Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-07-07
JAPAN AND GOLD STANDARD
Senator Pettigrew Predicts Ruin for the
Agricultural Classes .-.
ohahse Made, He Says, in the Inter-
ests Of the Creditor Class-Cur-
rency LegfsIation.

Senator Pettigrew today presented in the
oeo'e d statement, prepared by himself,
giving Japan's reasons! fort adopting the
sold standard, together; with TRANSACTIONS
OF the new currency law of that country
the speech of Minister, of FINANCE Mo-
suKata In presenting this measure and
the report of the Japanese currency cow
mission. II 70 oo-'
In his statement Senator Pett,ora,,
traces the financial history of Janan show
ing that, while that country adopted the
soio standard in 1871, 1t Established hi.
lnetaillsm five years after Qn 1870. which
financial system was maintained until the
presen! year, when there was a return tn
me goid standard, by reducing the weight
- 'ne soiu yen 10 ll674 grains, or one-half
.ue amount necessary to constitute a gold
yen DeIore the last change was made
referring to the controversy as to the
reasons which induced Japan to make the
recent change to the gold standard M
Fett1grew says that from a careful ron dina
OF the speech of Count Matsukata in nre.
senting the measure he is convinced that
u, the goid standard has been adopted entire
~ In the interests of the creditor cIasses
OF Japan, and for the purpose of prevent
ing further decline in the PURCHASING
power Of their credits. The senator also
aavances the idea that the manufacturing
classes nave been induced to accent the
change by the argument that It would
crystalllze the advantage Japan already has
over gold-usinS countries as a result OF
the appreciation Of gold in the past, and
thus perpetuate and make certain her adj
vantage in the future.
He says that the feudal aristocracy of
Japan are the moneyed men of the empire.
ana that' owing to the fact that they are
also the ruling class, they are enabled to
perpetuate their power and dictate the
affairs of the nation ~
In order to make their bonds more valu-
ha
eminent at the instigation of the bond
holders. adopted the national banking sys-
tenn OF the United States. Their bonds
were used as basis for circulation, and
the kingdom. In 1882, when the present
Bank OF japan was established, these
Dondholders became the subscribers of this
STOCK and their bonds were used as security
for the circulation of paper money"
Continuing, Senator Pettigrew says that
since the Chinese war prices have risen
about 30 per cent, and the creditor classes
have become alarmed because Of the gen.
eral adoption of the gold standard. He
says the power and influence of the creditor
classes In Japan have been greatly en-
HANGED by the debt incurred as a result of
the war. the situation thus presenting many
Germany. in 1873. England. in 1916, and the
United States, in 1873 to adopt the gold
standard.
I'm every instance" the senator says,
tHe pIoOuCeES VI wealth are NOT COnSlu-
cred. 1t is true, the minister of finance in
Japan argued that the rise in price would
cut off exports from Japan, and therefore
the manufacturing classes were interested,
but he makes no argument which appeals
to the farming classes, notwithstanding
that farming is the paramount industry Of
Japan"
Senator Pettigrew concludes that the re-
suit OF this recent step on the part of ia
pan must be the same there as elsewhere,
saying: 1T cannot help but result in the
further appreciation of gold and cor
responding apparent decline in the value
or silver, as well as a decline in the gold
price of all products. which Will check ia
pans wonderful Industrial prosperity and
transfer her industries, to China If China
remains upon silver Pasis.u Already" he
continues, gold has risen Ia value suffi-
Gent to make profit in exporting it from
Japan, and slight percentage Of advan-
tage in manufacturing all kinds of goods
In China over the manufacture of like
goods in japan"
He concludes that as q result Japan will
also experience 1.-The same ruin to her ae-
rtcultural classes that HAS resulted to ag-
riculture In every gold stapdard country in
the world" She seems, he says, to have
disregarded absolutely the warning Of her
currency commission ! u
The senator prints the report of the cur
rency commission. which takes strong
ground against the gold standard, arguing
that 1t will result in a loss to debtors and
taxpayers; that 1t will produce depres-
sion OF commerce and Industry. result in a
decline Of the rate Of Interest, bring dis
tress to farmers and employers, decrease
the revenue and the demand for labor and
increase. the imports from silver countries