Monday, Sep. 12, 1938

"Turn from Capitalism"

In the sense that it despises capitalism as a creation of unheroic middle-class poltroons, the Japanese Army has for years been radical. Last week. War Minister Lieut. General Seishiro Itagaki made a statement which gave Japanese capitalists the jitters. Ostensibly the War Minister spoke to warn Japan of Communist dangers and the need of greater efforts to down China, but General Itagaki sounded as though he had just been studying the history of how Russia has subordinated the forces of production to State control and developed heavy industry for military purposes.

"The Government should undertake planning and control!" thundered the War Minister. "Japan must turn from light industries to heavy and from capitalism to the control principle. The present Incident [war in China] is expected to bring about a big economic turning point and the firm establishment of the basic industries of Japan in this sense. Thus will appear the general power of the State, in combining military and productive constructive powers in the new era that is expected."

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