2270 



COMMERCIAL JAPAlf. 



[December, 



The f?ilver yen consistg of 90 per cent of pure silver, its weight l>eing 416 troy grains. It is equal in quality to the American dollar, 

 but slightly exceeds the latter in weight, for the American dollar weighs 412^ grains. The different fractional silver coins weigh in 

 proportion to the fraction of the unit yen. This system, now adopted by the Government, is based on the systeia adopted some years 

 ago by the English Government for coinage in Hongkong, only the subsidiary gold coin is a new idea. 



The new coinage system of Japan is in many re.spects like the system in vogue in America and England, the chief difference being 

 that while in Japan the silver yen is made the standard unit of value, in England and America gold is the standard of value, gold coin 

 being legal tender to any amount. Silver coins are treated in these coimtries as subsidiary, the legal-tender circulation being limited to 

 small sums only — the sum of $5 in the United States, that of 40 shilling in England, being regarded as the maximum amounts. In Japan, 

 gold being treated as subsidiary, its limit as legal tender is fixed at 100 yen — an exceptional!}- large amount. I presume the Governnient 

 is in liopes that on account of such exceptional treatment the gold coin will always remain abundant, while the silver yen will gradually 

 wear out through conrstant handling, so that in course of time gold will of itself become the standard unit of value. Should such hopes 

 be indeed realized, the Japanese gojd coin being almost equal in value to the American gold coin, the prices of gold and silver in Japan 

 and California will tend gradually to be on a par. 



Ent the Japanese 10-yen gold coin is lighter in v/eight than the American lO-doUar gold piece, for while the former weighs 248 grains 

 the latter weighs 258 grains. Not only is it lighter in weight than the American gold piece, it is even lighter than the English gold coins; 

 for 2 English sovereigns (1 sovereign is 1 pound sterling) weight 251.1 grains. Still again, the Japanese coin is lighter than the French, 

 for the 50-fr.T.nc: pieces weigh 248.9 grains. 



Just now there is under di.scussion in the House of Kepresentatives of the United States a bill for establishing an international system 

 of coinage. The 10-dollar gold piece according to that system is to weigh 257.2 grains, or 16| grams. Now, if the Japanese goldpiece 

 were slightly incrcajjed in weight so as to equal this international standard coin, it would seem that the coinage system of Japan would be 

 established on a sound basis and be forever free from all fluctuations of exchange value. In case the Japanese coinage system is to be 

 thus remodeled the weight of each coin will have to be altered as laid down in the following table: 



Weight of 1 yen. 



Troy grains. 



Silver yen , 

 Gold yen . . 



Silver coina which are 

 fractions of 1 yen. 



Standard unit*... 

 Subsidiary ^ 



Subsidiary. 



Fine 9ilvcr=5 pentagrammes ' Fine silver=3S.3.80S72. 



5 tiers-grammes with ^ part of copper '2.5.7205S133. -^ part of which being coppter. Fine gold= 



. 2:3.148.=)232. 



5 pentagrammes \vith ^g part of copper 38.3.80872. ^„ part of which being copper. Fine silver= 



I 347.227848. 



» Legal tender to any large amount. 



i* Legal tender only up to ten times its value. 



I give below a table for reference, showing the weights of different coins according to the proposed international system now under 

 discussion in the House of Representatives of the United States: 



Fineness. 



Weight of 81. 



Troy grains. 



Silver dollar Trade dollar" . 



Gold dollar ' Standard unit' 



Silver coins which 

 fractions of 81. 



are Subsidiary ^ . 



Fine silver=5 pentagrammes ] Fine silver=3S5.80872. 



5 tiers-grammes with j'j part of alloy I 25.720581 ;B. -^ part of which being copper. Fine gold= 



■>3.US.=>£i>. 

 5 pentagrammes with ^ part of alloy 38-i.8C872, ^^ part of which being copper. Fine silver^ 



I 347.227848. 



I 



' Legal tender to any large amount. 



i* Legal tender up to S5. 



The trade dollar in the above table is intended to be used for trade with China and other Ea.«tern countries. The ratio of gold and 

 silver in the new coinage system of Japan is 1 of gold to 16.77 oi silver. If this ratio should now be changed to 1 of gold to 16s of silver, 

 basing it on the nictric system, a 10-yen gold piece would contain 231.48 grains of fine gold. In that case at the fineness of nine-tenths 

 the weight of the coin would be 257.2 grains or 16i| metric grams. The 1-yen silver piece coined according to this ratio would contain 

 385.80S72 grains of fiiu; silver, which at the fineness of nine-tenths would niake the coin weigh 424.38959 grains. 



It will be remembered that according to the system already adopted the silver yen weighs 416 grains and the gold 10-yen piece 248 

 grains. 



The metric system, according to which I suggest our coinage system be reestablished, is a system of weights and measures which 

 originated in France and has now passed into universal use throughout the world. The proposed international coinage system will be 

 based on this system. 



Let me (jnote what Mr. Kellcy, chairman of the American coinage committee, says in one of his writings: 



"The United States of America has adopted the French metric system of weights and measures for the purposes of coinage and 

 po.stage. Now that we have adopted tliis systcju the nations of the world will be compelled to adopt it also. t)ur adoption of this 

 system was, therefore, not merely for our own advantage, l)ut also for the ultimate benefit of the world at large. Tlie metric system of 

 coinage was for the first time adopted in the United States, it being tiiree years afterwards that France followed our example. Canada, 

 too, followed our (example, and is now using dollars and cents. There is no question that other nations will gradually adopt this system, 

 for the j)eople of every country will come to see how eusy and simple the monetary calculation becomes, either in subtraction or multi- 

 plic:ition, it that system is adopted." 



In ri'gard to the (jui-stion which metal should be made the standard of value the opinion of the economists all tend to coincide in 

 rcu'anling gold as the fittest metal for stan<lard. That Austria, Holland, and some otlu>r countries still maintain a silver standani is 

 pro! ahly (hie to the great difiiciilly of changing the old system. If a system of coinage were to be newly established by any of the«<^ 

 countries there is no (piestion hut that tlu> gold standard would he invariably adopted. It will be a wi.*e policy for Japan, therefore, to 

 consider the trend of opiinon in Western lands and establish her new svsteiii in accordance with the be^t teachings of modern times. It 

 may be that for the time being, on account of the po.'^sihle great loss to the country from the too sudden adoption of the gold standanl, 

 n silver standanl may have to ))e maintained. Otherwi.'^e, there is no question that gold is the best metal for the standani of value. If 

 the gold standard is introduced silver may be fitly coined f(U- a subsidiary mediuni of exchange, ])utting a limit to its legal-tender 

 ainoimt. It mav be as well to establish our svstem as laid down in the fable given above — provisionally making silver the .'-tandard — 

 strictly k(H>ping in view, however, the tinie wiu-n gold will be niaile to supersede silver as the standard of our system of coinage. 



I*. S. — The forcm)ing memorandnni was written neces.sirily in hiiste, and I must confe.-^ there are no few repetitious and some 

 confusion in statement. The main jioints I wante 1 to emphasi/e were: 



1st. The necessity of slightly reducing the weight of the unit of value of the silver coinage; and 



2<1. To determine the wi'iglit of the gold coin according to the metric system. 



Written in America on the 29th day of December, 1870. 



(Signed.) ' IIiKonrMi. 



The above m(Mnorandnm was chielly instrumental in effecting a change in tlie coinage policv of the country. The Government 

 decided to adopt at once the gold standard, and issued the new coinage regulations on the 10th of Slay, 1871. These regulations nm as 

 follows: 



