The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1900-01-11
GOLD STANDARD In JAPAN
THE EXPERIENCE WHICH LED TO
ITS ADOPTION.
How 1t Is Affecting the Industries ofthe
Country,

| New York. has written very interest
| ing sketch of the experience of his
country with different monetary sys-
TENS in the last thirty years. During
| that time it has tried the gold stand
ard, the silver standard, the double
standard and an inconvertible paper
currency, such as our greenbacks were
during and for a time after the war.
! In short, Japan has put to the test all
of the theories about money which
govrnments are urged by conflicting
schools of political economy to adopt.
Mr.. Uchida writes of these experiences
| entertainingly and with the intelli-
gence of one who understands the
whole subject. The article has much
| instruction in it for the people of this
it will have wide publication. 1t APP
pears in the columns of Public Pol
ICY" Chicago weekly of high class,
edited by Allen Ripley Foote.
t,ciN'
standard was nominally established
by Japan soon after it opened COM
mercial relations with the outside
world. 1t early learned that it must
unity its local currencies, then in
chaotic condition, and that it should
have standard of value bearing some
definite relation to that used by the
world, in which it had become a fac
tor. Unfortunately, just as this re-
form was begun, the government was
forced to grapple with rebellion and
it's expenses being enormous, 1t re-
sorted, like our own country, to re-
peated Issues of paper money. IT was
obliged to abandon all pretense of
keeping this paper currency at par
with gold The latter passed out of
circulation and was quoted at a pre-
MUM.
Japan also tried a national bank
currency. modelled after ours, but as
it was redeemabe in the government
paper money, the bank notes suffered
the same discount.
The next stop was to admit silver
to free coinage and make it full le-
gal tender This gave nominally the
uouDie slduudItl, uul III pit,SliSC lllc
deprecated paper opened all silver as
well as gold. Gold, silver and paper
were alike legal tender, but no two of
the same value Nothing more is re-
quuired to show that something be-
sides the legal tender quality Is re-
quired in money.
At this time, 1881, Count Matsukata.
the same statesman who lately estab
lished the gold standard, became min
lister of finance. He determined to re-
sumo specie payments upon silver
basis His plan was: First. to pay
off the government notes, cancel them
and issue no more; second, to compel
the national banks to pay off their
notes and retire them; third to or
ganize one great central bank of issue,
modelled after the Imperial bank of
Germany, which should have the ex-
elusive privilege of issuing paper
money and be required to always re-
deem the same in silver.
This tied the currency to silver. 1t
relieved the country from the fuctua-
tons of an irredeemable paper cur
rency, which had been found injurious
to all interests. but Count Matsukata
was of the opinion that Japan had not
yet the best system obtainable. He
believed the adoption of the gold
standard would be another step of
and, indeed, was indispensa-
bic if that country aspired to promi
nent commercial position.
Accordingly, in 1898, was appointed
a monetary commission of fifteen
members to investigate the whole sub
ject. 1t was composed of high Off
Gals, professors of the University of |
Japan, members of the Diet and bust
ness men eminent in the commerce of |
the country. The outcome of it's in |
vestigations was the decision that the |
country should adopt the gold stand |
ard.
Mr., Uchida tells this story in its in |
teresting details, and his account of |
how the government carried the re- |
form to successful issue shows it to |
have been one of the most ably CON
Quoted operations in the annals of
government fiance. The change to the |
gold standard was made without any |
of existing equities by estab-
fishing a new gold unit, corresponding
to the value of the existing silver unit.
l. lG lIlueuDily received from emma
furnished the gold required to take up
The silver yen coins, and the latter
were either advantageously sold or re-
ninted into subsidiary coins. The en-
ire plan as laid out in advance WAS
,arried through, and Japan placed Sc
'urely en- a gold basis.
Mr.. Uchida shows that the results
If the change have thus far been
,ratifying to those who advocated it.
The industries of the country are pros
porous. its commerce is increasing
'apidly, wages are advancing, the
'evenues of the government are salts
actory, and the action commands the
approval of the people,
The experience of Japan has COW
red so completely the whole field that
lebate ranges over and Mr.. Uchda
las told the story with such detail and
With such clear appreciation of the
acts that are important, that the arti-
lie is very instructive. It is certain
o be read with great interest in this
country, and it will help our people to
clearer understanding of the great
avs that control the value of money
md it's relations to industry and trade
OF ALFRED E. BURR.
Hartford, Conn, Jan. 10-The funeral
# Alfred E. Burr, senior editor of the