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issuing long- finance minister in 1906-07, commented on this point:

term bonds up to ten times their capital and supplied long-term credits to industry. Then there were the Banks of Agriculture and Industry (Nōkō Ginkō), one for each of the forty-six prefectures, which later became amalgamated with branch offices of the Hypothec Bank. These served then largely the needs of agricul­ 'Neither traders nor industrialists can do great things without borrowing money, and the more credit becomes available the greater things can be done in these fields. In this country bankers actively engage in many different ways to foster industry and help in the establishment of enterprises; finally the officials of banks

This twisting and getting around the regulations was unpleasant and outright dangerous for both parties: the bank could run into serious trouble, particularly if it was small, and the managers of industrial enterprises were always uncertain whether they would receive the desired and needed loans, and whether they could be renewed. The industrialists therefore resorted to an expedient which would assure them continuous long term lending: they established their own banks to serve their own enterprises. Begin­ ning with the zaibatsu which one after another founded their zaibatsu banks, to the smaller entrepreneurs, this tendency became obvious; those banks were called the instrumental banks (kikan ginkō) for being instruments of the industrial ventures.