1901.] COMMEKCIAL JAPAN. 2277 



6. To stop for the present with making preparations only. 



c. To -wait for HOine future opjjortune moment. 



II. That there is no neceHsity of making changes in the present coinage system of the country. (Report of the minority.) 



Tlie various opinions advanced in support of this proposition are: 



A. The advantages to the country of the effect of fluctuations in the ratio between gold and silver are great. It will be to the 

 country's benefit to maintain the present S3^stem in future. 



B. Since the advantages ac(;ruing to the country from these fluctuations are great, it will he the best policy for the country to wait 

 without making changes till the formation of an international bimetallic union and then to join the union. 



C. We grant the advantages the country is deriving from these fluctuations, but as to the future line of policy which the country 

 ought to pursue in regard to its coinage system we hesitate to express any opinion. 



In making the above resolutions eight members voted for the resolution advocating the need of making changes, while eeven voted 

 for maintaining the present system unchanged. Among those who advocated the necessity of making changes, six advocated the 

 adojition of a gold standard, while two advocated a bimetallic system. 



Thus the majority of the commission were of the opinion that there was a necessity of making changes in the present coinage 

 system of the country, and the majority again of those who advocated the need of making changes were in favor of adopting a gold 

 standard. It was thus clearly shown that the coinage reform and the adoption of a gold standard was the pressing necessity of the time. 

 Yet the difficulty of creating at once the large gold reserve necessary in order to effect this reform kept the Government from taking 

 steps forward in that direction, until the Chinese indemnity enabled the Government to plan for creating this necessary gold reserve. 



The report then states the methods by which the Chinese indemnity, which, under the original agreement, was to have Ijeen paid 

 in Kupong (silver) taels, was finally, under a new agreement, paid in British coin (gold), and the stock of gold thus utilized for use in 

 the adoption of the gold standard, and adds: 



Since now the way was opened for the creation of a gold reserve, as was narrated in the last section of the previous chapter, the 

 finance minister, Count Matsukata, seeing that the time was fully ripe for putting into effect the plan of coinage reform, on the 25th 

 February, 1897 (thirtieth year of Meiji), submitted the drafts of the coinage law, with its subsidiary laws, to the cabinet council. 



The policy sketched in the memorandum being adopted by the cabinet, the Government introduced into the Diet on the 1st day of 

 March, 1897, the drafts of the coinage law and other subsidiary laws. The first of these laws took place on the 3<1 day of 

 March. * * * 



The bills recommended introduced to the House of Representatives were intrusted to a committee of 27 members, who approved 

 them as a whole. The committee reported on the bill to the House on the 10th day of March. During the discussion which followed 

 there were a few opinions advanced in opposition, and some attempts were made at amendment, but in the end these bills were passed 

 in the House as a whole, without amendment, and were forv/arded duly to the House of Peers. 



In the House or Peers these bills went into first reading on the 15th day of March, and were intrusted to a committee of 15 members, 

 who reported on them to the House on the 23d, and the bills were passed by the House of Peers also w'thout a single amendment. 



In this way where the coinage law and the subsidiary law passed by the Diet, and, after receiving the august sanction, were 

 promulgated on the 26th day of March, 1897. * * * 



The important sections of the new coinage law are given below, the sections omitted relating merely to the limit of deviation in 

 fineness, abrasion, etc. 



THE COINAGE LAW. 



Article I. The power of minting and issuing coin belongs to the Government. 



Art. II. The weight of 2 fiin of pure gold shall be the unit of the coinage and shall be called yen. 



Art. hi. The coins shall be of nine denominations, as follows: Gold coin, consisting of 20-yen, 10-yen, and 5-yen pieces; silver 

 coin, consisting of 50-sen, 20-sen, and 10-sen pieces; nickel coin, consisting of 5-sen pieces; bronze coin, consisting of 1-sen and 5-rin pieces. 



