New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-09-14
COINAGE RATIOS ~ JAPAN.
THE PROGRAMME OF THE POPOCRATs TRIED
THERE WITH UNSATISFACTORY RESULTS

THE PROGRAMME OF THE PoPoCRATs TRIED
THERE WITH UNSATISFACTORY RESULTS.
Henry Stewart. in The Rochester Democrat and
Chronicle.
Highly Instructive and packed almost in a nut
shell is the financial history of Japan; and it illus
United States. When the treaty was Signed Which
opened Japan to the world, and people were allowed
Gus thing happened. In the then Hermit Empire the
ratio between gold and silver was to t. With US it
was 70 l6 The two varying ratios az soon as the
dividing wall was down, rushed into conflict When
the disparity in ratios discovered every officer
Ing in the paymaster's books. Then he took IL
ashore where it was exchanged by weight and in
silver was worth in the outer world. Thus pay
and back pay were quadrupled in instant. and It
very lively work, but only for few weeks.
Under favorable circumstances it can readily be
seen that very little capital Of silver would by
frequent repetition of the operation have been able
to bail out all the gold in the Empire Of Japan.
Try the computation FOR yourself Blu, But the alert
a little too independent" in their ratios and soon
got into line Then, when Japan was orened II was
Each province had its own independent laws and
was governed by It's own prince or daimio, who was
The financial system OF each province was also. OF
course, perfectly independent The money was
paper, and II was certain death to refuse IL. Ac-
cording to fiat money" ideas there was no loop
provinces were wisely governed and some
foolishly governed; and In the latter credit was
money. The merchant was now In most embar-
rassrg position II he took the money, he might
be losing his goods If he refused II. he would
tainly lose his head What the only thing left
for him to do? Why he moved into some State
province where better government had given rise 10
confidence and unimpaired credit. and the result
was that the States with cheap money got poorer
and poorer while those with good money got
richer and richer The best way TO preserve your
credit" said Washington. the opponent of CONT
mental currency, rs 10 II sparingly pos
sibe" And there in far-off Japan were Instructive
examples.
Afterward when the Mkado or rightfu ruler,
had displaced the Tycoon. usurping ruler, the
OF currency was substituted for the provincial.
The new Imperial currency called "kinsatsu'
pronounced kinsats). which means gold certificates.
Japan also adopted ratio OF 1913 10 !. And by
the fact OF having maintained "A fixed ratio.
she could not and did not under free coinage,
maintain practical blmetallism," the concurrent
circulation OF the two metals. The memorable law
OF Gresham forced her to a silver basis. which de-
preciated in precise proportion the fall in the
ence with deprecated paper currency. But what
people have had more difficulties to contend with
than Japan? Imagine any nation Of Europe SUD,
denly projected forward from the darkness OF o!u
feudal times into the light OF the nineteenth cent
ury. And suppose. like Japan. while only nan
awake she hampered by tariff imposed upon
her by the treaty Powers. chiefly Great britan.-S
tariff for revenue only which is all that Japan WIN
her labor needs but tariff nevertheless 50 l9w
did need TO help in her wonderful struesls ioa
deye lopment Can any nation say Win ihouesss
that she would have done better under tne cit cui
stances? However Japan has at last taken Ssop
IN monetary matters. She has recently cioseo he'
mint 10 the free coinage or silver