JAPAN'S FINANCIAL AUTHORITIES

The Japanese Constitution ( Teikoku Rem põ) is the central legal instrument around which the Government (Sei fu) administers the will of the Emperor ( Tennõ ). The Imperial House Law as well as a great number of old customs and traditions are as important as the constitution. The Constitution of 1889 was granted by the Emperor as a gift to his subjects. His powers are discussed in Articles I-XVII of the Constitution. The Imperial House Law deals with the organization of the Imperial Family. An old custom and tradition, for instance, is the powerful principle of the separation of military affairs from civilian control. This principle is based on the rule of the Shõguns and Daimyõ from the 10th century on. After the Restoration in 1868 the military men were able to retain direct access to the throne. Up to the moment when General Mac Arthur took over control of Japan, the Army and Navy ministers of Japan have been the only ministers having direct access to the Emperor. This position not only placed them beyond congressional and cabinet control, but actually gave them the power to make or wreck a cabinet. It enabled them to increase their expenditures from 11% in the fiscal year 1925-26 to 83% of the national income in the fiscal year 1944-45. The Constitution, provided by statutes, decrees and ordinances, determines the various govermental departments and the proceedings through which all financial measures in Japan must go before they become effective. The following governmental bodies are concerned with all important financial matters of the Japanese Government: