The aim of this paper is to analyze the financial management of the cooperative silk−reeling filatures in
Shimoina County, Nagano Prefecture between W. W. I and W. W. II. The earlier researches elucidate that the
cooperative silk−reeling filatures in the Ina area produced comparatively high grade thread, but those researches
have not focused on their managements including the financial conditions. This paper conducts a comparative
research on the financial management of five cooperative silk−reeling filatures in the county. Through this
research, the following facts are cleared up.
First, during the 1920s the sources of capital changed. Local banks had previously supplied capitals for the
cooperatives, but during the 1920s the investments in the cooperatives of their members increased and local
credit cooperatives, which were their affiliates, injected capital into them. As a result their equity capital was
reinforced. Along with the previous loans from local banks, Sangyõ kumiai chuõkinko (the central bank for
cooperatives) financed them as a national agricultural policy.
During the 1930s, when the Great Depression occurred, their high equity ratios were maintained. Although
the investments of their members and the local credit cooperatives declined and the national loans of Sangyõ
kumiai chuõkinko started to compose the main portion of their budgets.
Second, during that time the spending policy of their budgets was converted. In the early 1920s, when the
cooperatives were established, the price of silk cocoons was kept higher than the market price of them to
maintain the cocoon supply from the cooperative members. In the late 1920s, when the cooperative achieved
high management performance, they started to invest their profits in their production facilities. The cooperatives
continued to apply that strategy to a countermeasure against the Great Depression. One of the remarkable
examples is Taishõkan filature of Yamabuki Cooperative Association, which introduced multi−ends reeling
machines under the economic hardship of the Great Depression.
Finally, those cooperatives took various measures to ensure high−quality cocoons for high grade thread. For
instances, they standardized the sort of silkworm eggs which they recommended, sent technical supervisors to
their members’ houses, and provided extra incentives for cocoons of fine quality.