The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-03-07
GOLD STANDARD IN JAPAN.
Coinage Reform Has Increased Bust
ness on Credits.

perial Japanese Majestys Minister of
State for Finance" is the title of vol
ume issued by the japanese government
which has just reached the treasury bu-
reau of statistics. 1t discusses in great
detail the history of the currency of ia
pan and closes with a chapter entitled
Effect of Coinage Reform Upon the
Economic Condition of Our Country" In
this chapter the writer, discussing the
effect of the new law, which went into
operation Oct. 1, 1891 says:
Since the adoption of the gold stand
ard, our currency has been freed from
constant fluctuations in its exchange rate,
TO which it was subject before. Owing
10 this latter fact, moreover the relations
between the claims of the creditor and the
liabilities of the debtor became less sub
ject to sudden ard unexpected changes;
business transactions were made safe; an
improvement in credit took place in the
community at large; prices became more
constant; in a word the way was now
opened tor the steady and orderly growth
OF our commerce and industry. Leaving
out of account in this section the ques-
tons concerning the effect of the coinage
reform on the foreign trade of
the country, it can be very
| clearly seen that since October
1897, the prices of commodities have kept
! NOlLpii dtlNERE even, lIldN Vile lIlcIb nave
been some changes yet when compared
with the sudden and great changes which
used to occur formerly, we must say that
the fluctuations were remarkably small
Besides, these small changes in the price
of commodities can be amply explained
by referring to the partial failure of rice
crops, 10 the sudden expansion of industry
and then. to its as sudden depression, to
a stringency in the money market, as well
as to some other causes. These changes
in the price of commodities were due,
therefore, to the natural working of the
economic law of supply and demand in
the commodities themselves. If we notice
the fact, moreover, that the amount of
checks and bills cleared at the clearing
houses in Tokyo and Osaka has remark
ably increased during these recent months,
Notwithstanding the fact that during this
very time there prevailed much business
stagnatio everywhere, we cannot but
/ conclude that business transactions on
| credit have come to prevail more widely
and freely than before
Results of Coinage Reform.
"The beneficial result of the coinage re-
form is seen in another direction. Now
that the capitalists of the gold standard
countries have become assured that they
will no longer be in constant danger of
suffering unexpected losses from invest
ments made in this country, account
| seem TO show a growing tendency to make
such Investments at low rates of interest
This tendency, if encouraged, will doubt
less bring about a closer connection be
tween this country and the central money
markets of the word-a state of things
which, I believe, we shall be able to see
realized more and more fully as years
go on. So far as our trade with gold stan
dard countries as concerned, our adoption
of the gold standard which made us use
the same standard of value as those
countries, has proved 10 be a source of
great benefit. This may be inferred from
the fact that changes which have since
taken place in the rate of for
eign exchange have been but very
slight and these all traceable TO
changes in the condition of the
foreign trade of the country, and not all
traceable as formerly, TO sudden changes
in the price of silver. For this reason,
there was eliminated from our foreign
trade much of that speculative element
which was caused by constant changes in
the value of our currency; so that the way
was at last opened for the steady and
natural development of the foreign trade
of the country. Again, concerning our
commerce with silver standard countries,
contrary to the gloomy prospects in
dulged in by some critics, our trade with
those countries has not ceased TO make a
steady growth, and this in the face of
of China, our greatest customer among
the silver countries-eVents, such as nat
ural caamites and disturbances which
have greatly hindered the commercial ac-
tivity of that country.
Public Credit Strengthened.
Since our coinage reform enabled us
to avoid all the evil effects of fuctua-
tons in the price of silver we stand now
no longer as formerly was the case, I'M
1ar ha necpSSitV Of making nlanS for
financial matters, with the currency con-
stantly changing in value and sometimes
suffering unexpected losses and evils in
times when these fluctuations are unus-
ually violent. All these fears of miscal-
cuation and losses have now become
things of the past Most particularly in
the last few years, when national expen-
ditures for things bought abroad, such
as warships, etc, have greatly increased
in amount, we have doubtless been able
to avoid, on account of our coinage re
form. great losses on the part of the ma
tional treasury. Besides, since our adop
ton of the gold standard our govern
ment bonds have been sold in no small
amount in the European market, so that
their names appear regularly in the price
list of the London Stock Exchange. This
fact at once converted our bonds into an
International commodity, and Will no
doubt lead to a closer relationship between
our home and the foreign money mar
kets."
The discussion also quotes a report OF
the Higher Commission on Agriculture.
Commerce and Industry, which, after an
elaborate discussion of the effect of the
monetary system. closes by saying: I'VE
believe that the beneficial effect of our
coinage reform on our foreign trade has
already been great and we do not notice
| any material evil in connection with it.
Besides, our adoption of the gold stand
| ard has made it easier for our country 10
| enter. into the economic community of the
world at large, so that henceforth it will
| become practicable for us to invite capt.
| toI from other countries where it is plen-
| tful to be invested in our country. This
viii doubtless be another Of the benefits
conferred upon the country by our coin
age reform. We conclude, therefore, that
The effect of the coinage reform upon our
foreign trade has been beneficial, without