The National Broadcasting Company and its affiliated stations present The Pacific Story. In the mounting fury of world conflict, events in the Pacific are taking on ever greater importance. Here is the story of the Pacific and the millions of people who live around this greatest sea. The drama of the peoples whose destiny is at stake in the Pacific War. Here, as another public service, is the tale of the war in the Pacific and its meaning to us and to the generations to come. Japan's Robber Barons. Get money. Work together. The founder of the powerful Japanese family of Mitsui said that. The Mitsuis have been operating on that basis ever since. Get money. Work together. The Mitsuis, generation after generation, have played all ends against the middle. Get money. Work together. Today, the House of Mitsui and three other wealthy family combines control one-third of Japan's trade and industry. This is a steel mill. Get money. Work together. This is a steam ship. Get money. Work together. This is a coal mine. Get money. Work together. Japan's four families of the money aristocracy monopolize most of these enterprises. They also control Japan's shipbuilding, munitions, machinery, her warehouses, trading companies, refineries, breweries, her engineering firms, insurance companies, and of course, her banks. Their families and their names are world known. Mitsui. Mitsubishi. Sumitomo. Yasuda. These and about 10 other interests with their corporations, their holding companies, their trusts and their cartels run the business of Japan. And the most powerful of these wealthy families is the House of Mitsui, which controls nearly 15% of all the nation's business. The House of Mitsui is no Johnny-come-lately. It dates back 300 years. The merchants are better off than we are. Sokube, Mitsui said this. It would be better for us if we forgot that we were noblemen and went into trade. Go into trade? Yes, it is the only way we can get money. That is beneath us. We are samurai. Yes, we are proud, but we are poor. Have you forgotten, Sokube, that we are descendants of the heavenly creators of these islands? Here. Here are my two swords, the symbols of my class. Are you forsaking your own class? I shall never again wear these swords of the samurai. Here, take them. No, this is a disgrace. There are my swords. Henceforth, I shall be a commoner. I shall brew sake, and we shall prosper. This is my... Sokube further showed his harsh sense by marrying the daughter of a wealthy merchant. She was a shrewd and clever woman and gave him four sons. There was founded the dynasty of the house of Mitsui. The eldest son started a silk business, which is still existent, and today is one of the largest department stores in the world. The youngest son, Hachirobe, outstripped all the others of the Mitsui clan at that time with his ability as a business go-getter. Now, how much of this cloth would you like? Can I buy only as much as I want? As little or as much as you wish. But we have always had to buy it by the board. From now on, you can buy as much or as little as you need, and we will cut it off the boat for you. Hmm. I only need only about so much. Uh-huh. About this much, so? Yes, yes, that is just enough. Good. There, there you are. That will be 17 cents. You tell me the price. You see that new sign hanging up there? Oh, yes, sir. Cash payments and a single price. It is much better for you customers. But I have always bargained for prices. Yes. Sometimes you pay little and sometimes you pay much. This way, with cash payments and a single price, you will always get the same price. And because this way, we shall be able to sell more goods, the price will always be less. Oh, yes, sir. Yes, I see. Here is some money. Thank you. Oh, now you see it is raining outside and we must not permit you to become wet. Oh, that is nothing. I... No, no, no. Here is a large paper umbrella. It is yours with the compliments of the store. Free? Yes, free. Here, let me open it for you. Oh, yes, sir. There, there you are. Oh, you have your trademark and name on the umbrella. Oh, yes. When the people on the street see all the umbrellas with the Mitsui name and trademark, they will know that this is the place to trade. Oh, yes. Well, good day and thank you. You are welcome. Come again. So the genius of the young Hachirobe Mitsui, the Mitsui symbol of three bars inside a diamond became known everywhere. And with the symbol, the power and prestige of the Mitsui name spread far and wide. Look, there is another of those Mitsui woodblock handbells. You'll see them on every hand. Oh, there is the Mitsui symbol on the house in the scenery. See it there on the right of the stage. Yes, sir. We will put off the money for the painting. And if you'll paint the Mitsui star and symbol into the background. Oh, yes. The pottery is all marked with a symbol. All the products are marked with the Mitsui symbol. Through