Military expenditure -Desperate War of Japan in the Pacific

Military expenditure

IJN

IJN war expenditure of China and South
Year	1937	1938	1939	1940	1941	1942	1943	1944	1945
China	5.6%	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

IJA war expenditure 1937-1941
Year	1937	1938	1939	1940	1941
China	12.5%	14%	18.6%	17%	13%
Manchuria	5.3%	7.4%	11%	8.8%	18.8%
Mainland	78.4%	76.2%	67.8%	71.3%	(59.2%)

IJA war expenditure 1941-1945
Year	1941	1942	1943	1944	1945
China	31.3%	24.4%	27.2%	53.3%	30.2%
South	-	8.9%	16.2%	22.6%	3.9%
Mainland	64.2%	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 [%]
Year	1894	1895	1900	1904	1905	1914	1918	1919	1920	1921	1922	1925	1927	1928
Ratio	69.2	69.5	45.5	81.8	82.3	49.2	58.0	65.0	46.8	41.9	45.5	29.3	28.0	28.5

Ratio of direct military expenditure 1931-1944 [%]
Year 1931 1932 1937 1938 1939 1940 1941 1942 1943 1944

Ratio 31.2 35.9 69.0 76.8 73.4 72.5 75.7 77.0 78.5 85.5

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
Year 1931 1932 1933 1934 1935 1936 1937

Military 30.8% 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%

Bond 14.5% 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]

明治憲法にどのような欠点があったとはいえ，予算の審議権と議決権は，一貫して帝国議会が握っていた。したがって議会が，予算を通して軍をもほぼ統制し得た時代があったし，またあって当然でだった。いうまでもなくそれは大正時代から昭和初期で，大正元年の閣議の2個師団増設案否決による上原陸相の単独辞職，3年の貴族院による建艦費の大削減，同年の衆議院による2個師団増設費否決にはじまり，「尾張」以下７隻の建艦中止，ワシントン条約の締結，４個師団の廃止等から昭和５年のロンドン海軍軍縮条約の無条件批准まで，後年の”軍の横暴”と対比すると，この強力な議会，弱体な軍という関係がわずか数年で逆転したその逆転ぶりには，一種異様な印象を受けざるを得ない。そしてこの逆転と昭和期の天皇尊崇→現人神化は，明らかに同一現象の二側面と見られる。

満州事変から日華事変，太平洋戦争まで，軍がどのようにして「臨時軍事費」という名の戦費を獲得していったか。一体全体，この戦費を支給した責任者はだれなのか，という問題は「戦費の戦争責任」という面で別の機会にすでに論じたから詳説しない。しかし，一ついえることは，この点に関して制限君主制下の天皇は何ら権限がなかったという事実である。天皇は「軍に戦費を支給してやれ」とはいえない。また「戦費を支給するな」ともいえない。この点で全く無力である。

では，チャーチルの規定をそのまま日本にも適用し，天皇に戦争責任はない，「臨時軍事費」を審議可決した帝国議会が戦争の元凶であり，議会こそ戦争の責任者である，といえるであろうか。確かに，大正時代のように議会が戦費を堂々と否決していたら，柳条溝事件も盧溝橋事件も，現地の一事件として，線香花火で終わったであろう。そうなり得なかった原因は，外装的建前はどうであれ，実情はチャーチルの原則は日本には適用できなかったという事実であろう。ではなぜできなかったか。

Ratio of military expenditure of budget

GDP index and military expenditure ratio
Year		1940	1941	1942	1943	1944
GDP	Japan	100	101	103	103	99
GDP	US	100	118	136	158	165
Ratio	Japan	17.0%	23.1%	30.2%	46.2%	63.8%
Ratio	US	2.6%	11.2%	33.5%	45.0%	46.0%

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

儲備券
Year	Yuan billion
1942	3.48
1943	19.15
1944	139.69
1945	2,692.30

法幣
Year	Yuan billion
1937	1.5
1943	15.0
1944	190.0

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.


Yuan	Nanjing 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
Houhei
西原借款
 Chinese yuan
Japanese military yen

Nippon Bank

Japanese government revised Nippon Bank Law in February 1942.

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

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

Banks
Year	Number
1926	1402
1932	538
1935	466
1941	186
1945	61

Japan suffered wartime inflation since 1937 because of Japanese-Sino War. So Government controlled Japanese banks as follows,^[13]

1937Sep 臨時資金調整法: finance prominence for military cooperations by 事業資金調整標準
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
1940Oct 銀行等資金運用令: allowable for government to order all the banks finance
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)
NIH	NSF	DOE	NASA	NOAA	NIS	EPA	US Geological Survey	DOD	Department of Homeland Security
32,089	7,424	5,121	19,000	5,554	922	10,020	1,133	6,475	1,018

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