That looks about consistient with a dubya-dubya-two era officer's sword. It was a little before my time, but if I remember right it was forbidden to take those things home though lots of folks did it anyway.
They turn up in flea markets and pawn shops from time to time, fetching a wide array of prices. In general, as a sword, they aren't worth a whole heck of a lot - 150 to 350 bucks, usually, as they were mass produced and while battle worthy ain't really uncommon or anything much better than you could buy from the Hanwei forge today for 200 bucks brand new.
The fact that this sword has a damascus looking blade is highly unusual - Most of these pieces were made from plain steel and edge tempered. It's possible that this sword may predate the war, and I couldn't tell you anything else about it other than it may have belonged to somebody important who probably got a bullet for his trouble and his sword stolen. (In olde Japan, it is considered honorable return the sword of a fallen soldier to his family if you can. To wit, the USA returned a whole pile of war take-homes to Japan a number of years ago, and the general Japanese attitude was that it was about bloody time.)
I no speaka very well, so you might want to try to contact somebody who can read Japanese (looks like a mixture of katakana and kanji you've got going on there) and see if they can dechipher what it says. My guess is something along the lines of "so and so, son of so and so, serving in such and such unit." But it may date the sword which could be a good tidbit of info.
Interesting that this sword has no handle wrapping other than the leather.