capital transactions, we are jn need of more medium-term and multilateralborrowing facilities. Tt seems that we can attain this target best by increasing

the International Monetary Fund quota.
The amount of increase of the International Monetary Fund quotas by thisplan should be substantial, about 50 per cent, for the following reasons.
First, the demand for international liguidity is expected to increase noticeably68 MASAHIRO FUJITA
before the quinquennial review of the lnternational Monetary Fund quotas in1970.

Secondly, we cannot expect that the owned reserves will be increased tosuch a substantial degree as will become a main source of international liquidity
in the future.

Thirdly, the substantial increase in tshe International Monetary Fundresources resulting from the proposed quota increase would not give rise to any
undesirable result in so far as the International Monetary Fund authorities holda prudent attitude in their fund operation, and respective countries carry out

sound economic policies. In fact, the amplification of lending power would
enable the International Monetary Fund to cope with any possible situation withsome leeway.
In addition to the general increase in the International Monetary Fundquotas, we should point out the importance of the selective increase of quotas
whjch would result in the relative adjustment of individual quotas. For, thepresent shortage of currencies of Continental Europe within the International
Monetary Fund may limit the lending activities of the International Monetary Fundin the future. On the other hand, the selective increase of quotas will enable
subscribing countries to increase the right to vote and the right to borrow.
Continental European countries, which are very likely to become important subscribing countries, would welcome this result.
In this case, the amount of selective increase of quotas should be substantial.

At present, the quotas held by the United States and the United Kingdom are
predominant, and small-scale adjustment of quotas would not substantially
increase the influence of Continental European countries. If the present situation

continues way into the future, Contienental European countries may become
reluctant to co-operate within the system of the International Monetary Fund.
In view of the importance of the close co-operation of all countries in the Interna-

tional Monetary Fund, it is essential to redistribute the voting power more equit-

ably among the major countries.
Finally, in connection with the increase in the International Monetary Fundquotas, we should make efforts for the alleviation of borrowing conditions fromthe International Monetary Fund. At the same time, some provisions of theGeneral Arrangements to Borrow should be improved. For example, the exerciseof the General Arrangements to Borrow requires the consent of all participating
countries, and, therefore, it lacks mobility to some extent.
It is necessary for us to look into, and have a clear perspective of, an inter-national monetary system for the future, and we should analyze all problems
as they arise in the course of the actual development of international economy.
Of course, we can pick up the following various plans :INTERNATIONAL LIQUIDITY AND THE TOKYO MEETING OF THE 69
INTERNATIONAL MONETARY FUND
1. Centralization of International Reserves-R. TriMn, J.M. Keynes, M. Stamp,
J. Angell, R.F. Harrod, O.L. Altman, David Rockefeller, L. B. Yeager.

2. Improvement of the Gold Standard System-E.M. Bernstein, R.F. Harrod,
P. Jacobsson, F.A. Lutz, F. Machlup, R,V. Roosa, H.C. Wallich, Xenophon
Zolotas.
3. Flexible Exchange Rates and Return to the Gold Standard-J.E. Meade,
Jacques Rueff, M.A. Heilperin, T. Balogh, H.G. Johnson.
4. Changes in the Price of Gold-R.F, Harrod, E Machlup, P. Wonnacott,Kiyozo Miyata.
In short, as for the Reforming Plans of the International Monetary Systemderived from the changing of international liquidity positjons, we are most familiar

with the TriMn Plan, but we should be prepared to handle the multiple currency
system by F.A. Lutz as the first approach.
Table 2. International Liquidity Reserves in Japan ($ million)

1937•'v

gold

foreignexchange

279

17

3

I.M.F.goldtrananches

totalreserves

m
-O.1

296

1948
49
50

4

51

10

52

16

m
963

53

18

805

54

21

717

O.1

979

55

23

746

62.5

56
57

23

918

62.5

23

501

58

54

6.25

S9

244

807
1077

832
1004
524
923

125.0

1"7

60

247
287
289
289

1577

125.0

1949

1199

180.0

1553

180.0

1589

180.0

1666
2022
2058
2179

61

62
63

7

64
Source: I.M.F.,

m

1999
International

180.0
Financial

3

4
7

10

979
823

Statistks and the Asahi Shimbun, Jan. 16, 1965.

vr
We may introduce Mr. Einosuke
This study is the most respectably
in Japan.

Ashiya's calculation of international liq

uidity.

worthy of the international liquidity

theoryMASAHIRO FUJITA

70.
(Chapter II)equatlon

Mr. Ashiya calcu:. ed from the above-mentioned
L =R-Rmin + Fo + Fp-ARmin
Table 3. International Liquidity in Apr, 1964
gold($ million)

exchangeforeigr1

gold tranche

total

al1 member countrles

40200

25065

3940

17421

industry

34520

10520

3329

13154

U.S.A.

15596

212

1035

U.K.

2484

173

489

5160
2439

15335

6760

1624

4383
1238
1340
496
492
680
188
984
926
222

countrles

industrial

Europe countries

France

3175

1282

451

Germany

3843

Italy

5S2
226

Canada

2343
817

325S
714

Japan

289

1617

South AÅírica

630
1170
580
70

96
1500
2810
885

Latin America
Asia
AfricaSource: Einosu ke Ashiya, "Thepp. 19-23.
Table 4.

1786

180
38
106
42
29

Controversy ofInternational Currency",

International

Liquidity Ratio

1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958

1964, Tokyo,

64 .8 0/.

57.3 O/,
58.1 O/,
58.9 0/,43 .5 0/.
44 .4 0/.

47.3 O/.
46.2 0/.
42.1 O/.
38.6 0/.
35.8 0/.
38.9 0/.

1959
1960

37.5 0/.

1961

33.1 0/.

1962
1963
1964

32.9 0/.

33.9 0/.

31.5 0/,31 .4 0/.

Source: Calculated from, I.M.F-rInternational

Financial

Statistics.

INTERNATIONAL LIQUIDITY AND THE TOKYO MEETING OF THE 71
INTERNATIONAL MONETARY FUND
From this view, an adequate international liquidity in Japan is as follows:

L :R-Rnu'n+Fo+Fp-ARmin=1878-1000+355+800-400 =1633 'That is the level of $1633 million.

BllILIOGRAPHY
R. TriMn, Gold and the Dollar Crisis, 1960.
F. A. Machlup, Plans for Reform of the International Monetary System, 1962.
P. Jacobsson, Address (International Financial News Surveys, Sept. 21) 1962.
R. V. Roosa, Reforming the International Monetary System, Foreign Affairs,
Oct. 1963.
P. B. Kenen, Reserve-Asset Preferences of Central Banks and Stability of theGold-Exchange Standard, 1963.
M. W. Holtrop, Monetary Policy of International Liquidity and the MultipleCurrency Standard, 1963.
S. Posthuma, The International Monetary System, Banca Nazionale del Lavoro
Quarterly Review, Sept. 1963.

Herbert G. Grubel, World Monetary Reform, 1963.
Report on the Deliberations of an International Study Group of 32 Economists,

International Monetary Arrangements; The Problem of Choice, 1964.
I.M.F., 196`l Annual Report, 1964.
Japan Economic Research Institute, Proposals on the Subject of International
Liquidity, 1964.
Zentaro Matsumura, Dollar as the International Currency, 1964.
Koji Suzuki (ed.) ,Readings in the Theory of International Liquidity, 1964.
Einosuke Ashiya, The Controversy of International Currency, 1964.
Pierre-Paul Schweitzer, Address-International Monetary System, International

Financial News Survey, Sept. 196tt.
Masahiro Fujita, The Controversy of International Monetary System, KokuminKeizai Zasshi (Journal of Economics & Business Administration) Vol. 110, No. 2,
1964.

Masahiro Fujita, The Equalization of Gold Holding and International Liquidity,"Banki2rg", No. 190, 1964.

INTERSECTORAL TRANSACTION TABLE WITH
ENDOGENOUS FOREIGN TRADE SECTOR IN
THE INDIAN ECONOMY: 1955156
Hikoji KATANo

We now have the Inter-Industry Transaction Table: 1955156, prepared by the
Indian Statistical Institute. This table is constructed on the assumption that
all imports are treated as fully competiti've. However, for some analyses, wehave to use the intersectoral transaction table based on the assumption that allimports are considered as fully non-competitive. Especially for a short--term
analysis, this type of table is needed. For this purpose, in this paper, we con-struct a table by rearranging the above-mentioned table given by the Indian
Statistical Institute.

1. Basic Statdstical Data.' ISI's Table.

1. The basic statistical data for our present analysis are derived from
"Inter-Industry Transaction Table: 1955156", which was prepared, in terms of 36
sectors, by the rndian Statistical Institute.(i) Hereafter, for simplicity of descrip--tion, we shall call this the original table. Even though this original table hassome inaccuracies and ambiguities, this is the only statistical data available under

the present situation, so we have no power to correct or even to detect them.
However, we can estimate economically meaningful results, from these statistical

data, as a first approximation to describe the structure of the Indian economy

of 1955/56. And, in case these remarks should throw an unfavorable light on
our results, let us remember that without it wonld have been imposible toproceeds with our analysis.

2, Fundamental Structure of the Original Table.
1. According to the original table, the structure of intersectoral transactionof Indian economy has been constructed as follows:-(1)

Cf. Indian Statistical Institute (Inter-Industry Research Unit), Inter-lndustry Trans•action'Table: 1955156 (at marketPn'ce), revised version in mimeographed paper, November
5, 1962.
And, as to the characteristics and qualifications of this table, we refer to the Indian
Statistical Institute (Interindustry Relation Section), Inter-Industry Relations in the
Indian Union, 1951/52, in Papers on National Income and Allied Topics, Vol. I, 1960,

KATANOHIKOJI

74

A-ii ••• A"ij •-• A"in

c"i

F,

E,

-Ml
-M,

A""i ••. A""i .•• A-nn

C".

Fx

En

--

A"11 ... A"li ... A"1.

C"1

F,

l

E,
l

X,

Xi

M.

Xn

T, ... Ti ... ,[Ei.

Ui ••• Ui ••• Un
Vi ••• Vj ... V.
X, ... Xi ... X,
where the following notations are used,
Xi : rupee value of i-th domestic product per year,
Atv* : rupee value of j-th commodity required for producing one crore
rupees of i-th domestic product,

Ci* : rupee value of consumer's expenditure for i-th commodity per
year,
Fi : rupee value of public authorities' expenditures and public &private capital formation expenditures for i-th commodity per
Year,(2)Ei : rupee value of i-th exports per year,
Mi : rupee value of i-th imports per year,
Ti : rupee value of indirect taxes in j-th sector per year,

Ui : rupee value of wage income in j-th sector per year,
Vj• : rupee value of non-wage income in j-th sector per year,(3)and these rupee values are expressed in terms of "crore rupees".
2. This structure is constructed on the basis of the following fundamental.
equatlons,

Xi•=XA*,i + C*i + Fi + E, - Mi
X,•==XA*i, + T, + U, + V,
These equations imply the demend-supply equalities of all commodities concern-

ed. The first equation shows us the allocation relation of each commodity.
The second means the distribution relation of revenue in each sector. This
structure naturally assumes an equality of expenditure to revenue in each sector.

3• The most important equation for our purpose is the first one. The
equation is constructed on the basis of the following fundamental relation.
(2) This term is, more accurately, composed of public authorities' current and capital
accounts, private capital aocount, and changes in inventories.
(3) This term includes a provision for depreciations.

INTERSECTORAL TRANSACTION TABLE WITH ENDOGENOUS FOREIGN 7s
TRADE SECTOR IN THE INDIAN ECONOMY: 1955/56(Domestic Product) pltes (Import)= (Demand for Domestic Product plus Import).
This relation depends on the assumption of indifferent and competitive
use both of domestic product and of import, This means substitutability between
domestic product and import. We have now so many theoretical and empirical
works by means of intersectoral analysjs that we can not make a complete listof those works. But most of them have developed their arguments on the basisof this fundamental relation.(4)4. For the purpose of this paper, we assume that all imports in the Indian
economy can not be substituted by domestic products, especially for such a shortperiod as one fiscal year. We call this anon-suibstitutable import.(5) For a develop-(4)

So long as we are concerned with works on Indian economy, there are not so many innumber, but we have now the following:
Bharadwaj, R., Strttctural Basds of Indids Foreign Trade, Series in Monetary and Inter-national Economics, No. 6, University of Bombay, 1962.

(5)

Frish, R., Planning for lndin: Selected Emplorations in Methodology, Studies relating toPlanning for National Development, No. 3, Indian Statistical Institute, 1960•
Sandee, J., A Demonstration Planning M7btlelfor India. , Studies relating to Planning for
National Development, No. 4, Indian Statistical Institute, 1960.
By the way, we explain here our terminology of non-sttbstitutable impert. We consider
this to be one kind of non-competitive import. But we have already had W. Leontief's
definition of non-competitive import [cf. W. Leontief, Domestic Production and Foreign

Trade: The American Capital Position Re-Examined, Economia Internationale, VII,
1954, and his Factor Proportion and the Structure ofArnerican Trade: Further Theoretical and Empirical Analysis, Review of Economdes EkS Statdstdes, November 1956]. His
definition of non-competitive import has sorne differences from ours so we do not use
the terminology "non-competitive" import in place of "non-substitutable" import.
According to W. Leontief's definition, competitive import is defined as C`import ofcommodity which can be and is, at least in part, actually produced by domestic industrst'•

And that which does not come within the field of this definition is regarded as "noncompetitive" import. But, in our case, even though the product classined in the same
industrial sector as the import belongs can be and is, at least in part, actually produced bydomestic industry, so long as the import can not be substituted, in its quality aridlor inits quantity, by the domestic product, we consider such kind of import• as having thequalification of being non-substitutable. This is the reason why we do not use theterminology `tnon-competitive" import in place of "non-substitutable" import.
Explicitly, according to the Leontief's definition, this sort of import must be treated as

a competitive one. R. Bharadwaj's work [Structural Basis of Indids Foreign Trade,
Series in Monetary and International Economics, No. 6, Univeristy of Bombay, 1962]shows us a typical example in which W. Leontief's definition has been adopted immediately to the Indian economy. However, we must notice that Leontief has defined hiscompetitive and non-competitive imports on the basis of the U.S. economy, and not on
the basis of a developing country's economy like the Indian economy. In the U.S.
economy, which has enough excess capacities to fill up a short supplies of any domestic
products even within a short period of time, a decrease in import of a commodity, which

76

HIKOJI KATANO

ing country like India which has been growing by fully making use of its pro-ductive capacities under less advanced levels of technology, almost all imports

have this qualification of being non-substitutable. For example, a decreasein import of food grains can not be substituted by an increase in domestic agricultural products, because the fu11 capacity in the domestic agricultural sector
has been utilized for supplying products to nations and an increase in the capacity

can not be attained within such a short period as one fiscal year. And a decreasein imports of some kinds of machineries can not be substituted by an increased
supply of domestically produced machineries, because, besides the bottlenecks due
to full capacity, these kjnds of machineries can not be produced in the domestic industry, because of the low levels of technology in the developing country.
We consider, in this paper, all imports for a developing country play their rolefor fi11ing up such kinds of bottlenecks. So we take here the assumption that
all imports concerned are non-substitutable.

5. Assuming non-substitutability between domestic product and import,
we have naturally to treat the demand-supply relations of the domestic productand import separetely. rn case we use the joint demand-supply relation ofdomestic product and import, whjch has been shown above, the assumption of
the non-substitutability between domestic product and import becomes ineMcjent, because, in this case, both domestic product and import are treated as
indifferent. Then we develop our argument on the basis of the following fundamental relations.

(Domestic Product)=(Domand for Domestiq Prpduct),(rmport)=(Demand for Import)
is both domestically produced and imported, can be easily substituted by an increasein the domestic product of the same kind of comrnodity. But we can not suppose thesame situation in a developing country's econorny. Even though the same kind of commodity in our proposed sectoral classifi.cation is both domestically produced and imported,
we can not expect the substitutability of a decrease in import by an increase in supply ofa domestic product. Because, even ifthese domestic product and import are classified in
the same sector, there are some differences in their qualities. And even if these qualities
are the same in each other, we can not expect extra capacities to produce the commodity

by the substitution of domestic products in our developing economy, especially fora short period of time, because our economy is developing by fully making use of ourcapacities and these capacities can not be easily inereased within a short period of time.
The important point is this: Recognizing the substitutability of a decrease in impoit

by an increase in supply of a domestic product in the U.S. economy, W. Leontief has
defined his competitive import as an import with the same kind of dome$tic product, atleast in part. And we will define our non-substitutable import as an import with thesame 1rind of domestic product but without the substitutability between domestic productand import. Thus we consider the difference in these definitions on imports with partly
corpmon qualifications due to the differences in their economic backgrounds.

INTERSECTORAL TRANSACTION TABLE WITH ENDOGENOUS FOREIGN 77
TRADE SECTOR IN THE INDIAN ECONOMY: 1955/56

These are the fundamental relations of our proposed model•
3. Selection of Sectors for ModeL
1. When we employ an intersectoral analysis as our tool to investigate
our subject, the number of sectors concerned can never be too large for an ana1ytical purpose, the more detailed, the better. Now, owing to the original table,
we can use at least 36 sectors as a model. However, we select 10 domestic sectors

for our proposed model. Since our analysis may be effective only as a first
approximation due to inaccuracies and ambiguities in statistical data avaiiable tous, it is quite enough to use these 10 domestic sectors for getting meaningful results

as a first approximation. As a matter of fact, these 10 domestic sectors areenough for us to manage with our limited ability of computation.
2. The following considerations have to be taken into account when defining sectors for our proposed model.
The selected sectors have to refiect actual situations in the Indian economy.
Actually, this means to aggregate all these 36 sectors in the original table so as

to classify them accrding to categories such as primary production, small-scaleindustry, large-scale industry, and other activities. In this respect, we havedepended on the main categories shown in the original table.

We will divide the category of primary production into both agriculture
and mining, and the category of large-scale industry into both large-scale lightand heavy industries.
Out of the category of other activities, we select, at first, two sectors: transportand communication, and construction. The rest of this category means theservice sector. Next, considering the important role the financing organization
plays in the process of income distribution among sectors, we separate this sector
out of the entire service sector. Lastly, we divide the rest of the service sector into

both trade and distribution and other services.
A vertical aggregation of sectors has not been taken into account here.(6)The following sectors were finally selected:lst sector: agriculture,

2nd sector: mining,
3rd sector: small-scale industry,
4th sector: large-scale light industry,(6) CÅí J. Sandee, A Demonstraticn Planning Model for lndia, Studies relating to Planningfor National Development, No. 4, Indian Statistical Institute, 1960. In his proposedmodel, the small-scale food industry has been added to agriculture, while cement manufacturing and small-scale building materials industry have been aggregated with construction.

78 HIKOJI KATANO
5th sector: large-scale heavy industry,

6th sector: transport and communication,
7th sector: construction,
8th sector: trade and distribution,
9th sector: financing organization,
10th sector: other services.
For simplicity, we shall call each sector by its classified number; for example,
5th sector for large-scale heavy industry, etc..

3. The original table has been constructed in terms of 36 industrial sectors.
For the purpose of our model, these 36 sectors are classified as follows:-(Aggregated Sectors) (Original 36 Sectors)

agriculture agriculture

plantation
animal husbandry, fishery, forestry

mining coalmming&coke making
all other mining
small-scale industry small-scale metal & metal working
small-scale building materials & wood
manufacturessmal1-scale textile & textile products

smal1-scale food, drink, tobacco, oilsmall-scale glass & ceramics
small-scale leather & leather products
small-scale other products;
miscellaneous

large-scale light industry food, drink, tobacco, oil
cotton textile
other textiles jute & other fibres
glass & ceramics
leather & rubber
paper, printing & stationary

large-scale heavy industry iron & steel
non-ferrous metals
engineerings
chemicals, etc.
cement, etc.
other building rnaterials & wood manufactureselectricity generation & transmissjon

79
TRANSACTION TABLE WITH ENDOGENOUS FOREIGNINTERSECTORALSECTOR IN THE INDIAN ECONOMY: 1955/56
TRADE

defense materials
large-scale unclassified

transport & communicatlon

railways & communlcatlon
other transport

constructlon'
constructlon
residential property

trade & distribution
financing organization
other services

trade & distribution

banks, insurances and co-operatives
professions, services, institutions,public administration

4. Groups of Income Earners.
1. We classify all income earners in our economy into two groups:workers
and now-workers. The workers' group is composed of wage and salary earners
and self-employed persons. The non-workers' group is composed of the remainmg mcome earners. e.g. rentiers, share-holders, etc.. For the sake of convenience,

we shall call the income of workers wage in its loosest sense, and the income ofnon-workers profit. Such a classification depends on whether the income earneris a labor-contributor to industrial activities or not.

2. In this classification, we can find some overlapping of one person over
several sectors. The person, who is employed, for example, in the 5th sector
and receives his salary for his labor contribution to the sector, may, at the sametjme, receive his income from dividends for his holding shares from anothersector

as well. In such a case, we list him in either group; he is a worker as a labor
contributor to the 5th sector and, at the same time, he is anon-worker asashareholder without any contribution of labor to industrial activities. Such an overlap-

ping may be supposed to present some confusion to the problem of sectoral
allocation of labor power, because the same person is listed in two or more sectors
at the same time. But, actually, this does not cause any confusion. As the workers

receive their incomes in return for their labor contributions and the non-workers
get their incomes without any contributions of labor to industrial activities, theirlabors are contributed only to the 5th sector in which they are employed as workers.
And, we suppose, it is not necessary for us to concider an infeasible case in which

the same person belongs to two or more sectors as a worker at the same time.(7)(7) According to the results of the National Sample Survey [National Sample Survey Report
No. 14: Some Characterdstics of the Economtcally Active PoPulation, 4th to 7th Rounds(April 1952-March 1954), Government of India, 1958-59), we see that some workers

are engaged in secondary occupations. But this does not mean that these workers
work in their secondary occupations as well as their primary occupations at the same

time.

etc.

80 HIKOJI KATANO

3. In the original table, incomes of all classes have been divided into twoparts: wage-income and non-wage-income. Non-wage-income includes provisions for depreciation. In addition to these income groups, there is anotheritem of indirect taxes which composes a part of the value-added.
For the purpose of our proposed model, we shall arrange these items in thefollowing ways: (1) Income of self-employed persons is included iR the categoryof non-wage income. So it is necessary to separate the income of self-employedpersons from that of non-wage-income, and add it to wage income. And (2)indirect taxes are included in the category of profit.

Then the scheme becomes as follows,i'.:,ff31:,:el,:'ic,g7l:,:,;,i'ihl,Ols:ctorIJIi,l***IW,;,\g,g::;,t:,s:,c:.oi

Here,V,•* : income of self-employed person in j-th sector,
Vi** : rent, profit, etc. in j-th sector.

