This paper treats economic and social changes of the rural community of Odacounty in Okayama prefecture after the economic crisis of shôwa. In the 1930's, the serious agricultural crisis and economic stagnation continued in the rural areas of Japan. In order to recover from the crisis, the Saito Cabinet (Minister of Finance, Mr. Takahashi) took a measure of spending policy (this finance was called 'Takahashi Zaisei'). The special budget which was called 'Jikyoku-Kyoukyu-Jigyo Yosan' was cut off after three years, because of the increasing expenditures for the Manshu-War and of the shortage of government revenue. Therefore the plan of the economic recovery of the rural communities which had no support from the government was newly established. We investigated the agricultural
crisis and local finance of Odacounty in Okayama prefecture, and we have found that 'Jikyoku-Kyoukyu-Jigyo Yosan' of Kasaoka town in Odacounty was also broken down after only two years. We show that the plans of the economic reconstruction of the towns and villages in this
county were introduced, and that the plans with no financial support from the central government changed into spiritual, educational and enlightening movements through these crisis. As a result, the small farmers in this county fell into the fascism movement.