MASATSUNÉ OGURA
By MASAMI SHIMODA
THE idea to establish an organization for the purpose of sending Japanese emigrants to Manchoukuo and which would lead the way for Japan's economic advance on the continent, was brought up a few years ago by several persons of the same opinion in Osaka. Eventually when the time came to carry the scheme into execution Yunosuké Kurimoto and myself were appointed to negotiate and ask the co-operation of financial leaders. The first person visited was Masatsuné Ogura, then president of the Sumitomo Company.
The opinion was expressed on the necessity of sending Japanese emigrants to Manchoukuo to cultivate the land and develop the agriculture of the country. We explained how necessary it was to establish an organization which would undertake the assistance and facilitation of sending the emigrants. After listening intently, Mr. Ogura suddenly spoke up and said: "I thoroughly approve of your plan, and I shall see that the Sumitomo will help you in every possible way to establish such an organization as you have just mentioned. Of course there are diverse opinions in regard to the methods and means of developing Manchoukuo, but the primary problem is the sending of people. Unless there are people, there is no use of talking about development. If only people go, other questions can be easily solved, and I absolutely agree with you that sending Japanese emigrants to Manchoukuo is the primary question."
The Manchoukuo Emigrants' Association was soon established, although it was incorporated later on with the Manchoukuo Emigrant Association of Tokyo, which was
established later. I remember with profound respect the frankness and sincerity with which Mr. Ogura spoke when we first put the question before him. When Mr. Ogura assumed office as Minister without Portfolio in the Konoye Cabinet for the purpose of strengthening the financial policy of the nation, one of the first things he said was: "The man is what counts whether it be in enterprise or politics. Before discussing about various propositions and policies, the right man should be found. If all the people would forget about themselves anything could be accomplished." These words of Mr. Ogura brought back to me most vividly the talk I had with him a few years ago.
The person is most important whether in enterprises or politics. Under the wartime economy, enforced in recent years, various inconsistencies in the low price and output increase policies are evident. Moreover, at such a time when the nation is too greatly influenced by mere ideological theories, which are not fit for practical purposes, I sincerely feel that the appointment of Mr. Ogura is a step toward putting the right person in the right place.
Mr. Ogura is a quiet and refined typical gentleman. The mild manner and reposeful attitude which characterize him give one the impression that he is modest but a great person. But just because he has a quiet personality it does not mean that he has a weak character. There is something strong and stable which can be felt in his personality. Behind his quiet speech and mild attitude, there is a passionate patriotism and powerful force which emerges in times of need. I have been given frequent opportunity to see Mr. Ogura as a calm and mild gentleman in his everyday life, but I have also had the opportunity to be impressed by the vigour and passion with which he undertakes some tasks. I can never forget the earnest and passionate attitude with which Mr. Ogura expressed his opinion on the economic new structure of the nation to Isao Kawada, Minister of Commerce and Industry, at the New Osaka Hotel last year.
With the sincerity and passion of a person who has the
welfare of the nation at heart he stated the necessity of expanding and amplifying the industrial output of the nation, which is the first and most essential step toward establishing a national defence State. In stating his opinion he did not hesitate to criticize the policies of the Government. I was indeed surprised to notice in his words a fiery passion which had been concealed behind his mild and subdued character and which I had never experienced before when coming in contact with him in his everyday life.
It is unnecessary to mention the capability of Mr. Ogura as one of Japan's greatest financial leaders. He has represented the financial world of this country in his activities as the leader of the great Sumitomo Concern. His attitude in the world of commerce and industry has always been rational, sound and steady. The greatness of the Sumitomo Concern in Osaka, which is comparable to that of the Mitsui and Mitsubishi in Tokyo, is an outstanding feature in the history of Japanese capitalism. The policy of the management is one of steadiness and reliability, and the complete unity of the company upon the principle of give and take is the spirit of the Sumitomo.
However, if the policy of the firm was too rigid, based only on steadiness and soundness, and was conventional in its activities, it would never have made the amazing progress which it has realized today. Drastic renovations and decisive changes, which were necessary according to the times, were undertaken without hesitation, and this is where lies the progressive power of the Sumitomo Concern. For example, the company has undergone a drastic change following and in connection with the outbreak of the present China affair. It has changed the family organization of the concern to a joint stock company and has organized a huge system to bring about a large-scale industrial progress of the nation to cope with the emergency situation. It is evident that the policy of the Sumitomo plutocracy is not mere conventional steadiness.