According to R. Narayanan & Bina Roy's work,(8) we can approximately
calculate the ratios

V*jvi- -zrL'
So we can have
V*i==vjIZj, 17Ii**=(1-wi)Vi.
Then we can arrange both Wi and Pi for the purpose of our model, that isva,•== Uj + Vj*,

Pi-- Vi** + Ti•
5. Final Bills on Goods ew Serz)ices,1• We assume, in this paper, that the workers spend the entire amountof their income only for their own consumption. This means they do not saveeven a little part of their income for any purpose and do not pay any taxes•(9) This

assumption may be, to some extent, quite different from the actual situationS•(8)

R• Narayanan & Bina Roy, The Movement of Distributive Shares ln India, 1948i49
to 19S7/58, revised version in mimeographed paper, ISL PD. WPflll (247), March 22,

1962• And,intheserespects,M.Mukherjee[OntheAvailableEstimatesoftheBreakdown
of National Income by Distributive Shares in India, in Papers on National Income and(9)Allied ToPics, Vol. II, 1962) gives us a comparison of available estimates of distributive
shares in India.
For the original table in which indirect taxes are shown on an independent entry, thetaxes mentioned here imply direct taxes (income tax, etc.)•

INTERSECTORAL TRANSACTION TABLE WITH ENDOGENOUS FOREIGN 81
TRADE SECTOR IN THE INDIAN ECONOMY: 1955/56

Some of the workers can save a part of their income for their future use or someother purposes and do pay some kinds of taxes. But, we suppose, the percentageof the amount of money saved and of taxes paid by the workers as compared to
the full amount of their income as being very small. This is the reason why wetake this assumption for our proposed model.
The non-workers spend a part of their income for their own consumption.
From a part of their remaining income, they pay taxes; the rest is saved fortheir future use or some other purpose. These saved-money and paid-taxes are,in turn, allocated to several uses; for example, public authorities' current expendi-

ture, private and public capital formations, etc.. However, in this paper, we
propose to join these consumption expenditures of non-workers and other kindsof expenditures together into one combined expenditure. We call this the nonworkers' expenditure on goods and services.
After all, we use, in this paper, two kinds of final bills on goods and services,

the workers' consumption expenditures and the non-workers' expenditures.
2. In the original table, consumption expenditures have been treated as
the whole of consumptions. But, for the purpose of our proposed model, thishas to be divided into two parts, consumption expenditures of workers and non-workers. And, in order to compose the non-workers' expenditures, we haveto combine the latter with other non-workers' expenditures, (public authorities'
current expenditures, private and public capital formation, etc.).

The scheme in this stage is as follows:co::"EE.}g,tio,n..e.xge,?gliturec,*-Ig..;O-B'OWO:rgk.8r,li.lgg,/,,"yS."1.PliP,the other hCiO:non-workers' expenditure
expenditure :Fi .Fi on i-th commodity

on i-th commodity
Here,

Ci : non-workers' consumption expenditure on i-th commodity.
We suppose that components in workers' consumption expenditure aredifferent from components in non-workers' consumption expenditure due to thedifferense in their (average) income levels, We assume here that the workers'
income level is, in clear-cut shape, lower than the non-workers' income level.
This means that the minimum income level in the non-workers' group is higher
than the maximum level of the workers' income. This is not actually true, but
we take this assumption for the sake of convenience in the course of our arguments.

HIKOJI KATANO

82

Then, using the National Sample Survey's statistics on consumer expenditure,(ie) we can estimate the percentage distribution of the workers' consump-tion expenditures on respective commodities, which are expressed bynotationsal).........)eq•).........alo7

where ai stands for the ratio of the workers' consumption expenditure on i-thcommodity. So we can calculate the respective components of BiO and e, as
follows,

Bio=ai Ci*,e,=(1-a,)c,*.
Thus we can arrange both BiO and CiO for our purpose, that is

Bio=B,oCio =Ci + Fi•
6. Separation between Domestic-Product-Inpat and Import-Inpat.
1• As we have explained above, the original table is founded on the indif-

ferent treatment between domestic product and import. This is based on theassumption that all imports are substituted by domestic products. In this case,all inputs are treated as joint inputs of domestic product inputs and import

inputs. But, for the purpose of our proposed model, vve have to assume thatal! imports are non-substitutable for domestic products. Our model, then, will

be constructed on this assumption. Thus all inputs have to be divided into
two parts, domestic product inputs and import inputs.
2. For this purpose, the joint input Aiv* must be divided into two parts,

domestic product input Ailr• and import input Mii, that is

joint input: A,j*- IAii : domestic product input

tMi,-: import input
3.
Simultaneously, the workers' consumption
workers' expenditures have to be also divided into bo
products and on imports, respectively, as follows,(10)

expenditures and the nonth expenditures on domestic

National Sample Survey Reports No. 40 & No. 47 [Report No. 40, Ttthles with Notes

on Consumer Expenditure, 9th Round (May-November 1955), Government of India,
19S5 and Report No. 47, Ttzbles xctt'th IVotes on Comsttmer Expenditttre, 1Oth Round (Decem-ber 1955-May 1956), Government of India, 1961]. For the purpose of covering thewhole period of 195S156 fiscal year, we use here statistics prepared by combining the
9th and 10th Rounds data.

INTERSECTORAL TRANSACTION TABLE WITH ENDOGENOUS FOREIGN 83
TRADE SECTOR IN THE INDIAN ECONOMY: 1955/56

WOgr..k,e:.Ig,ttC.O.."S."M.,el)O" B,o-(::..W.O:,'nkk,ei-eSi,lh[O//n.oS,li..M,#l7,,it:i,:p".ro,ed.Xu,Pc.et.",d,'l."i,efci : non-workers' expenditurenon -workers':CiO-ic,M:noflPwi.-,`kh,,d,9'IlfiSp`,ifidg•,r.O,d,"C`
expenditureon i-th commodity
on i-th import
4. In case these separations are completed, the fundamental relations forour model must be expressed as follows,

X,iA,,• + Ei + Bi + Ci,
Mi=X Mii + BiM + CiM.
In the first stage of these separations, we pick up items which we can clearly

identify as belonging to Mi,• m BiM and CiM out of i-th import Mi. For example,
an import of iron ore should belong to import input to the iron and steel manufacturing sector. For this purpose, we can use statistics given by The Delpartmentof Commercial Intelligence and Statdstics.(ii) These components are expressedby
M'iJJ, BiM', and CiM'.
In the course of this working, we assume (1) imported primary products are notused as input for the lst sector, (2) the 3rd sector does not use any imported goods

as input, and (3) the workers do not consume imported goods except agricultural
products (e.g., food grains, etc.).

In the next stage, the remaining part of import components

Mii', BiM' and CiM'
are estimated according to the proportional allocation of(Mi-XM'i,•-BiM'-C,M')=9i
with(Aiv*-Mii), (BiO-Bi"') and (Cio-CiM').
Expressing the percentage components for this proportional allocation as 6ii, fiBi,and 6ci, we can calculate the remaining part of import components as follows,
M'i,•==fii,•9i,

BiM'=6.i9i,ciM'=fici 9i•Thus we can have
(11)

The Department of Commercial Intelligence and Statistics, Accounts of Foreign
Trade of India, March 1956, Government of India, 1956, and Annual Statement of theForer' gn Trade cf India, Vol. 1, (For the four fiscal years ending March 1956 and thenine months, April to Decernber, 1956), Government of India, 1963. We mainly
depended on the latter.

84

6.

7.

O.25
4.70

353.3612.83
77.43
179.02
69.43
28.78

429.34
15.34

19.48
38.35

142.61

20.02

37.09

8.89

108.67147.70

2.35
55,49
41.51

O.91

9.08
5.51

8.65
1.80

7.

-

M.

22.44
1.70
66.37
9.49

Transaction Table: 1955/56.

5.

1,830.73

5.

intersectoral
4.

1.

6,

Table 1;
3.

2.
3.

KATANO

2.

1.

4.

HIKOJI

1.15

828

6.14

4.72

77.44

271.0843.91

22.44
200.50
32.43

12.54
43.91
16.72

6.08

32.37
1.19
12.20
39.17

45.39

8.

92.98
5.12
15.13
52.23
13.69
31.54

151.05
38.94

20.24

78.20
3.37
13.67

46.38

153.99112.792,044.67 26.87

875.901,139.60

527.37342.52526.89340.21W.

3,445.85 40.54

528.291,170.90 111.54
6,661.42 178.95

12851

1,798.45

341.96171.09855.57366.81591.0S

1,532.70

115.52278.86921.75

1,332.09

P.

234.39424.46

1,484.75

2,022.64

8.
9.

10.

X.

3.37
O.13

4.33

1.31

4.60

65.57

66.21
28.31
25.32
9.68

97.76
61.14

350.34

Mi,•=Mii'+ Mii',

BiM=BiM' + BiM",
CiM=:CilVf' + CiM".
Lastly, we can get

Ail•=Aii*-Mij,

Bi=Bio-BiM,
Ci=Cio-ciM.
7. Introducing of Foreign Trade Sector.

1. In the above-mentioned fundamental relations, each imported commodity has been treated separately. However all imported commodities aredifferent in kinds to each other, al1 these imports are purchased by the paymentof foreign currency which has been obtained in return for exports. So we
propose to treat the imports as a commodity produced by a set of inputs (i.e. anexport composite commodity). Thjs means that the second fundamental relation becomes

M==XM,• + B. + C.,

where.
M==XMi, Mj=XMii, B.=XBiM and C.==XCiM.
As we have already shown, on this occasion, we introduce one special kindof activity of production, which is concerned with foreign trade,(ei,......eio); Xei=1,This activity means that an input of an export composite commodity (ei) producesINTERSECTORAL TRANSACTION TABLE WI'ISH ENDOGENOUS FOREIGN 85
TRADE SECTOR IN THE INDIAN ECONOMY: 1955/56(Unit: Rs. one crore)
E.

O.49
4.74
37.01
11.70
21.95
8.43

82.96
25.58
19.65
375.1226.12
17.12

2,972.22

155.09302.44976.78590.86240.78

1.36
3.8S
3.32
O.66

21.17

57.32

604.3842.88
240.194S6.5030,13124.09 603.87

6,582.12

O.10
4.15
2.57
14.12

56.31

44.57
131.0118.60

1,223.53 -1.04 96.05

1,348.66 699.92c.

X.

3,289.81

399.396 661 .42

29.89

- 6.03980.61745.798S.82

1,154.93

249.6575.88
245.07194.21
974.29263.3360.07
398.728.61

28.06
709.75234.81

1 348.66'

7,685.29 3,368.41

17,635.82

B,

10.

9.

420.58510.46'178.95

1,532.70
1,798.45

921.75855.57
1,484.75
2,022.64

131.01

699.92

7,685.29
3,368.41
17,635.82

one crore rupees worth of foreign currency. And this amount of foreign
currency is immediately directed to the same value of imports. Thus the activitiymeans also that the input of the export composite commodity produces one
crore rupees of imports. Then we can introduce here one new and additional
sector of foreign trade. We call this foreign trade sector the m-th sector.

2. In our model, all items are measured in terms of unit rupee values(one crore rupees). This is naturally true for all imports. Then, one unit of
any import always means one crore rupees of import, which has been obtained inreturn for the same value of export composite commodity. This situation isindifferent to the kinds of jmports. In this respect it is unnecessary to consider

different kinds of imports from the view point of the production theory. We
do not consider the different kinds of irnport inputs, but suppose only one kindof aggregated import input which is unified in terms of foreign currency (eventhough this is expressed in terms of rupee value).

8. Balance of Trade Deficit.
1. In our proposed model, the balance equation in the foreign trade sector

takes the form of

M=.XEi+D
This balance of trade deficit D has been in this paper, assumed to be
the non-workers' borrowing from abroad. Even though this has to be refundedin the near future, this plays the role of inflating the non-workers' expenditure.

HIKOJI KATANO

86

In this case, the total amount of the non-workers' expenditure becomes

XPi+D.
This amount covers the non-workers' aggregate demands for all commodities,

xpi + D=xc, + c.
9. Structure of Intersectoral Transaction.

As a result of these considerations, a new structure of intersectoraltransaction can be constructed on the basis of the following fundamental equa.tlons,(iisi==.x.Aij+ei+.B.i.+.c.i•,

Xi=XAij+Mi+Wi+Pj,(M==XE,+D,(ipM,i==XDtil(,IIIc?.m+•c.,

10. Intersectoral Transaction Table: 1955/56.
Using the statistical data given by the original table and other sources,
which have been referred to above from time to time, we can make up our intersectoral transaction table: 1955156.(i2) This is shown by Table 1.

(12)

We note here some points of this table:a) According to this table, the total of value-added is Rs. 10,957.65 crores. From the
National Income Statistics [Central Statistical Organization, Estimates of Nationat
Incomo: 1948149 to 1961/62, Government of India, 1963, and National lncome Statistics:
Proposals for a Revised Series of National Income Estimates for 1955/56 to 1959/60,
Government of India, 1961.], we can see that corresponding estimates of total value-

added amounted to Rs. 10,660.00 crores. The difference between these two estimatesis about Rs. 300.00 crores. This means about a 30/o error. Then we shall use thistable without making any corrections by making use of the National lncome Statistics.
b) Non-workers' real expenditure on 2nd domestic products has a negative value.
This is caused by the comparatively 1arge size of inventory change due to the real expendi-

ture on the 2nd domestic product by non-workers.

FOR SEAMENOF RESERVED MEMBERS
THE SYSTEM
BEFORE WORLD WAR II
The employment system of seamen in Japan
Hiromasa YAMAMoTO

In Japan, seamen on foreign-going ships are employed by respective ship-ping companies as "permanent" or "eternal" employees. This employment
system of seamen is called "the system of reserved members," because if a shipping company emp!oys seamen permanently, it has to maintain reserved membersof the crew so as to fi11 up the position of seamen who are staying on land due
to vacations or illnesses. This employment system of seamen is peculiar in Japan,

for in other countries seamen are usually employed on a voyage basis.
But before World War II the matter was different. Most Japanese ship-ping companies commonly hired seamen only for the period of a voyage orseveral voyages, as is seen now in other countries. The employment relation be-

tween employers and seamen was short and intermittent in its character. The
exception was found in several large shipping companies. Two leading liner
companies, the Nihon Yusen Kaisha (NYK Line) and the Osaka Shosen Kaisha(OSK Line), and several other large shipping companies adopted the systemof reserved members, though the system of the prewar period was not neces-sarily combined with the permanent employment system.
In this article the writer wishes to trace the development of the system during

the prewar period and to sketch an outline of the system.-I
Origin of the system of reserved ship oLfiicers

During the Edo period Japan adopted a national isolation policy, prohibiting foreign trade and the construction of large vessels. During this period thedomestic merchant fieet engaged in coastwise trade with smal1 Japanese-type
sailing ships. In 1853 the prohibition order of constructing large vessels wasabolished and at the same time the Tokugawa Government began to importwestern-type sailing vessels and also to encourage construction of such vessels.

The first steam-boat was introduced into Japan in 1855 for military purposes.

However it was not until 1870 that steam-boats were added to the Japanesemerchant fleet, In this year the government established the Kaiso Kaisha, a88 HIROMASA YAMAMOTO
public corporation which operated government-owned steamers carrying passengers and mail in coastwise trade. But the company dissolved in 1875 becauseof financial loss. On the other hand in 1870 Yataro Iwasaki established theTukumo Company, the origin of the Mitsubishi Kaisha which changed its nameto the present Nihon Yusen Kaisha (NYK Line). The company engaged incoastwise trade with three steamers at the beginning of its activities. The
government gave the Nihon Yusen Kaisha subsidies so as to foster a modem
shipping company in Japan.
At the introduction of western-type sailing vessels and steamers into Japan,

Japanese seamen had neither experience nor technical knowledge as to how to
operate steam engines and also how to use the compass. Though unlicensed
seamen might be supplied from the crews of Japanese-type sailing vessels,qualified personnel who could stand in the position of shipmaster, chief engineer

or other oMcer were not found in Japan. Therefore Japanese steam-ship
operators had to depend upon foreign seamen for their ship operation.
Facing a lack of qualified seamen the Japanese government ordered the

Nihon Yusen Kaisha to open a vocational school for seamen. Thus in 1875
the Mitsubishi Merchant Marine School, origin of the present Tokyo Marine
College, was established for the purpose of training merchant marine othcers
with the government-owned training steamer. The course of training was divided into two sections, the regular course was five school years for seamen on ocean-going ships and the short course was three school years for seamen on coastal
ships. For the first trainees fifty-one men were selected. They were obliged towork in the Nihon Yusen Kaisha for certain peried after they finished the training

course. With the development ofaJapanese merchant fleet the number oftrainees in the merchant marine school was increased, but until 1882 when the
Mitsubishi Merchant Marine School was reorganized into a national institution
only forty-eight deck oficers were supplied to the Japanese merchant fleet. In
this year only thirty-three Japanese seamen were included in oMcers who held
shipmaster licenses in a total of one hundred and forty members in the Japanesemerchant fieet.(i) It is clear that the trainjng of licensed seamen in Japan did

not check the dependence of the Japanese merchant fleet upon foreign seamen.
Such conditions did not disappear until the 1900's when the number of JapaneseoMcers surpassed that of foreign oMcers in the Japanese merchant fleet.(2)In the foregoing paragraphs a brief survey has been given with regard to
the labor market of the Japanese shipping industry at the stage of its moderniza-(1) Hiroshi Sasaki, Maritime Labor Policy and Seamen's Union, 1962. p. 100.
(2) Dept. of Transport and Communication, Hjstory of Transport and Postal Works, Vol.
6. p. 1137.

THE SYSTEM OF RESERVED MEMBERS FOR SEAMEN 89
BEFORE WORLD WAR II

tion. Those conditions of maritime labor naturally influenced the employment

system of oMcers in the Nihon Yusen Kaisha.
The Nihon Yusen Kaisha was established in 1885 as a result of the reorganization of the Mitsubishi Kaisha. Though it is not clear what kind of employment system was adopted by their predecessor, the Nihon Yusen Kaisha employed Japanese oMcers as permanent employees from the beginning of the company
in contrast with the fact that the company employed foreign oMcers for shortterrns according to the seamen's article of agreement.

In the earlier stage of the employment system ship oMcers were unpaid
when they were off article though the employment relation between the company and oMcers was maintained. But in 1894 the company carried into effecta retirement pension plan for Japanese ship oMcers. The plan was so designedthat the longer the period of employment in the company, the greater the amountof pension to be paid. It is said that the wage system at that time alsohada

device to encourage the continuous employment of ship oMcers.
In 1902 the Nihon Yusen Kaisha enforced a company regulation for reserved
ship officers.(3) According to this regulation, under the name of reserved
ship oMcers the following three categories were jncluded; (a) ship oMcers
waiting for ship; (b) ship oficers on vacation; (c) ship oMcers off article becauseof some other reasons than mentioned in a and b. The reserved ship othcers
were paid the total or a part of their wages and also allowances according to theirconditions. In other words the Nihon Yusen Kaisha paid the total or a part ofwages and allowances to ship oMcers with no regard as to whether they were on
article or off article. Through this reserve system the company was able to secure

the necessary number of ship oMcers for the operation of their company fleet,stabilizing their employment. By means of the company rules as mentioned
above the Nihon Yusen Kaisha employed ship oMcers as permanent employees.
We should pay attention to the fact that in order to retain permanent employees
it was necessary for the company to maintain reserved seamen with pay if thecompany did not hire a relief staff. Maintaining reserved seamen of course
added an additional labor cost burden to the company.
The Osaka Shosen Kaisha, one of leading liner companies in Japan, which
was set up in 1884, also put into practice the reserved ship odicer system at on

early stage of the company. Though the details of the system of the earliest
period are not clear, we can discover the fact that the company retained reserved

ship oMcers in 1891 and employed oficers as permanent employees.(4)(3) With regard to the system of reserved members of this and other companies, data used inthis article are from the writer's interview with company officials and also from company

records.
(4) Fifty Years of the Osaka Shosen Kaisha, 1931, pp. 669-670.

HIROMASA YAMAMOTO

90

As we have shown above, the two leading liner companies of Japan, theNjhon Yusen Kaisha and the Osaka Shosen Kaisha, employed ship oMcers aspermanent employees and adopted the reserved ship oMcer system before 1900.
But in those days such an employment system in seamen was exceptional among
Japanese shipowners. Almost all Japanese shipowners hired ship oMcerson a voyage basis. Here we should make clear the position of the Nihon Yusen
Kaisha and the Osaka Shosen Kaisha in the Japanese shipping industry of thosedays, because it will be helpful in explaining why the reserved searnen system

was adopted especially by these two companies. The Nihon Yusen Kaisha andthe Osaka Shosen Kaisha were the two big companies, having an overwhelming
position among Japanese shipowners. In 1895 the total tonnage of steamers ofJapanese registry amounted to 331,374 gross tons; the NYK fleet and the OSK
fleet amounted to 94,332 gross tons and 19,886 gross tons respectivelY5) The
rest of the tonnage was scattered among many small shipowners who usually
owned several ships of less than 1,OOO gross tons. More important was thefact that subsidies for vessel construction and liner service were concentrated on

the big two, especially on the Nihon Yusen Kaisha. The big two operated
ocean--going and neighboring sea liner trades with large steamers with the assistance of the government. In contrast, the rest of the shipowners usually engag-

ed in coastal or nearby sea tramp trade without subsidies.
Until 1900 many ship oMcers had been trained and supplied to the Japanese
shipping industry since the establishment of the Mitsubishi Merchant Marine
School of 1875, however most of them held licenses for coastal trade and there
were few ship oMcers who had adequate training or experience for ocean voyages.
Numbers of Deck OMcers Holding License for Ocean Trade in 1895
Masterlst OMcer

2nd OMcer

Total

Japanese

227

171

209

607

Foreigner

308

100

67

475

Trade in 189S

Numbers of Deck Officers Holding License for for Costal

Masterlst OMce

2nd Othcer

Total

Japanese

432

429

697

1,558

Foreigner

2

10

10

22

Source; Dept. of Transportation and Communication,

op. cit., P.1205.

(5) S. Unekawa, Kai-un Kokoku Si(The Development of Japanese Shipping Industry) 1927,
p. 281 and p. 638.

THE SYSTEM OF RESERVED MEMBERS FOR SEAMEN 91
BEFORE WORLD WAR II

It was especially true for shipmasters of ocean-going vessels. Therefore the
NYK liner fleet on ocean trade had to depend upon foreign ship oMcers notwjthstanding the effort of the company to substitute them with Japanese. Of course
the wages of foreign ship oMcers were much higher than those of the Japanese
who had the same qualification. Accordingly the Nihon Yusen Kaisha and the
Osaka Shosen Kaisha devised the reseved ship oMcers system which was supportedby the permanent employees system for the purpose of securing a pool of Japanese

ship oMcers who would be able to take the place of foreign ship oMcers. The
emergence of the reserved ship othcer system was therefore mainly due to the poor

supply of qualified Japanese ship oMcers for ocean-going vessels, though theintention of the company to maintain such a system gradually changed as theconditions of the labor market for seamen and trade unionism among seamen
developed. On the other hand, other shjpowners than the NYK and the OSK,
whose ships engaged in main coastal tramp trade, had no necessity to employ
ship oMcers as permanent employees because substitutes were easily found. In
addition if they desired to employ ship oMcers as permanent employees because ofsome reason or other, it would result in additional labor cost to them. For theywould have to pay allowances to ship oMcers off article.
llReserved ship ofiicer system adopted by large tramp oprators

During World War I the Japanese shipping industry doubled its tonnage toover three million gross tons. Many tramp operators began to engage in oceangoing tramp service, and they earned large wartime profits. Thus during the
war many Japanese shipowners increased the size of their fleet.
During and after the war the reserved ship oMcer system was adopted byseveral large tramp operators such as the shipping division of the Mitsui BussanCo., Kawasaki Steamship Co., Yamashita Steamship Co., Tatsu-uma Steamship Co., Kokusai Steamship Co., and the shipping division of the Mitsubishi
Shoji Co. These companies began to provide ship oMcers with retirements pensions, the amount of which would increase according to the service period in thecompany.
Most of the reserved ship oMcer systems which were adopted by large tramp
operators had similar structures, though some of them rather resembled that of theliner companies. The former was different at an important point from the latter.

