The domestic policy of Prime Minister Hamaguchi Osachi

The Minseito cabinet under Hamaguchi came to government in April 1929. Hamaguchi appointed Shidehara as foreign minister and Inoue Junnosuke as finance minister. Hamaguchi carried on the 'internationalist' policy of Shidehara and at the same time he adapted the domestic policy such as lifting the embargo on gold and arranging a rationalization of industry. Hamaguchi started with combining industries and organizing unions. He was making the Japanese economy competitive enough in the international market through mechanization and expansion of productivity. He was trying to seek for an international policy of 'sound finance' by reintroducing the gold standard and was activating Japanese industrialists' trades and business in China. He supported the Japanese economic expansion in China in order to realize the development of domestic industries, the stability and improvement of the people's life. Hamaguchi favored disarmament and took an action over the London naval treaty. The Sumistu-in was against his idea, but he controlled it by force because he had a great support from the public and the Elder Statesman, Prince Saionji. Hamaguchi's purpose at that time was to cut military expenditures and to take on the leadership over internationalism. His vision collapsed after the Wall Street crash of autumn 1929. Hamaguchi was assassinated on the platform at Tokyo railway station in 1930. He recovered to resume his position as prime minister but died the following year.