the Mitsuis, the merchandising of Japan was revolutionized. And while their trade and their influence grew, they expanded into other lines of business. They became moneylenders. No, no. We never lend money to the samurai. What, Mr. Mitsui, you yourself are a descendant of the samurai. They are not good risks. Cannot we trust our own aristocracy? They are careless of their obligations. Besides, in case of trouble, the commoner has little chance to recover his money. With this sort of shrewdness, the Mitsuis built up their moneylending. Their skill in the handling of money became recognized. Presently, they were acting as a clearinghouse for the monies of the Japanese ruler. And from this, they made their next move. Money is that lie idle does no good. This was Hachirobe Mitsui again. In the government treasury, there is often a surplus that is idle. Yes, sir. That is right, Mr. Mitsui. As trusted servants, we have proved our dependability to the emperor. We should like to use this money. Only, of course, when there is a surplus and only for a short time. You see, we will only use the money when it would ordinarily lie idle. I shall convey your suggestion to His Majesty. With this government money used without interest, the Mitsuis had much greater buying power. Hachirobe Mitsui handled this government money so well, so efficiently, for the benefit of the house of Mitsui, that his system was later adopted by the government and today has become the modern banking system of Japan. He was the son of his shrewd father and his clever mother. And with their keenness and vision within him, he drew up a constitution to be sure that what they had gained would not be lost in the generations to come. There will be a family council and this family council will act as a supreme directorate of all business. The family council will govern all who bear the name of Mitsui. That was the basic provision. The family will pass on all marriages. The divorce will not be permitted. By this provision, they would control the blood of the dynasty. Every member of the family will swear allegiance to the house of Mitsui and we will swear through the whole this constitution. There must be no backslider. Every member of the family will put all available monies back into the enterprises of the house of Mitsui. The business must grow and continue to grow. To keep abreast of changing times, this constitution may be amended, but the spirit of the original document must not be changed. Under this unique family constitution, the Mitsuis penetrated every important commercial and financial development in Japan. By the time American Admiral Perry sailed in his black ships into the harbor of Yado, the Mitsuis were ready to extend their interests into the outside world. When the industrial development started, they had their fingers in the pie. The state went to them as bankers for money. We shall of course be happy to lend the money to the state for the industrial development with the stipulation that the industries be turned back to us at the nominal cost. Now other powerful wealthy families were rising and they, along with the Mitsuis, gained control of the industries as they were developed. They bought up the silk of Japan, processed it in the industries, and sold it abroad. And the Mitsubishi interests took another important step. As you perhaps have been informed, Mr. Mitsubishi, Japan has worked out plans for a military operation against Formosa. That would take ships. That is what I have come to discuss with you. Yes? We must transport 2,000 troops to Formosa. There is not time to bell ships. Of course. It is our belief that you might help us solve this problem. Perhaps that could be arranged. What does the government contemplate doing with the ships after the campaign against Formosa? Our principal interest is in getting the use of the ships now to transport our men to Formosa. Should it be possible for us to locate ships that could be bought by the government from a foreign country, we should have to stipulate that after the Formosa campaign, the ships revert to us. Oh, that would be a satisfactory arrangement if we could get the ships now. There would be one other stipulation. We would have to be paid for the transport of the troops to Formosa. Oh, and what is the procedure that can't be arranged? Will you then undertake to locate the ships at once? We will start at once. We will appreciate all possible... The Mitsubishi interests bought the ships, transported the 2,000 troops to Formosa, and charged the state 10,000 yen for the job. When the campaign was over, the ships reverted to the Mitsubishis. This was the beginning of the Mitsubishi shipping interests. Soon they had a monopoly on Japanese coast-wide shipping. From this, they expanded into deep sea shipping and developed the world famous NYK line, the Nippon Yusen Kaisha. They gathered the shipping industry into their