The sun., 1900-01-19

lngly and with the Intelligence or one
who understands the whole subject.
The article has much instruction In It
for the people OF this country. and II It's
value Is appreciated It will have wide
publication. II appears in the columns
or Public Policy, tigh class Chicago
| weekly edited by Allen Ripley Foote.
I Mr.. Uchida shows that tln standard
was nominal!y established by Japan
Sc on after 1t opened commercial rela-
tian with the outside would. II carly
leai ned that il must unity its local cur.
reno les, then in n chaotic condition,
and that II should have standard OF
valueN bearing some definite relation to
that usad by the world In W hich Il had
become a factor. Unfortunately lust
as this reform was begun the govern.
ment was forced to graphic with re-
bellion. and. its expenses being enor-
nous, IT resurtcd. BE1e our own country.
TO repeated issues OF paper money. 1t
was obliged to abandon all pretense OF
keeping thia paper currency at par
with gold. The latter passed out Of
circulation and was quoted at a pre-.
mium.
Japan also tried n national bank cur
reucy modelled after ours. but as ii was
redeemahlc In the government paper
money the bank notes suffered the
| same dlscor MT.
The next step was 10 admit silver TO
| free coinage and make IL Il full legal
tender. This gave nomfnally the dou-
BILE standard but in practice the depre-
/ ciated paper expelled al SILVER MS well
as gold. Gold, silver AMI paper were
| alike legal tender. but no two OF the
same value. Nothing more IS required
to show that something besides the
legal tender quality Is required In
money.
At this time, 1881. Count Matsukata,
the same statesman who lately estab-
llshed tile gold standard. became min
ister Of finance. He determined 10 re-
sume specie payments upon n silver
basis. His plan was. first. to pny of
/ the government notes, cancel them
and issue no more: second, to compel
the national banks 10 pay OFF their
notes and retire them, and. third. 10 or.
ganize ono great central bank or issue,
modelled after the Imperial bank OF
Germany, which should have tho cr-
elusive privilege Of Issuing paper mon.
ey and be required to always redeem
the same In silver.
4 This tied the currency 10 silver. 1t
relieved the country from the fuctua-
tions Of an irrcdeemable paper cur
rency. which had been found Injurious
10 all interests, but Count Matsukata
was OF the opinion that Japan had not
yet the best system obtainable. lie
believed tho adoption OF the gold stand
ard would be another step OF progress,
and indeed was Indispensable IL that
country aspired 10 n prominent com
mercial position.
Accordingly. in 1898 was appointed
monetary commission Of Is members
70 Investigate the whole subject. 1t
was composed of high officials. pro-
fessors Of the University OF Japan,
members of the diet and business men
eminent In the commerce OF the coun-
try. The outcome of its investigations
was the decision that The country
should adopt the gold standard.
Il Mr.. Uch.da tells this story In it's III.
terestlng details, and his account of
bow the governnen carried the re-
form 10 successful issue shows ii to
have been one Of the most ably con.
Quoted operation III the annals az gov
ernment finance. The change 10 the
gold standard was made without any
violation OF existing equities by estah-
fishing new gold unit corresponding
TO tho value cf the existing silver unit
The indemnity received from China
furnished the gold required 10 take W
the silver yen coins, and tie latter
were either advantag geously sold or re-
ninted into subsidiary coins. The en-
TIRE plan as laid out Ia advance was
carried through and Japan placed sc.
4 curely on gold basis.
Mr. Uchlda shows that the results Of
the change have thus far been crafty
Ing 70 those who advocated II. The IN
dusiries OF the country are prosperous.
Its commerce IS increasing rapidly.
wages are advancing, the revenues OF
| the government are satisfactory, and
the action commands the approval OF
the people.
The experience Of Japan has covered
SO completely the whole field that de-
bate ranges over. and Mr.. Uchida has
told the story with such detail and
with such clear appreciation OF the
facts that are important. that the arti.
Gle is very instructive. 1t Is certain to
be read with great interest 10 this
country. and IL will help our people TO |
clearer understanding of the great
laws that control the value Of money
and lis relations TO industry ard trade. /
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