New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-07-03

drafts, according to the market The Specie Bank
the remaining profts which during the FIRST s eight
nha half 9mo4p mt to than fifty
applied to the redemption Of nconvertible paper /
money
During the same year in which the Bank Of
Japan was established and the Specie Bank reor- !
its revenue by the levy of stamp duties and license
redemption Of the incorvertible paper money and
the strengthening Of the reserve. BY these means
until in 1885 1t little than half its
lis, reserve fund equal to almost half the paper
still floating; At the same time the paper rose in
Minister MatsuRat9 beleved wi" this an opportune
Ifr the dnE % 69 no Jh9 issue Sf
market on May g. Of that year These notes were
dempton.
TO SECURE STABLE CURRENCY
Two years earlier QSS0, plan for the redemption
in operation by the minister. In doing this, the
good Of the country and justice to the banks de-
apparently conflicting interests. and the success of
elements Of the probIem and the financial
situation from the perieus ENHANCEMENT in which
1t had become involved proves him to be of
much more than ordinary breadth of understand
stable uniform currency. based on real values. Is
essential to financial prosperity and this demanded
under existing laws were no better than fiat money;
twenty years Of which only five had Yet passed
and to demand the redemption of their notes be
49, u INC 49,
result IN disastrous f3iinres More"veT the sudden
withdrawal from circulation OF large a volume
Of currency within short period, whether at the
likely disturb the business of the country and
fSg uGh It was provided 0I
annual deduction from their profits equal to 2'2
with the Bank of Japan, and by that Institution
be invested in government bonds the interest OF
national bank notes, AS these reserves had for
this plan drew from the banks only a portion Of
each years profits: and. as compensation for this
the circulation were released as the notes We're
from circulation so that the people did not suffer
from any sudden violent change in the volume
the charters had been granted, any notes st out.
b b VIZ I 70 ot t [eIreeu 10y h pI er
returned tc the banks, which might then dissolve,
In ISIS when 1881 "A Yen OF government paper
money sim remained in crculation the desire to
creasing the volume OF currency. caused the gov
st to that fnss a now sns Of 9 F5 @
yen of convertible notes In excess of its reserve,
bills or commerciaI bIlis OF the amount . 600 0Go
was loaned to the government at an annual rate OF
! per cent interest changed two years later a
| loan without interesO. and was used for the re-
se 81 6T asae Rr % me IN po
! portion to the redemption of national bank notes
! The bank was further empowered. in case of any
| emergency in the market with the special permits
| amount Of convertible notes on the same End Of
security. such additional issue being subject to a
the redemption Of the full amount Of government
cGiate until the end Of 1875 ''
AS has been snoTn the reforms devised and PIT
| eret:e from the evils arising from an inundation
! Of Nat money but before these reforms could be
! by the unsettled condition OF silver; for although
! Realities under which Japan had labored had caused
to silver Oasis In ises commisson was aP
pointed to investigate the relative advantages Of n
! 4 \ m
favored gold. but tho minister although he agreed
with Their views. did not soc how he could ind
means for carrying them into effect until the
trGaty provision for tho payment OF the Chinese
The treaty specified that China should pay
as II was necessary, to make loan in England
for the Iurp9s% The Chinese soyernment was
fSis vas paid h tie e9i J TT5 h TO
the Japahcss Minister at the same place The first
payment Was made In 1890 and the last on May Z,
1885. the total amount placed TO the credit Of the
Jaranes" government IN the banks OF London be-
Ing fas @2s4 Us ID. This Was later shipped to
TO the requirements OF the home market.
ADOPTED GOLD STANDARD.
The Japanese Finance Minister was in a
position TO carry out his views by adopting the gold
termine the best means of making the change and
yet avoiding disturbance I'm the relations OF
tions IN the prices OF commOdities. u law en-
that the unit OF coinage should be the gold yen,
1hSGs4 tn the sme e gold coin to be e mntea
that the silver yen in circulation should be qra(u.
ally exchanged for gold and retired. gold yen
being paid Tor silver YEN that silver should
still DO minted into subsidiary coins which should
be legal tender up 10 ten yen. and that the CON
vertbie notes hitherto redeemable in silver. should
| thereafter be redeemable in gold In fixing the
weight OF the gold yen. the minister had determined
the equivalent, according to the rates then
this value for the coins it was possible make
! the change without disturbance to trade There
| provided that any OF the former gold coins which
| remained in the country might be exchanged for
new coins. in the ratio OF one yen OF the old coins
for two OF the new. this being the ratio of weight.
| The silver one yen coins brought to the Treasury
Some were recoined into subsidiary currency. some
were sold In Hong Kong and Shanghai as bullion,
at valuation to be determined every six mont ls
Kong, Shanghai and Formosa for the preceding six
| months and some were sent to Corea 10 be ex-
changed for convertible notes of the Bank of Japan
the whole being thus disposed of before the end OF
1898, at loss TO the government OF fraction over
the gain in the coinage OF subsidiary currency.
sumed in making the change and the various trans
actions were so slifully conducted that the con-
caused no serious fluctuations in the market value
OF silver
overcame the difficulties which confronted him
when he accepted the portfolio of Finance. the skin
peril OF threatening bankruptcy evils of
nat currency, avoiding the dangers of sudden con-
until he coaG E5 an
hns slowly but s@ and aareT to-
silver basis, and then. hardly waiting for the
haste. replacing the silver by gold foundation.
awaken the highest admiration. and entitle him
Through him Japan has to-day financial system
which will compare favoraby with those OF the
AS the commerce and industries OF the country
have been increased and other banks have been or
ganized to perform other functions. For long
were entertained that the government might not
be able to maintain safe reserve. but five years