I hereby give My sanction to the Law concerning the Partial Amendment of the Bank of Japan Law, and others for which the concurrence of the Imperial Diet has been obtained, and cause the same to be promulgated.
Signed:HIROHITO, Seal of the Emperor
This first day of the fourth month of the twenty-second year of Showa (April 1.1947)
Countersigned: Prime Minister YOSHIDA Shigeru
Minister of Finance ISHIBASHI Tanzan
A part of the Bank of Japan Law shall be amended as follows:
In Article 16, "with Imperial decision the Government" shall read "by the Cabinet."
In paragraph 1 of Article 30, "after the concurrence of the Cabinet upon the decision of the Board of Investigation Concerning the Issue of Currency" shall be added to "the competent Minister."
Article 31. When it deems the necessity thereof, the Bank of Japan is authorized to issue the bank-notes in excess of the limits of issue as prescribed by paragraph 1 of the preceding Article. It is provided, however, that in case the issue of the notes is to be continued beyond fifteen days, the permission of the competent Minister is necessary.
In case the Bank of Japan intends to continue the issue of the notes beyond thirty days, in accordance with the provisions of the preceding paragraph, in excess of the limits of issue as prescribed in paragraph 1 of the preceding Article, when the competent Minister is to grant permission as prescribed in the proviso of the preceding paragraph, he shall do so upon the decision of the Board of Investigation Concerning the Issue of Currency.
Article 31-(2). In case the Bank of Japan continues the issue of notes beyond fifteen days, in excess of the limits of issue, the same Bank shall pay the issue tax in the proportion as fixed and determined by the competent Minister, on the basis of the actual number of days and in proportion to the quantities of the notes issued in excess of the limits of issue, in the days after the sixteenth day. It is provided, however, that the aforesaid proportion cannot be less than the proportion as fixed and determined by the competent Minister, with the consent of the Board of Investigation Concerning the Issue of Currency.
The following one paragraph shall be added to Article 32:
The competent Minister shall fix and determine the limits of the amount which may be applied for the purpose of security respectively as regards the items mentioned in No.1 to 4 of paragraph 2 and in paragraph 4, upon the decision of the Board of Investigation Concerning the Issue of Currency.
The following article shall be added to Chapter IV.
Article 36-(2). The regulations concerning the Board of Investigation Concerning the Issue of Currency are to be stipulated by Imperial Ordinance.
Paragraph 3 of Article 39 shall be amended as follows:
When the Bank of Japan is to pay the devidend on the paid-in capital, out of its, surplus funds, the permission of the competent Minister is required. It is provided, however, that the said dividend cannot exceed the rate 5% per annum.
Paragraph 4 of the same Article shall be deleted, and in paragraph 5 of the same Article "paragraph 3" shall read "the preceding paragraph."
Article 40 shall be deleted.
In Article 47, "the Government" shall read "the cabinet."
Supplementary Provisions:
The date of the enforcement of this Law shall be fixed and determined by Imperial Ordinance on each provision thereof.
The provisions necessary for the enforcement of this Law shall be fixed and determined by Imperial Ordinance.
The revised provision of paragraph 3 of Article 39 and the provisions of paragraphs 5 and 6 of the Supplementary Provisions shall apply to the business years following to the business year including April 1, 1945.
The persons, who are actually Governor and Vice-Governor of the Bank of Japan at the time when the revised provisions of Article 16 comes into force shall be regarded as being in office in accordance with the same revised provisions only during the remainder of the period of tenure of office.
The Bank of Japan, in case it does not pay the dividend of the surplus funa, has to lay a side as the special reserve fund the amount of money till it reaches the sum corresponding to the rate of 5% per annum of the paid-in capital from the amount of money left behind after deducting from the surplus fund the sum of money corresponding to the reserve fund as prescribed in Paragraphs 1 and 2 of Article 39 of the Bank of Japan Law.
In case where the Bank of Japan has paid the dividend of the surplus fund, when the amount of the dividend is less than the amount of the special reserve fund required in case of applying the preceding paragraph, the difference arising shall be treated in the same manner as the preceding paragraph for the time being.
The special reserve fund stipulated by the preceding two paragraphs hereinafter referred to as the special reserve fund shall be deemed the dividend provided by the revised Article 39, paragraph 3 with regard to the application of Article 39, paragraph 4.
The special reserve fund can be used only for making good the loss suffered or other purposes approved by the competent Minister.
In case where the losses suffered in each business year are not sufficiently covered even by employing the reserve stipulated by the Bank of Japan Law, Article 39, paragraphs 1 and 2 (with regard to the reserve stipulated by the paragraph 2, only the part which can be used for making good the losses or dividend) and the special reserve fund, the Government for the time being shall supplement the fund corresponding to the deficit.
In case of the liquidation of the Bank of Japan, if some special reserve exists, the remaining assets, which exceed the total amount of the paid-in capital and the special reserve fund, shall belong to the Government notwithstanding the provision of Article 12, paragraph 2 of the Bank of Japan Law.
A part of the Bank of Japan Special accomodation and Indemnity Law shall be amended as follows:
In Article 3, "20 years" shall read "25 years."