MATSUKATA, MASAYOSHI, PRINCE MARQUIS 1924), Japanese statesman, was born at Kagoshima in 1835, being a son of a samurai of the Satsuma clan. On the completion of the feudal revolution of 1868 he was appointed governor of the prov ince of Tosa, and in 1874 was transferred to Tokyi5 as assistant minister of finance. In 1880 he held the portfolio of home affairs, and in 1881 was minister of finance. The condition of the cur rency of Japan was at that time deplorable, and national bank ruptcy threatened. The coinage had not only been seriously de based, but much paper currency had been circulated as a tempo rary expedient for filling an impoverished exchequer. In 1878 depreciation had set in, and the inconvertible paper had by the close of 1881 grown to such an extent that it was then at a dis count of 8o% as compared with silver. Matsukata urged that the issue of further paper currency should be stopped at once, the expenses of administration curtailed, and the resulting surplus of revenue used in the redemption of the paper currency and in the creation of a specie reserve. These proposals were acted upon : the Bank of Japan was established, with the right of issuing convertible notes; within three years the paper currency was at par value with silver, and the currency placed on a solvent basis.
From this time Japan's commercial and military advancement made uninterrupted progress. But pari passe with the impetus
given to trade by the successful conclusion of the war with China, the national expenditure rose within a few years from 8o to 25o million yen. The task of providing for this expenditure fell on Matsukata, who had to face the diet's opposition. But he dis tributed the increased taxation so equally, and chose its subjects so wisely, that the ordinary administrative expenditure and the interest on the national debt were fully provided for, while the unusual military expenditure was met from the Chinese indemnity. In 1878 Matsukata saw the advantages of a gold standard, but not until 1897 when the bill authorizing it was passed, could his scheme be realized.
Matsukata, who in 1884 was created count, twice held the office of prime minister (1891-92, 1896-98), and during both his administrations he combined the portfolio of finance with the premiership; from Oct. 1898 to Oct. 19oo he was minister of finance only. His name in Japanese history is indissolubly con nected with the financial progress of his country at the end of the 19th century. In September 1907 he was advanced to the rank of marquis. From 1917 to 1922 he was keeper of the privy seal, and on resigning from this post was created a prince. He died in Tokyo on July 2, 1924.