On looking back to the circumstances which attended the exchange, operations, it must be noted, first of all, that there had been a total issue of 165,133,710 yen in one-year silver. Of this amount, a net remaining abroad (or the residue obtained by deducting that which having once gone abroad found its way back into the country by 31 July 1898, the day on which expired the period allowed for the ex change of one-yen silver) was 99,508,740 yen. Again, the sum of 11,028,633 yen, was taken and disbursed abroad during the war ,with China, while that which remained unexchanged by 31 July 1898, out of the amount sent to Formosa after the island had become Japan's possession, was 5,732,027 yen. On the other hand the amount exchanged for gold coin, or retired on 'being received inpayment of taxes and other dues between 1 Oct. 1897 and 31 July 1898 was 45,588,369 yen (including 10,846, 465 yen that came back from abroad, and 34, 741,904 yen in circulation at home). Besides this the amount recoined by the government was 460,904 yen. The total thus accounted for stood at 162,318,673 yen which as compared with the total sum which had been issued, showed a difference of 2,815,037 yen, — the amount which was not exchanged within the period set apart for exchange, and which was probably lost or destroyed at home or taken away by foreign travelers. The return of one yen silver had been looked upon as the greatest difficulty in the way of putting the gold stand ard system into execution, and the matter had received my most careful attention, which in cluded receiving reports from Shanghai, Hong kong and the strait settlements and other places, concerning its movements. It was discovered that in China a large quantity of it had been recast into the tael silver, while many others of it circulating there had been disfigured and had lost their qualifications as Japanese legal tender. It was ascertained further that it was also largely in circulation scattered in the strait settlements and the neighboring islands, under conditions which made its return home difficult. In the light of these facts, it was finally de cided to put the estimate of the one-yen silver returning home for exchange at about 10,000, 000yen, as stated above. It was a piece of goody ood fortune that the actual results of exchange proved the estimate fairly correct. The amount of silver certificates issued by'the Mint, which remained unredeemed, stood at 29,505,453 yen at the time when the new Coinage Law came into force. These were also all exchanged. Thus the amount of one-yen silver that was ex changed for gold coin,• or withdrawn through being received in_payment of taxes or other dues, between 1 Oct. 1897 and 31 July 1898 totaled 45,588,369 yen, and that exchanged for silver bullion held against the silver certificates 29,505,453 yen as already mentioned, making a grand total of 75,093,822 yen, coming quite close to the estimate. Although the period set down for the exchange of one-yen silver was shortened to ten months, as stated above, elab orate care was taken in carrying out the opera tion, which was conducted at the Central Gov ernment Treasury, 447 local treasuries and sub treasuries throughout the country, and the Bank of Japan's agent, the Yokohama Specie Bank and its branch at Kobe. Also one-yen silver was accepted in payment of taxes and other dues during the period. Every facility was thus extended for the purpose, and the exchange operation was completed with perfect smooth ness, so that not a single case of omission was reported at its termination.
A sum of 27,567,012 yen out of 75,093,822 yen, which represented the total of one-yen sil ver withdray.n and silver bullion released from
the silver certificates, was turned over to the service of subsidiary silver coins to be minted in the 1897, 1898 and 1899 fiscal years, while 40,786,662 yen was disposed of at Shanghai and Hongkong, nun the remairtin 6,740,148 n was transported to Formosa and Korea, to be there released for circulation. This part of the busi ness was in this way completed in December 1898, or one year and three months after the coming into force of the new Coinage Law. The greatest care was exercised in this opera tion of disposing of the retired silver coin and bullion, to carry it out as speedily as pos sible at as high prices as obtainable. There was, at first, a fear that a loss of 10 per cent or more might be sustained owing to the fall of silver; but fortunately the actual shrinkage incurred was only seven per cent, while the operation was finished in a little over one year. More satisfactory still, the price at which the sale was effected was somewhat higher than the average silver quotation in London at the time. The total charged to the National Treas ury on account of the retiring of the silver currency was 5,553,312 yen, including 5,397,581 yen representing the shrinkage, and 155,731 yen the amount of general expenditure for conduct ing the operation. This disbursement was met with the profit of the Mint accruing from mak ing the subsidiary coins which amounted to 5,651,961 yen, and which, therefore, yielded some surplus. So was completed the work of putting into execution the gold standard system.
Between 22 and 23 years have elapsed since the adoption of gold standard. Within that time the country came through great wars ex tending over a year, but the foundation of its currency system has suffered in no way. In looking over the economic condition of the country during that span of time, it is seen that nothing has happened to prove much against the calculations made in anticipation. The range of fluctuations in the prices of com modities in general has become considerably narrower than formerly, enabling merchants and manufacturers to form their plans on a firm and stable basis. The rate of exchange with the gold countries has been freed from violent fluctuations, so that the country's trade with them has been given opportunities to grow steadily, under very healthy conditions. The economic world of the country is now on a rising career. It may be noted that what is gained in transactions with the gold countries is liable to be lost in those with the silver countries. But this country's relations with the silver countries have never been so great as those with the gold countries. Besides the fluctuations of silver were not so great as be fore the adoption of gold standard, and the re sults of trade with the silver countries show that it has not suffered seriously. On the con trary it is growing steadily. Especially worthy of notice is the fact that the adoption of gold standard has induced the people of the rich countries of Europe and America to invest in this country their money carrying a low interest, with a feeling of perfect security. That this circumstance has to no small extent been help ful to the industrial development of this coun try admits no manner of doubt. Furthermore it must not be forgotten that the fact of this being a gold country gave it great advantages when, at the time of the 1904-05 war, it raised large loans in the western markets.
Those who desire to have fuller particulars of the subjects treated in the present article, will find them in the (Report on the Adoption of Gold Standard in Japan,' published in 1899.