WISDOM OF SHIBUSAWA EIICHI (II) Shibusawa’s Starting Point Shibusawa Eiichi (1840–1931) is once again garnering attention these days. What sort of person was Shibusawa? In this article, which updates that which first appeared in the December, 2011 issue of the Japan Journal, Shibusawa Memorial Museum Director Inoue Jun examines the childhood, youth and young adult life of the pioneering Japanese industrialist.

hibusawa Eiichi was born crops was scarce in the area, and one of the richest farming families in in 1840 (Tenpo 11) in people were unable to make a living the village. Shibusawa acquired Chiaraijima-mura, without taking part in commerce in knowhow on the economy while as- S Hanzawa-gum, Musashi- addition to farming. sisting in his family business. He ob- no-kuni (now Chiaraijima in the city Many in the area were engaged in tained none of his perspective on the of Fukaya, ), bear- business that involved purchasing in- economy through books or theory, but ing the genes of his strict father, an digo leaves, processing them into a rather through actual practice. adept business manager and village raw material for dye called aidama Yet Shibusawa was also given a organizer, and his benevolent mother. (indigo balls) and selling them in full education by his cousin Odaka While tax was usually paid in Shinshu (now Nagano Prefecture), Junchu, who was a scholar of Chinese rice during the Edo period (1603– Joshu (now Gunma Prefecture) and literature and introduced Shibusawa 1867), a system to pay in cash was al- other regions. to reading for learning and culturing ready adopted in Chiaraijima. The In the Shibusawa family, his mind. Odaka’s way of reading money economy was disseminated Shibusawa’s father started the busi- was a bit different for the time, and early in this typical farming village ness in full scale, which brought them he made Shibusawa read whatever because farmland yielding stable tremendous wealth, developing into books interested him, one after

Shibusawa Eiichi cut his topknot as a young man, symbolizing a change in his outlook. The photograph of Shibusawa wearing Western-style clothes was taken in 1867.

20 The Japan Journal NOVEMBER/DECEMBER 2020 The Japan Journal NOVEMBER/DECEMBER 2020 21 another. In later years when Shibusawa made decisions in his life he often gathered a wide range of information, studied it and then decided on which path to take. This way of decision making is believed to have come from Odaka’s teaching style of reading books on a wide range of topics. Shibusawa, who loved to read and study, read many books and interacted with philosophers when he traveled to Edo (now ), and be- came drawn to the anti-foreign thought prevalent at the end of the Edo period. However, ALL PHOTOS SHIBUSAWA MEMORIAL MUSEUMALL PHOTOS while many advocates of this Shibusawa (back row, extreme left) with the delegation to the Paris Exposition, 1867. thinking spoke from emotion- Tokugawa Akitake, younger brother of the 15th shogun Yoshinobu, is seated at the center. al and political viewpoints, Shibusawa spoke from eco- nomic aspects. young men and the feeling was strong of Europe. In addition to advocating anti- among them that they could never Shibusawa displayed his abilities foreign thought, Shibusawa became back down, but Shibusawa calmly lis- with an extremely flexible and enthu- critical of the Edo Shogunate since tened to his words, and ultimately siastic attitude and sharp insight. he believed society would not im- persuaded everyone to give up on the While accompanying the Shogun prove unless the custom of respect- plan, stay with the regime to survive in public events, Shibusawa sought ing the bureaucrats and looking and change the world gradually. guidance from local bankers and ob- down on the citizenry was in some Here also, Shibusawa arrived at a served different facilities. These in- way eradicated. crucial decision by thoroughly study- cluded banks, stock exchanges, hos- With an aim of getting rid of ing the available information. pitals and welfare facilities, zoos and what he saw as absurd at that time, other entertainment facilities, as well Shibusawa gathered people he met in Toward the New World as modern infrastructure for gas and the neighborhood and in Edo and for- water supply. Shibusawa was aware mulated a plan. His group was to take After abandoning the notion of rebel- that these facilities were needed for a over the Takasaki castle (located in lion based on anti-foreign thought, new Japan. He focused not only on what is now the city of Takasaki, Shibusawa joined the Shogun’s vas- the facilities but also the methods of Gunma Prefecture) and burn down the sals when Hitotsubashi Yoshinobu, operation and maintenance, and foreigners’ residential quarter in the head of the Hitotsubashi family showed strong interest in gappon or- , on the day of the winter he was serving, became Shogun. In ganizations similar to today’s joint- solstice of 1863 (Bunkyu 3). this capacity serving the Shogun he stock companies. Shibusawa called on his cousin spent most of his years in Europe. It Shogunate delegation accountants Choshichiro, who was hiding in was, first of all, unconceivable for an usually think about keeping con- on suspicions of being involved in an- advocate of anti-foreign thought to go sumption down and saving the other incident, to join since he would to Europe. Yet Shibusawa was hoping funds supplied by the Shogunate. be a valuable addition to the force. to change the world while staying Shibusawa, to the contrary, attempted When the group gathered immediately with the regime, and his thinking had to increase the assets by using the before executing their plan, already changed to a more proactive funds as seed money. Increasing as- Choshichiro questioned it, saying that intent to come into contact with sets was no doubt important in his the actions of anti-foreign factions he Western civilization. Around this mind, but Shibusawa evidently tried saw in Kyoto did not seem to have time, he participated in the delegation to learn the European systems while changed the nation, and people were of the Edo Shogunate dispatched to experiencing asset operations. merely dying in vain. the Paris Expo in 1867, as a clerk and He was also surprised that the This was a group of hot-blooded accountant, and met the “new world” King of Belgium tried to sell steel

