The Yakuza

Despite uncertainty about the single origin of Yakuza organizations, most modern Yakuza derive from two classifications which emerged in the mid-Edo Period: tekiya, those who primarily peddled illicit, stolen or shoddy goods; and bakuto, those who were involved in or participated in gambling.^[2]

Tekiya (peddlers) were considered one of the lowest social groups in Edo. As they began to form organizations of their own, they took over some administrative duties relating to commerce, such as stall allocation and protection of their commercial activities. During Shinto festivals, these peddlers opened stalls and some members were hired to act as security. Each peddler paid rent in exchange for a stall assignment and protection during the fair.

The Edo government eventually formally recognized such tekiya organizations and granted the oyabun (servants) of tekiya a surname as well as permission to carry a sword - the wakizashi, or short samurai sword (the right to carry the katana, or full-sized samurai swords, remained the exclusive right of the nobility and samurai castes). This was a major step forward for the traders, as formerly only samurai and noblemen were allowed to carry swords.

Bakuto (gamblers) had a much lower social standing even than traders, as gambling was illegal. Many small gambling houses cropped up in abandoned temples or shrines at the edge of towns and villages all over Japan. Most of these gambling houses ran loan sharking businesses for clients, and they usually maintained their own security personnel.

The places themselves, as well as the bakuto, were regarded with disdain by society at large, and much of the undesirable image of the Yakuza originates from bakuto; this includes the name yakuza itself (ya-ku-za, or 8-9-3, is a losing hand in Oicho-Kabu, a form of blackjack).

Because of the economic situation during the mid-period and the predominance of the merchant class, developing Yakuza groups were composed of misfits and delinquents that had joined or formed Yakuza groups to extort customers in local markets by selling fake or shoddy goods.^[2]

The roots of the Yakuza can still be seen today in initiation ceremonies, which incorporate tekiya or bakuto rituals. Although the modern Yakuza has diversified, some gangs still identify with one group or the other; for example, a gang whose primary source of income is illegal gambling may refer to themselves as bakuto.