The former did not necessarily combine with the permanent employees system•
Under the former system the reserved seamen were classified in class A, B and

C. The reserved ship oMcers of class A were composed of ship oMcers who
were waiting for their next service under order of their company to change ships

HIROMASA YAMAMOTO

92

and of oMcers who were under medical treatment for injury and illness owing totheir service. They were paid the same amount of allowances as their wages.
When an oMcer got off his ship because of illness or vacation, he was classified

as reserved oMcer of class C, and he had no pay.(6) If the ship oMcers of class
C entered the status of waiting for their next service, they were classified as class

B and paid about a half of their wages. However, in practice, the classificationof reserved oMcers was operated elastically so as to encourage continuous employment. For example an oMcer who remained in service for several years without abreak in his work was sometimes classified in class A or B when he got off his vessel

owing to private reasons. On the other hand an oMcer who had Iess qualification and bad character was sometimes exempted from the chance to enter class
B from class C by the company. More important, in the case of tramp operators
the application of the reserved ship oMcer system was often limited to a part ofthe oMcers. Captains and other oficers of higher ranks came under the application of the system, but oficers of lower grades were often hired on a voyage basis
without application of the system so as to minimize additional labor costs of al•-lowances for reserved oficers.

As we have shown above, the reserved oMcer system of most large tramp
operators had some important differences from that of liner companies. But
the differences between them should notbe overestimated. Because ship oMcers
who were hired on a voyage basis by large tramp operators did not usually change
their vessels and employers, though their employment relation might be intermit-

tent. They usually remained under the same employer with the expectation of
being eligible for the reserved oMcer system and also for promotion to higher
ranks.

The reserved ship oficer system had been employed by the liner companies
and large tramp operators until 1942 when all seafarers were under wartime
labor control. But during the prewar period most of the Japanese shipowners
who mainly engaged in coastal and ocean tramp trade employed ship oMcerson a voyage basis. Consequently ship othcers who were employed by large ship-ping companies seldom changed their employers, while oMcers employed bysmall shipping companies often changed their vessels and employers. Therefore
the labor market of ship othcers during the prewar period was divided into one
large labor pool from which smal1 ship owners could hire oMcers, and several
other small factions of labor pools which were maintained by large shipping

companies. Movement of labor between the former and the latter scarcely(6) After World War I large shipowners began to provide ship oMcers with paid vacations.
If an oMcer remained in service for a year without any break in service, he was given avacation of two weeks with pay.

THE SYSTEM OF RESERVED MEMBERS FOR SEAMEN 93
BEFORE WORLD WAR II

occurred, because large shipping companies would seldom hire ship oficers
who had been employed by other companies, and oMcers who were employed bylarge companies preferred to remain in the same company.

III
Beginning of the system of reserved members for unlicensed seamen

The system of reserved members for unlicensed seamen was introduced muchlater than in case of ship oMcers. The system of reserved members for unlicens-

ed seamen was also at first adopted by the Nihon Yusen Kaisha. Though thecompany employed ratings of the catering department as permanent employees
from its beginning, the company had employed ratings of the deck and engine
departments on a voyage basis until February 1920. Afterwards applicants forthe company as unlicensed seamen were selected and adopted as boys. Afterthey finished a training of one year, they were promoted to ordinary seamen or

firemen and at the same time were employed as permanent employees. According to the company regulation reserved members, that is, unlicensed seamenvvaiting for their next service on land were paid allowances. But when they
were on vacation, no allowance was usually paid.(7)Ths Osaka Shosen Kaisha also adopted the system of reserved members
for unlicensed seamen in 1921. But the Osaka Shosen Kaisha did not employ
unlicensed stihamen as permanent employees. According to the company regulations for unlicensed seamen which was enforced in April 1921, unlicensed seamen

were qualified as reserved members with pay if they worked continuously inthe company for a long period. For example if a seaman worked for a period
longer than eight years and he remained on the same ship without any breakin his service for a period longer than four years, he was put in the position ofa reserved seaman when he was off article, provided with an allowance which
was the same amount as his wage until he could engage in his next service•
Seamen who worked in the company for a period longer than three years andremained on the same ship for a period longer than one year and seamen who
got off ship owing to illness or injury were also nominated for reserved seamen,
and they were provided with allowances which amounted to half of their wages•

The period of being reserved seamen was not determined by companyregulations•

The company ordereda reserved member to engage in the next service
in consideration with the manning requirement of the company fleet and theperiod of off articles of respective members. Therefore the period of staying(7) M. Sakamoto, "Development of Maritime Labor in Japan" (Japanese), Magazine of the
Association of NYK Captains, Nov, 195S. pp. 13-14.

HIROMASA YAMAMOTO

94

on land as reserved seamen was different among seamen. In other words a paidvacation was not necessarily admitted as the right of reserved members by thecompany.
In the Osaka Shosen Kaisha the wages of unlicensed seamen increased as
their work period in the company increased, and the company promoted themprincipally according to their seniority in the company. Therefore the systemof reserved seamen enforced by the Osaka Shosen Kaisha was regarded as ameasure for encouraging seamen to work continuously in the company.
Large tramp operators who adopted the system of reserved ship othcers
also adopted the system of reserved seamen which had a similar structure withthat of the Osaka Shosen Kaisha, while a large part of Japanese shipowners
who engaged in tramp trade with small tonnage boats hired unlicensed seamen
on a voyage basis before World War II.
The labor market of unlicensed seamen during the prewar period was therefore divided into one large labor pool and several other small factions, as wehave pointed out with regard to the labor market of ship oficers. Movementof labor between the former and the latter also seldom occurred, though more
seamen changed vessels from large shipping companies to smal1 shipowners incomparison with the case of ship oMcers.

rv

Summary and Notes
Before World War II only the liner companies and the large tramp operators adopted and maintained the system of reserved members for seafarers,
which today is adopted in combination with the permanent employment system by
all Japanese shipping companies operating foreign-going ships, while most of the

shipowners hired seafarers on a voyage basis.

In summing up the development of the system of reserved members for
seafarers, with regard to ship oMcers the two liner companies adopted the system

during the period of modernization of Japanese shipping industry, and large
tramp operators followed during and after World War I. With regard to unlicensed seamen, liner companies and large tramp operators adopted the systemafter World War I.
The system of reserved members for seafarers was carried into effect bycompanies either in combination with the permanent employment system or
combined with company welfare plans and a wage structure which were devised
to encourage continuous employment.
Then, why did the large shipping companies adopt and maintain the system?
Clarifying this questionwill be reserved for alater opportunity. However, someTHE SYSTEM OF RESERVED MEMBERS FOR SEAMEN 95
BEOFRE WORLD WAR II

hint should be presented here. Adoption of the system of reserved ship officers by the two liner companies was due to the necesity of securing the required

number of qualified oMcers, as we have pointed out in the foregoing paragraphs.
But securing and maintaining a labor pool of qualified members, in other words,
the short supply of qualified seafarers is not an adequate explanation of why thesystem was adopted by other companies or why the system was maintained by
all of them notwithstanding the additional labor costs. Because after WorldWar I when the system was new!y adopted by ljner companies and large tramp
operators, the short supply of seafarers gradually disappeared and there wererather symptoms of an oversupply. In addition during the interwar period
seafarers were commonly oversupplied, as is shown in unemployment statistics
of seamen of this period.
The key for solving this question may be found in the development ofunionism among seamen. Trade unionism among unlicensed seamen develop-

ed during World War I and in May 1921 the Japan Seamen's Union wasorganized as a result of the combination of small unions. The union put allits energy into the establishment of a union-operatedjob exchange service. The
ship OMcers' Club, which was set up in January 1896 and whose activities at first
were limited to friendly association, changed its character to that of a trade union

after World War I. The adoption of the system of reserved members for unlicensed seamen and oMcers after the war coincided with the deve!opment of tradeunionism among seamen and their efforts for securing a job-exchange service.

The above fact suggests that the system of reserved members was introduced
and maintained by large shipping companies for the purpose of either establishing harmonious labor relations with the crew of the company fleet or of disturbing

the organizing of the crew.

ON THE AUTOMA'I'ION OF BANKINGJAPANIN
Jiro ONoI
In Japan, the automation of banking has progressed rapidly within thelast ten years. This means the installation of large-scale computers, designof so-called on-line systems, efforts for the development of MICR or OCR
techniques, research on more eMcient management information systems, etc.
that have been carried out in large-scale banks.
However, they have not always been successfully put into practice as matters stand, and there are many middle- or small-scale banks which cannot promote
such high-grade oMce automation projects because of diMcult problems involved.
It is my intent to give an outline of the present state of affairs and to
examine some important points in regard to the automation of banking in Japan.

II
In this section, we shall outline the banking system in Japan, especially thekinds of banks and their operations so that we may more easily proceed to themain issue.
It is necessary to recall that the first banking institution in Japan was the

Kawase Kaisha (an exchange firm) established in the Meiji Era, 1869.
Today, as of 1962, there are several kinds of banks as follows:(1) The Bank of Japan
This is the central bank of Japan whose main functions are the issue of paper
money, short-term loans to other financial institutions by means of rediscounting
commercial notes or loans secured by the pledge of security collateral, handlingof deposits of other banks held for settlement because of various transactions

among themselves, underwriting and selling of government bonds, and otherfinancial services for the government.

(2) Long-term Credit Banks
In Japan there are three banks whose functions are provided by the Longterm Credit Bank Act of 1952, that is, the Industrial Bank of Japan, the Long-

term Credit Bank of Japan and the Hypothec Bank of Japan.
Their main functions are the supply of funds for industrial firms for capital98 JIRO ONO
expenditure, for which funds are ordinarily raised by the issue of bonds.

They are not permitted to take in deposits of the general public, but onlyof the government, other public organizations and their clients.

(3) Ordinary Banks
By "ordinary banks" we mean the seventy-seven banks whose functions
are provided by the revised Bank Act of 1927.
They are classified into two kinds of banks, that is, thirteen "urban banks"and sixty-four "local banks." The former consists of so•-called large-scalebanks, such as the Sumitomo Bank, Sanwa Bank and Bank of Tokyo, which have

many branches-from 72 to 226-scattered throughout the country, though
only the Bank of Tokyo has a dual character as a special bank for foreign exchange

services as well as those of an ordinary bank. The latter banks are almost all
middle- or small-scale ones whose main banking areas are limited to a few prefectures.

It is often said that they carry out the same functions as savings banks andcommercial banks in USA or Europe, that is, their important operational functions

are the handling of demand and fixed-time deposits (in Japan demand deposits
are divided into savings deposits and current deposits, and the former cannot

be withdrawn by checks), short-term secured loans, discount of commercial
notes, investment of bank funds in securities, remittances by drafts, foreignexchange
services, etc. '(4) Trust and Banking Companies
In Japan, today there are eight financial companies of this kind such as the

Mitsubishi Trust & Banking Co,, Mitsui Trust & Banking Co., Chu6 Trust &Banking Co., and so on. They perform trust services as their main function,
including ordinary bank functions. But their legal character is the same as
the above-mentioned ordinary banks because trust and banking companies werealso established on the ground of the revised Bank Act of 1927.

(S) Mutual Financing Banks
They are previous mutual financing associations reorganized on the groundof the Mutual Financing Bank Act of 1951. Their main functions are handlingof deposits, loans, discount of commercial notes, remittance by drafts, etc. inaddition to mutual financing services, though their service area is usually limited

to one or two prefectures,
As will be also mentioned in the next section, the character of the present
seventy-two mutual financing banks is practically becoming the same as that of
Iocal banks, except that mutual financing banks cannot get commercial notes rediscounted at the Bank of Japan.

(6) Credit Companies
Most of the 535 credit companies were established by reorganization from

ON THE AUTOMATION OF BANI<ING IN JAPAN 99.
previous industrial financing associations, urban credit associations and so forth,on the ground of the Cfedit Company Act of 19Sl.
They are small-scale financial institutions which supply funds to small
firms. Credit companies receive the deposits of the general public including
their members, provide loans secured by a kind of certificate to the members,
discount commercial notes and handle domestic remittance services. To thegeneral public loans can be made only with the pledge of the borrower's deposit.
Their banking area is usually limited to a city or several wards of a city or a few
counties of a prefecture by the articles of the association.

(7) Other Financial Institutions
The above-mentioned are the main financial institutions in Japan.
However, in addition, we can point out eleven public financial institutions
such as the Nippon Development Bank, Financing Corporation for Small Business,and so on.
Agricultural co-operative associations, credit associations and depositories
for workers also function as considerably important financial institutions though
the scale of each is very small.

III
In this section, we wi!1 give an outline of actual states of bank automation,
especially the installation of PCS and EDPS in Japan. It is needless to describe
the installation of manykinds of billing machines and bookkeeping machines (forexample, NCR class 3000, NCR class D32, NCR class 2000, Burroughs series
F760, Burroughs series F2500, Friden Computyper, etc.), because they havealready been in use for deposits- or loan-services in each of the above-mentioned
financial institutions for many years.
As I have mentioned in the last section, Japanese financial institutions areclassified into several categories. The EDPS and PCS which are installed inbanks of each category are, as of March 1962, as follows:(1) The Bank of Japan (the number of branches is 44, the number ofoMcials is 7,290 and the amount of deposits is 2,117,033 million yen): IBM 1401

lset, IBM PCS 5sets.
(2) Long-term Credit Banks. The Industrial Bank of Japan (branches 11, oMcials 2,653, deposits 99,-700 million yen): IBM 1410 2sets, IBM PCS 6sets.
The Hypothec Bank of Japan (branches S, oMcials 486, deposits 3,707 million

yen): NEAC 1201(i) lset.

(3) Ordinary Banks

100

JIRO ONO

a. Urban BanksThe Fuji Bank (branches 189, oficials 11,183, deposits 816,731 million

yen): IBM 1440 lset, USSC type 80 2sets, OKITAC 5090B(2) lset, NCR
MICR Sorter-Reader 1, IBM PCS 3sets.
The Mitsubishi Bank (branches 160, oMcials 10,155, deposits 781,130 million yen): IBM 7010 lset, IBM 1401 2sets, Burroughs MICR Sorter•-Reader 1,

IBM PCS 4sets.
The Sanwa Bank (branches 187, oMcials 11,4ZFI, deposits 748, 325 million
yen) : USSC type 80 lset, IBM 650 lset, Burroughs B270 lset, Burroughs MICR

Sorter-Reader 3, IBM PCS 5sets.
The Sumitomo Bank (branches 155, oMcials 9,860, deposits 746,248 million

yen): NCR EIIiott 405 lset, NCR 304 lset, NCR 315 lset, IBM PCS 3sets.
The Tokai Bank (branches 172, othcials 9,196, deposits 535,317 million

yen): rBM 7070 lset, IBM 1401 lset, HITAC 3031(3) lset, IBM PCS 3sets.
The Dai-Ichi Bank (branches 105, oMcials 6,338, deposits 495,153 million

yen): IBM 1410 lset, IBM MrCR Sorter-Reader 1, IBM PCS 2sets.
The Mitsui Bank (branches 107, officials 6,812, deposits 473,808 million yen) :IBM 1401 2sets, IBM PCS 5sets.
The Kyowa Bank (branches 226, oficials 8,156, deposits 352,505 million

yen): IBM 1401 lset, IBM PCS 3sets.
The Daiwa Bank (branches 112, oMcials 6,520, deposits 327,700 million yen) :IBM 1410 lset, IBM PCS several sets.
The Bank of Kobe (branches 146, oMcials 5,200, deposits 257,940 million
yen): IBM 1410 lset, IBM PCS 4sets.
The Hokkaido Takushoku Bank (branches 113, oMcials 4,056, deposits
210,698 million yen): IBM 7070 lset, !BM PCS a few sets.
The Nippon Kangyo Bank (branches 126, oficials 6,646, deposits 476,034
million yen): IBM 1401 2sets, Burroughs MICR Sorter-Reader 1.

b. Local BanksThe Saitama Bank (branches 98, oMcials 3,758, deposits 301,647 million yen) :IBM 1401 lset, IBM 1460 2sets, NCR 513 lset, IBM PCS 3sets.
The Shizuoka Bank (branches 143, oficials 3,174, deposits 191,395 million

yen): IBM 1440 lset.
(1) The EDPS made by the NEC (the Nippon Electric Co.). Series 1201 is one of the smallest-scale computers, that is, its internal memory is 120 words, though the NEC is now
making other type of computers of middle-or large-scale size, for example NEAC 2203,

NEAC 2230 and so on.
(2) Amiddle-scale EDPS made by the Oki ElectriÅë Industry in Japan. This series EDPS
has an internal memory of 4K or 8K words.
(3) A middle-scale EDPS, of 40K characters, which is made by the HitaÅëhi Seisakusho inJapan.

ON THE AUTOMATION OF BANKING IN JAPAN 101
The Hokuriku Bank (branches 131, oMcials 3,160, deposits 182,084 million

yen): IBM 1401 lset, IBM PCS 2sets.
The Yokohama Bank (branches 86, oMcials 2,514, deposits 172,435 million

yen): NCR 315 lset, FACOM 212(4) lset, PCS 2sets.
The Yamaguchi Bank (branches 112, oMcials nearly 1,900, deposits 140,479
million yen): IBM 1401 lseti
The Kyoto Bank (branches 49, oficials 1,086, deposits 68,997 million

yen): IBM PCS lset.
The Ohita Bank (branches 71, odicials 1,201, deposits 46,776 million yen):

PCS 2sets.

(4) Trust and Banking Companies
The Mitsubishi Trust & Banking Co. (branches 29, oMcials 2,262, trust
deposits 506,945 million yen, other deposits 75,830 million yen): IBM 1401
2sets, IBM 1460 lset, IBM 7040 lset, IBM PCS 3sets.
The Sumitomo Trust & Banking Co, (branches 31, oMcials 2,420, trust
deposits 4xlS,612 million yen, other deposits 71,579 million yen): IBM 1401 lset,

IBM PCS 7sets.
The Mitsui Trust & Banking Co. (branches 29, oMcials 2,245, trust deposits
348,800 million yen, other deposits 66,536 million yen): IBM 1401 2sets, IBM
PCS 6sets.
The Toyo Trust & Banking Co. (branches 22, oMcials 1,909, trust deposits
374,454 million yen, other deposits 17,242 million yen); RR EDPS lset.
The Yasuda Trust & Banking Co. (branches 28, oMcials 1,844, trust deposits
203,272 million yen, other deposits 41,423 million yen): Burroughs 205 lset,

OKITAC 5090M 2sets, IBM PCS 5sets.
The Nippon Trust & Banking Co. (branches 24, oMcials 1,192, trust deposits
20,482 million yen, other deposits 48,431 million yen): IBM PCS lset.

(5) Mutual Financing Banks
The Nippon Mutual Financing Bank (branches 127, oMcials 3,708, deposits
179,824 million yen): IBM 1401 lset.
The Heiwa Mutual Financing Bank (branches 30, deposits 42,996 million

yen): IBM PCS lset.
The Hyogo Mutual Financing Bank (branches 59, oMcials 2,099, deposits
39,297 million yen): ICT-Samas PCS lset.
The Tokyo Mutual Financing Bank (branches 30, oMcials 2,O06, deposits
34,230 million yen): ICT-Samas PCS lset.
The Nagoya Mutual Financing Bank (branches 40, oMcials 1,653, deposits(4) A small-scale computer, of 56 words memory, which is made by the Fuji Communication Apparatus Mfg. Co. in Japan.

102

JIRO ONO

33,758 million yen): IBM 1"O lset.
The Fukutoku Mutual Financing Bank (branches 29, oMcials 2,291, deposits
31,903 million yen): IBM 14-40 lset.

The Chuoh Mutual Financing Bank (branches 45, oMcials 1,669, deposits
29,641 million yen): IBM PCS lset.
The Kinki Mutual Financing Bank (branches 43, oMcials 1,803, deposits
28,352 million yen): ICT-Samas PCS lset.
The Kure Mutual Financing Bank (branches 25, oMcials 534, deposits
6,834 million yen): NEAC 1201 lset.
(6) Credit Companies
The Shiba Credit Co. (branches 12, oMcials 554, deposits 14,547 million

yen): HITAC 201 lset.
The Hiroshima Credit Co. (branches 22, oMcials 592, deposits 14,328 mil-lion yen): NEAC 1201 lset.
The Tokyo Industrial Credit Co. (branches 9, oMcials 503, deposits 13,325

million yen): RR 1004 lset, IBM PCS lset.
The Chuoh Credit Co. (branches 10, oMcials 338, deposits 11,220 million
yen): RR PCS lset.
The Ueno Credit Co. (branches 5, oMcials 330, deposits 10,139 million
yen): RR 1004 lset.
The Arakawa Credit Co. (branches 7, oMcials 322, deposits 9,311 million
yen): NEAC 1201 lset.
The Tohbu Credit Co. (branches 9, oMcials 402, deposits 9,109 million yen) :RR 1004 lset.
(7) Other Financial Institution
Though the EDPS or PCS installed cannot be individually shown here,
generally, each of the other public financial institutions-for example, the Nippon

Development Bank-has a set of EDPS or PCS, almost all made by the IBM
Corporation.

However, agricultural co-operative associations or credit associations,that is, other small local financial institutions have not yet obtained such a high-grade oMce machine except in a very few cases.

rv
In this fourth section, we shall try to consider the contents and the importantfeatures of application of the many kinds of machines, especially of the EDPS or

PCS, in banking operations in Japan.
(1) Motives for Automation of Banking in Japan after World War II.

After World War II, the mechanization of banking oMce-work in JapanON THE AUTOMATION OF BANKING IN JAPANhas been promoted by six motives as follows:
The first is the inflation of currency just after the War.
The increase of circulating currency necessitated the installation of manykinds of machines at the windows of each bank. That i$, in this early period of
the after-war era, tellers-machines, other accounting machines for deposit bookkeeping, counters for metallic- and paper-currencies, etc. were considerably wellprovided.
The second motive is the strengthened financial control of the governmenton the ground of the execution of the so-called Dodge Policy for the recovery ofJapanese economic stability.
Since the execution of this policy in 1949, the Ministry of Finance and the

Bank of Japan have made their-irect and indirect-control of all kinds offinancial institutions stronger. As the result, most banks have been required
to prepare many kinds of reports and statistics in regard to their banking opera-tion, not only to provide the Ministry of Finance and the Bank of Japan withdata for financial control, but to carry out their own loan-management more

carefu!ly. To facilitate this procedure, a PCS or EDPS based on punchedcards has been installed. This tendency to install the PCS or EDPS for preparation of many kinds of statistics, as we will state later too, is still seen atpresenL
The third is the increase of clerical work on account of the rapid growthof Japanese economic activities.
Even at the present, we are sure that the increase of clerical work measured
by the number of a!l kinds of slips processed-is, on the average, from eight tofifteen percent a year.
The fourth motive is the tendency for the amount of a transaction-unit tobecome smaller and smaller as the result of severer competition, especiallycentering around the collection of deposits, among banks.
As the result of the great damage suffered by Word War II , and because
of inflation, which is still in progress at present, the reformation of the taxation

system and the change of various other social and economic systems, the Japanesebanking system has had the constructional feature of "Over Loan" since theWar.
Because of this constructional feature, financial institutions, even largescale urban banks, have had to compete with one another to collect deposits ofeven small amounts. Thus, the variety of deposits and loans cannot but increase.

as we can see in the motto "Development of a New Products" of a bank.
It will be needless to say that this state of affairs is one of the most impor-tant factors which increases oMce work, though its effect cannot be measured
separately from one of the third motive.

