The sun. [volume] (New York [N.Y.]) 1833-1916, 1900-07-29
THE GOLD
Its Advantag res a. Discovered and Appreciated
In Japan.
From the Banksrs' Monthly,

From the Banksrs' Monthly.
Report on the Adoption Of the Gold Stand
ard In Japan, by Count Matsukata MasayoshL
II. /. j. Ms Minister Of State for Finance
Is the title OF a volume issued by the Japanese
Government. which has reached the Treasury
Bureau OF Statistics. 1t discusses In great
detail the history Of the currency Of Japan
and closes with o chapter entitled Effect Of
Coinage Reform Upon the Economic Con-
dition Of Our Country In this chapter the
writer. Count Matsukata, discussing the effect
OF the new law. which went into operation
Oct. /. 1897. says:
Since tho adoption Of the gold standard
our currency has been freed from constant
fluctuations In Its exchange rate. to which 1t
was subject before Owing to this latter fact,
moreover, tho relations between the claims
OF the creditor and the liabilities Of the debtor
became less subject to sudden and 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 for the steady and orderly growth Of
our M and industry.
Leaving out OF account In this section the
questions concerning the effect Of the coinage
reform on the foreign trade OF the country,
, II may be very clearly seen that since October,
isaf. the prices OF commodities have kept com.
paratively even that while there have been
some changes. yet when compared with the
sudden, and great changes which used to occur
were remarkably small. besides, these small
changes In, the price Of commodities can be
amply explained by referring 70 the partial
Of industry and then to Its az sudden depression,
to a stringency In the money market, as well
a. to some other causes These changes in
TO the natural. working. OF the economic law
Of supply and demand In, the commodities
themselves. II We notice the fact. moreover,
that the amount Of checks and bills cleared
at the clearing houses IN Toxic and Osaka
has remarkably increased during these recent
months, notw outstanding the fact that during
this very time there prevailed much business
stagnation everywhere, We cannot but con-
clude that business transactions on credit
have come to prevail more widely and freely
The beneficial result OF the coinage reform
Is seen In another direction. Since 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 Investments made in this country,
or account OF fluctuations In the price Of silver,
they seem to show a growing tendency to mako
such investments az low rates Of interest. This
tendency. II encouraged, will doubtless bring
about a closer connection between this coun;
try and the central money markets OF the world
"a state of things which | believe we shall be
able TO sec realized more and more fully as
years 20 on.
inv Vh NvshuNo AVAsilh NhaDt'u "a
avoid all the evil effects OF fluctuations In the
price Of silver, We stand now no longer, as
formerly IA the case. under the necessity
OF making plans fer financial matters with the
currency constantly changing In value. and
sometimes suffering unexpected losses and
evils In times when those fluctuations are UNI
usually violent. All those fears of mi=calcula-
tion and losses have now become things Of the
past. Most particularly In the last few years
when national expenditures for things bought
abroad, such as werships, DC, have greatly
able 10 avoid. on account OF orr coinage re-
form, great losses on the part Of the national
tTpas ury."
The discussion closes by saving. we be-
lieve that tina beneficial effect OF our coinage
r"'crm on our foreign trade has already been
great, and we do not notice any material evil
In connection with Il. Besides, our adonticr
81 the gold standard has made u easier for our
country to enter Into the economic COM
munlty Of the world at large. 80 that h"nce-
fo-th II will become practicable for us tO in
vite capital from other countries where 1t Is
plentiful 70 be invested In our country. This
will doubtless be another OF the benefits con-
ferred upon our. country by cur coinage reform.
We conclude. therefore. that the effect OF the
coinage r~form npon our foreign. trade has
been beneficial. without q trace OF evil"