fold. The ship building, the marine insurance, the warehousing, and even the discounting of bills of lading. Shippers learned to know the completeness of the Mitsubishi monopoly on shipping. On what line are you shipping your cargo? On the Othano line. Oh, sorry. We cannot insure your cargo. You cannot? But why? We only insure cargoes that are shipped on the Mitsubishi line. Then I will get insurance somewhere else. Yes, but is your bill of lading financed? You have always financed my bills of lading. That has been discontinued. In order to have your bill of lading financed, your cargo must be insured by us. But in order to be insured by us, your cargo must be shipped on the Mitsubishi line. I will not ship on the Mitsubishi. The destination of your cargo is Taihoku in Formosa? Yes. You will be unable to round your cargo on the docks at Taihoku unless it is financed and insured by us. Mitsubishi now owns the docks there? Yes, and the warehouses. You are forcing me to use the Mitsubishi line. No, you are not compelled to. But we have all the facilities for your convenience. From shipping, the Mitsubishi interests went into mining, into the production of iron and steel and machinery, into deep sea fishing and canning, into chemical manufacture and power utilities. The name of Mitsubishi became second only to Mitsui, and rising also now was the wealthy Sumitomo family. The house of Sumitomo is older than the house of Mitsui. So say the modern Sumitomos. We regret that we are unable to make the loan to you. The Sumitomos are ultra conservative. They started in the copper mining and refining business back in the middle of the 16th century. Now they have extended their interests into the fields of gold mining, into nitrates and into banking. And pressing the Sumitomos for third place among the wealthy families of Japan are the Asudas. The founder of the Yasuda interests started as a fishmonger. By the time of the Russo-Japanese war, he had risen to wealth and power. It is ironical that you, the finance minister of Japan, should ask me to save the bank from failing. Ordinarily, His Majesty's government would not be concerned with the failure of this one bank, Mr. Yasuda. But Japan is in need of a foreign loan. And if this bank failed, we should perhaps have trouble getting this loan. Then fortunately, it will be impossible for me to save the bank. It is bad business. These and about a dozen other hard-fisted Japanese robber barons made the label Made in Japan familiar around the world. They were quick to seize the opportunity provided by World War I. The Japanese money aristocracy raked in unbelievable profits from selling the markets, which before this had belonged to the belligerents. And in 1918, these wealthy families went into politics. The Mitsubishi interests are backing the Mitsuiei party, and the House of Mitsui is backing the Sayukai. But which political party is representing the Japanese people? No major party is representing the people. So far as we are concerned, there is no difference between the big political parties. The only difference between the Mitsuiei party and the Sayukai party is the difference between the House of Mitsui and the Mitsubishi interests. For years, the Mitsui and the Mitsubishi helped the right politicians get into power. And in return, the politicians vote big subsidies to them. What can the people and the small businessmen do in the face of this? That question was answered when the Japanese Depression struck in 1927. Small business in Japan has been wrecked by the Depression. Those that are not crippled have been wiped out completely. And the money aristocracy now hold the wealth and business of Japan in the palm of their hand. The wealthy families now control not only the money and the business of Japan, but also its politics. At the start of the 30s, they virtually dictated party policies. Members of the cabinet were directly connected with the big money houses. But now another great power was rising in the affairs of Japan. We cannot tolerate the alliance of big business and politics. So spoke the leaders of the Gondung Army, the military firebrands. But the wealthy families opposed them. We cannot tolerate the military extremist element. Their policy is dangerous. It may lead to the loss of our overseas trade. But in the army, the big business interests of Japan had a worthy foe. The army was not to be crushed, as were all the hitherto opponents of the wealthy families. The army took matters into its own hands in 1931. On its own, the army invaded and seized Manchuria. In effect, the Gondung Army is attempting to dictate to us how business shall operate in Manchuria. The army shall not dictate to us. They have made it plain that business must operate according to their terms in Manchuria, or it cannot operate at all. They will come to us sooner or later. The army has no one capable of operating or developing