Chapter 146: Japanese Enterprises
These words made Miura Jiro’s blood pressure soar, his anger finally uncontainable, he slammed his palm on the table with a bang and abruptly stood up.
Staring at Gu Yansheng, he said: “The Empire of Japan has spent over 80 million on Shanghai front and back, now the military coupon system is scrapped, Shanghai’s economy has collapsed, the reputation of forced requisition has spread worldwide, public opinion around the world is condemning us, and this is the answer your city government has given me? Is it!”
With the leader standing, Gu Yansheng couldn’t sit either, he stood up and said: “Your Excellency, if you just want to vent, then scold away, I’ll take it for the city government.
But if you are accusing, sorry, I dare not take responsibility for the city government on my own, nor do I think the city government needs to bear this responsibility.
The city government obeyed orders and acted without any discount, using connections and informants, in just a few days found most of the warehouses where merchants were hiding goods, completed this forced requisition mission, a model of swift and effective action.
The action gets no praise but still bears the blame, I have no way to explain to colleagues and subordinates.
Who will work diligently in the future?
As for you thinking the current result is bad.
I assessed the impact of forced requisition from the beginning, Shanghai’s grain reduction would definitely cause some turmoil, this is inherent to the nature of forced requisition, unavoidable.
But things becoming as bad as today, that I didn’t expect.
On the way here, I was still thinking on the road, why has the situation reached this point?
Although the forced requisition plan is a plundering plan and will indeed make Shanghai’s rice inventory scarce, people are animals that seek survival autonomously, if Shanghai has no rice, people will buy from the concession, when concession rice prices rise, merchants see profit, they will procure in large quantities from Jiangsu and Anhui.
As long as the initial turmoil period passes, time will naturally smooth all wounds later.
Why did it change? The reason, in my view, has two points.
The first point is Mr. Kobayashi’s led military coupon system.”
“You dare to accuse my military coupon system of having problems?”
Kobayashi widened his eyes, never expecting to be dragged into this, laughed in extreme anger, “How many times did I remind you about this! Made how many phone calls telling you forced requisition would collapse all of Shanghai’s economy, you and Kageza thought you were so capable? Now you dare accuse me, idiot!”
“Kobayashi, seems you scolded me too.” Kageza was unhappy hearing it.
“You heard right, I’m scolding you, idiot.” Kobayashi was very tough.
“Baka yarou!” Kageza flew into a rage, spewing profanity.
“Enough! Both of you shut up!” Miura Jiro roared at the two, then said to Gu Yansheng: “You continue.”
Gu Yansheng bowed his head: “Your Excellency just said, the Empire of Japan spent over 80 million on Shanghai, excluding the first military scrip expenditure, then we calculate, the second military scrip implementation cost 50 million.
New military scrip worth 50 million Japanese yen circulating in the Shanghai area, issued with unlimited exchange.
I know the starting point may be because the first military scrip credit collapsed, so to give confidence to all sectors of society, create a situation where military scrip can be exchanged freely and fully.
This was originally no problem, this period’s military scrip circulation value also proved this, the market acknowledged it.
But after this incident, I have an additional question, since it’s military scrip worth 50 million Japanese yen circulating outside, then the Economic Department should have various foreign currency worth 50 million Japanese yen waiting for exchange.
In the most extreme case, all foreign currency is exchanged away, but no more military scrip outside.
Why was it not enough for exchange, leading to military scrip credit bankruptcy?
As far as I know, the Economic Department did not overissue military scrip, and Mr. Kobayashi’s promise at the time was, no matter how much short, all made up.”
Right, Miura Jiro seemed awakened, abruptly looked at Kobayashi Nobuo: “Why was it not enough for exchange? Could Chongqing’s counterfeit banknotes have come again?”
Kobayashi suddenly fell silent, brows tightly furrowed, expression hesitant.
“Stand up! Speak!” Miura Jiro roared.
Kobayashi stood up, “This matter, Your Excellency, I’ll report to you later, because it involves some other things.”
“I want to know the reason now.” Miura Jiro walked toward Kobayashi, eyes bulging round, “Kobayashi-kun, you better tell the truth, otherwise no one at General Headquarters can protect you.”
Kobayashi struggled a bit and sighed, “There is some extra military scrip in circulation, that’s loans from several major military enterprises to us, they need to produce military supplies, acquire raw materials, foreign exchange reserves tight, so their military scrip was extra issued, did not go through the Economic Department.”
Now Gu Yansheng could sit down, after all, at most it empties most of Japan’s foreign exchange in the Economic Department, but total shutdown is absolutely impossible.
