Military expenditure
  Desperate War of Japan in the Pacific
IJN war expenditure of China and South
Year19371938 1939194019411942194319441945
China5.6% 4.8%3.9%3.9%7.4%4.6%12.1%30.6%12.8%
South- ---0.7%5.4%5.6%9.8%2.3%
Main enemy of IJN was USN in the Pacific War naturally. But surprisingly temporary war expenditure of China was almost 3 times compared with South in 1944, when IJA and IJN advocated the battle of Philippines. This is why we call the war 'Greater East Asia War'.

If IJN had not spent in China since 1937, the amount would be the cost of 100 aircraft carriers of Unryu class![6][7] IJN actioned dispatch of her marines in Shanghai Incident. IJN land bombers flew from Kyushu and bombarded main China land. IJN had not competed with USN but domestic IJA ironically. Pilots of carrier bomber and fighers experienced combats with China air force including flying tigers. They were very skilled as well as USN pilots, when the Pacific Wars broke. Such IJN skilled pilots might be lost, the result showed history.

IJA war expenditure 1937-1941
China12.5%14% 18.6%17%13%
Manchuria5.3% 7.4%11%8.8%18.8%
Mainland78.4% 76.2%67.8%71.3%(59.2%)
IJA war expenditure 1941-1945
China31.3% 24.4%27.2%53.3%30.2%
South- 8.9%16.2%22.6%3.9%
Mainland64.2% 54.6%-22.4%56.3%
IJA fought China mainly, although IJA had to prepare war in her mainland.[5] Japan had dispatched 1.72 million troops in China including Manchuria in August 1945, which was 67% of all the troops.[4] Maesaka's data of China includes Manchuria, maybe.

 Ratio of military expenditure of budget
Japanese military expenditure increased, when Japan participated wars. Japanese-Sino war was during 1894-1895. The military expenditure was almost 70 %. Japanese-Russo war was during 1904-1905. The military expenditure exceeded 80 %. The war almost had destroyed Japanese economy against one of powers. Military expenditure increased in 1918-1919 because of Siberian Intervention.
Ratio of direct military expenditure 1894-1928 [%]

Ratio of direct military expenditure 1931-1944 [%]
Chinese Incident ocurred in 1937. The next year, the military expenditure ratio exceeded Japanese-Sino war. It lasted almost five years before the Pacific War. Japanese economy almost wore out. The military expenditure reached 85.5 % in 1944 in the Pacific War.[3] USN siege ocurred hunger in Japan mainland in 1945. Japan could not continue the Pacific War, though Japanese troops had power in China.

Military expenditure ratio 1931-1937
Military30.8% 35.2%38.3%43.6%46.8%47.2%45.7%
Civil eng.6.0% 10.2%9.9%8.4%6.9%5.9%5.1%
Bond14.5% 12.3%14.9%16.7%16.9%15.9%14.8%
The table is another data of direct military expenditure. There are difference from the previous data, 0.4 % in 1931 and 23.3 % in 1937.

Yamamoto explained how IJN got much military budget in 1931-1945.[17]



 Ratio of military expenditure of budget
GDP index and military expenditure ratio
Raito of military expediture of Japan was doublefold of UK and US and threefold of Germany[1]. Japanese military expenditure of GDP ratio increased to 30.2 % from 23.1 %[2]. While US was 33.5 % from 11.2 %. It meant Japan was slower than US to prepare total war. Now Japan expends only 1 % of GDP for military expenditure. Japan expended 17 % in 1940 just before the Pacific War. While US exceeded Japan in 1942. US GDP showed high increase.

 Bank notes
YearYuan billion
YearYuan billion
Japan and China fought for 15 years till the end of the Pacific war. Chinese army and Japan fought in Shanghai in 1937. That was the beginning of money war. The both armies issued a lot of notes to get materials for requisition. The table shows hyper inflation in China. The increase ratio of 儲備券 was 1,900% from 1944 to 1945. Nanjing government issued 儲備券 of the Central Reserve Bank of China. Japan could not ignore power of 法幣. So Nanjing government was to recover military notes of Japan in April 1943.
Yen Yen
YuanNanjing yuan
儲備券 was paper in the end of the Pacific War. The other yuan note also was published much and hyper inflated. After all communist government could have Canton people circulate her yuan.
Gunzo, p106-108, No72
Chinese yuan
Japanese military yen

 Nippon Bank
Japanese government revised Nippon Bank Law in February 1942.
  1. 日本銀行ハ国家経済総力ノ適切ナル発揮を図る為国家の政策に即し通貨の調節,金融の調整及信用制度の保持育成に任ずるを以って目的とす
  2. 日本銀行ハ専ら国家目的の達成を使命として運営せらるべし
This law was copied by German Reichs Bank in 1939.[12] What is 国家目的? Japan had been at the Pacific War in 1942. I think the Japanese goverment purpose was to continue the war. But the government failed to continue the war. Japan spent 755.89 billion yen during Jpanese-Sino War and the Pacific War. It was 961 times of averaging monthly expentiture in 1931. The amount was more than 80-year expenditure.[11]

The Nippon Bank Law is the basic financial law even now.
 Bank control
Japan suffered wartime inflation since 1937 because of Japanese-Sino War. So Government controlled Japanese banks as follows,[13]
  1. 1937Sep 臨時資金調整法: finance prominence for military cooperations by 事業資金調整標準
  2. 1939Apr 会社利益配当及資金融通令: allowable for government to order The Industrial Bank of Japan, Limited finance
  3. 1940Oct 銀行等資金運用令: allowable for government to order all the banks finance
  4. 1942May 金融事業整備令: allowable for government to merge banks[16]
The Industrial Bank of Japan, Limited financed 26% of its cash by government order in 1941. Its 57% was for aircraft industry.[14] Japan made effort to invest aircraft industry. Government merged 538 banks in 1932, and decreased to 61 banks in 1945.[15]

 Obama backs basic science
Obama's budget request for 2011 ($ million) Nature, no7281, p595
NIHNSFDOENASANOAANISEPAUS Geological SurveyDODDepartment of Homeland Security
EPA's budget is twice of DOE. NIH and NASA budget are big. I think how US people are security minded. DOD is about basic and applied research. Department of Homeland Security is about science and technology. Japanese people think that security and water are free.

[1] Maesaka, p167
[2] Morimoto, p374-382
[3] Hinkoku, p51-52
[4] Maesaka, p342
[5] Morimoto p.64
[6] Morimoto p.66
[7] Unryu class
[11] Morimoto, p406
[12] Noguchi, p3
[13] Noguchi, p34-35
[14] Noguchi, p35
[15] Noguchi, p34,38
[16] 戦時経済体制

[17] Sonbou, p123-124

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