business in Manchuria. We must not overlook. Manchuria offers tremendous opportunities to us. The opportunities are of value only if we can develop them as we see fit. Nor will we ignore the demands of the army. We have other irons in the fire. With the other irons they had in the fire, the House of Mitsui showed the army, and all of Japan for that matter, some fancy manipulations. We have now bought the United States dollars with all the credits at our command. What is our next step? We must see that Japan is taking off the gold standard. Japan can never be taken off the gold standard as long as Shidihara is premier. Perhaps Shidihara could be persuaded to resign. Do you mean that Shidihara must be removed and a new government formed? I think we all understand what is necessary. They understood perfectly. Presently, the guns of assassins blazed, newspapers stormed, and the government of Shidihara fell. In Shidihara's place, Inukai, the old fox, was established as premier. Inukai, whose political party was financed by the House of Mitsui, acted quickly and sensationally. Inukai has taken Japan off the gold standard. Japan's gone off the gold standard. That'll ruin the small businessman. Inukai must have got his instructions from the House of Mitsui. Inukai took Japan off the gold standard because the House of Mitsui was facing a crisis in the cotton market. You've got to have help, Mr. Mitsui. For what do you need the money? I must have money to settle my accounts with the United States if I'm to stay in the importing business. You need United States dollars? I must have them. You know, of course, that the yen has dropped 60 percent. I know that, Mr. Mitsui. But it is a case of taking this loss or being ruined. It is unfortunate that you must suffer such a tremendous loss. I must meet my obligations if I'm to stay in business. Yes. Such are the vicissitudes of business. The Mitsuis held the United States dollars, and they sold them at their own price and convenience. Small business groveled before them, accepted their terms, or were ruined. Estimates of the profits to the House of Mitsui on this manipulation ranged up as high as 100 million yen. Small business suffered a devastating blow, and the Mitsuis emerged richer and more powerful than ever before. But the burning zealots of the Gondong Army were still to be dealt with. They had their own stake in the future of Japan. And what they could not do by persuasion, they did in another way. Assassins' bullets cut down Baron Dan, known as the Prime Minister of the House of Mitsui. Baron Dan, who was known as a quiet but shrewd executive of the Mitsui interests, was shot to death as he was returning home from a party. Women have shot and killed Janosuke Inoue, one of the highest paid and more influential executives of the Mitsubishi interests. Inoue was trailed down and shot by the assassins on the street just as he was coming to the end of the line of business. Premier Soyoshi Inukai, known as the Old Fox, was killed by the bullets of young patriots said to be acting for the military extremists of the Gondong Army. Premier Inukai was a prominent member of the Seiyukai Party, which is financed by the House of Mitsui. The Army had served notice on the money aristocracy of Japan that the time had come to play ball with them or else. The big business houses saw what the Army meant, but big business was still not ready to knuckle under to the Army. The robber barons continued to expand their holdings and operations. Big observers had their eyes opened in the textile mill. Very efficient plant you have here. Thank you, yes. What is that machine there, the one that girl is operating? Oh, that is a Yosuda loom, developed right here. Turns out a great deal of production. Yes, with that Yosuda loom, that girl is able to produce four times as much as is turned out by the English loom. Four times as much? And well, what does a girl like that earn? Oh, that is hard to say. Well, about how much would she earn? Perhaps on an average of 40 or 50 cents a day in your money. 40 or 50 cents a day. Oh, but they have money benefits, medical care, bonuses. They can live all right on that money? Oh, all these girls are given port and room in large dormitories. They are very happy. Yes, very efficient system you have here. Efficiency is the reason why Japan has passed Great Britain as an exporter of textile. Japan has passed Britain in export of textiles? Yes. We passed Great Britain this year, and we are now working... Well, big business continued to expand in Japan during the middle 30s. The growing strength of the military was looming on the horizon. In Manchuria, the proving ground of the military extremists, business was falling under control of the army. In Japan proper, the money aristocracy was still resisting the army. The February elections of 1936 were a contest between the industrialists and the powerful