REPORT ON JAPANESE TAXATION BY THE SHOUP MISSION

JAPAN'S war shattered economy and emerged confused. from It the is wa shattered and con sed. is not surprising that the government's spending power was called upon to revive faltering business, provide employment, and get essential rehabilitation projects underway. It is not surprising, either, that the scarcity of goods, together with the continued pouring out of funds made available by deficit financing, led to an inflation of major proportions. The wholesale commodities price index of the Bank of Japan as reported in the Report stood at 355 when hostilities terminated in/ 1945, compared with a base of 100 in 1933. The index jumped rapidly, reaching over 1,000 in March of 1946, 2,000 in October of the same year, 3,000 in April of 1947, 4,000 in June of the same year, 5,000 in the next month, 6,000 in August, 7,000 in September, and 9,000 before the close of 1947. Before 1948 was half through, the index had reached 10,000; 20,000 was reached while Dr. Shoup and his colleagues were in Japan in the summer