Takahashi Korekiyo

Takahashi Korekiyo was a Japanese politician who served as prime minister of Japan from 1921 to 1922 and Ministry of Finance when he was assassinated. He was also a member of the House of Peers and head of the Bank of Japan. Takahashi made many contributions to Japan's development during the early 20th century, including introducing its first patent system and securing foreign financing for the Russo-Japanese War. Following the onset of the Great Depression, he introduced controversial financial policies which included abandoning the gold standard, lowering interest rates, and using the Bank of Japan to finance deficit spending by the central government. His decision to cut government spending in 1935 led to unrest within the Japanese military, who assassinated him in February 1936. Takahashi's policies are credited for pulling Japan out of the Depression, but led to soaring inflation following his assassination, as Takahashi's successors became highly reluctant to cut off funding to the government. Takahashi was born in Edo (modern-day Tokyo), while Japan was still under the Tokugawa shogunate. He was the illegitimate son of a court painter in residence at Edo Castle, and adopted as the son of Takahashi Kakuji, a low-ranking samurai in the service of the Date daimyō of Sendai Domain. He studied English language and American culture in a private school run by the missionary James Hepburn (the forerunner of Meiji Gakuin University). On 25 July 1867, he set sail from Japan to Oakland, California, in the United States, and found employment as a menial laborer. Another version of the story has it that he went to the United States to study, but was sold as a slave by his landlord and only with some difficulty was he able to return to Japan. After his return to Japan in 1868, Takahashi taught English conversation. He later became the first master of the Kyōritsu Gakkō high school in Tokyo, (currently Kaisei High School), and at the same time worked as a low-ranking bureaucrat in the Ministry of Education, and then in the Ministry of Agriculture and Commerce. He joined the Bank of Japan in 1892, represented the Japanese government in overseas fundraising activities during the Russo-Japanese War, and served as governor of the Bank of Japan from 1911 to 1913. Starting his first appointment as finance minister in 1913, Takahashi served as finance minister five times in seven administrations until his assassination in 1936. When he returned to office in December 1931, he was already widely recognized for his capabilities in public finance, backed by a wealth of experience and a prominent presence in the domestic policymaking arena as well as in the international financial markets. Takahashi is best known for his bold and unconventional fiscal and monetary policies that helped Japan overcome the Great Depression. He devalued the yen by abandoning the gold standard in December 1931, which boosted Japan's exports and stimulated domestic production. He also lowered interest rates and expanded the money supply by having the Bank of Japan buy government bonds directly, which financed public works and military spending. He advocated a balanced budget and fiscal discipline, and tried to curb the military's excessive demands for funds. He also supported Japan's withdrawal from the League of Nations in 1933, after Japan was condemned for its invasion of Manchuria in 1931. Takahashi's policies were successful in reviving Japan's economy, but they also aroused opposition from various quarters. Some conservative politicians and businessmen criticized him for causing inflation and undermining the value of the yen. Some military officers resented him for limiting their budget and interfering with their expansionist ambitions. Some nationalists accused him of being pro-Western and pro-Chinese, and of betraying Japan's interests. On 26 February 1936, a group of young army officers staged a coup d'état, known as the February 26 Incident, and attempted to overthrow the government and assassinate several political leaders. Takahashi was one of their main targets, and he was shot and killed by the rebels at his home. The coup was suppressed by the loyalist forces, but the incident marked the end of civilian control over the military and the beginning of Japan's descent into militarism and war. Takahashi is widely regarded as one of the most influential and visionary figures in Japan's modern history. He is praised for his economic policies that enabled Japan to recover from the Depression faster than any other major country, and for his efforts to maintain peace and stability in Asia. He is also criticized for his role in facilitating Japan's aggression in China and for his failure to prevent the rise of militarism and fascism in Japan. He is remembered as a man of courage and integrity, who stood up to the military and defended his principles until the end. His Tokyo residence is now the Takahashi Korekiyo Memorial Park in Tokyo's Minato Ward, Akasaka.