103

104

JIRO ONO

The fifth is the diMculty of securing employees and the rising tendency of
personnel expenses, especially for the young generation.
In addition to this diMculty, we must consider such factors as deteriorationin the quality of employees, high cost of oMce-space, and the limit of personnel

managements in a oMce.
In the present state of affairs, banking operation dependent on the manual

work of many employees is becoming impossible, at least in urban financial
institutions.

The sixth motive is the generalization of our modern business management
concept that regards data-processing as one of the most important tools for

management.
This concept of the so-called Management Information System that uses
a high-grade EDPS as its central information sensorium for decision making
has recently attracted the attention of management or data processing specialists.
In Japanese financial institutions too, this concept is moving toward generali-zation. And we are sure that this conceptual tendency in regard to management
has a considerable influence on the promotion of banking automation, especiallyon the recent installation of EDPS in urban banks.
With these motives, the automation of banking in Japan has progressed forthe last nineteen years.

(2) Application Fields of the EDPS or PCS
Though the application fields of the EDPS or PCS are of course not always
completely the same among various banks, as main fields we can show the following: that is, handling of deposits, loan operation, clearance and classificationof checks or notes, settlement of accounts between the head-ofice and branchothces, domestic remittance by drafts, services for deposits (demand deposits,
fixed-time deposits, trust deposits), payroll, information retrieval for personnel

management, accounting or bookkeeping, preparation of all kinds of statistics(especially on each kind of loan and deposits), investment analysis in securities,
financial analysis of each branch or each special service (for example, trust service),

inventory management for oMce supplies etc.
These main fields of application are almost the same in small-• or middle-scalefinancial institutions, too, Even banks, which have not yet installed a EDPS or
PCS or which have only insuMcient machines to process all of above-mentioned
fields automatically, intend to apply the EDPS or PCS to these fields in the future,

though special banks-for example, trust and banking companies-regard thespecial field as the most important in promoting their banking automation.
(3) Features of Application of the EDPS or PCS
However, the method and degree of the above--mentioned application,
especially the scale or kind of EDPS installed, are different among banks, andON THE AUTOMATION OF BANKING IN JAPAN 105
each of the application-fields has not always the same weight in the present au-

tomation of banking.
The following is a statement of several features in the character of banking

automation in Japan.
First, we must consider the correlation of the installation of a EDPS or PCS

with the scale and the character of banks,
According to the opinion of Prof. M. Beika (Professor of Bussiness Administration, The Research Institute for Economics and Business Administration,
Kobe University), there is the following tendency in regard to the installationof the EDPS or PCS:In thirteen urban banks a relatively large-scale EDPS, which consists of a

Iarge-scale computer such as IBM 7070-in a few cases it has a small-scalesatellite computer as an auxiliary-or a few middle-scale computers such as
USSC, is likely to be used at banks which have deposit-amounts over 500 billion

yen, oMcials over 9,OOO and branches over 150. An EDPS which consists of a
middle-scale computer seems to be installed at banks which have deposit-amounts
from 200 billion to 500 billion yen, oflicials from 5,OOO to 8,OOO and branchesfrom 100 to 150, but exceptional cases are the Hokkaido Takushoku Bank andBank of Tokyo.
In sixty-four local banks, only seven banks have installed an EDPS or
PCS. However, except for the Saitama Bank which is larger than the Bank ofKobe in its deposits-amount and which has installed a considerable large-scale
EDPS nearly equal to that of large-scale urban banks, here also is a tendency fora middle- or small-scale EDPS as IBM 1410, 1401, 1440, etc. to be installed atbanks which have deposits-amount from 150 billion to 200 billion yen, oMcials
from 2,OOO to 3,OOO and branches from 80 to 100.

Of eight trust and banking companies, each of the five companies whichhave deposits-amount from 250 billion to 600 billion yen, oMcials from 1,900 to

2,400 and branches from 20 to 30 has a large- or middle-scale EDPS which isnearly equal to that of large-scale urban banks.

The other remaining companies are so small in comparison with the abovementioned five that they cannot yet install an EDPS.
Of seventy-two mutual financing banks, eights banks have already installed

such a small-scale EDPS or PCS as IBM 1401, RR 1004, ICT-Samas PCS, etc.
These banks range from 30 billion to 180 billion yen in deposits-amount,from 1,600 to 3,700 in the number of oMcials and from 30 to 127 in the numberof branches, except in the case of the Kure Mutual Financing Co.
Of 535 credit companies, each of seven companies which range from 10billion
to 15 billion yen in deposits-amount, from 300 to 600 in the number of oficials
and from 5 to 22 in the number of branches has installed a small-scale EDPS or

106

JIRO ONOa PCS.
On the correlation of the installation of a EDPS or PCS with the scale ofthe bank, we are also sure that there is such a tendency as above-mentioned,in the present state of banking automation in Japan.
Secondly, however, we must pay attention to the fact that some kinds of bankswith a certain scale in regard to deposits-amount, othcial-number and branchnumber have not always instalied a certain scale of EDPS or PCS. Though thisfact is not seen in urban banks or trust and banking companies, it can be remark-ably observed in local banks, mutual financing banks and credit companies, thatis, in financial institutions with local characters.

In other words, generally speaking, it is pointed out that banks whichhave many branches all over the country have promoted their oMce automation
to a considerably high degree and each bank has an EDPS suitable to its scaleof banking operations, but that, however, the automation of financial institutions

with local characters has not progressed so much and that the automation ofeach institution has not always been promoted in the same manner.
Local banks especially have not so earnestly promoted their banking automation as urban banks. Many of the local banks, in the installation of an EDPS or

PCS, are behind even the mutual financing banks and credit companies which
exist in such large cities as Tokyo, Nagoya and Osaka. That is, some of theabove-mentioned local financial institutions have relatively far promoted theirbanking automation in comparison with their scale of operations.
Here, we can find an important feature that a financial institution, whose
operation area is a large city or its environs, has a more positive tendency toinstall an EDPS or PCS than other institutions.
This tendency seems to be the result brought about by its operating conditions in that the above-mentioned six motives are more seriously felt becauseof its existence in a large city, and that the concentration of its relatively small

number of branches in a narrow area makes the formation of the so-called Integrated Data Processing System much easjer. On the other hand, because of the lackof these conditions, other local financial institutions are not able to promote so
positively their banking automation in spite of their relatively large-scale operatlons.

However, we must point out another feature, that is, each of the institutions
has a tendency to install the same kind of EDPS or PCS as that of other similar
institutions which have already been installed.

For example, when once the Bank of Japan instailed a PCS of IBM, somelarge-scale urban banks followed the example and all together installed the samekind of PCS.
Even today, this tendency has an important influence on the banking

ON THE AUTOMATION OF BANKING IN JAPAN 107
automation of Japan. While on the one hand several local smaller financial
institutions of the same kind in nearly the same area are about to install com-

petitively a certain kind of EDPS or PCS, on the other hand, many largerscale local banks have not yet a basic idea of the automation of banking becausevery few of them have installed such high-grade oMce machines. The installationof an EDPS in Japanese financial institutions is decided not only by their own
operating need but also by the motive of other similar institutions.
Thirdly, we desire to state the features of the main application fields or thegrade of application of the EDPS.
As we have already mentioned, even at present, one of the most important
application fields is the preparation of statistics, especially in regard to loans,though statistics in regard to foreign exchange, deposits, owned securities,
personnel management, etc. have also considerable importance.
In the present Japanese banking system, the preparation of loan statistics-daily, weekly and monthly-means to provide the management with the mostimportant information for decision making, in addition to giving the Ministryof Finance and the Bank of Japan necessary data for the financial control ofJapanese economy.
Also in other application fields, a few banks attain a considerable highgrade banking automation stage.
The first topic is the application of the On-Line System to savings-deposit.
servlces.
Concretely, at present, only the Mitsui Bank is developing the On-Line
System which consists of two sets of IBM 1410, and trying to connect its dataprocessing center with about thirty branches in the City of Tokyo.
Though al1 large-scale urban banks are still at the stage of watching theresults of the Mitsui Bank experiment, they regard the On-Line System indeposit services as one of the most important application fields.

For example, the Sanwa Bank has tried to concentrate its savings-deposits
works of the busiest six branches in the City of Osaka in the data-processing
center in the head-oMce as a preparatory step in the realization of the On-Line

System. The Tokai Bank has also developed the same system.
In this system, the record of savings-deposits received in each branch is-by NCR 2000-punched on paper tape, and at the same time typewritten on
the customer's passbook. At the end of the day the punched tape is collectedby mail-cars. Afterwards the punched tape is converted into cards, the data
being processed by the EDPS. Calculation of interest, bookkeeping, summing
up of the day's deposits-amount, preparation of records necessary for the operation of each branch, etc. are carried out within the day, though by work beyond
oMce hours. By nine a.m. of the followingday, the records necessary for their

108 JIRO ONO
daily work is returned to each branch.
It is said that by this system it has become possible for the busiest branchwith the narrowest operating space to give suMcient attention to customers.

Though this type of system is not the so-called On-Line System from a
serious point of view, the experiment is useful to l'nvestigate the possibility ofconcentration of savings-deposits work.
And, in the present state as it is too, it seems to have a considerably profitable effect, especially in financial institutions with a relatively small numberof branches in a large city. Some of the above-mentioned mutual financing
banks and credit companies intend to adopt this type of system in the near future.

The second topic is the automatic settlement system of domestic exchangeof the Tokai Bank.

This EDECS-Electronic Data Exchange and Control System-which isconstructed with HITAC 3031, a specially designed EDPS for its data processing
is a kind of On-Line System for the settlement of dornestic exchange accounts
between the head-oMce and its branches, and it also seems to play an importantpart in the settlement of other accounts among oMces.

The development of this type of EDPS is a remarkable feature in theJapanese banking system which is built on several large-scale urban bankswith many branches,
It is one of the most important application fields whose structure we must
consider more intensively.
The third topic is the application of the so-called MICR for classification andother kinds of data processing of checks and notes which have already been exch-

anged.

In a few large-scale banks, the code numbers of each branch are, with amagnetic ink character, typewritten on already exchanged checks and notes,
and according to this code number their classification is carried out.
At this point the application still now remains in an experimental and primitive stage, because its data processing is limited to the classification of checks

and notes within a bank. And we must also consider the more serious problem
whether the system, the MICR or OCR, is suitable to the Japanese banking
system or not.
Facts that prohibit the generalization of MICR are found in various Ja-

panese banking conventions. The most important is that the check system
is not so generally used for transactions as in the USA, and that therefore mostof the smaller financial institutions cannot economically use the MICR system,or cannot install the equipment necessary for the MICR system. The numberof checks circulating in Japan seems to be only one-hundredth or one-fiftieth ofthat in the USA.

ON THE AUTOMATION OF BANKING IN JAPAN
Another important fact-though it is felt as a serious prohibitive course in
all of the other application fields of the EDPS-is the technical backwardnessof each apparatus made in Japan, especially for input-output of data. This factmeans that the general adoption of MICR in Japan cannot but depend on expensive apparatuses made in foreign countries because banking operations require
high-grade reliability of machines, and that, also on this point, most of thesmaller

financial institutions cannot profitably install equipments necessary for the

MICR system.
However, in accordance with the development-of technique and consciousness-of banking automation in other operation fields, the MICR or OCR
will be adopted to a great extent. All financial institutions regard it as one of

the most important application fields.

The fourth topic is information retrieval for personnel management by
the EDPS. For example, in the Sanwa Bank, detail data of 11,441 oracials are
all filed on magnetic tapes at the data processing center. The necessary data,
for example, to organize a task force to carry out a certain project, can be retriev-

ed without delay, complying with the personnel management division.
In such a large-scale and complex business organization as an urban bankin which many employees of high-grade jntelligence are important factors for
its growth, a rapid and correct personnel management is one of the decisive
strategles.

In addition to this fact, we must pay attention to the possibility that thesystem may develop into a more wide-range information retrieval system, including the retrieval of other necessary information for the whole of management.

v
In this paper, so far, we have described the present state of banking auto-

mation in Japan, and examined some features or problems involved.
In the progress of oMce automation of banks in Japan, there are some prohibitive factors dithcult to solve, that is, the technical backwardness of apparatuses

made in Japan, conservative attitude of local banks toward promoting banking
automation, diMculty in regard to personnel management, (in Japan, it is very
didicult to adopt a special attractive salary system and a three-shift operating
system for the data processing center of business because of the seniority ruleand the Labor Standard Law.) and some other prohibitive factors dueto Japanesebanking conventions.
However, beyond these diMcult problems, financial institutions in Japan

will promote the automation of their banking operations. And we arealso
sure that they must endeavor to attain this purpose not only in order to grow109

JIRO ONO

110

themselves but also

in order todevelop the whole of Japanese economy.
1964, 12. 13.

A PRESENTE ETAPA DO DESENVOLVIMENTO

A -v DO JAPAO*ECONOMICO
Yoshiaki NIsHIMUKAI

A base da economiajaponesa foi destruida durante a segunda guerra mundial.
E largamente sabido que as prineipais ind"strias foram arrazadas muitas vezes
pelos ataques a6reos dos paises aliados. N5o 6 exagerado dizer que o desenvol-

vimento da economia japonesa depois da guerra, se iniciou em meio a 6sse
verdadeiro caos. Assim, a economiajaponesa, tem se reconstruido apassos lentos
por volta de 1955, porem, ja tinha ultrapassado a etapa da reconstrugao e entrado

na fase do novo desenvolvimento. Realmente, pr6priamente dita, se n6s observarmos uma das cidades, nao encontraremos nenhuma cicatriz da terrivel destruigao da guerra e nao nos parecera aquela que foi destruida ha quinze anos.

0 desenvolvimento econ6mico do Japao depois de 195S, 6 bastante notavel
e a m6dia da taxa anual do crescimento econ6mico da-nos porcentagem de 10
por cento. A taxa anual de aumento da renda real nacional per capita foi de 7
por cento no periodo de 1953 a 1959. Esta taxa foi a maior do mundo, Considerando que, no mesmo periodo, essa taxa dos Estados Unidos foi de O,80/o,na Inglaterra, de 2,10/., na Franga, de 3,70/o, na Italia, de 4,20/o e mesmo na

Alemanha Ocidental, de 5,30/o, podemos compreender a rapidez do crescimento
da renda japon6sa. Ademais, em apenas dois anos, 1959 e 1960, a renda realjaponesa cresceu cerca de 30 por cento, e a produgao industrial e mineral mostrou

o aumento espantoso, de mais de 50 por cento. Baseando-se neste rapido
crescimento econ6mico, os nUcleos da politica econ6mica do atual governo,mantem a taxa anual de crescimento econ6mico em 9 por cento e esperam duplicar a renda nacional nos pr6ximos 10 anos.
A rapidez do desenvolvimento era tal que surpreendeu os pr6prios japoneses.
Era, portanto, natural que se tornasse aivo de intresse da parte de outros paises.

Assim, uma revista norte-americana descreve o problema:"Os lideres das ind6strias japonesas se mostram confiantes de si, a pontode afirmar coisas gue para os norte-americanos, seriam impossiveis, isto 6,
esses industriais opinam que a economia japonesa faria duplicar, nos pr6ximos
10 anos, a renda nacional sem provocar a inflagao."
Diz ainda o articulista que, para as pess6as que visitam o Jap5o pela primeira'*Conferencia pronunciada no Curso de Introdugao a Cultura Japonesa do Instituto Mackenzie

a 14 de setembro de 1961.

112

YOSHIAKI NISHIMUKAI

vez, esta afirmagao afigurar-se-i como sendo fUtil e sem nenhuma base, porque oJapao tem poucos recursos e, por tanto, 6 forgado importar quasi 90 por centode petr61eo, 80 por cento de ferro, 45 por cento de outros metais, cem por centode algodio e de borracha e 50 por cento de outras mat6rias primas. Apesar
disso, osjaponeses declararam gue o Jap5o pode realizar a sua meta. Na realidade, a experi6ncia japonesa nos Ultimos 10 anos indica que hi possibilidade
de aumentar a sua taxa de crescimento ainda mais rapido. E essa mesma revista
qualifieou o crescimento econ6mico nos filtimos anos de "desenvolvimento ajato."

Agora, em que fatores se baseia este r6pido crescimento da economiajaponesa? Talvez, possamos apontar dois fatores principais: o primeiro 6 o aumento

notavel do investimento nos equipamentos que se verificou depois de 1955,
cuja taxa anual alcanga a 290/.. Essa taxa alta de aumento do investimento 6
raramente verificada em outros paises. O aumento do investimento nos equipamentos pode ser exprimido melhor com as palavras "inovagao tecno16gica,"
Pela circunstancia de que a inovag5o tecno16gica no Japao consiste na introdugao
da tecnologia avangada e no melhoramento tecno16gico nas indtistriasja' existentes,

a inovag5o teve de aparecer de maneira drastica.

O segundo 6a chamada "revolug5o dos bens de consumo" no campo daprocura. Esta revolugao de consumo significa a expanszao de procura de utilida•des domesticas, isto e, a de bens duraveis de consumo, tais como televis5o, mi--guina de lavar e equipamento de ar condicionado. Essa expans5o estimulou
as indtistrias e, indiretamente, outros setores que tem relag6es com essas in-p

dfistrias. Como fatores que trouxeram a revolugao de consumo, podemos
enumerar o melhoramento do nivel de vida dos trabalhadores em decorr6ncia
do desenvolvimento dos sindicatos depois da guerra, e a elevacao do nivel deconsumo dos campon6ses, elevagao esta baseiada principalmente na reforma
1.
agrarla.
Ademais, podemos considerar os fatores peculiares no Jap5o que possibilitaram o ripido crescimento da economia japonesa, entre os quais podemos citara existencia da f6rga de trabalho em abundancia, o alto nivel de acumulagao docapital que se conseguiu no passado, gragas ao baixo nivel de salario, e a alta taxa

de poupanga. S6bre estes fatores voltarei a abordar mais adiante. 'Agora, vamos examinar se a economia japonesa tenha a possibilidade decontinuar seu crescimento rapido, ou, se o rapido crescimento, que foi possibili-tado pelos fatores acima referidos, seja um fenomeno temporario. Em outras
palavras, vamos examinar a situagao do rapido crescimento no processo dodesenvolvimento econ6mico do Japzao. N5o basta apreciar apenas os indicesecon6micos superficiais, tais como a taxa de crescimento e o nivel de renda.
Precisamos considerar a etapa atual do desenvolvimento econ6mico dentro deAPRESENTEETAPA DO DESENVOLVIMENTO 113
ECONOMICO DO JAPAO
uma conjuntura mais ampla s6bre a qual se baseia esse desenvolvimento. Creioque e mais "til observar este problema do que analizar s6mente a prosperidade

atual da economia japonesa. Assim pensando, gostaria de tentar esclarecer
resumidamente a presente etapa do desenvolvimento econ6mico do Japio.
Temos uma obra bastante concisa que se refere i present etapa do desenvolvimento

econ6mico do Japao. E a obra do prof. Rostow intitulada "The Stages of
Economic Crowth". Como a tradugao da obra foi publicada em portugues
neste ano, creio que alguns dos senhores tenham tomado conhecimento.
Neste livro, o prof. Rostow esclareceu cinco etapas do desenvolvimento
econ6mico. A primeira etapa 6 a chamada "sociedade tradicional", isto 6, asociedade primitiva que esta produzindo alimentos para a subsistencia como se

observa ainda em algumas sociedades. A segunda etapa 6 "a sociedade em
pleno processo de transig5o", onde esta comegando o investimento e estao acon-

tecendo os comercios, algumas indUstrias e a atividade banciria. A terceira
etapa 6 "o arranco", ou seja "take off", que 6 a etapa mais importante do desen-volvimento econ6mico. Os paises que agora estao nesta etapa sao a India ea
China Comunista, onde a produgao industrial esta aumentando e a poupanga
tambem esta crescendo em decorrencia do aumento da renda nacional e 6 possivel investir de 50/. a 100/. da renda nacional.

A quarta etapa do desenvolvimento econ6mico 6 a da sociedade que esta
continuando "a marcha para a maturidade," tendo como exemplo o Mexico atual,
onde 6 possivel investir de 100/. a 200/, da renda nacional e entrar na etapa damaturidade tecno16gica. Segundo o prof. Rostow a economia japonesa se
achava numa fase adiantada dessa quarta etapa, ja em 1940, isto 6, antes daaltima guerra mundial.

A quinta etapa 6 "a era do consumo em massa". Alguns paises desenvolvidos, entre os quais os Estados Unidos, ja est5o nesta etapa, em que se proces-sa a diversificagao da produgao caracterizada pela alta produtividade e sendo

variedades dos bens de consumo muito numerosas, acompanhada de aperfeigoamento de seguro social, e encurtamento gradual das horas de trabalho. Os
paises que na atualidade estao nesta etapa s5o os Estados Unidos, Canada,
Inglaterra, a Australia, a Su6cia, a Franga, e a Alemanha Ocidental. O prof.
Rostow argumentou que a economia japonesa entrou nesta era de consumo em
massa no decenio inaugurado em 1950.
Essa 6 uma das definig6es importantes da presente etapa do desenvolvimento

econ6mico do Jap5o, que n5o deixou de exercer forte repercussao s6bre os
japoneses. A meu ver, a tese do prof. Rostow, em primeiro lugar, foi grandemente aceitada porque at6 ent5o estavam habituados os japoneses com a teoria
germanica das etapas do desenvolvimento econ6mico. Entretanto, gostaria deexpressar a minha opiniao, fazendo algumas restrig6es atese do prof. Rostow.

114

YOSHIAKI NISHIMUKAIEm primeiro lugar, hi certa dthvida no argumento de que a economia japonesa ja tenha ultrapassado a etapa da "maturidade tecno16gica" antes da
Ultima guerra, Segundo a definigao do prof. Rostow, a "maturidade teenol6gica" e o processo em que a tecnologia moderna acaba sendo aplicada na utilizag5o da maioria dos recursos num pais. Estava neste sentido a economia
japon6sa em 1940 na etapa da maturidade tecno16gica? Lembrando apenas aexistencia da agricultura atrasada, esse argumento do prof. Rostow seria
duvidoso. Ele tenta responder a esta questfio, apontando a utilizagao muito intensiva da terra no Japao, mas esta resposta n5o 6 convincente. Oseu argumento

nos parece ser incompativel com o fato de que, no periodo de post-guerra,
esta se procedendo rhpidamente a inovagio tecno16gica em todos os setores das
indUstrias e esta inovag5o 6 uma das causas do ripido crescimento econ6mico do
Jap5o.

E, segundo lugar, ha davida quanto at aplicabilidade indiscriminada dadefinig5o de etapa do consumo em massa dos bens de consumo no Jap5o como
nos paises europeus e nos Estados Unidos. Na atualidade, creio que a economia
japon6sa se acha no inicio do consumo em massa, e nao estaria na era do consumo

em massa no sentido verdadeiro.
Sobretudo, como referi no inicio, na economiajaponesa atual pode-se obser-•var simultaneamente os dois fatores, isto 6, a inovagao tecno16gica e a mudanga

da forma de consumo. Francamente falando, podemos notar a grande distancia
entre a realidada de economia japonesa e a tese do prof. Rostow.

