Shōwa financial crisis
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TheShōwa Financial Crisis(Chiêu hòa kim dung khủng hoảng,Shōwa Kin'yū Kyōkō)was afinancial panicin 1927, during the first year of the reign of EmperorHirohitoof Japan, and was a foretaste of theGreat Depression.It brought down the government ofPrime MinisterWakatsuki Reijirōand led to the domination of thezaibatsuover the Japanesebanking industry.
The Shōwa Financial Crisis occurred after the post–World War Ibusiness boom in Japan. Many companies invested heavily in increased production capacity in what proved to be aneconomic bubble.The post-1920economic slowdownand theGreat Kantō earthquakeof 1923 caused aneconomic depression,which led to the failures of many businesses. The government intervened through theBank of Japanby issuing discounted "earthquakebonds"to overextended banks. In January 1927, when the government proposed to redeem the bonds, rumor spread that the banks holding these bonds would go bankrupt. In the ensuingbank run,37 banks throughout Japan (including theBank of Taiwan), and the second-tierzaibatsuSuzuki Shoten,went under.[1]Prime MinisterWakatsuki Reijirōattempted to have an emergency decree issued to allow the Bank of Japan to extend emergency loans to save these banks, but his request was denied by thePrivy Council,and he was forced to resign.
Wakatsuki was succeeded by Prime MinisterTanaka Giichi,who managed to control the situation with a three-weekbank holidayand the issuance of emergency loans; however, as a result of the collapse of many smaller banks, the large financial branches of the five greatzaibatsuhouses dominated Japanese finances until the end ofWorld War II.
References
[edit]- ^"Tân văn ký sự văn khố".da.lib.kobe-u.ac.jp.Retrieved2022-11-05.
Sources
[edit]- Smitka, Michael (1998).The Interwar Economy of Japan: Colonialism, Depression, and Recovery, 1910-1940.Routledge.ISBN0-8153-2706-4.
- Yamamura, Kozo (1998).The Economic Emergence of Modern Japan.Vol. 1. Cambridge University Press.ISBN0-521-58946-0.