“How much? Why didn’t you report to me?” Miura Jiro asked seriously.
“Several enterprises about 60 million, this matter was negotiated by the homeland Economic Affairs Section, I was just the executor.”
“You studied economics, didn’t you know your actions would bankrupt military scrip credit?”
Miura Jiro slapped him in anger at his incompetence: “This is the great military scrip plan you kept telling me about? This is the economic colonization you told me about?”
Kobayashi took a slap, glasses knocked off, stood straight and said: “Your Excellency! General Staff Office decided matters, I can’t say no!
The borrowing enterprises Mitsubishi, Kawasaki, Mitsui etc., any one enterprise can replace me, if I disagree they just replace with someone else to execute!
Moreover at the time Economic Affairs Section told me, although funds increased by 60 million, absolutely no risk of bank run, they would, when facing run, loan from major banks to replenish our foreign currency reserves.”
“Then now? Why was there a run?”
Kobayashi wilted at once, “They didn’t replenish, now military scrip is very cheap, they want to renege, directly return military scrip.”
Kageza snorted coldly, “You can believe merchants’ words, Kobayashi-kun, I think your Doctor of Economics was studied in vain.”
“Don’t talk about me!” Kobayashi roared angrily at Kageza, “Don’t think I don’t know you brought back a batch of military scrip from the homeland to support your own subordinates!”
Kageza kept a straight face: “We just normally issued military expenses, all of Shanghai 35 thousand soldiers, how much can that cost?”
Kobayashi refused to concede, “Only? Salaries and office funding millions per month, you think that’s little? Total only 50 million reserve funds! Economic Department run has your share spent.”
Kageza snapped: “Gendarmerie Headquarters also used it, are you saying Commander Miura Jiro Your Excellency’s decision was wrong?”
Gu Yansheng stood up and bowed his head, “Your Excellency, I’ll step outside for some air.”
Gu Yansheng was very perceptive, no need to listen to this internal Japanese matter, they were about to fight.
As he left, Minister Zhou also came out.
Shaking his head and sighing: “After all this fuss, it’s the Japanese themselves stealing from their own guard, otherwise how would it come to this.”
“Empty-handed white wolf, tens of millions Japanese yen in supplies, too profitable, and now military scrip worthless, too hard to make those Japanese enterprises spit out the meat in their mouths.”
After Gu Yansheng spoke, he said in a low voice: “I borrowed from Shanghai’s merchants, at least gave bonds in return, at least when new government established later, we will repay, Minister Zhou, at first those merchants were a bit dissatisfied with my semi-forced borrowing, but now they are delighted, if military scrip still in hands, all become waste paper.”
“Is that so?” Minister Zhou thought about this, found it quite interesting, because of forced requisition, actually let merchants dodge a bullet.
But immediately thought of military scrip devaluation.
“But military scrip now worthless, if we hold it, wouldn’t we lose?”
“I considered it, exchanged every day, now all turned to foreign currency, deposited in HSBC Bank, in silver dollars, over 13 million.”
Minister Zhou exhaled a turbid breath at once, laughed refreshed and clear-minded.
“You handled this beautifully.”
Gu Yansheng added another knife: “Didn’t I initially suggest borrowing 4.5 million military scrip from Finance Department? Now military scrip worthless, later I’ll collect some military scrip, you let Vice Mayor Luo write off this account, matter settled.”
This is called empty-handed white wolf, fully twenty thousand packages of cotton yarn whited, not counting the 180 thousand silver dollars he privately took, if not wrong place, Minister Zhou would at least laugh heartily a few times.
Chatted a few idle words, person called back in.
The few Japanese all with taut faces, Kobayashi’s face slapped red.
Miura Jiro said gravely: “Director Gu just said two points, what’s the other point?”
Gu Yansheng stood up: “Actually the problem is already found, the other point I think no need to say.”
Miura Jiro narrowed his eyes, “What’s unsayable, say it.”
Gu Yansheng nodded, “Yes, the other point is hoarding and price gouging.
Forced requisition caused market rice to decrease rapidly, basically all confiscatable Chinese-owned enterprises we confiscated, but SH city still has rice for sale.
Just at very high price.
As I understand, usual 60 kg rice selling price twelve dollars, now two thousand four hundred dollars, two hundred times profit.
So after confiscating Chinese-owned enterprises, what enterprises in SH city can still sell rice? I think the answer is clear.
British enterprises, American enterprises, and Japanese enterprises.
According to Business Section statistics, SH city’s stored grain about 90 thousand tons, we only levied 15 thousand tons this time, Shanghai grain shortage, this itself shouldn’t be.