Afjt. IV. The decimal method shall be followed in the calculation of coinage, one-hundredth part of 1 yen being called sen, and 

 one-tenth part of 1 sen being called rin. 



Art. V. The quality of the coins shall be as follows: 



1. Gold coin, 900 parts of pure gold and 100 parts of copper. 



2. Silver coin, 800 parts of pure silver and 200 parts of copper. 



3. Nickel coin, 250 parts of nickel and 750 parts of copper. 



4. Bronze coin, 950 parts of copper, 40 parts of tin, and 10 parts of zinc. 

 Art. VI. The weights of the coins shall be as follows: 



1. The 20-yen gold piece shall weigh 4 momme, 4 fiin, 4 rin, 4.4 mo (or, grams, 16.6665). 



2. The 10-yen gold piece shall weigh 2 momme, 2 fiin, 2 rin, 2.2 mo (or, grams, 8.3333). 



3. The 5-yen gold piece shall weigh 1 momme, 1 fiin, 1 rin, and 1.1 mo (or, grams, 4.1666). 



4. The 50-sen silver piece shall weigh 3 momme, 5 fiin, 9 rin, and 4.2 mo (or, grams, 13.4783). 



5. The 20-sen silver piece shall weigh 1 momme, 4 fiin, 3 rin, and 7.7 mo (or, grams, 5.3914). 



6. The 10-sen silver piece shall weigh 7 fiin, 1 rin, and 8.8 mo (or, grams, 2.6955). 



7. The nickel piece shall weigh 1 momme, 2 fiin, 4 rin, and 4.1 mo (or, grams, 4.G654). 



8. The 1-sen bronze piece shall weigh 1 momme, 9 fiin, and 0.8 mo (or, grams, 7.1280). 



9. The 5-rin bronze piece shall weigh 9 fiin, 5 rin, and 0.4 mo (or, grams, 3.5640). 



Art. VII. The gold coins shall be legal tender up to any amount. The silver coins shaU be legal tender up to any amount of 10 

 yen. The nickel and bronze coins shall be legal tender up to the amount of 1 yen. * * * 



Art. XIV. Should any person deposit gold bullion and apply to have it minted into gold coin, the Government shall grant the 

 application. 



APPENDIX. 



Art. XV. The gold coins already issued shall circulate at double the value of the gold coins to be issued under the provisions of 

 this law. 



Art. XVI. The 1-yen silver coin hitherto issued shall be gradually exchanged for gold coin, according to the convenience of the 

 Government, at the rate of 1 gold yen for 1 silver yen. Pending the completion of that exchange, 1-yen silvc coin shall be leg-al tender 

 to any amount, at the rate of 1 silver yen for 1 gold yen, antl the prohibition of their circulation shall be announced six months in 

 advance by imperial ordinance. If these coins are not presented for exchange within the period of five full years, reckoning from the 

 day on which their circulation is prohibited, they shall be regarded thenceforth as bullion. 



Art. XVII. The 5-yen silver coin and the copper coins hitherto issued shall continue in circulation as before. 



Art. XVIII. From the clay of the promulgation of this law, the minting of the silver 1 yen shall cease; but this prohibition shall 

 not apply to silver bullion deposited at the Government mint prior to that date. 



Art. XIX. All laws or ordinances hitherto issued that conflict with the provisions of this law aie hereby rescinded. 



Art. XX. With the exception of Article XVIII this law shall go into operation from the 1st day of October, 1897. 



LAW NO. XVII, OF the 26tH DAY OF MARCH, 1897— REGUL.iTIONS GOVERNING THE SPECIAL COMPTABILITE OF THE COINAGE ADJUSTMENT FUNDS. 



Article I. The Government shall set apart a fund for the exchange and retirement of 1-yen silver coin and of coins inconvenient 

 for circulation. The fund shall be called the coinage adjustment fmid, and its income and expenditures kept as special comptabilite, 

 separate from the general account of the Government. 



No. 6 19 