Mas, ncto ha um modo de pensar que possibilite a compatibilizar dois
pontos em foco? Podemos considerar que a presente etapa do desenvolvimento
do Jap5o 6 a 6poca em que a marcha para a maturidade tecno16gica e a transferencia ao consumo em massa no alto nivel sio fen6menos concomitantes.

O prof. Rostow definiu a etapa anterior ct marcha para a maturidade
tecno16gica, como sendo a etapa do "arranco", e ainda prevendo uma fase dapr6-condig5o para este arranco, para assim sistematizar as etapas do desenvolvi-

mento econ6mico. No caso tipico como na Inglaterra, a revolugao agraria
formou a pre-condig5o, e, portanto, independentemente poderiamos estabelecera etapa do arranco. No Japio, todavia, depois da restauragao Meiji em 1868,o aumento da produtividade na agricultura e a industrializacao marcharam
simultaneamente. Neste sentido, podemos considerar que a formag5o das
pr6-condig6es e o arranco na economia japonesa foram fen6menos simultaneos. A justaposigio de algumas etapas do desenvolvimento resulta doretardamento do desenvolvimento econ6mico. Em outras palavras, geralmente a economia retardada pode entrar no processo do "crescimento continuado", apenas quando sucede o inicio simultaneo de varias etapas do desenvolvimento econ6mico. Sera possivel aplicar esta hip6tese na presente etapa

APRESENTEETAPA DO DESENVOLVIMENTO 115
ECONbMICO DO JAPAO
da economia japonesa.
Agora, se a presente etapa do desenvolvimento econ6mico do Japao se achana etapa acima referida, quais seriam as possibilidades do manter o seu rapido

crescimento econ6mico? Vou tentar explicar este problema detalhadamentemais adiante, mas em suma, uma eqonomia em que se verifiquem concomitantemente a inovagao tecno16gica no setor da oferta e a mudanga da forma
do consumo no setor da procura, teria os fatores para o rapido crescimento
econ6mico. Porque os dois lados, isto6, a oferta e a procura, operam mtituamentee criam a situagao muito dinamica. Portanto, se tentarmos explicar a possibilidade de manter o rapido crescimento econ6mico sem negar a tese do prof.
Rostow, poderiamos explica-la com a sobreposig5o das etapas do desenvolvimento

econ6mico, ou os fatores duplos.
Em seguida, gostaria de apresentar mais uma tese que disp6e a etapa do
desenvolvimento econ6mico do Japio, no sentido comparativo com a do prof.

Rostow. Essa6atese do prof. Lewis (The Theory of Economic Growth).
Ele tenta compreende; etapas do desenvolvimento econ6mico em relagao
h mudanga da taxa de acumulagao do capital e da oferta da forga de trahalho. O

prof. Lewis divide o desenvolvimento capitalista em duas etapas. A primeria
pode ser caracterizada por oferta ilimitada da mao-de-obra e na segunda esta
oferta da mZo-de-obra torna-se limitada.
Na primeira etapa, o capital pode ser acumulado, baseando-se na oferta
ilimitada da forga de trabalho, ou, em outras palavras, no baixo nivel de salarios.

Mas, uma vez que a taxa de acumulagao do capital alcanga a taxa de aumento
do trabalho, a taxa de lucro decresce em principio, por causa do aumento dataxa de salarios e, por isso, a taxa de crescimento econ6mico tamb6m tornarse-ia baixa. Segundo a prof. Lewis, a Inglaterra e a Franga ji entraram na

segunda etapa em meados do s6culo XIX, e a Alemanha por volta de 1950.
Assim, ele argumenta que a economia japonesa entrara na segunda etapa nos
pr6ximos dez anos, baseando-se na previsio de que a taxa de crescimento
demogrifico decrecera rapidamente.
Como observamos facilmente, ha grande diferenga entre estas duas teses que

definiram a presente etapa do desenvolvimento econ6mico do Japzao. Segundo oponto de vista do prof. Lewis, a atual economia japonesa se encontra ainda na

primeira etapa do desenvolvimento capitalista. E o seu rapido crescimento
econ6mico pode ser explicado pela existencia de mio-de-obra em abundancia,
pelo baixo nivel de salarios, e pela alta taxa de lucros. Conforme o calculo
econ6mico, as caracteristicas da atual economia japonesa sao a alta taxa de inversao, a alta taxa de poupangas, o baixo nivel de salarios, e a alta taxa de cresci-

mento econ6mico. Por conseguinte, nao sao poucas as pessoas que concordam
com essa tese. Apesar disso, n6s encontramos ainda duas restrig6es nesta tese.

116

YOSHIAKINISHIMUKAIEm primeiro lugar, a hip6tese de que a oferta de mao-de-obra e muito
elastica, nao 6 valida na realidade da economia japonesa, porque a taxa desalario tem sido aumentada nottivelmente nesses IS anos. Em segundo lugar,
a simplificagio de todos os fatores do rapido crescimento na oferta da mao-

de-obra n5o corresponde h minha opini5o, embora a anilise do prof. Lewis
seja limitada ao campo da oferta. Ademais, sua tese s6bre as etapas do desenvo-

lvimento econ6mico desconsidera todos os fatores no campo da procura.
Nio obstante, 6 muito interessante observar o fato de que esta simplificagao

reflete as caracteristicas da economia japonesa mais do que a tese do prof.
Rostow. Como ji referi, a maturidade tecno16gica nesta tese e definida em

relag5o ao grau de utilizag5o dos recursos. Contudo, o prof. Rostow nao
introduziu a forga de trabalho nesses recursos. N5o analizou o fato importante
do emprego de mio-de-obra pelo capital. Por isso, ele concluiu que a economia

japonesa se encontrava na etapa da maturidade tecno16gica antes da Ultima
guerra mundial, embora houvesse muitos setores pr6-capitalistas nessa economia, tais como a agricultura e algumas pequenas indUstrias. Se 61e tivesse
observado a relagao entre o capital e o emprego do trabalho, concluiria que aatual economiajaponesa 6 anterior a maturidade tecno16gica, isto porque a segunda

etapa que o prof. Lewis definiu 6 a economia caracterizada pelo pleno emprego.
Considero que a atual economia japonesa esta na primeira etapa no sentido

do prof. Lewis, quando limitarmos apenas no setor da produgio ou da oferta.
Foi por essa raz5o que citei a tese do proÅí Lewis, apesar de certas restrig6es
acima citadas, para salientar o fator da forga de trabalho em confronto com ode consumo enfatizado pelo prof. Rostow.
Ap6s essas considerag6es gerais, entremos na analise especifica da economia

japonesa e examinemos a presente etapa do desenvolvimento econ6mico do
Japio, em relagao a seu processo hist6rico. Podemos dividir o desenvolvimento
econ6mico do Japao em tres etapas. A primeira e o periodo de 1868 a 1905 e aa segunda de 1906 a 1945, isto 6, o periodo compreendido entre as duas guerras mundiais, e a terceira, de 1946 at6 agora.

A primeira etapa corresponde h etapa do arranco definida pelo prof.
Rostow. A sua definigao, entretanto, nao basta para caracterizar a primeira etapa

do desenvolvimento econ6mico do Japio. Pois, segundo a definig5o do prof.
Rostow, a taxa do investimento ha de aumentar rbpidamente na etapa do arranco.

Mas, na primeira etapa da economia japonesa, essa taxa permaneceu mais ou
menos constante, variando de 180/. a 200/.. Essa taxa de inversao cresceu
consideravelmente na segunda etapa, tornando-se ainda mais notavel na terceira
etapa, especialmente ap6s 1955. Limitando nossa observagaoa taxa de inversao,

a econ6mia japonesa tem-se elevado o seu nivel de etapa em etapa e, assim,
podemos dizer que, atualmente, se encontra na etapa com a taxa de inversao maisAPRESENTEETAPA DO DESENVOLVIMENTO 117
ECONOMICO DO JAPAO
elevada.

Em segundo lugar, a m6dia da taxa anual de aumento da oferta da forga
de trabalho foi de 3,50/. na primeira etapa, 2,10/, na segunda, e na filtima etapa,

4,60/o. Devemos notar o fato de gue essa taxa decresceu na segunda etapa para
depois aumentar na terceira. A presente etapa do desenvolvimento econ6mico
do Japao 6 a etapa em que a taxa de aumento da mao-de-obra 6 a mais alta at6
hoje registrada.

Em terceiro lugar, a taxa de aumento da produtividade do trabalho, isto
6, a da produgio per capita, foi de, 1,90/. na primeira etapa, 3,80/. na segundae

5,10/o na tiltima. Como se observa, essa taxa tem sempre aumentado, desde a
primeira etapa at6 agora, sendo a taxa atual 2,5 vezes maior do que a da primeira.

Finalmente, a taxa de crescimento econ6mico, isto 6, a soma destas duas
taxas, foi de 5,40/. na primeira etapa, 5,90/. na segunda e de 9,70/, na tiltima.
Assim, atualmente o Japao se encontra na etapa em que a economia esta crescendo

muito rapidamente. Ademais, precisamos notar que esse rapido crescimento
6 mantido pela alta taxa de aumento da f6rga de trabalho e da produtividade, em

confronto com as duas etapas anteriores. Em outrag palavras, o crescimonto
econ6mico na primeira etapa baseou-se principalmente na alta taxa de aumento
de mao-de-obra e na segunda, pela taxa de aumento da produtividade. O crescimento atual, entretanto, 6 acelerado pelas duas taxas acima mencionadas.
Como se observa, o ponto de vista do meu argumento s6bre as etapas dodesenvolvimento econ6mico do Japio esta no campo da produgao, ou seja, daoferta e, por isso, a mudanga da relag5o entre o capital e o trabalho torna-se
um fator determinante. Nao obstante, a sua mudanga s6 foi mostrada indireta--

mente atrav6s da mudanga da produtividade do trabalho, porque nZo podemos
disp6r dos dados s6bre o estoque do capital, ou seja, "capital-stock" da economia

japonesa. Todavia, presume-se que o coeficiente do capital, isto 6, o volume
do capital necessario para produzir a unidade marginal do produto, tem sido

constante em t6das as etapas. Por conseguinte, podemos considerar que oaumento da produtividade do trabalho acima referido reflete a elevagao do intensidade do capital. Dessa forma, a atual economiajaponesa pode ser definida
como sendo a etapa em que a intensidade do capital e o emprego do trabalho
estio aumentando rapidarnente. A rapida elevagzao da intensidade do capitalsignifica a introdugao da nova tecnologia e, por isso, 6 o demonstrativo de que a
inovagao tecno16gica tem sido o fator principal do ripido crescimento econ6mico

do Japao.

Em seguida, vamos examinar como sera a economia japonesa no pr6ximo
futuro. Com isso, poderemos responder ao importante problema apresentado
no inicio da minha prelegao, qual seja, a possibilidade da economia japonesa

de manter por longo tempo o seu atual ritmo do crescimento.

118

YOSHIAKI NISHIMUKAI

Podemos prever facilmente que a taxa de aumento da oferta do trabalho
decresceri rapidamente no pr6ximo futuro, porque a taxa de crescimento
demografico ji esta acusando a tendencia para o decr6scimo. Por conseguinte,considerando a luz da analise acima, poderiamos concluir que a economia japonesa entrara numa outra etapa, a saber, a quarta.
E discutivel se essa quarta etapa da economiajaponesa sera a mesma queo prof. Lewis definiu como a segunda etapa do desenvolvimento da economia
capitalista, porque a taxa de aumento do trabalho nZo 6 determinada apenas
pela taxa de crescimento demografico. Nos varios setores da economiajapone-sa, existem muitas empresas minUsculas e as chamadas "family industry".
Para que a economia japonesa alcance a etapa com a maturidade capitalista, precisaria atravessar pelo processo de decomposigao dessas unidades econ6micas para

formar o mercado livre de trabalho.
Em relagao a este ponto, gostaria de apresentar resumidamente a chamada"dualidade estrutural" que 6 uma das caracteristicas importantes da economia
japonesa. Te6ricamente falando, o conceito da dualidade estrutural significa

que as indastrias mais eficientes coexistem permanentemente com as menos
eficientes. A dualidade estrutural da economia japonesa pode ser observado na

grande discrepancia dos salarios entre as grandes empresas e as pequenas
e na grande diferenga entre o nivel de vida na zona rural e urbana. A16m disso,
podemos apontar a nova discrepancia entre as indUstrias crescentes e as decrescen-tes que surgiu em decorrencia da evolugao da liberalizagao do com6rcio exterior.

Nas sociedades onde existe o regime de livre ccncorrencia, esse fenomeno dadualidade estrutural 6, ja por natureza, anormal, porque, nessas sociedades, os

fatores da produgio devem transferir-se dos setores menos eficiente para os
mais eficientes, e, no conjunto, as eficiencias ha de se igualar. Apesar disso,

porque existe a dualidade estrutural na economia japonesa? Podemos buscar
uma das causas no excedente da populagio. Nas analises econ6micas, tratar da
populagZo como sendo um fator independente muitas vezes e criticado. Entretanto, nos paises superpovoados como o Japao, nao podemos desprezar a sua
infiuencia. Existindo a populag5o em excesso, as maos-de-obra nao podem ser
empregadas integralmente nas indUstrias mais produtivas, sendo uma partedelas forgada a trabalhar nas menos produtivas. Consequentemente, a taxa desalario e o nivel de vida sao impelidos a se manter em baixas condig6es.

Precisamos considerar, entretanto, o problema do excedente da populagao
relacionando-o com a taxa do crescimento econ6mico, pois pode-se criar o
excedente populacional, quando a taxa de crescimento econ6mico seja inferior
h de crescimento demografico. Portanto, o problema da dualidade estruturalda economia japonesa deve ser considerado tamb6m em relagio ao crescimento
econ6mico. O rapido crescimento atual esta aumentando as oportunidades dos

APRESENTEETAPA DO DESENVOLVIMENTO 119
ECONOMICO DO JAPAO
empregos e, neste sentido, a duaidade da economia japon6sa esta caminho dedecomposigao. Mas, embora se mantenha elevada a taxa de crescimento econ6mico, o processo dessa decomposigao demandaria um lapso de tempo considera-vel. N5o podemos concluir de pronto, que no pr6mixe futuro a economia
japonesa entre na segunda etapa da definigao do prof. Lewis.
Em seguida, devemos considerar a discrepancia entre a produtividade e osalario. Esta discrepancia nos parece durar ainda por longo tempo, embora com
atenuag6es gradativas. Portanto, seria melhor concluir que o fator do rapido

crescimento n6ste campo se preserva. Do ponto de vista das comparag6es
internacionais a alta taxa de poupanga e a baixa taxa de distribuigao da renda
para o trahalho sao as caracteristicas principais da economia japonesa, e elas n5o

desaparecerio num pr6ximo futuro.
Agora, vamos examinar os fatores de desenvolvimento no lado do consumo.
A forma de consumo tem a possibilidade de se transformar ratpidamente em
decorrencia da elevagio do nivel da renda nacional. A procura em quantidades

consideraveis dos bens duraveis de consumo nem sempre 6 impossivel, mesmo
quando o nivel da renda se mantenha relativamente baixo. Acaso sendo impossivel, seria dificil explicar o fato de que essa procura esta tendo rapido
aumento na economia japonesa, apesar da sua relativamente baixa renda nacional.
O nivel da renda nacional per capita do Japao e apenas 236 d61ares, isto e, 110/.

do nivel dos Estados Unidos. Na Europa, 6 s6mente Portugal gue tem o nivel
de renda mais baixo do que o do Jap5o.
Por conseguinte, nao estaria certo apreciar o nivel da renda nacional per
capita como indice de uma etapa do desenvolvimento econ6mico porque esse
nivel recebe a forte influencia da situagao dos recursos natuTais em que se coloca

o pais. NZo podemos negar, mesmo num pais da baixa renda como 6 o Jap5o,
a possibilidade de expandir a procura para os bens duraveis de consumo, de baixo

nivel em qualidade e em tamanho. A mudanga da forma de consumo nao se
evidenciaria nos paises sub-desenvolvidos seguindo a ordem verificada nas
experiencias dos paises desenvolvidos. Essa procura estimularia as indastrias,

especial de maquinas, e sera um fator considerivel do rapido crescimento eco-n6mico do Jap5o.
Em suma, os dois fatores, isto 6, a perdurag5o da discrepancia entre a pro-dutividade e o salario e a mudanga da forma de consumo, possibilitariam orapido crescimento da economia japonesa, ainda dentro da dualidade de que

fizemos
referencia. •Finalmente, vamos examinar resumidamente o caso em que diminua rapidamente a discrepancia entre a produtividade e o salario. A taxa de poupanga
diminuiria. Se n5o houver a baixa no coeficiente do capital, a taxa de crescimento

econ6mico naturalmente decresceria. A baixa taxa de crescimento econ6mico,

120

YOSHIAKI NISHIMUKA!

como dissemos atras, anularia praticamente a possibilidade da dissolugao dadualidade estrutural da economia japonesa. A chave do problema, portanto,
esta no coeficiente do capital. Como ja me referi, esse coeficiente foi constante

em todos os processos do desenvolvimento econ6mico do Japao. Para promovera modernizagao da economia japonesa, foi preciso engrandecer empresas. Isto
redundaria naturalmente na elevag5o do coeficiente do capital, e se assim n5oaconteceu, 6 porque alguns fatores agiram em contrario, compensando o efeito
daquele, poupando os capitais.
O rapido aumento da procura no pr6ximo futuro trara beneficios a produg5o em larga escala, agindo no sentido de diminuir o coeficiente do capital. Poroutro lado, a economia japonesa tem a necessidade de expandir o investimentopara os setores de construgio, transporte, comunicagio e energia e16trica, deelevado coeficiente do capital. Por conseguinte, nao poderiamos esperar, no
plano geral da economiajaponesa, o abaixamento desse coeficiente. Na realidade,o coeficiente do capital aumentou de 500/. nos Ultimos dez anos.

Em conclusZo, a quarta etapa do desenvolvimento econ6mico do Japao
sera a era do consumo em msasa que o prof. Rostow definiu, mas nao sera, doponto de vista das caracteristicas estruturais, a etapa do pleno emprego que oprof. Lewis definiu.

KOSTENTHEORIE UND DISPOSITIVER FAKTOR
Tetsuo KoBAyASHII

In den letzten 15 Jahren ist die Struktur der betriebswirtschaftlichen Kosten-theorie in Deutschland, wie es weit bekannt ist, auf dem Grunde der Guten-

bergischen Entwicklungen noch einmal grUndlich geprtift worden. Diese
moderne Kostentheorie hat mehrere Charakteristiken : z.B. (1) die klare Systematisierung der KosteneinfluBgr6Ben und damit die genau isolierende Betrachtung
fUr jede Kostenabhangigkeit, (2) die realistische, produktionstheoretische Analyse
der quantitativen Abhangigkeiten zwischen Faktoreinsatzmengen und technischen
Leistungen und (3) die systematische BerUcksichtigung des dispositiven Stand-punktes von Geschafts- und Betiebsleitung bzw. des Einflusses der dispositiven

Entscheidungen.
Diese Punkte sind zwar miteinander stark verbunden, aber der letzt genannte
Punkt-systematische BerUcksichtigung des Einfiusses der dispositiven Entschei-

dungen-kann der Kernpunkt sein, mit dem man die modernen, kostentheoretischen Erkenntnisse als Ganzes systematisiert.
Solchen Gedankengang kann man schon in dem methodischen Standpunkt
des Buches Gutenbergs,, Betriebswirtschaftslehre Bd. 1. Produktion", vor allemin seiner Auffassung des Produktionsprozesses finden. Wahrend Gutenberg unterdem ProduktionsprozeB namlich einen KombinationsprozeB der Elementarfaktoren(menschliche Arbeitsleistung, Betriebsmittel und Werkstoff) versteht, weist er als
der zusatzliche, vierte Faktor auf den ,,dispositiven" Faktor hin. Die Aufgabe desdispositiven Faktors-d.h. die Geschafts- und Betriebsleitung-besteht darin, drei

Elementarfaktoren zweckmaBigerweise zu einer produktiven Kombination zu
vereinigen, und wir k6nnen denken, daB Gutenberg von diesem mit dispositivem
Faktor verbundenen Standpunkt (od. Aufgabe) die Betrachtungen Uber ProduktionsprozeB systematisiert, und zwar daB sich diese Betrachtungsweise auch
auf die kostentheoretischen Perspektiven erstreckt.
Der dispositive Faktor enthalt nach Gutenberg drei Schichten: (1) die aus
der Individualitat der Geschafts- und Betriebsleitung resultierende Irrationalitiit,(2) die Rationalitat, die betriebspolitischen Forderungen in ein rationales Schema

umzugieBen und (3) die gestaltende-vollziehende Schicht, welche das Geplanteverwirklicht. Aber der dispositive Faktor soll hier als die eigentlich bewegende
Kraft des Betriebsprozesses aufgefasst werden, und zwar bei den produktions-l22-IiETSUO KABOAYASHI

und kostentheoretischen Betrachtungen, nicht als ein Produktionsfaktor, sondern
als ein Standpunkt behandelt werden, denn der dispositive Faktor geh6rt dabei
nicht zur Produktions- und Kostenfunktion, sondern er Ubt von auBen die verschie-

denen EinflUsse auf die Produktions- und Kostenfunktion aus. Es handelt sichalso nicht um den dispositiven Faktor selbst, sondern es ist eigentlich wichtig, den

aus dem dispositiven Faktor resultierenden Standpunkt, bzw. den EinfluB derdispositiven Entscheidungen in die kostentheoretischen Betrachtungen einzufUhren.

Somit k6nnen wir die folgende Frage stellen: wann und wie beeinfluBt derdispositive Faktor den ProduktionsprozeB als KornbinatiQnsprozeB ? und welche
Ereignisse erscheinen in verschiedenen Kostenabhangigkeiten? bzw. wie k6nnen
von dispositivem Standpunkt der Geschafts- und Betriebsleitung die kostentheoretischen Erkenntnisse systematisiert werden?

Auf diese Problemstellung k6nnen wir in der modernen Kostentheorie
mehrere Beantwortungen finden. Aber hier betrachten wir, um m6glichen
MiBverstand zu vermeiden, nur die dispositiven Anpassungen, vor allem die
produktionstechnischen Anpassungsformen bei Beschaftigungsveranderungen(quantitative Anpassung, zeitliche Anpassung, intensitatsmaBige Anpassungusw.). Diese Begrenzung ist auch notwendig, um am klarsten das Problem desdispositiven Faktors in der modernen Kostentheorie zu ergreifen.
Man soll dabei darauf achtgeben, daB die verschiedenen Anpassungsformen
nicht nur den Unterschied der technischen M6glichkeiten von Beschaftigungsver-anderungen zeigen. AuBer den technischen M6glichkeiten werden namlich
mit jeder Anpassungsform die bestimmten BewuBtheiten der Geschafts- und
Betriebsleitung Uber kUnftige Markt- bzw. Wirtschaftslage (od. auch dietechnischen Entwicklungen) verbunden.
DarUber schreibt Gutenberg wie folgt:,,Die AnpassungsmaBnahmen sind ......,.. nicht so sehr von der gegenwartigen
wirtschaftlichen Lage bestimmt, in der sich die Betriebe befinden, sondern vielmehrvon den erwarteten, kimftigen marktlichen und technischen Entwicklungen."(i),,Hier ist nun der Punkt, an dem deutlich wird, daB die moderne Kostentheorie

ohne systematische Verwendung des Moments der Erwartungen nicht mehr
auskommt. Die ,Erwartungen` bzw. die aus ihnen und den technischen Gegebenheiten des Betriebes resultierenden ,Verhaltenweisen` stellen eine KosteneinfluBgr6Be dar, die in der betriebswirtschaftlichen Kostentheorie als neue
zusatzliche Variable eingebaut werden muB."(2)Unter bestimmten technischen Bedingungen k6nnen wir auf ahnlicher(1) Gutenberg, E., Betriebswirtschaftslehre Bd. 1, 6. Aufl., S. 240.
(2) Gutenberg, E, a.a.O., S. 258.

KOSTENTHEORIE UND DISPOSITIVER FAKTOR
Weise z. B. auch die folgende Aussage machen. Wenn die gUnstige Geschafts-

lage in der naheren Zukunft namlich dauernd erwartet werden kann,. passt
man sich dem gegenwartigen, Ubermal3igen Bedarf quantitativ bzw. zum Teil
zeitlich an, und wenn nur der p16tzliche Aufschwung erwartet werden kann,passt man sich dagegen m6glicherweise unter der schon bestehenden Kapazitat
intensitatsmaBig an.

Wir k6nnen also unter den verschiedenen Anpassungsformen bei den
Beschaftigunsveranderungen einerseits den Unterschied der technischen M6glich-keiten-d.h. bei der quantitativen Anpassung: Veranderung des Bestandes vom
Betriebsmittel, bei der zeitlichen Anpassung: Veranderung der Arbeitszeit,

bei der intensitatsmaBigen Anpassung: Veranderung des Intensitatsgradesund andererseits die verschiedenen BewuBtheiten der Geschafts- und Betriebsleitung Uber die gegenwartige und kttnftige Markt- bzw. Wirtschaftslage verstehen.
Wenn man von dem dispositiven Faktor ausgeht, kann man auch sagen, daB die
fundamentalen Erkenntnisse Uber die technischen, quantitativen Abhangigkeiten

zwischen Faktoreinsatzmengen und ihren technischen Leistungen (vor allem ineinzelnen Aggregaten), in der modernen Kostentheorie unter BerUcksichtigung
vom dispositiven Standpunkte und damit von seinen Wirkungen auf die Produktionsprozesse, zu einer kostentheoretischen Aussage vereinigt werden.
II

Wenn man zur Unternehmungsleitung die kostentheoretische Aussage heranziehen wollte, scheint dieser Standpunkt sehr wichtig zu sein. Aber es gibt auchdie kritische Stellungnahme gegen diesen Standpunkt.
Z. B. weist Mellerowicz darauf hin, daB der Begriff von Gutenberg ,,quantitative Anpassung" die aus der politischen Beurteilung resultierende Tatsache, wie

die neue Beschaffung der Maschine, enthalt, und in Bezug darauf wirft er vor,daB Gutenberg das theoretische Problem mit dem politischen Problem vermengt
hat.(3)Bei der traditionellen Betrachtungsweise kann diese Kritik einen Sinn haben,denn die traditionellen Autoren versuchten unter der Annahme der bestimmten
Kapazitat den Gesamtkostenverlauf als die rein technische Erscheinung zu erkla-ren. Und die kritische Stellungnahme laBt sich auch in der folgenden FormauBern: bei der Kostentheorie soll ndrnlich die reine, interne Abhangigkeit
zwischen Faktoreinsatzmengen und Leistungen erklart werden und die Betrachtung
dafUr soll von der subjektiven Beurteilung, wie die Anpassungsbeurteilung Uberdie marktlichen Zustande, nicht beschadigt werden.
(3) Mellerowicz, K, Kostenkurven und Ertragsgesetz, ZfB, Jg. 23(1953), Nr. 6. S. 336

123

TETSUO KOBAYASHI

124

Jedoch soll auch darauf geachtet werden, daB mehrere Autoren schon auf
die Notwendigkeit, den dispositiven Standpunkt bzw. die EinflUsse der dispositiven Entscheidungen in Erwagung zu ziehen, frUher als Gutenberg hingewiesen
haben. Z.B. wies Henzel daraufhin(4), daB die verschiedenen H6hen der Kosten,

je nach der dispositiven MaBnahme sogar bei dem selben Beschaftigungsgrad
erscheinen k6nnen, und Schneider versuchte unter BerUcksichtigung der dispositiven Entscheidungen die variablen- und fixen Kosten mit den notwendigen-- undnicht-notwendigen Kosten zu ersetzen.(5) In Bezug darauf behauptet Henzel,
wie folgt;(6),,An Stelle der bisherigen einseitigen Betrachtung einer Abhangigkeit derKosten vom Beschaftigungsgrad muB die Erkenntnis treten, daB die Kosten voneiner Vielheit von Faktoren und in weitem MaBe von der Disposition der in derUnternehmung tatigen Menschen abhangen. Und daraus ergibt sich die Forderung einer bewuBten Beeinflussung und Gestaltung dieser Faktoren und nicht
nur eines einzigen Beschaftigungsgrades."Diese Autoren haben zwar keine vollstandige bzw. positive Systematisierungs-

weise der Kostentheorie als Ganzes. Aber man findet in den Hinweisen dieser
Autoren wenigstens eine kritische Stellungnahme gegen die traditionelle Betrachtungsweise, die, insofern der dispositive Standpunkt nicht berUcksichtigt wird,

nur begrenztes Geltungsfeld der kostentheoretischen Aussage haben kann.

Somit k6nnen wir die EinfUhrung des dispositiven Standpunktes bzw.
Einflusses nicht ohne weiteres ablehnen, und zwar nicht wegen der einfachen
BefUrchtung dafUr, daB der eigentliche Sinn der betriebsvvirtschaftlichen Kosten-theorie beschadigt werden mag. Vielmehr soll es im wesentlichen wichtig sein,
die folgenden Fragen zu stellen: biszu welchem Grade kann die GUItigkeit der
kostentheoretischen Aussage, wenn man den dispositiven Standpunkt systematischin Erwagung zieht, vergr6Bert werden und welchen substantiellen Sinn fur die

praktische UnternehmungsfUhrung hat diese Vergr6Berung der GUItigkeit der
kostentheoretischen Aussage? Ist es auBerdem unvermeidbar, daB die Betrachtung der internen Abhangigkeit der Faktoreinsatzmengen von betrieblichen
Leistungen dabei beschadigt wird?

m
Aber auf diese Fragen kann man schon in der(4)modernenKostentheorie dieHenzel, F., Kosten und Leistung, 3. unveranderte Aufl. derKostenanlyse (1937),

Stuttgart 1957, S. 49f.
(5)

Schneider, E.; Die Problematik der Lehre von den festen Kosten,(6)

Archiv, Bd. 60(1944), Heft 3. S. 313f.
Henzel, E a.a.O., S. 191.

Weltwirtschaftliches

KO$TENTHEORIE UND DISPOSITIVER FAKTOR
fundamentare Beantwortung finden.
Die moderne Kostentheorie fUhrt namlich den dispositiven Faktor ein, um
fUr die betriebswirtschaftlichen Probleme die technische Abhangigkeit zwischen

Faktoreinsatzmengen und Leistungen heranzuziehen. Dort ist nicht ausschlieBlich der EinfluB der dispositiven Entscheidung betont, sondern wird
zunachst die technische Abhangigkeit ermmittelt und danach erst die Problematik
des dispositiven Faktors er6rtert.

Das ergibt sich aus den Betrachtungen Uber die Kostenverlaufe bei denvorgenannten Anpassungsformen. Jeder Kostenverlauf wird namlich einheitlichvon den eindeutigen Abhangigkeiten zwischen Faktoreinsatzmengen und technischen Leistungen in einzelnen Aggregaten, d.h. von den Verbrauchsfunktionen
abgeleitet. Die Verbrauchsfunktion stellt die technische Abhangigkeit der
Verbrauchsmengen jedes Kostenfaktors von Leistungen jedes Aggregates in einer
Zeiteinheit (Leistungsgrad) dar. Jeder Kostenverlauf verschiedener Anpassungsformen wird durch die Vermittelungsvariable ,,Leistungsgradintensitat" (bei derquantitativen- und zeitlichen Anpassung: die bestimmte Intensitat, bei derintensitatsmaBigen Anpassung: veranderliche Intensitat) einheitlich von deneindeutigen Verbrauchsfunktionen eingeleitet, obgleich die Wahl der Anpassungs-

form letzlich am meisten von der Beurteilung der Unternehmensleitung
entschieden wird. Anders gesagt, werden von dem dispositiven Standpunkt
die Bestande des Betriebsmitrels, die Zahl der Arbeitstunden und der Grad derLeistungsintensitat entschieden, aber wenn sie einmal entschieden werden, wird

jeder Kostenverlauf eindeutig von den bestimmten Verbrauchsfunktionen
eingeleitet. Und die Autoren der modernen Kostentheorie ermitteln diesetechnischen Verbrauchsfunktionen, bevor sie den dispositiven Standpunkt
berUcksichtigen.

Vielmehr wirft Gutenberg in der Diskussion ttber das Ertragsgesetz bzw. inseiner produktionstheoretischen Betrachtung stark vor, daB die traditionelle
Kostentheorie im Gegenteil keine vollstandigen Erkenntnisse Uber eindeutige,

technische Abhangigkeiten zwischen Faktoreinsatzmengen und Leistungen ineinzelnen Aggregaten hat. Seiner Behauptung ist im wesentlichen zuzustimmen,
obgleich sie einige begrifHiche Unklarheiten enthalt.(7)Infolgedessen k6nnen wir grundsatzlich die Kritik nicht einraumen, daB
die Betrachtung der internen Abhangigkeiten zwischen Faktoreinsatzmengen
und betrieblichen Leistungen, wenn man den dispositiven Standpunkt einftthrt,

beschadigt vvird. Die produktionstheoretische Analyse von Gutenberg zeigt(7) Kobayashi, T., Die Betrachtungsweise der neueren, betriebswirtschaftlichen Kosten-theorie---Auffassung des Ertragsgesetzes-, KOBE Economic & Business Review No.
9. 1962, S. 117 ff.

125

126

TETSUO KOBAYASHI

vielmehr, wie wichtig diese Erkenntnisse der internen, technischen Abhangigkeiten

sind. Sie sind als fundamentale Erkenntnisse auch dann unentbehrlich, wenn
man umfassend den dispositiven Standpunkt bzw. die EinflUsse der dispositiven
Entscheidungen in Erwagung zieht.
Und zwar in diesem Punkte sind Gutenberg und andere Autoren der modernen
Kostentheorie im wesentlichen von den Vorlaufern wie Henzel und Schneider zu
unterscheiden.

Diese Vorlaufer berticksichtigten nicht vollstandig die technischen Voraus-

setzungen der gegebenen Produktionsprozesse, sondern dachten explizite bzw.
implizite, daB die H6he der Kosten ausschlieBlich von den dispositiven Entscheidungen beeinfluBt wird.(8) Aber auch die Autoren der traditionellen Kostentheorie

verneinen nicht, daB die H6he der Kosten von den dispositiven EntscheidungenbeeinfluBt wird. Vielmehr behaupten sie, wie oben erwahnt, daB die Betrachtung
der internen Abhangigkeiten zwischen Faktoreinsatzmengen und Leistungen, wenn
man den dispositiven Standpunkt einfUhrt, beschadigt wird. Wenn man nur die
EinflUsse der dispositiven Entscheidungen betont, kann die Kritik gegen die
traditionelle Kostentheorie also nicht vollstandig sein, um die effektiven
Erktenntnisse zu entwickeln.

Dabei muB man innerhalb des von technischen Bedingungen der gegebenen
Produktionsprozesse begrenzten Dispositionsraums die dispositiven EinflUsse
auf den Kostenverlauf untersuchen und wir mUssen bei Gutenberg und anderen
Autoren der modernen Kostentheorie darauf acht geben, daB die rein internen
Abhangigkeiten zwischen Faktoreinsatzmengen und Leistungen, d.h. die technischen Verbrauchsfunktionen als die Voraussetzung der dispositiven Entscheidungen ermittelt werden. Anders gesagt, weil diese technischen Abhangigkeiten
zwischen Faktoreinsatzmengen und Leistungen von strengen, produktionstheore-tischen Analysen genau bestimmt werden, wird die sich auf diese Zustande
aufbauende Betrachtung ttber dispositive EinfiUsse auf den Kostenverlauf
erkenntnistheoretisch gerechtfertigt.

Dabei sind diese als Verbrauchsfunktion ermittelten Abhangigkeiten zwischen
Faktoreinsatzmengen und technischen Leistungen allerdings nicht die Abhangig-

keiten zwischen Kosten und Beschaftigungsgrad in der gesamtbetrieblichen
Produktion, sondern die Teil-Abhangigkeiten in einzelnen Aggregaten bzw.
Teileinheiten. Die Forderung der traditonenen Kostentheorie mag also nicht
insofern erfUllt werden. Aber es ist ursprUnglich unm6glich, fUr den Kostenverlauf in der gesamtbetrieblichen Produktion so eindeutige, interne Funktion vvie
Verbrauchsfunktion der einzelnen Aggregate zu finden, denn der gesamtbetrieb(8) Henzel, F., a.a.O., S. 56. Schneider, E. Industrielles Rechnungswesen, 2. Aufl.,
Tifbingeh 1954, S. 218.

KOSTENTHEORIE UND DISPOSITIVER FAKTOR
liche ProduktionsprozeB besteht aus verschiedenen Teileinheiten und sein
Kostenverlauf wird nicht immer gleichfOrmig von eigentlichen Kostenfunktionen der einzelnen Teileinheiten, d.h. Verbrauchsfunktionen abgeleitet. Wenndie jeweiligen Leistungsgrade aller Betriebsteile trotz der Veranderung des gesamt-

betrieblichen Beschaftigungsgrades immer unverandert od. parallel mit der
Veranderung dieses Beschaftigungsgrades verandert werden, wird nur danndie eindeutige Gesamt-Kostenfunktion des ganzen Produktionsprozesses unmittelbar von den Verbrauchsfunktionen der Aggregate abgeleitet. Aber in der
betrieblichen Praxis kann man solche Zustande nur selten finden.
Die Veranderung des Leistungsgrades in den einzelnen Betriebsteilen hat
meistens keinen direkten Zusammenhang mit der Veranderung des gesamtbetrieblichen Beschaftigungsgrades. Dieser Leistungsgrad wird namlich im Zusammenhang mit den technischen Bedingungen und relativen Kapazitatsgr6Ben der
betrieblichen Teileinheiten nur indirekt von der Veranderung des gesamtbetrieb-lichen Beschaftigungsgrades beeinfluBt. Beispielweise kann innerhalb seiner
Kapazitat ein Betriebsteil eine gleichbleibende Leistungsgradintensitat, also die

gleichbleibende H6he der variablen Kosten pro StUck seiner Leistung erhalten,
walirend der Leistungsgrad der relativen EngpaBteile sehr schnell erh6ht wird.
Auf der anderen Seite muB sogar innerhalb seiner Normalkapazitat der Leistungsgrad eines Produktionsprozesses kontinurlich verandert werden, wenn er wegentechnischer Bedingung, z. B. zusammen mit dem Leistungsgrad (bzw. Produktions-geschwindigkeit) der nachfolgenden Produktionsstufe verandert werden muB.
Jedenfalls spiegeln sich die Verbrauchsfunktionen der Betriebsteile, je nach dem

jeweiligen Leistungsgrade in Zusammenhang mit den technischen Bedingungenund relativen Kapazitatsgr6Ben unterschiedlich wider und die verschiedenen
Kostenfunktionen der gesamtbetrieblichen Produktion ergeben sich aus dem
Zusammenwirken vieler Betriebsteile mit eigentttmlichen, technischen Bedingun-

gen und Kapazitatsgr6Ben an der Gesamtproduktion.
Dabei ist es selbstverstindlich unrealistisch, anzunehmen, daB die Kapazitat
des gesamtbetrieblichen Produktionsprozesses ejn ungeteiltes Ganzes bildet, undzwar, daB die Starke seiner Beanspruchung gleichmaBig mit der Beschaftigungsver-anderung verandert wird. Wenn man auch unter solcher Annahme so eindeutige
Kostenfunktion der gesamtbetrieblichen Produktion wie die Verbrauchsfunktion
der Betriebsteileinheit finden k6nnte, ist die Aussage fast ungUltig.

Um die verschiedenen Kostenfunktionen der gesamtbetrieblichen Produktion
in der Praxis zu erklaren, ist es vielmehr notwendig zu untersuchen, von welchem

Standpunkt und auf welche Weise die einzelnen Anlagen, Maschinen und andere

Produktionsfaktoren in der gesamtbetrieblichen Produktion eingesetzt undbeansprucht werden. Und zwar wegen dieser Notwendigkeit soll meiner
Meinung nach die EinfUhrung des dispositiven Standpunktes ganz gerechtfertigt

127

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TETSUO KOBAYASHI

werden, denn die Einsatz- bzw. Beanspruchungsformen jeder Produktionsfaktoren
und damit auch die Leistungsgrade bzvv. die Zahl der Arbeitstunden, innerhalb

der jeweiligen, technischen M6glichkeiten und zwar unter dem jeweiligen,kosten-- bzw. erfolgsoptimalen Ziel des Betriebes, dispositiv entschieden vverden.

Somit k6nnen wir nicht nur sagen, daB die Betrachtungen der internen
Abhangigkeiten zwischen Faktoreinsatzmengen und technischen Leistungen,in der Regel von der EinfUhrung des dispositiven Standpunktes nicht beschadigt

werden. Vielmehr sollen wir die dadurch gebrachten M6glichkeiten, dieGUItigkeit der kostentheoretischen Erkenntnisse zu verbreiten und vertiefen,hochschatzen.

rv
AIIerdings k6nnen wir selbstverstandlich noch nicht sagen, daB die Problematik tiber den dispositiven Faktor in der modernen Kostentheorie ganzerklart worden ist. Wir haben nur eine fundamentale Stellungnahme zu diesem
Problem finden k6nnen. Um substanziellen Sinn dieser fundamentalen Stel-

1ungnahme klarzumachen, mUssen auBerdem die aus dieser Stellungnahme
resultierenden Aussagen Uber die konkreten Erkenntnisse der verschiedenen Arten
weiterentwickelt werden.

In diesem Sinne scheinen mir auch die Aussagen von Gutenberg nicht ohne
weiteres gereehtfertigt zu sein.

Vor allem, wenn er jede beschaftigungstechnische Anpassungsform (quantitative-, zeitliche- und intensitatsmtiBige Anpassung) nebeneinander getrennt

betrachtet, kann man noch nicht die verschiedenen Kombinationen dieser
Anpassungen in einer Unternehnung verstehen.
Auf die langfristige Sicht ist es zwar m6glich zu sehen, daB sich ein Unterneh-

men entweder nur quantitativ-zeitlich oder nur intensitatsmaBig anpasst und

man kann unter jeder Anpassungsform auch eine grobale AnpassungsmaBnahme
des Unternehmens als Ganzes verstehen, denn es handelt sich dabei hauptsachlichum die absolute Gr6Be der Gesamtkapazitat und ihre allgemeine Benutzungszustande. Aber der Inhalt der Anpassungen kann nur einseitig ergriffen werden,
wenn die kostentheoretische Betrachtung nur auf diesen Fall begrenzt wird. Wir

mUssen auBerdem von der Erkenntnis ausgehen, daB der gesamtbetriebliche
ProduktionsprozeB aus den Teileinheiten mit den eigentUmlichen, technischen
Bedingungen und relativen Kapazitatsgr6Ben besteht, und dann auBer der grobalen

Unternehmungsanpassung soll auch solcher DispositionsprozeB in Erwagung
gezogen werden, in welchem die verschiedenen Anpassungsformen der Teileinheiten, unter Berticksichtigung von jeweils gegebenen Faktorpreisen, Teilkapazitaten, Verkaufspreisen und Absatzm6glichkeiten der Erzeugnisse usw., miteinander

KOSTENTHEORIE UND DISPOSITIVER FAKTOR

129

harmonisch zum kosten- bzw. erfolgsoptimalen Ziel des ganzen Betriebes
verbunden werden.
Die Notwendigkeit solches Dispositionsprozesses ist besonders dann klar,
wenn der gesamtbetriebliche ProduktionsprozeB irgendwo die Engpasse hat.

Dann werden namlich wegen der Kapazitatsdisproportionierungen einige
Betriebsteile Uberbeansprucht, wahrend die Teilkapazitat anderer Betriebsteile

noch frei bleibt. Infogedessen ergibt sich auch die Kostenkurve der gesamtbetrieblichen Produktion aus verschiedenen Teilkostenfunktionen, die nicht nur
von den technischen Bedingungen, sondern auch von relativen Teilkapazitatsgr6-

Ben abhangig sind. AuBerdem erscheinen die EngpaBsituationen, je nach dermarktlichen Bedingung (Verkaufpreise der Erzeugnisse, Absatzm6glichkeitenusw.) bzw. je nach der damit verbundenen Programmplanung, wechselseitig oder
unter Umstanden gleichzeitig in verschiedenen Betriebsteilen.

In Bezug darauf schreibt zwar auch Gutenberg, daB die Aufgabe, die Leistungsquerschnitte der Betriebseinheiten harmonisch zu proportionieren, in der
betrieblichen Praxis nur unvollkommen geldst werden kann. Aber er weist dabei

nur auf die kompensatorischen Wirkungen hin.(9) AuBerdem denkt er in einem
anderen Aufsatz, daB in der betrieblichen Praxis die Anlagen nur ausnahmsweise

tiber die Normalleistung beansprucht werden. Er schreibt namlich dort,;,,Werden z. B. im Zuge einer Beschaftigungszunahme,nachdem die kostengUnstigste
Ausbringung bereits Uberschritten ist, zusatzliche Maschinen in Betrieb genommen oder neue Arbeitsplatze geschaffen, dann ist es durchaus realistisch anzuneh-men, daB die Neueinstellungen und Neuinvestierungen nicht erst vorgenommen
werden, wenn die Menschen und maschinellen Apparate Uberlastet sind. Und,
sollten solche eberlastungen fUr kurze Zeit vvirklich der Fall gewesen sein,dann wird dieser Zustand aller Wahrscheinlichkeit nach mit der Inbetriebnahme

neuer Maschinen usw. beseitigt werden. KostenmaBig ins Gewicht fallende
Vberbeanspruchungen von Mensch und Maschine im Betrieb k6nnen immer nur
als Ausnahmefall angesehen werden. ..,... Das ist der Normalfall der Praxis,
von dem wir auszugehen haben.(iO)" Anders gesagt, denkt Gutenberg, daB z.B.
bei der gUnstigen Aussicht der Zukunft die neue Kapazitat ohne weiteres zusatzlich

in den Engpassen eingeftihrt wird, und zwar, daB die Gesamtkostenkurve in derRegel wieder linear verlauft.

Man kann zwar, wie Gutenberg schreibt, sagen, daB in der betrieblichen
Praxis die nicht immer von kurzfristiger Sicht gebundene Situation, und damit

auch die lineare Gesamtkostenkurve als Tendenz herrschend ist. Aber die(9) Gutenberg, E. a.a.O. S. 258 f.

(10) Gutenberg, E., Uber den Verlauf von Kostenkurven und seine BegrUndung, ZfhF. Jg.
5, 1953, S. 23.

