The Story Behind Shibusawa Eiichi, Father of Japan's Modern Economic Society

Tokyo Station's Close Connection to Shibusawa

Over his life of 91 years between 1840 and 1931, Shibusawa dedicated time and effort to founding and managing around 500 companies as well as around 600 social and public welfare organizations.

The businesses were in a wide range of fields, from finance to transportation, communications, textile, paper manufacturing, insurance, gas, electricity, storage, construction, hotel management and so on. They covered almost all areas of the capitalist economy, and for this reason, he is often referred to as the father of Japan's capitalism. 

Kuwabara says, "Out of all of these enterprises, I think the most well-known is First National Bank, which was the first ever commercial bank to be established in Japan. Shibusawa was central to its founding in 1873, not long after Japan ended its centuries-long policy of isolation. He was appointed head of management as the superintendent (and later president) and continued to lead management until he stepped down at the age of 76."

First National Bank later became First Bank Ltd. and Dai-Ichi Kangyo Bank, Ltd. and is currently Mizuho Bank, Ltd.

Kuwabara says, "Mizuho Bank's Kabutocho Branch is located right where First National Bank was born. The current building is the fourth to be built there, but the south wall has a commemorative plate indicating that it is the 'birthplace of banks' and the west wall has a panel featuring photos of the previous buildings and a portrait of Shibusawa."

Tokyo Station, the entrance into the capital, also has a close connection to Shibusawa. He was part of the management at Nippon Railway Company (present-day East Japan Railway Company), founded in 1881 as the first railway company in Japan. In addition, the famed red bricks of Tokyo Station, completed in 1914, were produced by Japan Brick Manufacturing Company (now closed), which was founded by Shibusawa. The back of the new 10,000-yen banknote features an illustration of the Tokyo Station Marunouchi station building.

Why Shibusawa Loved Asukayama

The place most often associated with Shibusawa is Asukayama, located in the northern part of Tokyo. Tokugawa Yoshimune, a shogun who ruled between 1716 and 1745, planted 1,270 cherry blossom trees on the natural hill, and the area was designated Japan's first urban park in 1873. Today, it is still one of Tokyo's most famous cherry blossom spots, with around 650 cherry blossom trees planted across an area of roughly 73,000 square meters.

Shibusawa built a secondary residence here in 1879 to invite distinguished guests, both domestic and international, and from 1901 until his passing, it was his primary residence.

Shibusawa, who served as a retainer for the last shogun, Tokugawa Yoshinobu, may have felt a connection to Asukayama since it was developed by his predecessor, Yoshimune. However, Kuwabara told us that Shibusawa had another, even greater, reason for being attracted to the land: "I think a big part of it was because from here, he could look down at the factory run by Paper Manufacturing Company, which he founded."

The Paper Manufacturing Company can be said to be the origin of Japan's modern paper manufacturing industry, with present-day Oji Holdings Corporation and Nippon Paper Industries Co., Ltd. tracing their roots back to it.

Kuwabara says, "Paper Manufacturing Company was founded in 1873, and like First National Bank, it was one of the first stock companies Shibusawa founded as a businessman. He was also involved in managing it for a long time, so it had a particularly special place in his heart. He went to look at many potential sites to build the factory, which would need a large area of land and convenient waterway access to transport large paper manufacturing machines and raw materials for western-style paper. Asukayama was the perfect location in several ways. It was the most convenient location in terms of water transportation, being able to ship goods along the Sumida River to the Shakujii River and right up to the factory. Clean water that was needed for making paper could also be drawn from the Senkawa irrigation canal running close by."

Many distinguished guests visited Shibusawa's residence in Asukayama. From abroad, he invited General Ulysses S. Grant in 1879, who was on a state visit to Japan right after he finished serving as the President of the United States. In 1881, King David Kalākaua, the seventh king of the Kingdom of Hawaii also visited as the first serving international head of state.

Shibusawa also invited leading Japanese politicians of the time as well, such as Ito Hirobumi, Inoue Kaoru and Katsura Taro, but perhaps the most profound guest for him was Tokugawa Yoshinobu, his former lord, who visited in 1889.

Character and Philosophy That Disapproved of Glamor

The Toden Arakawa Line, which runs alongside Asukayama Park, is the only Toden tram line left in Tokyo. Much loved by the people today, it has been nicknamed Tokyo Sakura Tram. It offers easily accessible transportation around the area, and visitors can sit in the trams to enjoy the sight of various flowers, like cherry blossoms and roses, that change with the seasons. They can also experience history and culture as they think about Shibusawa's idealized vision for modern Japan.

The Shibusawa Memorial Museum was built in 1982 on the site of the former Shibusawa Residence in Asukayama. To commemorate being selected as the portrait of the new 10,000-yen banknote, a special exhibition titled "Shibusawa Portrait Exhibition" was held over two seasons from the fall of 2023. It featured artworks like paintings and sculptures depicting Shibusawa.

Kuwabara says, "The Bankoro and Seien Bunko are buildings constructed during the early 20th century in the former Shibusawa Garden in Asukayama. They remain unchanged from when they were first built and are designated by the national government as Important Cultural Properties. Both buildings are very simple and reflect Shibusawa's genuine character that disapproved of glamor."

Shibusawa was involved in and strongly promoted various social and public welfare organizations, such as in education and social services. Kuwabara believes that Shibusawa's unique philosophy and ideology were reflected in this area as well.

He explains, "Principles are, of course, essential to public welfare organizations, but in order to maintain and continue them, you need to make them financially viable and create frameworks that are rooted in society. Shibusawa always acted with an understanding that the more principled and ethical an organization was, the more it needed to continue, not just be temporary, for it to truly benefit society and be passed down across generations. You can see that very clearly by viewing Shibusawa's life in its entirety through our exhibition."

Kuwabara Koichi

Kuwabara was born in 1969. He graduated from the Department of History at the Ritsumeikan University College of Letters before completing a Master's program in History at the Meiji University Graduate School of Arts and Letters. He previously worked at the Adachi City Folk Museum in Tokyo and the Yamato Museum in Kure, Hiroshima. He joined the Shibusawa Memorial Museum in 2008 as a curator before being appointed as deputy director and then director in April 2022.