Economic Losses of Japanese Canadians After 1941: Principles in Determining the Loss

Our objective is to compare what did happen to Japanese Canadians between 1941 and 1949, with what would have happened but for their forced relocation and the liquidation of their property. He have selected 1949 as a benchmark because by this date all restrictions on the Japanese Canadians had been lifted and there is little information on their status or movements to facilitate a further analysis.

The Japanese Canadians suffered economic loss to the extent they were in a worse position in 1949 than they would have been had they not been dispersed.

The comparison is therefore between their actual conditions in 1942-1949, which are reasonably well documented, and their likely conditions if there had not been dispersal and property liquidation.

The determination of loss for events which occurred 40 years ago, to 21,700 people, is inevitably subject to a great deal of judgments and is restricted in some areas by a lack of information. In this report we have outlined the evidence we have seen and the judgments we have made. We have not tried to include all the evidence examined, but instead we have selected those facts and arguments which we consider most significant to the determination of economic loss.

There are several types of economic loss which affected different Japanese Canadians, and these are summarized below:

* “Real property" means land and buildings, property; "Personal property" means other.

Historical Framework: Experiences of Other British Columbians, 1942-1949

To predict what would have happened to the Japanese Canadians, we need to consider the broader economic position in British Columbia.

1941

British Columbia was much more dependent on forestry, mining and fishing than it is today. (Japanese Canadians were excluded from being miners underground and from logging on Crown lands, but many of them were employed in lumber production.)

The average wage in B.C. in 1941 was $1,047 for a man and $558 for a woman. Incomes of employers and self-employed people, mainly males, were generally higher.

For people over 16, the participation of women in the workforce was 18%, compared with 82% for men. In addition, women's wages were 47% lower as noted above.

The war had apparently little effect on the economy by 1941. B.C. was recovering slowly from the Depression, and income levels were lower than they had been in the 1920's.

Military service had little effect - 29,000 British Columbians, 8.3% of the workforce, were enrolled on Active Service.

1942 - 1945

In these years British Columbia's wartime economy developed, with prices, wages, production and land values rising dramatically.

Labour shortages in many industries, caused partly by military service and partly by wartime production demands, helped to increase wages and also to encourage more employment of women. Unemployment was correspondingly low.

Agricultural activity was particularly stimulated by the war, as British demand for produce resulted in increased production.

In Schedules IV-11 onwards, we have shown the increases in prices and wages during this period.

There were mixed effects on education and training. The number of students enrolling at universities declined, but elementary and high school enrollment was unaffected.

1946 - 1949

The post-war period saw a continuation of the war-time boom until a brief slowdown began in 1948. The population had increased from 818,000 in 1941 to 1,082,000 in 1948. Returning veterans helped to keep land values firm.

University and college enrollment rose sharply, presumably because of assistance given to returning veterans under the Veterans Rehabilitation Act.

By 1951, the employment of women had doubled since 1941.

Summary

The British Columbia economy grew quickly in 1941-1949, and inflation continued throughout the period.

Inflation can be beneficial for those whose incomes are increasing with inflation and/or those who hold assets which are increasing in value. However, for Japanese Canadians this was an inopportune time to be deprived of property ownership rights. By the time they were again given the opportunity to start a business or to own property, prices had increased so much they were less able to re-enter the market.

Moreover, they had been prevented from taking advantage of the business opportunities which arise during a period of economic expansion.

Historical Framework: Experiences of Japanese Canadians, 1942-1949

In this report we have calculated the loss collectively suffered by this community over a 7-year period. To understand these losses, it is necessary to understand the experiences of Japanese Canadians during this period.

1941

• In December 1941, there were 23,000 Japanese Canadians living in British Columbia.
• 8,300 of this group were working. The rest were not working, notably women living at home and children.
• Of the 8,300 working adults, 925 were farmers, 1,265 were fishermen and 1,839 were in logging or pulp mills. There were few professional people. Schedule IV-6 gives a more detailed breakdown of their occupations.

