Rocky Ford enterprise., 1895-09-12

Japan Correspondence of the Chi
cago Record: Although there is a
practical illustration Of the single sill
yer standard system in national cur
rency in Japan, which affords the deep
est interest to every thoughtful man
who comes here. l have said very lit
tie on the subject, and that has been
only quotations from others, because
wanted to study 1t from all possible
points Of view. 1t should be said In
advance for proper understanding oi
the situation that Japan attempted tn
maintain a single gold standard when
the government was reformed some
twenty years ago and failed. She then
tried bimetallism, and theoretically
still adheres to that policy, but English
spectators carried away all the gold
long since, and she is now reduced to
paper currency, issued by the govern
ment, redeemable in silver, and there
fore sharing the depreciation and f1uc-
tuations which that metal has suffered
When you hold a dollar note of the
bank of Japan or the national bank,
which are two very large financial in
stitutions under the auspices of the
government, it is worth just as much
as Mexican dollar, which is really
the standard of value in all Asia.
When Japan coined gold 1t was at par
with Mexican dollars in all the empire,
but the latter coins were at discount
in the English colonies of Hong-Kong
and Bombay. The spectators of the
latter cities would, therefore, bring to
Japan tons of Mexican dollars and ex-
change them in small quantities in diff
ferent cities of the empire for the ma
tive gold coin. They did it SO secretly
and SO skillfully that before the pub
lie was aware of 1t Japan had been
actually drained of gold and had moth
ing left upon which to base BIZ
metallic currency. This trick caused
suspension of gold coinage, and it has
not since been resumed.
| There Is no gold in circulation, or in
the public treasury, or in the banks.
You can buy gold coins at the curio
dealers, and of the exchange brokers,
and they make very pretty cuff-but-
tons and bangles for bracelets, but
I they have ceased to be money and are
only regarded as bric-a-brac. There
is very little silver in circulation, but
plenty of paper.
The Japan coinage is based on the
decimal system and corresponds with
that of the United States. A rim was
originally the same as mill. Ten rim
make 1 sen and 100 sen make 1 yen.
which used to be as good as a gold
American dollar, but is now worth
about 81 cents. Therefore. man who
comes here from the United States or
Europe with money that is at par with
gold finds his funds almost doubled
Immediately. The salary of the United
States minister, which is 1000 year,
becomes about $4,000 yen, because a
yen goes just as far in Japan now, ex-
cept In the purchase of imported goods
as 1t did when 1t was worth dollar.
You can get the same amount of food
and fuel, you can employ the same
amount of labor, buy the same amount
of clothing, and rents have not in
creased at all. But all foreign mer-
chandise is bought and sold on a gold
basis; that is, 1t has doubled in value.
! A can of American preserved meats
| which cost rs sen few years ago now
| cost " yen. An English hat for which
you once paid yen now costs g. An
| English umbrella for which you paid
yen costs 10, and piano which was
worth 500 yen now costs 1000. The
natural result is decrease in the sales
Of foreign merchandise and an increase
in the use of domestic articles.
Speaking as one who does not believe
in silver money, nor in bimetallism
unless 1t be universally adopted and all
the nations of the earth agree to main
| tain the value of silver, I must, never
theless, admit that it is the uniform
testimony of all concerned that the de-
monetization of the white metal by the
repeal of the Bland law in the United
States and the suspension of coinage
in India was great thing for Japan.
1t is practical question here, and all
persons interested, including officials,
bankers, merchants, manufacturers
| and agriculturalists-the workingman
does not think, so he cannot be in
cluded-are anxious that the agitation
shall continue Indefinitely, lest the
present prosperity OF tne empire ter
inmate. A few theorists. arguing from
the standpoint of what ought to be in
stead of what is. insist that Japan shall
Join England, the Latin Union and the
United States in an International agree
ment to maintain certain parity be-
tween the metals, but it is by no means
a popular idea. They are college pro-
tessors,r minority members of parlia-
ment, Idle men who think and read a
great deal and do nothing, and others
who are entirely without practical ex-
perience or knowledge Of trade and
industry. Most of them have been
educated in England and got their
financial notions from reading the
Times and the Economist.
The solid, wise men, who are govern
ing this empire, say: mo; let the debt
oru and the creditors in Europe and
America fight 1t out. Meantime we will
saw wood. The longer England holds
to standard the better twill be for
japan. We have no foreign debt. We
awe nothing abroad. Therefore we do
not have to buy gold to pay interest
charges. The import trade is nearly
all in the hands of foreigners, and we
| don't care how high foreipn nan,,foc