The San Francisco call., 1897-03-19
JAPAN NOW
WANTS GOLD
Cabinet Ministers Have Pre-
Sented a Bill to the
Diet.
FREE COINAGE OF SILVER
REPUDIATED.
AS Basis for Such Change the
Chinese Indemnity Fund
Will Be Usei.
.
NEG0TIATIONS PENDING WITH
THE RoTHs CHILDs.
Important Letter From Agent Town.
send of the Bureau Of Foreign
Ccmmerc'.
NEG0TIATIONS PENDING WITH
THE RoTHs CHILDs.
Important Letter From Agent Town.
send of the Bureau Of Foreign
Ccmmerc'.
Janan is about to adont the rold stand.

Japan is about to adopt the gold stand
hId. The fluctuations in the money mar
ket due TO the.free coinage of silver have
proved 100 troublesome for that progress
slve country and she has determined to
take summary measures to improve her
financial condition.
All this is learned from letter which
reached here on the steamer Peru yester-
day from W. r. Townsend, the special
representative of the San Francisco
Bureau of Foreign Commerce, created by
the Chamber of Commerce, the San Fran
cisco Board of Trade and the Manufac-
turers' and Producers Association. To
make the change the Chinese indemnity
fund will be used, and even now negotia-
tions are pending for loan from the
RothschiIds.
The letter, which contains many other
items OF interest, reads as follows:
YOKOHAMA, Feb. %, 1897.
WfttiGni VI. Bunker Esq, ana Members Bureau
Foreign Commerce, San francisco Cdi.-GENTLE-
MEN Since my last report the condition of
affairs here financially has improved very con-
sideraoly, and This has been caused by the
proposition TO adopt gold standard for
Japan.
fheCabiuet Ministers have been discussing
the question, and have decided to present q
Dill at once TO the let with the recommends
ton that.it be passed promptly. This is causing
no end of diseGssion in both the foreign and
Vernaeular press, and the general opinion,
particularly among the latter, is that the
movement will benefit Japan.
1t Is n OF proposed to make the present silver
yen OF dollar equal in value to the American
gold dollar, but to coin gold and issue gold
notes upon ABOUT the present value of the
Mexican silver do lar or possibly to set a
standard OF value for both metals on the basis
o. OF 81 to l, and discontinue the free coinage OF
silver.
Jaban has still balance coming to her out
'ol the Chinese indemnity fund, which is pay
able Ia gold in London, and instead of using
all this gold TO pay for ironclads and other
foreign goods to be purchased abroad, she pro-
poses to use 1t as basis for making the
change.
She mas comparatively small bonded in
debtedRess now, which is payable in silver and
held by iler own people. More money is re-
tquired than the balance OF the Chinese in
Iuemnity fund, al OF which is practically spent,
iand.a further 100000 600 yen must De bor-
groEed TO provide funds for all the bills con-
traeied and TO carry out the Improvements
contemplated.
Negotiations have been pending for some
time with the Rothschiids through their
agent here, and IL is said that they are Will
ing to take up. the whole OF such a loan pro-
vided the bonds are made payab BILE in gold.
Japan is wonderfully PR gressive country
and is going ahead BY leaps aud bounds but
she is spending vast sums on her navy and in
maintaining an army, and great improve
Inents are contemplated IN various other di-
rections.
She needs extensive harbor improvements,
particularly here and ST Kobe, her two largest
seaports, and expansion or custom house,
postal and telegrapnlc facilities to meet her
" wonderful growth OF trade.
Since the question OF adopting the gold |
staadaTd has been agitated japanese Govern |
ment (silver) bonds have risen in value from |
81 to above par, aud shares OF all kinds, Whicn |
were fearfuliy depressed at close of last year. |
are moving upward. All of this is having its |
effect on general business, and as l stated at |
the outset the general financial condition is !
much improved.
There is no doubt that the adoption of |
gold standard will benefit the import bust |
ness, as it will give confidence to every one |
having goods TO sell to japan and probably +
lessen the difference in exchange. so that i'm |
ported articles will probably be cheaper. /
Whether II will be detrimental to the ex ports |
OF the country is the principal danger 10 be I
considered; many think it will to the silver /
countries of the Orient, but these take only 10 /
per cent of the total value OF goods exported. /
On the otner hand viii II injure the Tea, rice /
and silk business OF Japan and benefit that of /
IndlG and China, who Will remain silver I
basis The questfo is as ompiex as was the |
financial question in our recent Presidential |
campaign, and the result is largely matter |
OF exDeriment
Tam pleased to report that while it does not /
directly benefit San Francisco, there has re- I
Gently been an influx of American specially |
men, mostly representatives of man ufacturers !
of the Eastern States, and there are at the |
hotel in Yokohama now dozen more who /
have arrived since came and they are all /
evidently going to do some business
They are introducing American lubricating |
oils, oil-well machinery. artificial dryers |
dredging machinery oeomargarine, Ameri- |
cfn publications, electrical supplies, bicycles |
t4pewrhers, wire-nails and other ar ticles |
nufBctured in Ohio, Pennsylvania, Massa- /
4hhset;s and New York. There are also half A
dozen special representatives. of a number of |
manufacturers who have opened permanent
offices here within the past year. These are in
addition 10 w. B. Curtis and myseli, who are
practically the only ones solely representing
San Francisco houses.
1t is slow work getting acquainted with the
merchants here and learning their ways, bu.
All assured that, once their confidence is |
gained business Will follow.
l am still of the opinion that American
manufacturers will do more business by max |
ing direct connections with Jrpanese NOR
chants than by working through the foreign
houses, as the former determined 10 con- |
troll both the import and export businesses,
end will do so in time. Unfortunately the |
number of responsible Japanese houses is
. limited and great care should be exercised in
shipping orders or making consignmenE. No
business should be done excepting against |
letters of credit The better class OF Japanese
metehants expect to furaish these, and those |
who do not should be referred back 10 special |
American representatives.
| have decided to extend my stay here
Throughout this year, at least, and viii be |
happy to serve any one III want of informa- /
..tion from this country. Respectfully sub |
1nittad ". X. TOWNSEND