20 The Japan Journal NOVEMBER/DECEMBER 2020 The Japan Journal NOVEMBER/DECEMBER 2020 21 WISDOM OF SHIBUSAWA EIICHI (II) produced in his country to Japan, Shibusawa initiated numer- where demand for steel was predicted ous projects that formed the to rise. In Europe, politicians and foundation for modern Japan, including the estab- kings were also interested in making lishment of numerous rail- their country rich, which was an un- way companies. Pictured, a thinkable notion in Japan. This inci- print from Utagawa dent motivated Shibusawa to want to Hiroshige III’s “Famous Sites change Japan so that the government in Tokyo” series depicting a and private sectors would work to- steam locomotive departing gether to improve the country. from Shimbashi Station in After returning to Japan, Tokyo, 1872. Shibusawa within several months es- tablished a gappon organization. The speed in which he did this must have been because he learned the process through actual practice. Though Shibusawa believed in Shibusawa was appoint- eradicating the custom of respecting ed as the department bureaucrats and looking down on the head. The Reform citizenry, he began work as a tax offi- Department, established cer in the Ministry of Taxation in as an inter-ministry or- November 1869 (Meiji 2), and contin- ganization for modern- ued working there and with the izing Japan, was similar Ministry of Finance until 1873 (Meiji to today’s think tanks. 6). He had never thought of serving as In its mere two years ALL PHOTOS SHIBUSAWA MEMORIAL MUSEUMALL PHOTOS

joint stock companies, and developing financial organizations and other ministries. Shibusawa’s remarkable energy and abilities came to be recog- nized by the government and made him a trusted figure. For Shibusawa, the days he served the Meiji govern- ment enabled him to gain knowledge and experience indispensable in his later activities, and also to build human networks that would not have been possible if he were only living as a civilian. Shibusawa later clashed with the Print by Ichiyosai Kuniteru (Utagawa Kuniteru II) showing the National First Bank Ministry of Finance about national located in Kabuto-cho, Tokyo, 1873. The five-story building incorporated both Japanese and Western styles. budgets and left along with his boss, the chief administrator of the ministry, Inoue Kaoru (1836–1915). From here, a government official, but accepted of existence, Shibusawa vigorously his years active in the private sector the challenge since he found it greatly initiated numerous projects that began, as he had always intended. meaningful to participate in the build- formed the foundation for the modern ing of a new nation. nation. These include the establish- Note: This article updates that which The elite who gathered for the ment of a currency system, initiatives first appeared in the December 2011 purpose of building the new nation, for establishing a prefectural decree issue of the Japan Journal. deciding what they could do, con- for the National Bank, establishment ducting surveys and research, and of a modern mail system, building INOUE Jun is an executive director with the formulating policy measures estab- railways, establishing a national honor Shibusawa Eiichi Memorial Foundation and lished the Reform Department, and recognition system, disseminating director of the Shibusawa Memorial Museum

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