John R. Stewart

Four Years of Manchoukuo

The study of the internal development of Manchoukuo is based upon the interpretation of official data. The high costs and economic limitations of Manchurian development and the prospect of competition from certain new industries rising in Manchoukuo are becoming more and more evident. The Manchoukuo budgets are not easy to analyze, complicated as they are by ordinary and extraordinary items, special accounts and supplementary budgets. Manchoukuos finances now appear to be in fairly good condition. Not a great deal of money has been borrowed and recent budgets have been balanced. However, the explanation for this favorable showing is that Manchoukuo has not provided the funds for development and has paid only a small share of military expenses. The financial soundness of the S.M.R. and its ability to raise capital through debentures and new stock issues are of prime importance to the future development of both Manchoukuo and North China. Keywords: Manchoukuo; military expenses; money; North China