130

TETSUO KOBAYASHI

kostentheoretischen Aussagen sollen meiner Meinung nach nicht ausschlieBlich
darauf gebildet werden, denn auch die Einftthrung der zusatzlichen Kapazitat

in den Engpassen kann wegen der technischen und wirtschaftlichen GrUnden(Unteilbarkeit der Kapazitat, unvollkommene Informationen Uber Zukunftszustiinde usw,) nicht ohne weiteres stattfinden, und die Entscheidung muB, wenn
es auch m6glich sein mag, im Vergleich mit der Kostensituation in den gegebenen,technischen und kapazitatsmaBigen Bedingungen ohne EinfUhrung zusatzlicher
Kapazitat in den Engpassen bzw. mit ihren EinflUssen auf den Betriebserfolg

getroffen werden. Anders gesagt, obgleich man als die allgemeine Tendenz
in der betrieblichen Praxis auf die Herrschaft der nicht von kurzfristiger Sicht

gebundenen Situation und damit auch auf die herrschende Linearitat der Gesamt-

kostenkurve hinweisen muB, soll als die theoretischen Erkenntniss auch die
Kostensituation, die von Beschtiftigungsdispositionen innerhalb der gegebenen,technischen und kapazitatsmaBigen Bedingungen in der kurzen Zeit realisiert
werden kann, nicht aufgehoben werden. Es ist z.B. bei den verschiedenen Betriebs-

planungen, auch als eine Vergleichsbasis sehr wichtig, diese Kostensituationzu erkennen,(ii) obgleich sie nicht effektiv erscheinen mag.
Und zwar unter dieser Kostensituation soll man die verschiedenen Kombinationen der dispositiven Anpassungsformen in den Betriebsteilen verstehen, denn
die relativen KapazitatsgrdBen und die technischen Bedingungen von den einzelnen

Aggregaten k6nnen dabei nicht verandert werden.
Wenn Gutenberg z.B. unter der quantitativen Anpassung nicht nur die
Einstellung bzw. Wiederinbetriebnahme der Maschinen, sondern auch den
Verkauf der eingestellten Maschinen bzw. die neue Beschaffung der Maschinenversteht, oder wenn er die Anpassungsformen nebeneinander getrennt betrachtet,

behandelt er dann, meiner Meinung nach, nur eine Seite der theoretischen

Erkenntnisse. •Somit sollen in diesem Punkte auch die Aussagen von Gutenberg erganzt
werden. Und, um die theoretischen Erkennmisse der modernen Kostentheorie
zu bereichern, muB man die Mannigfaltigkeit der betreiblichen Dispositionen
richtig ergreifen und sie muB unter BerUcksichtigung von technischen undwirtschaftlichen Bedingungen, mit den internen Abhangigkeiten zwischen Faktor-

einsatzmengen und Leistungen systematisch verbunden werden.

(11) Implizite kann man das in mehreren Versuchen, mit Produktionsplanung die kostentheoretischen Erkenntnisse zu verbinden, finden. Vgl. z.B. Albach, H. Produktionsplanung
auf der Grundlage technischer Verbrauchsfunktion, in: Arbeitsgemeinschaft fUr For-

schung des Landes Nordrhein-Westfalen 105. Sitzung, K61n u. Opladen 1962. S.
4Sff. Jacob, H., Produktionsplanung und Kostentheorie, in : Zur Theorie der Unternehnung,Festschrift zum 65. Geburtstag von Erich Gutenberg, Wiesbaden 1962, S. 205ff.

DER PRIVATISIERUNGGRUNDPROBLEME
Masaya OKADA

Hier sollen im wesentlichen
Privatisierungs-argumente, -objekte,

andere aber auch einige Hinweise

die Grundprobleme der Privatisierung---wege und -definition-behandelt, fUr die
ausfUhrlich gemacht werden.
I

Untersucht man die zur Begrenzung der PrivatisierungswUnsche vorgebrachten Thesen, so lassen sich vier Gruppen unterscheiden: 1. die systempolitischen,
2. die wirtschaftspolitischen, 3. die betriebspolitischen und 4. die gesellschaftspolitischen.

Als systempolitisch wollen wir hier alie Argumente bezeichnen, die davon
ausgehen, daB es dem heutigen Wirtschaftssystem der Bundesrepublik widersprache, wenn der Staat als Wirtschafter auftrete.(i)Es ist eine der wichtigsten Aufgaben des auf einer freiheitlichen Gesell-schaftsordnung beruhenden Staates, die Erhaltung des freien Wettbewerbs
sicherstellen. Versagt der Staat auf diesem Felde, dann ist es auch bald um die"Soziale Marktwirtschaft" geschehen(2). Und es kann nicht seine Aufgabe
des Staates sein, den Wettbewerb zu zerst6ren, sondern es ist seine Pflicht, ihn

mit Hilfe einer einheitlichen und marktkonformen Wirtschaftspolitik ttberall
dort, wo es sich als notwendig erweist, zu f6rdern(3). Also past es nicht in das

Bild einer auf unternehmerischer FreizUgigkeit beruhenden Wirtschaft, wennsich der Staat selbst als Unternehmer betatigt(4). Und die soziale Marktwirtschaft fordert die Privatisierung.

Bei den wirtschaftspolitischen Argumenten, die zur BegrUndung derPrivatisierungsforderung vorgebracht werden, k6nnen im wesentlichen fUnf
unterschieden werden, die sich teils erganzen, teils widersprechen. Es sind dies

1. das Machtargument, 2. das Monopolargument, 3. das Wettbewerbsargument,(1)

Hirche, Kurt: Die Kom6die der Privatisierung, Der Kampf um die 6ffentliche
Wirtschaft, 2. Aufl., 1959, S. 54.

(2)
(3)

Erhard, Ludwig: Wohlstand fUr a!le, 1957, S. 9.
Breidbach, Hans-Josef: Privatisierung, Schriftenreihe des deutschen Industrieinstituts, Heft 8, 1960, S. 58.

(4)Erhard, Ludwig: a. a. O., S. 142. Nochsiehe hierzu : DieBundes-Konzerne,Schachdem Staatskapitalismus durch Privatisierung, Schriftenreihe des Bundes der Steuerzahler, Heft 10, S. 31.

MASAYA OKADA

132

4. das Steuerargument und 5. eine Anzahl von Einzelargumenten.(5)Das Machtargument ist u. a. von dem verstorbenen Prasidenten des Landesverbandes der Bayerischen Industrie, Dr. Otto Seeling, angesprochen

worden(6): "Die Zusammenballung wirtschaftlicher Macht in den Handen
des Staates ist viel gefahrlicher als wirtschaftlicher Macht in privaten Handen.
Beim Staat gesellt sich zur wirtschaftlichen Macht die politische Macht. Dadurch

wird eine Totalitat geschaffen, die mit den Grundsatzen eines demokratischen
Staates nicht vereinbar ist. Mit dem Staatskapitalismus(7) ist es wie mit derPlanwirtschaft: beide streben zur Totalitat."Das Monopolargument hangt eng mit dem Macht- und Wettbewerbsargument zusammen. Es kommt jn zwei Variation vor. Die eine besagt, Monopole
in der Hand des Staates seien in jedem Fall bedenklich und mifBten im Interesse
des Wettbewerbs beseitigt werden, die andere bekampft das 6ffentliche Monopol,
weil es miBbraucht werden k6nnte.(8)Das Wettbewerbsargument wird wohl am haufigsten im Munde gefUhrt.
Und das Steuerargument ist von dem Wettbewerbsargument kaum zu trennen.
Dabei wird haufig ohne jede Einschrankung behauptet, die 6ffentliche Hand
genieBe gegentiber den privaten Unternehmen groBe Steuervorteile und sei
daher im Wettbewerb bevorzugt. Tatsachlich sind im wesentlichen nur die
Bundesbahn und -post, die Bundesbank und die Sparkassen von der Kdrperschafts-

und Gewerbesteuer befreit. Alle 6ffentlichen Erwerbsunternehmen jedoch,die in der Form des Privatrechts betrieben werden, mUssen, mit Ausnahme
der Verm6genssteuer, dieselben Steuerlasten tragen wie die Privatbetriebe.(9)SchlieBlich sind in den letzten Jahren noch eine Reihe von Einzelargumenten

vorgebracht worden, um die Privatisierungsforderung zu begrUnden. So hat
der Abgeordnete Dr. Atzenroth lange Zeit gefordert, aus den Privatisierungser16sen

die Besitzer der frUheren Reichsanleihen zu befriedigen. Andere wollten die
Er16se aus dem Verkauf der 6ffentlichen Unternehmen dazu benutzen, um den
Privatunternehmern die Verluste zu ersetzen, die sie durch die Beschlagnahme
deutschen Auslandsverm6gens erlitten hatten. Wieder andere schlugen vor,
(5) Hirche, Kurt: a. a. O., S. 59.
(6) Seeling, Otto: Staatskapitalismus-eine neue Gefahr, AktuelleBetriebsfragen 16, 1953,

S. 10.
( 7 ) Staatskapitalismus•ist der Einsatz von stantlichen Mitteln oder von Steuergeldern zum

Zwecke der GrUndung oder des Erwerbs wirtschaftlicher Unternehmungen oder derBeteiligung an solchen. Unter den Begriff des Staatskapitalisrnus fallen somit nicht
die Subventionen und Kredite, die der Staat entweder aus eigenen Mitteln oder unter
seiner Btirgschaft wirtschaftlichen Unternehnungen gewtihrt. (Seeling, Otto: a. a. O.,

S. 6)(8) Hirche, Kurt: a. a. O., S. 61.
(9) Hirche, Kurt: a. a. O., S. 64.

GRUNDPROBLEME DER PRIVATrSIERUNG
die Er16se zur Steuersenkung zu verwenden. AIIe diese und ahnliche Vorschlage
lassen den besonderen Interessentenstandpunkt deutlich erkennen.(iO)Als betriebspolitisch werden hier die Argumente zusammengefaBt, die sichauf die Tatigkeit der einzelnen 6ffentlichen Betriebe beziehen und mit denen
bewiesen werden soll, daB ein 6ffentliches Unternehmen unwirtschaftlicher,unrentabler, bUrokratischer und schwerfalliger sei als ein privates(ii). Aberder Bund der Steuerzahler glaubt grundsatzlich nicht, daB es berechtigt ist, die

Forderung nach Privatisierung unn6tigen Staatseigentums an Erwerbsunternehmen etwa damit zu begrUnden, daB diese Unternehmen schlechter gefUhrt wUrden
als Unternehmen in privatem Aktienbesitz.(i2)Aber erst in den letzten Jahren ist ein anderer Sinn allmahlich im Wort
Privatisierung enthalten. Die Privatisierungsforderungen hat ein gr6Beres
Gewicht durch die These der Eigentumsstreuung erhalten, so daB die alte
Privatisierung konnte die neue Privatisierung ersetzt werden.
Das gesellschaftspolitische Argument ist das, das nicht schon in den Privati-

sierungsbestrebungen der zwanziger Jahre, sondern erstmals 1957 im Zusammenhang mit dem Gesetzentwurf ifber die Privatisierung des Volkswagenwerkes
aufgetaucht ist. Danach soll die Privatisierung eine breite Eigentumsstreuung
erm6glichen oder mindestens einleiten. Sie soll dazu beitragen, die heutigen

groBen Spannungen in der Eigentumsverteilung zu mildern und-indem sie
breitere Schichten an das Produktionsmitteleigentum heranbringt-allmahlichdie heutige Gesellschaftsstruktur verandern.

Von amtlicher Seite hat Bundesschatzminister Lindrath im Bundestag
hierzu ausgefUhrt: "Es ist ......... das immer wieder erklarte Ziel der Regierungs--

parteien, die wirtschaftlichen Unternehmen des Bundes, wo immer m6glich,
Schritt um Schritt in private Hande zu tiberfUhren. Mit dieser wirtschaftspolitischen Ziel verbindet sich das in der Regierungserklarung vom 29. 0ktober 1957
zum Ausdruck gebrachte Bestreben, allmahlich zu einer breiteren Streuung desEigentums an den Produktionsmitteln zu gelangen ............. Zu diesem
besonderen Anliegen der gesamten Wirtschaftspolitik, eine soziale Eigentumsbil-

dung zu f6rdern, kann die Privatisierung des Bundesverm6gens einen Beitragleisten."Der Abgeordnete Katzer, fUhrendes Mitglied der CDU-•SozialausschUsse,
formulierte hingegen: "Unser gesellschaftspolitisches Ziel heiBt nicht: Privati-

sierung des Bundesverm6gens, sondern es heiBt: Eigentum fUr jeden. Die(10) Hirche, Kurt: a. a. O., SS. 64-6S.
(11) Hirche, Kurt: a. a. O., S. 65.

(12) Die Bundes-Konzerne, Schach dem
170-171.

Stantskapitalismus durch Privatisierung, SS.

133

MASAYA OKADA

134

Privatisierung des Bundesverm6gens ist dabei fUr un'

s ............ ein erster, abersehr sinnvoller Anfang."
FUr die Bundesregierung liegt also nach dieser Erklarung der Hauptnachdruckauf der Privatisierung, wahrend Katzer diese Privatisierung als ein Mittel ansieht,

zu einer breiten Eigentumsstreuung zu gelangen(i3). Aber alle 6ffentlichen
Unternehnen, die bis zum FrUhjahr 1959 privatisiert wurden, sind an wenige

Einzelkaufer oder Privatunternehmen verkauft worden. Zum ersten Male istdann Ende Marz 1959 bei der Privatisierung der PreuBag(i4) der Versuch gemacht

worden, durch die Ausgabe von Volksaktien eine breite Eigentumsstreuung zu
erreichen(i5).

ll

Was soll privatisiert werden? Es ist nicht m6glich, hier einen GesamtUberblick Uber das 6ffentliche Verm6gen, seine finanziellen Gr6Benordnungen und
Verastelungen zu geben. FUr unseren Zweck genifgt es, fUnf groBe Gruppen zu
betrachten, zwischen denen die Grenzen natUrlich flieBend sind.

Die umfangreichste und wertmaBig gr6Bte Gruppe umfaBt das Hoheitsund Verwaltungsverm6gen. Diese Gruppe des 6ffentlichen Vermdgens stellt
kein Privatisierungsobjekt dar. Eine zweite groBe Gruppe des 6ffentlichen
Verm6gens stellen die Sonderverm6gen dar, bei denen es sich im wesentlichen um
solche des Bundes handelt. Eine dritte Gruppe betrifft das Kreditverm6gen, vor

allem die Darlehen fUr den sozialen Wohunngsbau. Es ware anzunehmen, daB
auch bei dieser Verm6gensgruppe von einer Privatisierung nicht die Rede sein

kann. Als eine vierte Gruppe kann das Liegenschaftsverm6gen angesehen
werden.
Die fUnfte Gruppe des 6ffentlichen Eigentums urnfaBt schlieBlich das

Erwerbsverm6gen. Zu ihm geh6ren all die Unternehmen, die entweder in
6ffentlich--rechtlicher Form als Regie- und Eigenbetriebe gefUhrt oder privatre-

chtlich als in vollem 6ffentlichem Besitz befindliche Aktiengesllschaft, GmbHusw. oder als gemischtwirtschaftliches Unternehmen betrieben werden und sichauf den verschiedensten Gebieter der Wirtschaft betatigen. Um sie handelt essich in erster Linie, wenn die Privatisierung der 6ffentlichen Hand gefordert
Wird.(i6)Von Hinche verbleiben als umstrittene Gebiete im wesentlichen die drei

(13)

Hirche, Kurt: a. a. O., S. 68.

(14)

PreuBische Bergwerks- und Hiftten AG.

(15)
(16)

Hirche, Kurt: a. a. O., S. 69.
Hirche, Kurt: a. a. O., SS. 72-74.

GRUNDPROBLEMEPRIVATISIERUNG
DER

135

groBen Bundeskonzerne Viag, Veba und AG fUr Berg- und HUttenbetriebe mit
ihren mehreren hundert Beteiligungsunternehnen, drei kleinere Konzerne(Industrie-Verwaltungs-GmbH, Bank ftir deutsche Luftfahrt i. L. und AG fur
Binnenschiffahrt), eine Anzahl unmittelbar verwalteter Unternehnen sowie das
Volkswagenwerk. Dazu kommen noch weitere verkehrswirtschaftliche Unternehmen und 42 ruhende oder sich in Liquidation befindliche Gesellschaften.(i7)Und anf einer Privatisierungsliste waren unter anderem folgende Firmenverzeichnet :LuitpoldhUtte AG, Amberg
Metallwerke Unterweser AG, Nordenham
Oberbayerische Aktiengesellschaft fUr Kohlenbergbau, MUnchen
Fahrzeug- und Maschinenbau Watenstedt GmbH, Salzgitter
Kanal-Verkehrs AG, Duisburg-Ruhrohrt
Deutsche Bergwerks- und HUttenbau GmbH, Salzgitter-DrUtte
Viag-mAnteil an Ilseder Htitte in Peine
hlkett, Berlin

Vereinigte Tanklager- und Transportmittel GmbH, Hamburg
Schichau AG, Bremerhaven
Deutsche Industriewerke AG bzw. GmbH, Berlin-Spandau

Norddeutsche Chemische Werke GmbH, LUneburg
Beteiligung an der Rheinmetall-Borsig AG, Berlin

Mitteldeutsche SpinnhUtte GmbH, Celle
Holzverzuckerungs GmbH, Holzminden

Volkswagenwerk GmbH
Ufa
Afifa

Bavaria

Howaldtswerke Hamburg AG, Hamburg
Einige der genannten Unternehmen sind inzwischen verkauft worden, bei
anderen zerschlugen sich die Verkaufsverhandlungen, oder es fanden sich keine
Interessenten.(i8)Dem Bundestag hat die Regierung erstmals im Sommer 1958 Uber den
Stand der Privatisierung berichtet. Danach sind seit dem Jahre 1949 von 429
gesellschaften, an denen der Bund beteiligt war, insgesamt 32 verauBert worden,
unter denen sich sieben unmittelbare und 25 mittelbare Beteiligungen befanden.

Der VerauBerungser16s hat hierftir mehr als 85 Millionen DM betragen(i9).

(17)
(18)
(19)

Hirche, Kurt: a. a. O., S. 80.
Hirche, Kurt: a. a. O., S. 33.
Hirche, Kurt: a. a. O., S. 106.

136

MASAYA OKADANach der im Bundestag erfolgten Angabe sind folgende Beteiligungen bis zum
Sommer 1958 verkauft worden:
I. Unmittelbare Beteiligungen
1. *Reichskraftsprit GmbH, Berlin
2. *Weichsel-Dampfschiffahrt AG, Kiel
3. Karlsruher Flughafengesellschaft mbH, Karlsruhe
4. Reinickendorfer Industriebahn GmbH, Berlin
5. Kieler Verkehrs-Aktiengesellschaft, Kiel
6. Deutsch-Ostafrikanische Gesellscheft, Berlin

7. F. Schichau AG, Bremerhaven
II. Mittelbare Beteiligungena) aus dem Bereich der Bank der Deutschen Luftfahrt AG:
1. Rheinmetall Borsig AG, Berlin
2. Continentale Metall AG, Bad Homburg v.d. H.
3. Gerhard Fieseler Werke GmbH, Kassel

4. *Alumetall GmbH, NUrnberg
5. Junkers Flugzeug- und Motorenwerke AG, Dessau
6. Junkers Flugzeug- und Motorenwerke GmbH, Lohfelden (Kassel)

7. GemeinnUtzige Wohnungsbaugesellschaft Nordhessen GmbH, Kasselb) aus dem Besitz der ehemaligen Deutschen Werke Kiel AG, Kiel:
1.* M. Achgelis S6hne AG, Bremerhaven
2.* Holmag Holsteinische Maschinenbau AG, Kiel
3.* Tilly-Strumpffabrik GmbH, Kielc) aus dem Bereich der AG fUr Binnenschiffahrt:

1. Deutsche Tank-Reederei GmbH, Hamburg
2. Norddeutsche Schiffahrts AG, Hamburg
3. Transport AG (vormals J. Hevecke), Hamburg
4. Westf21ische Transport AG, Dortmundd) aus dem ehemaligen reichseigenen Filmverm6gen:
1. Bavaria Filmkunst AG, MUnchen
2. Ufa-Anlagen Aktiengesellschaft (jetzt Universum Film AG, Berlin)
3. Ufa-Theater-Aktiengesellschaft, Dttsseldorf

4. Degeto-Film GmbH, Berlin
5. Betoton-Verlag GmbH, Berlin-Hamburge) ferner aus verschiedenen anderen Bereichen:

1. Emscher Lippe Bergbau AG, Datteln
2. Baubedarfs GmbH, Neustadt a. d. WienstraBe
3.* FormholzpreBwerk Ronen GmbH, Amberg (OpÅí)4. Brennstofftechnik GmbH, Essen
5.* Famo Vertriebs GmbH, Mtinchen

GRUNDPROBLEME DER PRIVATISIERUNG

137

6.* Kontinentale ()1-Transport AG, Hamburg
Von diesen Verkaufen sind neun schon bis Ende 1954 erfolgt, die wir oben mit
einem Stern gekennzeichnet haben. Von den 429 Gesellschaften, die der Bund bis

195S in seine Verwaltung genommen hatte, waren danach bis Mitte 1958 nur
80/. und von dem Nominalkapital dieser Beteiligungen nur 5 O/o, vom wirklichen
Gesamtwert noch erheblich wenigen, privatisiert worden.(20)m
Die zur Verwirklichung der angestrebten Privatisierung einzuschlagenden
Wege hangen davon ab, welches Privatisierungsziel angesteuert wird. Sie
kdnnen bei Verfolgung des wirtschaftspolitischen Ziels der Eindammung andere
sein als bei der gesellschaftspolitisch gewttnschten Eigentumsstreuung. Wer
privatisieren will, kann die 6ffentlichen Unternehmen 1. Iiquidieren, 2. verpachtenoder vermieten, 3. verteilen, 4. verkaufen, 5. Volksaktien ausgeben und 6.
teilprivatisieren. Bei jedem dieser Wege sind verschiedene DurchfUhrungsm6glichkeiten gegeben.(2i)Beginnen wir zunachst mit dem ersten Weg, der Liquidation (Stillegung) von

6ffentlichen Unternehmen. Wenn unter Privatisierung nur die UberfUhurng
von 6ffentlichem in privates Eigentum verstanden wUrde, kbnnte die Liquidation
nicht als Privatisierung angesehen werden, da zwar einzelne Verm6gensteile desbetreffenden Unternehmens in private Hande Ubergehen m6gen, das Unternehmen
als wirtschaftliche Einheit aber aufge16st wird, Im Sinne des oben dargelegten
wirtschaftspolitischen Ziels der Privatisierung, den EinfluB der 6ffentlichen
Wirtschaft einzuschranken, stellt die Liquidation einen naheliegenden Weg dar.
Der zweite Weg, die Privatisierung durch Einschrankung der Erwerbstatigkeit des Staates voranzutreiben, bestifnde darin, 6ffentliche Unternehmen zu
verpachten oder zu vermieten. Im Unterschied zu den Ublichen Vertragen dieser

Art, wie sie bei GrundstUcken und Gebauden angewendet werden, bietet sichhier das Institut des Betriebsnutzungsvertrages an. In diesem Falle kann der
Betrieb so gefUhrt werden, als ob er sich im Eigentum des privaten Betriebsnutzers befande. Zwar bliebt hierbei das juristische Eigentum beim Staat; aber
die Privatisierer haben ja in den meisten Fallen nicht das staatliche Eigentum,
sondern die staatliche Wirtschaftstatigkeit kritisiert, die dem BUrger Konkurrenz

mache. Nun: in dem MaBe, in dem Betriebsnutzungsvertrage mit privaten
Interessenten abgeschlossen werden, wUrde die staatliche Konkurrenz verschwinden. Es ist merkwUrdig, daB dieser Privatisierungsweg bisher noch nicht(20) Hirche, Kurt: a. a. O., SS. 107-108.
(21) Hirche, Kurt: a. a. O., S. 87.

