The purpose of this paper is to consider what role was being played by a local trust company in the regional economy before the Trust Business Law was passed in 1923. The Yanagawa Trust Company was established in 1913 by Saheiji Nakamura who was a man of property in the town of Yanagawa, Date-Gun, Fukushima prefecture. Deposit money deposited with the Yanagawa Trust Company was the main source of funding, and lending money was the main capital operation. The principal customers of the Yanagawa Trust Company were the people involved in the silk industry who lived in Yanagawa, and Saheiji Nakamura. One report by the Bank of Japan Fukushima branch in 1913 stated that trust companies in Fukushima prefecture were small and rather unusual because their capital was only lent to one particular social group, the peasantry, from whom the credit obligation was then exacted. However, the Yanagawa Trust Company had the character of a small bank, and it differed in character from what was said in the report by the Bank of Japan. Furthermore, the Yanagawa Trust Company contributed to the regional economy by lending money to Saheiji Nakamura and the people involved in the silk industry who lived in Yanagawa. The Yanagawa Bank establishment plan after 1917 was drawn on the initiative of Saheiji Nakamura. Saheiji Nakamura wanted to convert the Yanagawa Trust Company to the Yanagawa Bank, and aimed to supply the necessary money for the people in the silk industry. However, Nakamura's plan was not achieved by enforcing the merger policy of the Ministry of Finance and the Trust Business Law. The Yanagawa Trust Company was merged with the 101 Bank in 1923, and the three reasons for this were as follows. First, the business of the Yanagawa Trust Company had been damaged by the recession after World War I. Second, some men of property who lived in the town of Yanagawa assumed the position of director in both the 101 Bank and the Yanagawa Trust Company. Third, Memos that promised the merger between the 101 Bank and the Yanagawa Trust Company had been exchanged in 1920.
The purpose of this paper is to reconsider the relationship between the chin'ori factories and the wholesale dealers in the interwar period by analyzing the development of business activities of the Fuki shokufu Co. Ltd. in the Chita region. The Chita region is located in the southwest part of Aichi Prefecture. Fuki shokufu was established in September, 1919and was a comparatively large-scale chin'ori factory with 120 power looms. Fuki Shokufu suffered from the long depression after the panic in 1920, as well as many merchants and factories in the Chita. As a result, Fuki shokufu was put in the disadvantageous condition with wholesale dealers. Traditionally, factories have been considered to be always disadvantageous against the wholesale dealers due to shortage of money. However, Fuki shokufu negotiated over terms and conditions with a wholesale dealer and got an advantageous condition. In addition, Fuki shokufu chose another wholesale dealer when negotiations did not reach agreement. So, Fuki shokufu won the benefits. Due to the recession since the financial panic in 1927, Fuki shokufu was driven into suspension of business because of the short-term business relationship with wholesale dealers. However, Fuki shokufu was able to continue the operation on the base of the fund through the stocks recruitment from the village and borrowing from the financial institution. Fuki shokufu maintained negotiations power to wholesale dealers in the basement of strong funds.