New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-07-03
FINANCES OF JAPAN.
Hoo They Hare Been Placed on
Sound Commercial Basis.

/
has been reprinted in pamphlet form. In the art-
Gle Mr.. Bellows says:
AS long ago as 1906 more than two hundred
Eedrs before Japan opened her doors to CONNER
COINAGE ThfH IN p3%er h system 1T
1865 Di,rinn tbi d 1TSr rlase Gl
ca by the powerful mobiles called shoguns, while
tsuDJect 10 these were the princes. or daimyos or
the various al Han (pr9ynces two hundred and sey
were accustomed to order recoinage of the money
quality than the former ones atliough Of the
same denomination and assumed value Some Of
re Galnyos also secretly coined money and ISSUED
I'VE jurisdletions AS result, when the revolt
H nc condition and one of the first SUB
imperial 1gS a. government was monetary reform -
veop soon after Gommcdore Perrys s t in 1855
made more urgent the need of uniform currency,
ana T me scarcity OF money caused much dlstress
n9n r the peope The ERR 5hers9re
mint at Osaka. ana. to relieve the pressing need
OF currency In issued knsss9 or gold notes These
their applications, the amount which any might re
were enjoined to e4pend the none In in the devei
9pmend of INDUSTRY among the people Farmers
loans in ;his currency, and received amounts pro
of their trade. These advances were to be repaid
IN thirteen hnnuai initalments each equal +" 10
De made IN the same notes which. when SO repaid
cut to pieces, though how thirteen payments. each
10 10 per cent OF the Orisna! issue. could be made
plain As ths notes We're to be destroyed when re
paid into tn treasury, they were not convertible
! The government mint for which provision had
| been made, ready to begin operations until
November. 1870, and in the interim the government
! had given much attention the reform of the
currency. comparing the systems Of England, Con
nnental E4Irfope ana America; ard studying the
| bors An imperial ordinance issued. stating
tenn Of coinage which Shall be- in consonance With
! the best usages OF the world and issue
! "
| was free, so that any citizen might take bullion
| Of standard weight ana fncness The system was
T decimal with the gold yen o. 2372 grains Troy
! lower values Were coined In silver and, during Il
| one Yen silver coins be issued These
made a lega! lender in the treaty ports. but in
by the mutual consent OF the parties to the trans
drained OF its gold the goysrhmsm made sI!ff
legal tender throughout the country
TO REDEEM PAPER MONEY
In 1871 the system of feudallsm was swept away.
siiy o. making some provision regarding the paper
money some sixteen hundred yareties Of which had
already caused the government to violate its prom
v 10 ssTG nj he gold %s repaid into Gf he f se
| ury, and now, under the preteNt of crude work
notes along with the Han notes and issued In the-
factGre Ali the paper money in circuaton thus
became fiat money. i deprecated greatly. and the
specie which the mint was now coming was rapidly
sent out of the country withdrawn frorl crcrla,
threats TO uphold th4 credit Of its currency. but
without success ana n 1873 issued ordinances pro
inc9RyeLtibis pap, none 70 me AMOUNT OF six
ceive therefor exchange bonds bearing interest
. per cent These bonds might then be deposited
! be Issued to tho same amount the remaining
for their redemption by the bank This plan also
failed the banlrotes being presented for exchange
About his time the government issued
'lo76 promulgated an ordinance permitting national
notes which. II presented for payment, might DO
none 4 re5eili6n in Kiushu. The southern island
required heavy expenditure FOR It's suppression
specie caused silver to be mad r. Legal I@nder
in January, 1872 it reached highest point being
poicy followedI-papcr money depreciated. ana ST.
sGaTGE OF siyeT attempted 70 remedy the
Mexican dollars and bS the en- estabishTnaSt % Of
| invest boarded coins. so that these might be
also to engage IL gHying and selling foEegn
ton that silver would thus be brought into the
barely escaped banEGp@y The margin RSes 1eR
bI n2 s SILVER Ns se TO Increase until in
In 1872 the NTH year Of the restoration of the
been accommodating In the Treasury apart
OF Treasury bills and other Obligations OF the gov
eminent apart from the current expenses. 1t WAS
increased at the end Of each fiscal year by the
funds remaining in the general account. or the ex
cess OF the revenues over the expenses for that
year Although intended for this special purpose
and TO make provision for any crisis abnormal
| condition which might occur the government had
fallen into the practice OF drawing from this fund
| to provide for temporary deficits in the revenue
During the latter part OF ISL Matsuiata Mas
| and his knowledge OF financial economy, combined
| with clear view OF the situation in all its rela-
n find AaNF Of trio ting ha
country from its difficulties His first step
stop the practice OF drawing from the reserve for
temporary purposes; his next to change the method
| OF making disbursements. to induce greater
| economy in State expenditure. Industrial enter
| prises were no longer permitted to obtain loans
from the government reserve and loans previously
| made required to be repaid according to the
| terms of tho agreement Having secured the
Mobilization OF the reserve by these measures and
| provided for any temporary deficit IN the revenue
| by authorizing the Issuance OF Treasury bills
| drawing interest to run for fixed term. and pay
gble from the revenue of the year Of issue the
| Minister turned his attention TO the larger and
more difficult task OF adjusting the troubles which
had arisen in connection with the paper money.
IMPROVED BANKING SYSTEM
There at this time more than two hundred
| and sixty national banks Qncludng branches), r.
| ganized after the plan of our national banks
ference-their notes. instead OF being redeemabe in
| specie o its equivalent. were redeemable in gov
| eminent inconvertible notes Count Matsukata be-
| leved that the lack OF correspondence and
| rnunity OF interest among these banks seri
| proposed a banking system modelled after those
| OF England and France. and prepared memoran-
| dunn embodylng his views. for presentation to the
| Cabinet Council. His recommendations APP
proved. and in October. 1889. the first measures
| establishment OF the Bank OF Japan, with an au-
thorzed capital Of 100000 yen. of which one-hfth
| governor and vice-governor OF the bank are APP
pointed by the and the directors elect
Minister of Finance. who also appoints controllers