New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-18
FINANCES OF JAPAN.

Tanan IS facing the financial burdens OF the
/ war with characteristic equaniinity. mat Ihey
! will prove TO be heavy there can be no douoL
They may be heavier than Russia's. because,
/ while the cost OF transportation and supplies
will be less for Japan than for Russia. the Isl
and empire has such vast reserve OF golu on
hand as that which the economic genius OF VI.
de Witte has secured for Russia. II they do
not rrove heavier than Japan can bear. that will
be largely because Of the excellent banking and
general financial system with which Marquis Ito
and his fellow statesmen have endowed the ell
Miro The whole system is new and hut ltte
tried The Yokohama Specie Bank. which u
lust now figuring IN the news as the agent lot
foreign subscriptions to the war loan IS me
Oldest bank ia japan and It dates only from
1850 IT was in 1897 that the gold basis was
adopted. and # was I'm 1899 that the last OF tho
old national banks was eXtinguShed by hquida-
ton. At the present time there are six when
We nav call fundamental banks. between forty
and fifty agricultural banks, more than four
hundred savings banks and not far from two
thousand private banks under government super
vision.
In an instructive article on this subject IN
"The Financial Age" Mr.. Arthur Hansl, well
known banking expert, suggests what seems 10
US perhaps the most significant and effective
feature OF the japanese banking system. That
is that each bank or class Of banks has been
designed and created 10 fiji some specific want
OF the business world. Instead OF adopting
general banking system on hard and fast lines
and trying 10 make business conform itself
Herewith. the japanese have created vary
ing and elastic system, designed 10 conform
with the needs Of business. Their wise idea IS
that banks are made to serve the business
world. and not business 20 serve the banks
Thus there IS the great Bank Of Japan, with
S15O00.OO0 fully paid capital. and with the
privilege OF issuing notes up TO S6Ocuooup
against other than specie security. its notes
taking the place OF those Of the former national
banks as n circulating medium. The Yokohama
Specie Bank is the only one engaged in inter
national transactions. The Holllaido Bank IS
designed 10 promote the interests, the colonial
ton and the development Of the island whose
name Il bears. and the Bank OF Taiwcn serves
the same ends for Formosa. The Hypothek
Bank Of Japan with SJ00oo0O capital, handles
mortgages and debenturcs, and thus facilitates
transactions Unreal estate; and the Agricultural
and Industrial banks serve the same purpose
on n smaller scale on minimum capitals OF
100000. The Industrial Bank Of japan. with
Sl2I0.OO0 capital makes loans and does a gem
eral banking business on the basis Of personal
property. such as bonds. stocks and other neEo-
tinble paper. The ordinary private banks are
not chartered. but are under government super
vision and legal control Savings banks are
conducted under a special law, on not less than
$4,000 capital Mutual savings banks. with
out capital, such as are familiar 10 Americans,
are unknown fin Japan.
Such is the distinctively practical banking
system under which Japan has been prospecting
in recent years. II IS SD eclectic system,
formed by m acutely oil .rvaut people Who
abolished their old systems and substituted this
new one according 10 their present needs Dor
rowing features from America, Great Britain
and Germany, and adding such original ones "a
their own special requirements suggested. II
is a complex but harmonious system, and under
81 the commerce. industries and general welfare
Of japan have greatly nourished. 1t was not
fully organized IN 1SS+rSJ. so that Il ala nor
have the Chinese war 10 finance, but has had
hitherto 10 deal with only tho problems ot
peaceful expansion. We shall now see how well
Il will bear the strain az great war.