army leaders. Are we to permit ourselves to be driven down the road to fascism? No, no, no. Are we going to make a stand for liberal parliamentary government or go down into totalitarianism? The powerful wealthy families, the industrialists, were making their last stand against fascism. The Minsato Party, backed by the Mitsubishi interests, won the election. But almost before the shouting of the election was over, the army served notice that it was not to be thwarted by any such thing as an election. Look at this. Here's a bulletin just came in over the teletype. There's been another outbreak of assassinations in Tokyo. Young military zealots today assassinated, Finance Minister Korikio Takahashi, Admiral Viscount Makoto Seito, Keeper of the Privy Seal, and Inspector General of Military Education Jotaro Watanabe. The assassinations were carried out by 22 army officers and 1,400 troops under command of a group of leaders. Japan was on the road to war, and now the Mitsuis and the Mitsubishis and the Sumitomos and the Yasudas and the others knew that there was no recourse. The textile mills that had been humming with unbelievable speed now were classed as non-essential. They gave way to heavy industries. This steel mill is operated by the House of Mitsui. These products are going into materials of war. In place of the luxury liners, which used to be built here at Yokohama for the Mitsubishi interests, today you see battleships and aircraft carriers and other war vessels are being built for Japan's war. This munitions factory here in Osaka is now one of the most important in Japan. It is operated by the Sumitomos, a wealthy metal and machinery family for Japan's war. The wealthy families had opposed the army extremists, but now with the army in the saddle, the wealthy families had become realistic. They shifted their operations over to war industries and became as fascist as the army. By the middle of 1937, when Japan attacked China at the Marco Polo Bridge, the army was whipping Japanese big business into line. During the next several years, the money aristocracy and the army leaders were to draw closer and closer together, but not without friction. But draw together they did until their divergent points of view were, for all practical purposes, blended into one. By 1941, Japan had her heavy industries, but she lacked enough raw materials to carry on a war against the greatest powers on earth. She got them in a matter of weeks after Pearl Harbor. Copper, bauxite and oil from the Philippines. Coal and iron from Malaya. Tin and copper from Thailand. Petroleum and coal from the Netherlands Indies. Iron and oil from Burma. In Japan, the industries of the wealthy families hummed, turning out war materials. They had all the iron and coal and oil and chemicals they needed. They had everything they needed, except one thing. Botalia is a long way from Tokyo. Their raw materials were beyond their reach. We must have peace to develop these resources. We could develop great industries with these resources, greater than any we have now. We have neither the available manpower nor the ships. But in order to survive, we must start the development of these resources now. We must have them for our war industries. We cannot fight a war and develop these resources at the same time. We cannot get around without them. Even in peacetime, it would take years to exploit these resources. Behind the battle lines of the Pacific, the Japanese are struggling to wrest the riches from the soil of the lands they have conquered. And back in Japan proper, the Mitsuis, the Mitsubishis, the Sumitomos, the Asudas, and even some of the newly rich families who have grown to power through the war, are looking beyond the war. With this rubber and oil and iron and tin and copper, we could build greater fortunes than the world has ever known or dreamed of. Your businessmen must not forget that your first responsibility is to the Empire. The Army must recognize that the Empire can only be great if these resources are secured for peacetime development. When this is done, no industry on earth can compete with us. You have been listening to the Pacific Story, presented by the National Broadcasting Company and its affiliated independent stations as a public service to clarify events in the Pacific and to make understandable the cross-currents of life in the Pacific basin. For a reprint of this Pacific Story program, send ten cents in stamps or coin to University of California Press, Berkeley, California. To repeat, for a reprint of this Pacific Story program, send ten cents in stamps or coin to University of California Press, Berkeley, California. The Pacific Story is written and directed by Arnold Marquis. The original musical score was composed and conducted by Thomas Paluso. The narrator, Gain Whitman. This program came to you from Hollywood. This is the National Broadcasting Company.
