Seihin Ikeda

2017/05/05

Image: Seihin Ikeda (Keio University Fukuzawa Memorial Center for Modern Japanese Studies)

By the time Yukichi Fukuzawa was over 50, although he no longer taught classes, he would occasionally speak to students at the Enzetsukan (Public Speaking Hall). On those days, he would stand on the podium as usual, wearing a striped haori and navy tabi, and begin speaking with his arms crossed and a smile on his face. In one speech intended to correct the students' wild and boorish behavior, Fukuzawa said, "You must practice kōgen reishoku (ingratiating behavior)." Kōgen reishoku refers to using smooth words to flatter others and is not typically a term used for praise, but Fukuzawa likely used it deliberately to admonish students who were rough, antisocial, and lacked manners. Making slightly extreme statements that might provoke a public reaction was one of Fukuzawa's specialties.

As expected, there was a man among the student audience who took the words "kōgen reishoku" literally, became angry thinking, "What nonsense is he talking?" and grew so disgusted with Fukuzawa that he resolved never to set foot in the Enzetsukan (Public Speaking Hall) again. This man was Seihin Ikeda, who would later lead the Mitsui Zaibatsu and the Japanese economy.

One characterization of Ikeda is that of a "gentleman with the air of an old-style warrior" (by critic Takeo Imamura). Ikeda always maintained a dignified posture and would judge matters as "yes" or "no" without flinching, even for difficult cases. He was also reserved and shy. These foundations of Ikeda's character seem to have been nurtured by the spirit of the Yonezawa Domain where he was born and by his home education.

Ikeda was born in 1867 as the eldest son of Nariaki Ikeda, a samurai of the Yonezawa Domain. When he was about seven years old, Ikeda accidentally spilled ink on an illustrated book his father had bought him, turning it black. He tried to cover it up with a lie, but when the lie was discovered, his father scolded him severely and made him stand in front of the house all night. From then on, Ikeda told himself that he must never tell a lie. In later years, even when reporters came to interview him, he would stare them down with sharp eyes and say, "I do not tell lies. I won't lie, but I cannot speak about what cannot be spoken," leaving the reporters flustered. Also, one day, when a friend of his father's suggested he keep a diary, Ikeda gave a half-hearted reply, saying, "Then I shall write one." About ten days later, when his father asked about the diary, Ikeda replied that he had written nothing. His father reportedly scolded him severely again, saying, "If you had no intention of writing, why did you not reply that you wouldn't?"

In 1879, Ikeda moved to Tokyo with his father, attended school there, and later entered the preparatory course (Bekka) of Keio University. It was shortly after his enrollment that he heard Fukuzawa's talk at the Enzetsukan (Public Speaking Hall). After graduating from the preparatory course in about a year and a half, Ikeda studied English under a British teacher for a while before advancing to the newly established college (Daigakubu) of the Juku. The first class of the department of political economy was taught by Garrett Droppers, a Harvard graduate. Ikeda, who was proficient in English, was frequently called upon by Droppers, who would say, "Ikeda, Ikeda."

When Keio University decided to send students to Harvard University, Ikeda was chosen from the department of political economy. Studying abroad required a large amount of money then as it does now, but the Juku told him not to worry because Harvard would provide a scholarship, so Ikeda set off for America with peace of mind. However, upon arriving at Harvard, he found there was no such regulation; rather, there was a fund for those who were poor but academically excellent. While Ikeda's family was not wealthy enough to afford the study abroad expenses, he did not like the idea of receiving money simply because he was poor. Therefore, he negotiated with the President of Harvard, asking to receive the scholarship without the condition of poverty.

However, the President would not budge, stating that the rules could not be bent. The stubborn Ikeda stood up and said, "In that case, I refuse." Ultimately, the issue was resolved by Ikeda's father acting as a guarantor to borrow money from the Juku. Even when advised by those around him to bring Ikeda home, his father refused and supported Ikeda's five-year life abroad through the frugal living characteristic of a Yonezawa samurai. This stay in America built the foundation for Ikeda to later be known as pro-American.

Upon returning to Japan, Ikeda joined the Jiji Shinpo, a newspaper founded by Fukuzawa, and was appointed as an editorial writer in charge of editorials and front-page columns. At that time, Fukuzawa, who was over 60, was vigorously writing editorials himself and strictly reviewing those written by other members. Most of what Ikeda spent day and night thinking about and writing was thrown into the wastebasket with the comment that it was no good. While he was praised when his work was good, the manuscripts would come back covered in red ink from Fukuzawa's corrections.

On the day he was to receive his first salary, the envelope Fukuzawa handed out contained 20 yen. Since the monthly salary for a Keio University graduate was about 8 yen, he received more than average, but Ikeda was not satisfied. He said, "I cannot get by unless I receive 50 yen. I won't last long like this, so I'm quitting," and he left the company after only three weeks, ignoring Fukuzawa's attempts to persuade him otherwise.

