Godzilla Has Nothing on Japanese Zaibatsu

 

Japanese Zaibatsu dominate everything from ships to coal

 

April 20, 1901

 

By  Kevin Teng

 

 

            Japan has become a country at the complete mercy of the wealthy family owned enterprises known as the Zaibatsu. Taking form in the early years of the Meiji Period (1868-1912), the Japanese Zaibatsu has grown to become an essential element of Japan’s economy. The growth of these family-owned businesses is largely due to the sufficient amount of aid given to them by the Japanese government. Along with large quantities of money, prices charged in transactions within the combines are often far lower than those charged outside. (1) With government favors and patronage, the Big Four Zaibatsu, Mitsui, Mitsubishi, Sumitomo, and Yasuda, were able to pioneer and now dominate the modern sectors of the economy- heavy industries such as mining, shipbuilding and the manufacturing of machinery, metals and chemicals. (2) “With most emphasis on the Big Four, the Zaibatsu of our country has grown powerful enough to dominate every aspect of our economy,” said Wasabi Don, Japanese business owner.

 

 

         Mitsui, Japan’s largest and most wealthy conglomerate, founded by Mitsui Hachirobei Takatoshi, is most well known for their branches of banks all throughout the country. In addition to the domination of banking, Mitsui has also expanded into the business of trading and mining. (3) The government has often seeked the help of Mitsui in times of financial suffering. For example, in 1866, the government demanded a substantial payment from Mitsui, which was 50% larger than Mitsui’s operating assets. Obviously due to financial conditions, Mitsui was enable to fulfill this demand but did negotiate a more reasonable price. (4)

 

 

 

                                  

 

“When I first painted those 3 diamonds on my first 15 boats, I never thought I would have to paint 1,000 more” said  Iwasaki Yataro, founder of Mitsubishi.

 

 

            Mitsubishi, another economically essential Zaibatsu was founded by Iwasaki Yataro. Starting from a small privately owned marine shipping company; Yataro’s vessels now dominate the waters of Japan. Along with multiple shipyards, Mitsubishi began new branches such as warehousing, money lending and coal mining. (5) Similar to Mitsui, the Japanese government is strongly dependant on Mitsubishi services. For example, in 1874, the Meiji government requested military transportation for an operation to Taiwan. Without Yataro’s vessels, this operation would have been impossible. Today, Mitsubishi provides ships and transportation for the majority of government needs. (6)

           

 

 

 

 

 

Family            Annual Income (1895)

                        (000 yen)

Mitsubishi       1,084

Mitsui              529                 

Sumitomo        156

Yasuda             94

 

 

 

 

 

 

         Although Yasuda and Sumitomo make much less money than either Mitsui or Mitsubishi, both Zaibatsu are important. Yasuda, founded by Yasuda Zenjiro, runs money-changing operations and also handles tax collections for the government. Sumitomo is mostly known for their large copper exports. Sumitomo also has banking branches all throughout Japan and produces the majority of Japan’s chemicals. Other Zaibatsu besides the Big Four have helped the Japanese economy leap towards the sky with a variety of contributions. The range in productivity is incredible diverse. For example, Furukawa deals with the raw exporting of silk while Okura provides military supplies for the Japanese government. (7) With the continuing progress of our country’s Zaibatsu, Japan will soon be the most powerful country in the world.

 

 

 

 

 

 

 

 

 

Citations

 

  1. Japan: An Illustrated Encyclopedia (New York: Kodansha Ltd, 1993), 1768-1770
  2. James McClain, A Modern History: Japan (New York: Norton & Company, 2002), 230-236
  3. Ibid.
  4. Thayer Watkins. “The Zaibatsu of Japan,” http://www.sjsu.edu/faculty/watkins/zaibatsu.htm (27 January 2003).
  5. James McClain, A Modern History: Japan (New York: Norton & Company, 2002), 230-236
  6. Watkins. “The Zaibatsu of Japan”
  7. Ibid.

 

Pictures

 

    1. CU Department of History. “Japanese History on the web,” www.web.uccs.edu/~history/index/japan.html  (29 Jan 2003)
    2. Mitsubishi. www.mitsubishi.com/e/index.html (29 Jan 2003)
    3. Mitsubishi. “Mitsubishi History” www.mitsubishielectric.com/about/history.htm> (30 Jan 2003)

 

 

 

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