The Chita Peninsula was the second largest industrial area in sake brewing of Japan until the Meiji era. The output of Chita's sake and the quantity of its shipment to Edo were almost as large as those of the Nada area. But in the 1880's, Chita faced a crucial period under the Finance Minister MATSUKATA's deflation policy, and eventually became just one of the many, small local brewing areas. The brewing industry in Chita, as was the case in Nada, became prosperous in the early eighteenth century. Located between Osaka and Edo, the rich of the area invested in the shipment business. Moreover, the peninsula lacked fertile land, so that poor peasants had to work elsewhere outside the village: the sake brewing and shipment business for the Edo market gave them job opportunities. Owari, in which Chita was included, was a powerful han in the Tokugawa period, and supported Chita's sake businesses even when brewing in other areas was controlled by the Shogunate. This made the Chita sake industry prosperous. After the Meiji Restoration, the government removed restrictions on brewing. With the introduction of steamship and telegraph, Chita's sake shipment business was left behind. They also lost the guardian Owari han. Even worse, having sold by the same Tokyo wholesalers that dealt in goods produced in Nada, Chita's sake, was thought as a cheap substitute for Nada's and with the oversupply on the Tokyo market, it lost its demand in the Tokyo area. Furthermore, the government began to put a geavier tax on sake, and also on the quantity of brewing not on the wholesale price. The result was that breweries of cheap sake had to pay heavier taxes, and gradually the Chita brewing industry began to decline.
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