Even if residents panic buying some home, market should still have 20-30 thousand tons.
But fact is price raised to two thousand four hundred dollars.
According to original action plan, we levy 15 thousand to 20 thousand tons, SH city’s grain price would rise, but absolutely not to today’s extent.
In theory, price floats up some, to 15 dollars, even 18 dollars, under premise of Chinese-owned enterprises inventory confiscated, the enterprises I mentioned earlier can occupy Chinese-owned market, sell big, and have hefty profits.
But profit moves hearts, they not satisfied with 18 dollars price, chose hoarding and price gouging, pulled to over 2000 dollars, thereby causing large-scale fluctuation in pricing of all market goods, to the point military scrip credit scrapped.
I give an example, sell a bag of rice for over 2000 dollars, immediately go to Economic Department exchange to foreign currency, this foreign currency elsewhere can buy back ten tons rice.”
This time Miura Jiro really understood, “Equals our foreign currency reserves stolen by these speculative merchants?”
“Can say so.” Gu Yansheng nodded.
This counts as helping Miura Jiro think of how to report to General Staff Office.
By reason Miura should thank him, this time no need.
Miura Jiro vented anger and sat down to ponder.
Better not to know than know, said and contradiction pulled to Japanese enterprises, but these Japanese enterprises can’t investigate, he silent, whole room people silent.
Hase Jinagawa patted his knee, stood up: “Matter already clear, Miura-kun, I won’t accompany you sitting, your own mistakes, bear yourselves, Mr. Gu, I have business with you, come along.”
“Okay.” Gu Yansheng stood up.
“Wait.” Miura Jiro frowned, “Shanghai’s grain problem not discussed yet, how to solve grain shortage and strike problems?”
Hase Jinagawa looked at him with faint smile: “Method Mr. Gu already told you, right? With grain workers won’t make trouble, and where grain is also clear, you call Japanese Chamber of Commerce let them take out to sell.”
Gu Yansheng nodded to Minister Zhou, said ‘excuse me first’, followed Hase Jinagawa out.
Out the door.
Hase Jinagawa’s expression too disdainful, “Military Department these people’s stupidity and greed simply inconceivable, such good military scrip plan, actually destroyed by their own internal people to this state.
And these merchants too unbridled! Actually set eyes on our own foreign exchange! Must punish.”
“Profit forever hardest to balance.” Gu Yansheng echoed: “Merchant group just like this, hard to make them give up white-taken profit, just Shanghai’s economy suffered too much loss, so many factories stop work, all money.”
Hase Jinagawa ummed, “Afraid Japanese enterprises not easy to take out grain to sell at flat price.
Shanghai’s current state Cabinet already discussing, Greater East Asia Ministry’s Shanghai resident selection also in deliberation, if this time Army doesn’t get this position, they even less motivated to restore Shanghai’s economy.
This matter has nothing to do with them.
Mr. Gu, for next Shanghai’s economy recovery, do you have confidence?
Destruction you too skilled, effect better than I thought.”
“I didn’t even try hard, I originally thought need forced requisition 40-50 thousand tons rice to trigger total chaos, who knew just over 10 thousand tons Shanghai couldn’t bear.”
Gu Yansheng pondered: “Current situation far more complex than my conception when action started, with Minister Zhou side now I can say some words, concession I can also find some connections, but Japanese enterprises side, I really have no connections.
Then if I implement some policy, Japanese enterprises don’t listen how? I fundamentally can’t control them.
Shanghai’s economy to recover, first thing grain problem, Japanese enterprises’ current grain must take out some to restore market.”
“This problem, wait for personnel selected, Greater East Asia Ministry will solve.”
Hase Jinagawa gave Gu Yansheng reassurance pill, “Japanese enterprises problem Greater East Asia Ministry will coordinate, what I need you to do is restore Shanghai’s economy, much better than under Army control, surpass them at once.”
Plundering essence unchanged, say what useless, Army impossible so obedient.
Though if Ministry of Foreign Affairs really takes this position, Gu Yansheng indeed can help SH citizens have few peaceful days.
Environment if slightly better, can also give Lu Bowen some intensity, two flour mills earning money still too slow.
Gu Yansheng smiled and greeted, “Seems Mr. Hase very confident of winning this time?”
Hase Jinagawa smiled comfortably, “Army already failed twice, racked brains launched Doctor of Economics all failed in Shanghai, this proves Army really no good.
I will present what you said in today’s meeting to Ministry of Foreign Affairs transfer to Cabinet for deliberation, believe, Cabinet will give wise decision.”