The Sumitomo Concern consists of not only banks, trust and insurance companies in the field of banking facilities, but
also mining, metal and machine industries in the field of heavy industry. Furthermore, it includes various scientific industries as well as electricity, gas, marine and cement companies. There are sixteen direct companies, fourteen collateral companies and forty-seven smaller companies under its control, its reorganized capital being ¥430,000,000, but its actual assets amounting to nearly ¥1,500,000,000. When we recognize, however, the fact that half of the entire capital of the concern is devoted to heavy industries, it is obvious what a great service the Sumitomo is rendering to the nation. Furthermore, it should be remembered that this drastic step taken by the Sumitomo can be attributed to the far-sightedness and extreme capability of the president, Mr. Ogura. And it is natural that Mr. Ogura is considered foremost among financial leaders in western Japan, and that he is held in such high esteem in the financial and industrial world of the nation.
Needless to say, the reason Mr. Ogura was requested by Premier Prince Konoye to enter the Cabinet was because the Premier recognized the competency of Mr. Ogura in realizing the output increase policy which is at present the most important problem to be solved in the great task of creating a high-geared defence State. But if only financial competency was necessary, the choice did not particularly need have been Mr. Ogura. Veterans in the world of finance are yet to be found. There is a much more important reason for the appointment of Mr. Ogura as Minister without Portfolio. It is his sincere and passionate patriotism combined with his firm and vigorous will-power, which makes him forget all personal matters and devote himself to the carrying out of his national duties.
When Mr. Ogura's appointment was first announced, there was a group of businessmen who made such superficial observations as to think that his becoming a Minister meant that the economic restrictions under wartime conditions would become more lenient, or that he would enforce a policy which would be more convenient to the business world. There could not have been a wronger observation than this, for the simple reason that
Mr. Ogura did not enter the Cabinet for the purpose of benefiting businessmen and financiers. On the contrary, he entered the Government with a firm resolution to render his service to the nation even if it should be at the sacrifice of his business colleagues.
This is evident in the opinion he expressed in regard to the further necessity of controlled economy after his appointment was decided. He said: "It is a mistake to think that controlled economy will be moderated because of my entrance into the Cabinet. My ideas are not so simple. A renovation, under the handicap of limited capital and labour, must be accomplished, and if the present control is moderated this objective cannot be achieved. If a large demand is to be supplied with small labour, it is natural that restrictions have to be imposed upon some places. In other words, peacetime industries have to make way for the more important industries, and control is inevitable. The question of unemployment which occurs on account of this should be considered from a separate point of view."
Mr. Ogura's ideas are not influenced by mere theories, which ignore actualities. He is a practical person who has attained his knowledge from actual practice in the financial and industrial world. The experiences he has attained during sixty-seven years of actual work and during the time he held the presidency of one of the largest plutocracies of Japan has undoubtedly given him perfect insight into the mistakes of the economic control so far enforced by the Government. Furthermore, he is a person who has the courage to correct what are wrong in the policies of controlled economy, but it goes without saying that those revisions will not be made for the benefit and profit of the financial and industrial world. They will be made for no other reason than to enhance the output increase policy, which is most important under the present circumstances. On the other hand, great sacrifices will have to be made in the industries which are not of great importance. The mistake of thinking that Mr. Ogura's appointment will be of advantage to the
business and financial world, may be a disappointment on the part of many financiers, but the fact remains.
Mr. Ogura's appointment was doubtless for the purpose of strengthening the heavy-industry-first policy, and as he is a practical-minded person it will be actualized on a rational basis. Moreover, just because he knows perfectly well why a greater efficiency cannot be attained in the industrial output of the nation, he will make drastic revisions in the unpractical policies, which were drawn and planned on the table, and will undertake the task of increasing the industrial output on a purely practical basis. From this point of view, his policy of controlled economy may, in reality, have a marked capitalistic leaning. On the other hand, he is an idealist. This aged patriot, who is stimulated by a fervent passion to serve his country, will undertake anything he believes is right, regardless of countless opposition, and reorganize the financial and industrial set-up of the nation. The heavy industries, which should come first under the present circumstances, will be enlarged and intensified; and the smaller and less important industries may even be sacrificed completely. The realizing of a great ideal upon a practical basis is the task which Mr. Ogura will undertake.
