New-York tribune., 1900-03-05
JAPANESE CURRENCY REFORM.
ADVANTAGES FROM THE ADOPTION OF
THE GOLD STANDARD

THE GOLD STANDARD.
washington March 4 (SpeciaD.-"Report on the
Adoption of the Gold Standard in Japan, by Couh.
Matsukata Masayoshi H. l. J. MS Minister ot
State for Finance, is the title ora volume issueu
by the Japanese Government. which mas just
raocbad tho Treasury Bureau of Statistics. 1t dis
c1sses in great detail the history of the currency
of Japan and closes with a chapter emitted Ehec'
OF Coinage Reform Upon the Economic Coho'tioh
of Our Country" In this chapter the writer, Count
Matsukata discussing the effect or the ne" law
which went into operation on OCTOBER l. 1884, says
Since the adoption of the gold standard our cur
~encv has been freed from constant huctuatoIs III
3S ne o shs latter fact relations
between the claims OF the Greotot cree anu - sudden
and unexpected changes; business tranSactU tG tooS
made safe; an Improvement IN ree ceeue bAcame
place in the community at large prices n, onened
more constant in word the way Vas 9f h3M our com
merCe and industry.
PRICES REMAIN STEADY
Leaving out Of account in this section the cues
tons concerning the effect of the coinage REFORM
on the oren d faas enca o october e 1871 the prices Of
commodities have kept comparatively even han trna
compared with the sudden and great Gu. cnatS tSef
the fluctuations were remarkably small. Besides
these small changes in the price OF ~ nar
tai failure of rice crops the sudden expansion
of industry and then to its as sudden aepresm resi- a 70
| n stringency in the money market as Wen as 70
some other causes These changes in the price OF
Work1g Of the economic law supply and demand
in the commodities themselves. II we ii hottCo I'D
bills cleared at the clearing houses in TOXIC ana
Osaka has remarkably increased curing theS9 aing
this very time there prevailed much business stag
haso transactions on Credit have come to pre-
vail widely and freely than before -, l..
The beneficial result of the coinage reform is
seen in another direction Now that the capitalists
of the gold STANDARD countries s nave Ia dam
ger of suffering unexpected losses from invest
lions in the price of silver they seem show
growing tendency to make such nvestmen,s at S low
will doubtless bring about closer connection pc
tween this country and d the eena & money Seexe Ws
shall be able to see realized more and more fuy as
So far as our trade with gold standard countries
is concerned, our adoption Of the gold standard.
which made us use the same standard of value as
those countries, has proved to be source OF great
changes which have since taken place In the rate OF
foreign exchange have been but very slight ana
the foreign trade of the country and not all trace
able, formerly, sudden changes in the price of
our foreign trade much of that speculative element
opened for the steady and natural development OF
ing our commerce with silver standard countries
r to the go8my & s INDUCED lin in by
ceased to make steady growth, and this in the
China. greatest customer among the silver
countries-events, such as natural calamities and
commercial activity OF that country.
GREAT LOSSES AVOIDED.
Since coinage reform enabled to avoid all
the evil effects OF fluctuations in the price OF sill
Yer. we stand now no longer, as formerly was the
case, under the necessity of making plans for
financial matters, with the currency constantly
changing in value. and sometimes suffering uneX-
peced losses and evils in times when those iuCtua-
tions unusually violent. All those fears of mis-
calculation and losses have become things OF
the past. Most particularly in the last few years,
when national expenditures for things bought
abroad, such as warships. etc, have greatly in
creased In amount, have doubtless been apie
TO avoid. on account of coinage reform, great
losses on the part of the national treasury. Be
sides. since our adoption of the gold standard
Government bonds have been sold in no small
names appear regularly in the price list Of the
London Stock Exchange. This fact once CON
Nerted our bonds into an international commodity.
and Will doubt lead to a closer relationship be-
tween our home and the foreign money markets.
The discussion also quotes a report OF the Higher
Commission on Agriculture Commerce and In
dustry, which. after elaborate discussion Of the
effect Of the monetary system. closes by saying:
We believe that the beneficial effect of our coin
age reform on our foreign trade has already been
connection with II. Besides NJ he
gold standard has made II easier for country TO
enter INTO the economic community of the world at
large, so that henceforth ii will become practicable
Tor us 10 invite capital from other countries where
II is plentiful to be invested in our country This
upon the country by coinage reform. We CON
cude therefore. that the effect of the coinage re
form upon foreign trade has been beneficial
without a trace of evil.