The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-02-15

GOLD STANDARD IN JAPAN.


A cable dtzpateh from Japan. pasiIssed
IN the post-fntslligsneer yesterday. an
noaness that Japan has formally decided
20 adept the gold standard. and will here
after coin gold and silver upon the ratio
OF 2 10 !. Substantially ths average COM
merciai ratio between TIE two metals FOR
the past year
Japan has had q Theoretical b!-metal1ic
coinage ever since the present coinage
system VAS adopted. In actual fact. how
ever. sas has been upon silver basis:
and Japanese gold coins are cabinet curl
osittes. worth in tie market about double
their nominal exchange value in silver
coins
BY adopting the gold standard at ths
proposed ratio Japan will not be forced
10 make any change lH the existing cur
reney, and the proposed reform can thus
Dc adopted without unsettiing business In
the slightest degres. Tire ratio OF g to
viii be made 20 apply 70 the new gold
coins. not to the existing silver coins.
Tas present Japanese unit Of value in
identical in size and bullion value with
the American silver collar. While sub
sfantially of the same weight and hneness
a. the American silver dollar. the yen Is
worth but ons-half az much as the dol
lar. ~ adopting the ratio Of q TO
substantially Of the weight OF the Amer
lean s. piece Thus the bullion value o,
the i0-ysn gold piece viii bs approximate
~ the same a. the bullion value OF ten sill
yer yen.
Whether the two coins viii circulate to-
gethsr depends largely upon the course
OF the market for silver bullion and upon
the financial STABILITY OF the japanese
government so long as silver bullion
does not decline any further. or but
slightly. in value. Japan will have no dif-
fenlty In maintaining it's silver coins at
par with gold. because. having adopted
the gold standard. tae government has
obligated itself 10 redeem the silver
coins in gold on demand. As this country
succeeds In maintaining its whole silver
circulation AT par, although the ratio Is
only one-half as great SIS that proposed
for Japan. II Is quite certain that that
country will be able to keep It's silver at
par.
TIE great advantage which Japan will
derive from TIRE new standard is that IL
will have parity OF exchange with all
the countries OF Europe and OF the Unit
go States. The japanese yen viii have a
fixed value In farms % American eagles
or ERglFea sovereiEns aud viii not nuc-
tuate ia value with ths fluctuations % the
bullion price 90 silver. az IL the eass at
present.
fsy It's action in adopting the gold stand
ard Japan has aligned itself with civil
tied nations 81 the world. II vii now
have q currency recognised In InternA-
tionai transactions and parity OF ex-
change with all countries.
The peculiarly interesting feature OF
the new coinage lies In tie fact that Il
Is the nrst step by any nation to adjust
ITS sold and silver coinage according 20
thu market value OF ths metals which has
been taken since silver commences 70
drop 80 saaormsily IA value. Il may -
that japan has blazed a read which win
Re followed BY ether nations m TIE world.
In closing the serious zap between ths
coinsks ard the bullion value % IL. SILL
yer coins ia use. wales makes the latter
. credit or token coinage in All cogu-
tries which now have the SOFA standard.
As japan has hsrstofors been on tie
silver basis taa step Is made BY 6epra-
eiatinx the value az the the new rola
coinage. In countries already on re gold
standard y TIE new ratio should -
adopted tAe change would have 90 Be
made 81 ne silver coirs A piece tie
size o: the present silver dollar. Tor ex-
ample. coad sa coined ss half-aollsr.
aid the sther subsidiary eeins Increased
IN slss in the same proportion. while TIE
dollar itself. ga account e is inooRven-
lent ssze, eeala - dispensed vita
tansn has had the 0uestioa - aaer,fnx
ths sois standard under savtse-ueut tor
some ysArs. An imperial commission.
which has visited al tAe countries e raa-
Fope. ans tss United States a. ven. n
parsuit ef Information upon tas subject
% coinage. ana Wairs entered upon tba
sss1y .. - auesitoa with 70 preconce.v-
81 lseas ca TIE ssAtsct . * dls.ipats4
made It's rsposs sorne Ecnihs siace. The
majority favored ~. adoption G. the
rlan which has esss outlined n TIE d.a-
patches srcm Tansn