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By G. C. Allen (auth.)

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Sample text

Of very rapid economic expansion. The Japanese government of the time, however, was by no means concerned solely with economic objectives. The creation of an economic system such as might promote the maximisation of the national income was far from being its only, or even its chief, aim. It was also concerned with political security. For this reason it had taken Japan into war against China and Russia. For this reason it had embarked after 1895 on the development of the resources of Formosa, and after 1905 on colonial expansion in Korea.

On avait abouti ainsi a doubler Ia dette publique en dix ans, tandis que Ia dette locale decuplait en seize annees; ... Pour retablir 1'equilibre budgetaire on ne pouvait pas d'avantage sanger a une augmentation de l'impot, puisque ainsi que nous 1'avons vu, celui-ci avait ete maintenu a son niveau des temps de guerre et 1'avait meme, pour ce que est des finances locales, depasse. ss Thus far the course of Japan's financial experience as originally set out in the papers of which this chapter is composed.

But the steep decline in world prices which coincided with the return to the gold standard enhanced the difficulties of adjustment. Japan, having insulated herself against world price movements throughout the postwar decade, committed herself to following them at a moment of drastic decline. The Japanese wholesale price index fell between June 1929 and December 1930 by forty-six points, or 27 per cent, a much greater decline than that of the corresponding indices of the United States or England.

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