Two or three months after losing his job, Tokujirō Obata, Fukuzawa's right-hand man, invited him to work at Mitsui Bank. At the time, Mitsui Bank was just beginning reforms toward modernization under the leadership of Fukuzawa's nephew, Hikojiro Nakamigawa. Nakamigawa believed that to reform, he had to gather young and talented people, so he was actively hiring young people who had studied at schools like Keio University. Ikeda joined Mitsui Bank simply because they would pay him a salary, without even knowing what a bank actually did. At first, his days were filled with the boring work of keeping ledgers and using an abacus, and Ikeda again felt like quitting. However, he reportedly reconsidered after remembering the stern letter his father had sent when he left Jiji Shinpo.

In the meantime, Ikeda was ordered to work in Osaka for a year and two months, then served as the branch manager of the Ashikaga branch in Tochigi Prefecture for eight months, and was further ordered on a business trip to investigate banking conditions in America and Europe. Ikeda learned the mechanisms of banking and the work attitudes of bank employees from Western bankers with great care and returned to Japan after a year and two months.

In 1901, Ikeda married Nakamigawa's daughter, Tsuya. When Tsuya first heard the name of her suitor from her father as "Seihin," she reportedly thought it meant "honorable poverty" (seihin). Ikeda's original name was Untaro, but he changed his name three times after that. He tried to take the character "Bin" from the phrase "Bunshitsu Binbin" (meaning a harmony of outward beauty and inner substance) in the Analects to make it a single-character name. However, name changes had become stricter, and he was told it would be acceptable if he used one character from his father's name, so he added "Nari." Since "Nariakira" sounded too grand and there were no other good readings, he decided to be called "Seihin." When Tsuya asked what kind of person "Seihin" was, Nakamigawa replied that he was "the most stubborn man in the bank." Ikeda, who had become the deputy manager of the business department, was likely valued by Nakamigawa for his inner strength and refusal to compromise on what he believed was right.

Thereafter, Ikeda became the manager of the business department and, upon Mitsui Bank's conversion to a joint-stock company, was appointed as managing director. For the next 25 years, as the de facto head of management at Mitsui Bank, he oversaw bank operations and played a role in supporting the Japanese economy as a representative of the financial industry. He made loans based on whether the management was trustworthy, regardless of the company's performance, and many of these were successful. On the other hand, the cold-blooded judgments he showed in incidents such as the "Mitsui Dollar Buying Incident" increased public hostility toward Mitsui Bank and the Mitsui Zaibatsu as the depression deepened. Due to space limitations, his activities as a banker must be omitted here.

In March 1932, Takuma Dan, the chairman of Mitsui Gomei (the core company of the Mitsui Zaibatsu), was killed by a terrorist's bullet in front of the Mitsui Bank headquarters in Nihonbashi, and the May 15 Incident occurred two months later. Ikeda was also listed as a target for terrorism, and the shadows of assassins lurked near his home and his villa in Oiso. In this environment, to steer the Mitsui Zaibatsu after Dan's death, Ikeda resigned from Mitsui Bank and became the managing director of Mitsui Gomei, implementing reforms known as the "conversion of the zaibatsu." These reforms, which included the retirement of the Mitsui family from the front lines, the public offering of shares held by Mitsui Gomei, and the establishment of the Mitsui Ho-on-kai for social contributions, were designed with the future of the zaibatsu in mind, taking public criticism into account. He also introduced a mandatory retirement age to move away from elder rule and left Mitsui himself in accordance with this system.

At this time, Japan was already under wartime conditions, and with military spending ballooning, the nation's finances were extremely difficult. The Prime Minister of the time did not allow Ikeda to live in retirement, and Ikeda went on to serve as the Governor of the Bank of Japan and as the Minister of Finance and Minister of Commerce and Industry. Ikeda was pro-American and held a position in opposition to the military. At the end of 1943, as the war situation worsened, Ikeda's third son, Yutaka, received a conscription notice and left for the battlefield in China. There is a story that Prime Minister Hideki Tojo offered a deal: if Ikeda stopped his movements opposing Tojo's methods, Yutaka could be moved to a safe domestic duty. Ikeda reportedly refused the offer without yielding to the pressure. Yutaka remained in China as a prisoner of war even after the war, contracted malaria, and never returned. Upon receiving the wooden box containing Yutaka's remains, Ikeda "showed tears in front of others for the first time" (from "My Father's Tears" by his second son, Kiyoshi Ikeda).

After the war, Ikeda lived quietly at his villa in Oiso, but Shigeru Yoshida, who stood at the forefront of national reconstruction, frequently visited Ikeda for advice. Yoshida referred to this as "going to draw a fortune from the Ikeda Daimyojin (Great Deity)."

Although Ikeda had disliked Fukuzawa in his youth, in his later years he said, "I should have gone to the teacher's house back then to seek his guidance after all." He supported the Juku during the war as the chairman of the Board of Councilors of Keio University and as an advisor to President Shinzo Koizumi.