The commonwealth. (Greenwood, Miss.) 1896-1923, 1897-05-20
CHANGE OF JAPANESE STANDARD.
The Work of the Money Lender What the London Economist" Has
to Say About IT,


The Work Of the Money Lender What the LONDON Economist" Has
to Say About II.
Japan is very much in earnest over the adoption Of the gold standard The
principal motive for the change however, is no, that the present monetary sys
TEN has proved defective or in any way inadequate. but because the government
finds 1t necessary to borrow money nbroad, and the opinion prevails that Japan
~ gold standard country would command higher credit and be able to borrow
on more favorable terms in foreign countries than she would as a silver standard
country. There is also an idea that as Japan nw considers that she has the
nsh' 10 be regarded As a hr' ms power she Ought 20 adopt fr her currency
the same standard Of vaue n other first class power. Whatever the reasonf for
change may be- Iii very evident at the present moment that the government are
determined to do all in their power 10 pass bill through the present Diet alter
Ing the monetary standard Of the country from silver to gold In fact to judge
from the amounts O. gold which are nov being imported by almost every steam
81 on behalf d the government it would appear TINT the passing" Of til" bill is re-
gadci asa certainty
Foreigner, and even foreign political economists in ts country ar nearly
all trying to disuale Japan from milking the chang" clearly pointing ont the
advantages % trie and industries that would ac"m" from the adoption Of the
gold STANDARD, and citing the experiences Of India during the past four years as
an example of the injury that can be done by tamprrnE with the currency Of n
country; the trade and industries Of India during that period having practically
stood rtll whilst those of Japh have more than doubled Japan, however is
apparently not 10 be deferred By any argument The government are determined
tocarr the bin through at all hazard. and that At nee and Judging from what
has appeared in the vrrnacoar pres, upon the subject 1t does not seem likely
that there will 1r any great opposition 10 the measure in parliament The
scheme is initiated by Count MatsuInn. the premier aud is known as the Mat
sukata scheme tn commendaho for its simplicity and conprchensycnos
The monetary unit Of the new system rs still to be called Il yen, which will
con@h, of gold nino tenths fine and contain II. ~ grains troy of pure god, and
CSC grains Of copper making the gross weight Of the unit IL ~ grains troy or
.saaa grammrs but q yen piece will be the lowest denomination of gold coin
inmteh
Existing gold coins viii be r"hangcatlc at the mtco of N Old to two new
and the existing silver y"us Mt the mteo ono silver yen to one new gold yen
The government, will exchange silver ycns for gold yms according to their con
venhnce but pending completion Of this process Of exchange silver yen coins
will remain legal tender to NJ unlimited extent at the above rat" and the ss
pension of their circulation will be notified six months in advance by imperial
ordinance after which date the government viii allow five years in wiirha silver
yen can be rendered for redemption in gold
The new Currency law If passed is to come into operation On October list This
year BY that date it i expected that Japan will have accumulated I0Oooo
yrns worth of gold in this country M. the mintpR of this into nw coin willie
carried on strennouty until finished
The existing silver ycs after redemption viii it is said be melted down and
used for silver subsidiary connge which will comprise 80 90 and I0sen pieces
four hfhs fine and be legal tender to the extent of 10 yes
fths last proposal should happen to be carried into effect there will Ger
tany ere long be very superintendent supply subsidiary coinage in the con
try, for during the quarter of n century from 1870 1893 the japanese mint struck
1877, as' 600 silver We" coins, the bulk of which, sooner Or later if silver declines.
ait probably will do now that another country is demoneizing that metal will
of course con to be redeemed l.
OF this amount the Bank of Japan holds in reserve, against its note issue
some 10000" On" yens and the amount that has been exported to Korea, China
India and the Straits Settlements according to the customs returns during that
period, h ovcrl no 900 900 yen leaving about tnOOm 90 yens or including the
above, to@mWD yens say in ALL 81 on 900 yrs in the country, 1t is impossible
to say how nucho the TO 100000 still exists ms % quantity has been melted ,
down and made intoc onsof other countries hm it is safe to assume that within
five years at least half the amount should exchange prove favorable will be Ie |.
imported into Japan, and have to be redeemed by the government in addition to
the 5000 1000 above mentioned.
The intrinsic value of the new gold yen will be II - pence. that of the silver ,
yen Of today ia III pence. l.
Ills worthy of note that hitherto the japanese government have done every.
thing possible to prevent foreign capitol from being invested in japanese bond%. |
o. enterprises of anl kind but now, in order o adjust their finances and
carry out post lfnum' measures for which they find it necessary 10 float large =,
loans they ao actually altering their monetary system from n silver toa gold
standard for 10 other oh"tenNlle reason thnn to encourage foreign markets to
lend them money md take up Japanese bonds \
Why japan without altering her currcncy, should not borrow abroad in gold
and Others are right in their contention that the adoption of a gold standard in
this country will mjurc the trade and industries Of Japan it SEEM unlikely that
the credit Of the country will m improved by the MEASURE
The present price Of japanese > per cent bonds. with three months interest f.
accrued ia 100 yons l. g., par
The following isa translation Of ho new currency law submitted by the py al
eminent tot the Diet; l.,
Art ! The power of nintng and issuing coin belongs to she government In
Art H. A weight of } fun III 50 grains r. of pure gold shall be the unit of 81
coinage which shall he called a yen. Ia