Another significant point in Mr. Ogura's appointment is the complete unity between the person and his policy. He said: "The greatest defect in the present economic structure is that there are numerous policies which are all disunited from one another. The defect lies in the unsatisfactory connections between policies." Also, after he entered the Cabinet, he said: "My duties as Minister without Portfolio are to unite the numerous disconnected economic policies and make one basic policy."
This is the most threatening flaw in the wartime economic structure of Japan today, and no other person could be as competent as Mr. Ogura in bringing about its revision. Not only is he capable as a practical businessman, but his accomplishments while he held the post of president of the great Sumitomo Concern qualify him to be the financial and industrial leader of the nation.
As was mentioned before, the Sumitomo has spread out into many fields of industry, with the heavy and metal industries as the supporting pillars of the concern. It is even frequently spoken of as the Sumitomo Kingdom, and indeed it is a kingdom which is made up of many and varied industries. And Mr. Ogura united this vast industrial kingdom into one body with what can be called the Sumitomo spirit. I have often heard the words, "worry before (for the benefit of) the people, and seek your pleasure after they (are content)." All this spirit is, indeed, the Sumitomo spirit, and it also should be the spirit of Japan at such an emergency time. The spirit of public welfare comes down to this spirit. If Mr. Ogura was able to unite the Sumitomo under this spirit, he will also be able to unite the policies of the nation.
Hitherto, if a financial leader was chosen to become a member of the Cabinet, his position was commonly recognized as representing the interests of financial circles. This can also be said to a certain extent about Mr. Ogura. The bold opinion expressed by him as a member of the House of Peers during the Diet session last year in regard to prices is still fresh in our memory. The interpellation he made was in regard to the inconsistencies occurring between the output increase policy and the low price policy. From one point of view, his opinion sounded as if he were requesting the Government to raise the prices, and some people go so far as to think that due to his entering the Cabinet he will unconditionally enforce a high price policy. In regard to this question he has clearly stated his opinion after assuming his ministerial post. "With the mere raising of prices," he said, "an increase in output can never be accomplished. A rational revision in prices should be made to instigate the increase of industrial output on the one hand, and the purchasing power of the people should then be used for national defence industries." He goes on to point out the difficulties of the fixing of prices in relation to the cost of production and says: "In regard to this question I express my sincere hope that the moral standard of the industrialists
will be elevated."
Mr. Ogura knows the psychology of businessmen perfectly. He knows that output increase can never be accomplished by unreasonable methods. He knows perfectly well that the only way to increase the industrial output of the nation is to stimulate the financial leaders to willingly take an active part in the programme. He also is perfectly aware of the fact that if one mistake should occur when raising the commodity prices, it would be the cause of an irretrievable inflation, which would put the financial world into a panic. Consequently, he is taking a careful middle path as not to bring about any inconsistencies or be too one-sided in any policy he may take, and in this way to realize a revision in controlled economy.
As an individual Mr. Ogura is a mild gentleman, who reminds one of a philosopher, and at the same time gives one the feeling, when talking to him, of a spring breeze softly blowing on your cheeks. He is well read in the Chinese classics, he is also gifted in composing Chinese poetry and he has a cultivated taste in everything. I have mingled a great deal with prominent businessmen in the Kansai, but I have never to once heard anyone speak ill of Mr. Ogura.
The great mission and responsibility which Mr. Ogura has shouldered in establishing a new order in East Asia is similar to that of the late Dr. Schacht. What will Mr. Ogura, who is the Dr. Schacht of Japan, accomplish and leave behind in the history of Japan's wartime economic structure? The combination of Mr. Ogura, and Admiral Toyoda, newly appointed Minister of Commerce and Industry, and also Lieut.-General Teiichi Suzuki, new president of the Government Planning Board, will render distinguished service in the establishment of a higher defence State. Mr. Ogura, who is already an aged man, has rendered great service to the financial and industrial world of Japan, and I feel sure that he is satisfied to be given the opportunity to forget himself and serve his country anew. I sincerely pray for his health and success in carrying out the great responsibility he has shouldered.