1942 - 1945

In this period, essentially all of the real property, motor vehicles, businesses, fishing vessels and equipment and chattels of the Japanese Canadians were sold. All of the Japanese Canadians were removed from the Protected Area by the end of 1942, as follows-

• There were 2,100 people in work camps for the first year, and many people spent up to 3 months in Hastings Park in Vancouver, awaiting relocation. These people were mainly from outside Greater Vancouver. The work camps were for adult males only, who were therefore separated from their families.
• Interior Housing Projects in British Columbia. These 'projects', or camps, initially housed 12,000 people, including a high proportion of children and older people. The camps were mainly built around old mining towns. There was little employment and initially high requirements for maintenance assistance as a result. Education was provided up to Grade 8.
• Self-supporting projects in British Columbia. These projects accounted for 1,200 of the more economically self-sufficient Japanese Canadians. 'These projects had to provide their own schooling. Employment was scarce for those living in these communities.
• Sugarbeet farms in Alberta, Saskatchewan and Manitoba; initially 4,000 people went to these provinces. In Alberta, there was a contract with the provincial government to prevent Japanese Canadians from settling there when the war was over. The people generally worked on the farms during the season, and supplemented their income with winter work,when available. Wives and many children had to work on the farm, along with the men. The children were educated in the normal provincial school systems, but in Alberta Japanese Canadian parents had to pay for the high school attendance of their children.?
• Ontario and Quebec. By the end of 1945, 4,200 Japanese Canadians had moved to central Canada. They competed for jobs with other Canadians, and their children were educated in the normal school system. These people had more economic opportunity than the average Japanese Canadian.

The property owned by Japanese Canadians at the time of registration was as follows (this excludes any property sold before registration)

• 945 properties excluding Fraser Valley farms. These, mainly houses, were evenly divided between Greater Vancouver and other areas. The Vancouver properties included a large concentration around the Powell Street area. 920 of the properties were sold by the Custodian of Enemy Property mainly between 1942 and 1944, for $1,681,000, an average of $1,827 per property. The properties include community-owned facilities (such as churches) as well as privately-owned property.
• 741 farm properties in the Fraser Valley covering 3,959 cultivated acres. These farms were sold to the Veterans Land Administration ("VLA") for $836,256 in 1944, an average of $1,129 per property. The farms were rented, up to that point.
• Before sale, real properties were rented for a total of $557,670 (net).
• 519 motor vehicles, which the Custodian sold for $160,000 mainly in 1942, an average of $308 per vehicle.
• 1,137 fishing vessels with related nets and gear, which were sold for $1,828,000, an average of $1,616 per vessel and equipment.
• The people had personal effects, including furniture, which were sold for $276,000 net, an average of $12.70 per person.

The total amounts realized by the Government for all assets was $5,763,000.

Whatever the destination of Japanese Canadians between 1942 and 1945, they were not allowed to own property or lease it for more than one year without a permit from the B.C. Security Commission. In fact, only two such permits were issued by 1945.

1946 - 1947

After the war was over the Canadian government announced a policy of dispersal, which meant a second relocation for many Japanese Canadians.?

Japanese Canadians still in British Columbia were told to move to Japan, or to relocate "East of the Rockies". 3,961 people, a third of whom were children, ultimately went to Japan. Their net worth, as recorded by the Custodian, was $1,248,692.

For the rest, 1946-1947 was a period of movement to Ontario and Quebec as the Interior Housing Projects emptied^ By March 1947, 900 people were left in these Projects, and 7,900 now lived in Ontario or Quebec. There was also some movement from Alberta to Central Canada, together with some movement from B.C. to the Prairies.

The restrictions on owning property were lifted in March 1947. By that date, 220 people had obtained permits to buy property. This compares with some 1,600 properties registered by the community in 1941, together with an unknown number of properties sold before registration.

Once the Japanese Canadian community was no longer subject to restrictions, there was less documentation available to review. However, it is clear that by March 1947, Japanese Canadians had not yet recovered their 1941 economic situation. The evidence suggests they were not suffering severe unemployment or welfare problems at this time, but their employment potential was still limited.

- Economic Losses of Japanese Canadians After 1941. (1985.), A Study Conducted by Price Waterhouse, Vancouver BC, National Association of Japanese Canadians, pp. 4-9.