MASAYA OKADA

138

beschritten. Allerdings muB hinzugefUgt werden, daB sich die Betriebsnutzungs-

vertrage nicht fUrjedes 6ffentliche Unternehmen eignen wUrden. Sie kamen
im wesentlichen nur fUr kleinere und mittlere Betriebe und gegebenenfalls als

Vbergangs16sung bis zum endgtt1tigen Verkauf in Frage, soweit an ihnen
kein besonderes 6ffentliches Interesse besteht.

Der dritte Privatisierungsweg bestttnde darin, 6ffentliches Etwerbseigentum

kostenlos zu verteilen. Wer nicht vom Abbau des Wirtschaftsstaats, sondern

von der zu f6rdernden Eigentumsstreuung ausgeht, mUBte den Gedanken
der Umverteilung des 6ffentlichen Erwerbseigentums besonders eingehend
untersuchen. SchlieBlich stellen "Sozialrabatt" und "Sozialkurs" der Volksaktie

ebenfalls Umverteilungi von 6ffentlichem Verm6gen dar.
Der vierte Weg der Privatisierung betrifft den Verkauf 6ffentlicher Erwerbsbetriebe. Es ist der Weg, der bisher fast ausschlieBlich bestritten wurde.(22)
Der fUnfte Privatisierungsweg kann zwar auch als eine der M6glichkeiten desvierten Weges (Verkauf) angesehen vverden, stellt aber etwas Besonderes dar.
Dieses Besondere ist nicht nur darin zu erblicken, daB die Volksaktie seit FrUhjahr

1959 als das wichtigste Privatisierungsmittel angesehen werden muB, sondern
rtthrt auch daher, daB sie vielseitiger Ausstattung fahig ist und mit dem ersten

und sechsten Weg kombiniert werden kann. Wir haben die,Volksaktien kennengelernt als Beteiligungspapiere, die durch kleine Nennwerte und durch Stimm-

rechtsbeschrankungen gekennzeichnet sind. Ihr besonderer Charakter kommt
in der ihnen eigentUmlichen Zielsetzung und in den sozial-orientierten Ausgabe-bedingungen zum Ausdruck.(23)Auch der sechste Privatisierungsweg (Teilprivatisierung) kann mit anderen

der vorher behandelten Weg kombiniert werden. Wahrend es aber bei diesen
jeweils um die Vollprivatisierung ging, ist hier der (.irbergang eines mehr oderminder groBen Teils eines 6ffentlichen Unternehmens in Privathand gemeint.
In diesem Falle taucht hier die volle Problematik des gemischtwirtschaftlichen
Betriebes auf.(24)rv
Bis zum Frtthjahr 1959 ist von der Bundesregierung nur das wirtschaftspolitische Ziel der Privatisierung praktiziert worden. Mit der PreuBag-Aktion
wurde auch das gesellschaftspolitische erstmals in die Tat umzusetzen versucht.
(22) Siehe hierzu diese Abhandlung SS. 131-133.
(23) Hammerschmidt, Rolf: Betriebswirtschaftliche Probleme der Volksaktie, inaugural-

Dissartation zur Erlangung der DoktorwUrde einer Hohen Staatswirtschaftlichen
Fakultat der Ludwig-Maximilians Universitat zu Mttnchen, 1959, S. 135.
(24) Hirche, Kurt; a. a. O., SS, 87-94.

GRUNDPROBLEME DER PRIVATISIERUNG
Es darf unterstellt vverden, daB kUnftig beide nebeneinander verfolgt werden,

wobei-wenigstens nach den amtlichen Erklarungen-das Schwergewicht bei den
eigentumsstreuenden MaBnahmen liegen soll. Fassen wir das bisher Gesagte
zusammen, so ergibt sich folgende Definition: Privatisierung ist die UberfUhrung

von Erwerbsverm6gen der 6ffentlichen Hand in private Hand, um die 6ffentliche
Wirtschaftstatigkeit einzuschranken oden eine breite Eigentumsstreuung zu
erreichen oder um beide Ziele gleichzeitig zu verfolgen.

In dieser Formel haben wir bisher noch nicht den Begriff "private Hand"
naher betrachtet. Offenbar hangt aber die Art und Weise und damit auch die
Beurteilung der Privatisierung wesentlich davon ab, was unter privater Hand im
Unterschied zur 6ffentlichen Hand zu verstehen ist(25), Die soziale Privatisierung

verfolgt eine breite Eigentumsstreuung. Private Hand betrifft dabei kleinere

und mittlere Einkommensempfanger.

1964. 12. 21.

(25) Hirche, Kurt: a. a. O., S. 86.

139

KOBE ECONOMIC & BUSINESS REVIEWCONTENTS
NO. 1 (1953)
njiro ShtTata
Present Day Significance of Free Ports .......................... Gi'
Development of Devaluation-Problem in Post-War Japan ............ Kiyoxo Miyata
Japan's Trade with South and South-East Asian Countries . . . . . . . . . . fiTukuo Kawata

The Exchange Control Policy in Post-•War Japan .,...,............ Masahiro Fzas'ita
On the Official Statistics of Foreign Trade in the Post-War Japan . . . . . . Hikoji Katano

On Business History .......................................... Tadokatsu Jnoue
Problems of Regional Industrialization in Japan .................... Minoru Beika
A Research of Wage Income in Post-War Japan ...................... Nobtcko Nose'
Revaluation in Japan ........................................ Susumu VVatanabe
Last-In, First.Out Inventory Method under the Japanese Tax Law . . Munehiro Masuxaki

NO. 2 (1954)
Movements for the Establishment of Free Ports in Japan .......... Ginjiro Shibata
Japan's Trade with Latin America in the Post-War Years . . . . . . . . . . Fukuo Kawata
The Maritime Competitions in the Early Meiji Era . . . . . . . . . . . . . . . . Sei 'i Sasaki

Two Deflations in the Showa Era ........,................... Masahiro Fuj'ita
Estimation of the Effectiveness of Devaluation on

Balance of Payment Deficit in Japan ................ Hikoji Katano
The Recovery Method of the Japanese Shipping Industry
in Post-War Period ................................ Hiromasa Yamamoto
Business Accounting and Tax Accounting ...,.................. Susumu Watanabe
Spatial Characteristics of Industries Relative to Their

Business Features .................................. Minoru Beika
Stages in FactQry Organization ................................ Tadakatsu Inoue
Accounting for Fixed Assets Revaluation; Recent Views in Japan . . . . Munehiro Masuxaki

On the Structure of the National Income Distribution in Japan ........ Nobuko Nose'

NO. 3 (1956)
Industrialization and International Trade ...................... Fukuo Kawata
Econometric Determination of Foreign Exchange Rate of Japanfor 1926-1953 .................,.................... Hikoji Katano
Present Status of Japan's Shipping .......••..................... Ginjiro Shibata
The Distinction between "Shasen" and "Shagaisen" as Historical

Concepts in Japanese Shipping ........................ SerI'i Sasaki
The Banking System in the Middle Meiji Era (1870-1910) . . . . . . . . . . Masahiro Fuiita

Disposition of Cost Variances in Japanese Tax Law .............. Susumu VVatanabe
Structure of Industrial Districts in Japan ........................ Minoru Beika

Note on the ZAIBATSU Combines ............................ Tadakatsu lnoue
On the Model-Building for Social Accounting Design .............. Nobuko Nose'

NO. 4 (1957)
The Impact of Exchange Policy on the International Economy
of Japan during the Period 1930-1940 ................ Laurence P. Docad

A Note on the Recent Trends of Japan's Foreign Trade ............ Fukuo ,Kawata
The Development of Overseas Banking System in Japanin the Meiji Era .................................. Masahiro Fuiita
More on the Structure of National Income Distribution in Japan . . . . Nobuko Nose'
Reconstruction of the Theory of Purchasing Power Parity .......... Hikoji Katano
Tramp Shipping Freights and International Trade ................ Gt'
njiro Shibata
A Little Study on the Transition from the Sailing Vessel to
Steamer in Japan ............,......................,.... Sei1'i Sasaki
On the Regulating Policy of Japan Against the Shipping
Conference-Especially in Relation to the Refusal of

the Entry to New Comers .......................... Hiromasa Yamamoto
The Price Fluctuation Reserve System in Japan ............,..... Susumu Watanabe
Locational Problem in the New Major Branches of JapaneseIndustries from 1954 to 1956 ........................ Minoru Beika
Business Problems in an International Situation ...........,...... Tadakatsu Inoue

NO. 5 (1958)
History of Yen---Its Developments in the Japanese Economy (1) .... Hiroshi Shinio
Fundamental Features of the Accumulation of Capitalin the Late Meiji Era ................................ Masahire FuJ'ita
Some Aspects of Japan's Trade with South andSouth--East Asia, 19SO-1957.....................,...... "Euhuo Kawata
Curves of Diminishing Values of Japanese Merchant Ships
in Proportion to Their Age .......................... &'njiro Shibata
The Modernization of Japanese ShipPing Based on theTransportation of Holtkaido Marine Products .......... Sei'i Sasaki
Development of the Marine Insurance Industry in Japanin the Meiji Period .............................. Hiromasa Yamamoto
A AssimilagSo do Imigrante Japones no Brasil .................... Hiroshi Saito
Rate of Profit and International Specialization of Production ........ Hikoji Katano

Replacement Cost and Lifo Cost .............................. Sttsumu Watanabe
Spatial Problerns of Busines's Activities .......................... Minoru Beika
The Nature of the Morgan Control ............................ Tadahatsu lnoue
On the Effect of Accelerated Amortizatien for Tax Purposes . . . . . . . . Nobuko Nose'

NO. 6 (1959)
History of Yen-Its Developments in the Japanese Economy (2) .......... Hiroshi Shinjo

The Central Banking Policy in the Meiji Era .................... Masahiro Fnjita

Economic Growth, Balance of Payment and Capital Movement ...... Hikoji Katano

World Trade and Japan's Export-1953-1957- .................. Fukuo Kawata
Alguns Aspectos da Mobilidade de Japoneses no Brasil .........,.... Hireshi Saito
Problems of Emigrant-Transportation in Japan .................. fliromasa Yamamoto
Port Labor Conditions in Japan ..,......,...............,...... (]Pi'njiro Shibata
The Development of the Concept t`Operator" in Japan ............ Sei'i Sczsaki

Single Industry Towns in Japan ................................ Minoru Beika
On the Application of the Social Accounting

Principle to Business Accounting ...................... Nobuko Arosi
Valuation of Work in Process .................................. Susumu Matanabe
Developmental Stages Relating to Theories

of Stock-•Equity Accounting .......................... Rynji Takeda
On the Rate of Interest in Business Administration .................. Jiro Ono

Various Classes of Data Processing by

Computer ...........
Company Histories in Japan .......

Means of Electronic-----------------....... Tadahatsu

-----

----

.. Hideo Kitani

Inoue and Yoshiro Ikushima

NO. 7 (1960)
njiro Shibata

Japanese Emigration and Its Effect on International Payments .

..... Gi'

One-to-One Correspondence Between Goods and Factor Prices
The Gold Standard and Banking Capital in Japan .............

...... Hikoji Katano..... Masahiro Faiita

World Trade and Economic Growth .......................

..... Fukuo Kawata

Singularity in the Structure of the Seamen's Union ofJap an .......

. Hiromasa Yamamoto...... Nobuko Nose'

Some Refiections on Inter-Comparability of Social Accounting
The Meaning of Inventories ................................
Structure of Income Determination on the Balance Sheet ....

.. Susumu Matanabe...... Rywfi Takeda

On the Value of Stock Rights and Its Significancein Corporate Finance ..........................
Business Features and Management Policies of Industrial
Enterprises in Local Distriets of Japan .......,..

••-•••-•••Jiro Ono...... Minoru Beika

NO. 8 (1961)
The Industrial System and Industrial Education in Southeast Asia

Now on the Threshold of Reform; and Japan's Position therein.................................................... Kiyoxo Miyata
Industrial Structure and Educational System in India ............ Tadao Mlyashita
Industrial Education in India ..............,.,................. Tadao Atliyashita
Technical Education in India ..............,................... Tadao Miyashita
Indusnial Structure and Vocational Education in Thailand .......... Fukuo Kacaata
The Industrial Structure and Industrial Educationin the Philippines .................................. Tei-ichi Yamasaki
Industrial Structure and Vocational Education in Indonesia ......Hiromasa Yamamoto

NO. 9 (1962)
Problems in Port Administration and Finance in Japan ............ Ginjiro Shibata

Types of Early Modern Japanese Shipowners .................... Sei'i Sasaki
On the Employment System of Seamen in Japan .................. Hiromasa Yamamoto

A Study on Japan's Invisible Trade ............................ Fukuo Kauata
Problems of Industrial Location relating to Regiona! Development inJapan ............................................ Minoru Beika
The System of Inside Contracting .............................. Tadakatsu Inoue
A Critique on Professor Mahalanobis Model of Economic

Planning in India .................................. Hikoji Katano
National Income Concepts: Reconsidered ...................... Nobuko Nose'
Some Problems of the Installment Basis ........................ Susumu VVatanabe

On the Purposes of a Going-Concern Valuation and its Natures ...... Jiro Ono
Die Betrachtungsweise der neueren betriebswirtschaftlichen..

Kostentheorie .........••...-..................... Tetsuo Kobayashi

NO. 10 (1963)
Revised Accounting Provisions of theCommercial Code of Japan-with Special Reference to the

Corporation Income Tax Law- .................... S"sttmu VVatantzbe
Social Accounting as an Instrument of Policy ...................... Nobuko Nosi
Industrial Estates for Small Businesses in Japan .................... Minoru Bcika
Rise of the Mutual Financing Business in Japan .................... Tadakatsu Ineue
The Introduction of European-Style Vessels in Japan:

A Historical Survey .................................... Sci'i Sasaki
On Indusnial Relations in Japan's Shipping Industry-with Special Concern on Personnel Management- . . . . Hiromasa Yamamoto
Regional Disparities in the Brazilian Economy:
A Case Study on the Brazilian Northeast .............. Yoshiaki Ndshimukai

The Basic Concepts of Going-Concern Valuation .................... Jiro Ono
A Study on the Current Cost Theory of Fritz Schnidt .............. Isao Nakano
Die Kostenbegriffe fttr die betriebliche Planung .................. Tetsuo Kobayashi
Introducing Prof. Shinjo's "History ofthe Yen" .................. Zentaro Matsumura

NO. 11 (1964)
Accounting Profit and Taxable Income ........................ Susumu Watanabe
On Integration in Economio Accounting .......................... Nobuko Nose'
Uber,, Cost Accounting Standards" in Japan .................... Tetsuo Kchayashi

A Note on the Lohmann-Ruchti Effect .......................... Isao Nakano
Management Approach to Regional Development Problems in Japan......................................................Minoru Bec'ka
A Research Report on OMce Automation of Middle-Scale Cities in Japan............................................-...•......... Jiro Ono
Die Geschichte der Privatisierung .............................. Masaya Okada
Recent Trends in the Balance of Payments of Japan ................ Fukuo Kaevata
Long-Term Finance in Post-War Japan (1) ...................... Masahiro FuJ'ita
A Chrono!ogical Table of Modern Japanese Shipping -No. 1 ; 1600-•v1799...........................,.......................... Serl'i Sasaki
The Continuous Employment of Seamen in American Shipping Industry....•.•.....,................................... Hiromasa Yamamoto
Some Problems of the Brazilian Economic Development Plan
(1963-1965) ................,...............,..... Yoshiaki Nishimukat'

KOBE UNIVERSITY ECONOMIC REVIEW 1964
Edited by Faculty of Economics,
Kobe University, Kobe, JapanCONTENTS"Subjectivism" in the History of Economic "Thought" ............ Jiichi Hayashi
A Note on Ricardo's Theory of Value .......................... Kanichi Minakata

A Cornment on Mr. Kaldor's Model ............................ Nobuo Okishio
Energy Supplies and the Economic Growth in Japan, 1875-1962••••••••••••••••••••••••.•.......................... Toru lshimitsu
The Business Cycle and Balance of Payments .................... Kiyoshi Ikemeto

N-N-t-`VL.-p.V-.".VV.qNV-VV--b..VV--b-.VV-M.-MA,ww.Vi.VtVww'thtt

THE ANNALS OF THE SCHOOL OF'BUSINESS ADMINISTRATIONKOBE UNIVERSITY 1964
Edited by The School of Business Administration,

Kobe University, Kobe, JapanCONTENTSDie Rechnungslegungsvorschriften des Japanischen

Handelsgesetzes zur Sicherung des Reinverm6gens .... Katsnji Yamashita
The Basic Structure of the Cost Accounting Standard$in Japan .......................................... Otojiro Kubota
Necessary Conditions for the Existence of Medium andSmall Enterprises in Industry ........................ Noboru Inaba
Security Credit in Japan Today ................................ Saichiro Suminoe
The Consolidation of Japanese Shipping Companies
and Its Background ................................ Tadanori Takamura

On the Theory of Optimum Foreign Investment .................. Anthiro Amano

wwNVS.VVVVV.N-V ww-.V--b..V-ww-VV-N
KOBE UNIVERSITY LAW REVIEWInternational Edition 1964
Edited by Faculty of Law,
Kobe University, Kobe, JapanCONTENTS
Some Factors in the Communist View of Neutrality .............•••
Das gerichtliche Verfahren in der EDO-Zeit in Japan ..,..........•

Masao Onoe
Hideo Ohtake

THE RESEARCH INSTITUTE FOR ECONOMICS AND
BUSINESS ADMINISTRATION, KOBE UNIVERSITY

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HISTORICAL SKETCH
In 1919, a research organization named the Institute for Commerce wasfounded in Kobe Higher Commercial School, one of the chief predecessors ofKobe University, with a gift rnade by F. Kanematsu & Company, a leading
mercantile firm in Kobe. The organization was designed to carry on and facilitate integrated research on business and commerce and to formulate and publish
the results of these studies and investigations in such form as to make them available

to the business community.

With the founding of Kobe University of Commerce, successor of Kobe
Higher Commercial School, in 1929, the Institute extended its research activities

by adding several divisions. One was the famous Latin-American Library, whichsoon became the center of research in this field in Japan. A room for statistics
equipped with various computing machines was established and began publicationof "Juyo Keizai Tokei" monthly and "Sekai Boeki Tokei" annually. A Ming room
was prepared to deposit press clipping files systematically arranged by topics anddates. Another room was designed to become the center of all possible originalrecords and data having to do with the beginning and progress of Japanesebusiness.

On the campus of Kobe University of Commerce, another organization named
the Institute for Business Mechanization was founded in 1941 utilizing businessmachines donated by the IBM Corporation and others. With Professor Yasutaro
Hirai as its head a broad and forward-looking plan for business mechanization

in Japan was developed.
In 1944, Kobe University of Commerce changed its name to Kobe University of Economics. After the war, however, the University was consolidated withthree other colleges in Hyogo Prefecture to become Kobe University. With thisdevelopment, the two Institutes were also amalgamated into the Research Institutefor Economics and Business Administration, Kobe University. At present, theInstitute, with its eighteen fu11-time professional staff members, carries on studies

and investigations in international economy, business administration, and businessmechanization in Japan.

LOCATION AND BUILDINGSThe Research Institute for Economics and Business Administration is locatedon the campus of Kobe University, Rokko, Kobe. It is a three-story building
named the Kanematsu Kinenkan and has a fioor space of about 2,900 square meters,
which includes a president's room, forty-one ofices, six rooms used as a library, aroom for statistics, three conference rooms, etc. Adjoining is a one-story building
recently built to install business machines.

ORGANIZATION
Under the directorship of a president, the Institute operates with two researchgroups one ofwhich consists of five sections while the other has four sections. Eachresearch group and its sections are as follows:

A Group of international Econorny(1) International Trade(2) Economy of Latin-America(3) Maritime Economy(4) International Finance(S) International Law of Economy

B Group of Business Administration(1) Business Administration and Business Mechanization(2) Accounting(3) International Management(4) Labor Problems
Besides the regular work of the Institute organized in this manner, researchcommittees may be created to carry on any special work requiring the joint studyof academic and business circles. At present, there are three committees, that is,

the Asian Economy Committee, Latin-America Committee, and Accounting Com-.
mlttee.
For convenience and greater eMciency in carrying out its research activities,
the Institute has a general oMce which is responsible for, 1) the collectionandpreservation of a comprehensive collection of books, periodicals, pamphlets, andoriginal records and data of finance, trade, commerce, industry and buisness
generally; 2) the classification, cataloguing, indexing, arranging, annotation andcompilation of these research materials; and 3) the formulation and publicationof the results of the investigations and studies accomplished by the professional
staff members of the Institute.

As an athliated institute, the Documentation Center for Business Analysis has
been recently established. It is the first systematic information facility in the fieldof business administration in Japan that has been recognized and authorized by the

Ministry of Education. The purpose is to collect and to make intensive control
of all kinds of materials on business administration and to make them available toscholars, universities, governments, and business world with the aid of modern
documentation techniques.

THE RESEARCH INSTITUTE FORECONOMICS & BUSINESS ADMINISTRATIONKOBE UNIVERSITYIli

Director: Minoru BEiKA
Secretary: Teiji NAKAyAMA

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:• GROUP
OFINTERNATtONALECONOMICRESEARCH :i GROUPOFBUSINESSADMINISTRATIONRESEARCH::i Fukuo KAwATA

Professor of International

l

Trade
Dr, of Economicsl SeijisAsAK,

ProfessQr of Maritimei

Economvll Hiroshi sHINJo

Profesror of Internationa!

lFinanceDr. of Economicsi: Torasaburo

Dr. ef Economics

Professor of TransporNOMVRAliI' Taro KAwAKAMI.
tatlonDr. of Conrmerce
Professor of Private

International Law

Dr. of Law: SusumuWATANAeE Professor of Accounting I'

i Dr, of Business li Administration i

I Minoru BEiKA Professor of Business 1

i Administration and l'; Business Mechanization i:: Dr.
of Businessi :Adrninistrationl Tadakatsu tNouE professor of lnternational l:' Managament li YoshimotoKoBAyAsHiProfessor of Labor i

Ill Dr.
Problemsof Businessl' I i
Administration

l: Jiro yAo

Professor of InternationallFinanceDr. of Economics

I Nobuko NosE Associate Professor of lll Masahiro FuJTTA

Associate Professor ofiil Hikoji KATANo

Regional Study on Latin
Arnerica
Associate Professor ofInternational Trade' rofessor
Associate
P ofl Hiromasa YAMAMoToMaritime
EconomyI

1 Yoshiaki NtSHTMUKAtAssociate Professor of
Regional Study on Latini

Americal Accounting l:, Jiro ONo Associate Professer of 1

i Business Administration i: and Business Mechaniza- I
I• Masaya OKADA Research AssoÅëiate i

lI/l Administrationin Business
nndI1li
Bu$iness Mechanizationli

OMce : The Kanematsu Memor{al Hall,THE KOBE

UNIVERSITY
JAPAN ,/ i

ROKKO, KOBE,