(no subject)
In negotiating Treaties of Amity and Commerce with Japan, first the United States and then the remainder of the five Powers insisted on treating these ichibu-gin as though they were silver standard coinage like the silver dollar. Under the treaties, export of Japanese coins (gold and silver), circulation of foreign coins in the domestic market, and exchange of Japanese coins for foreign coins (on terms of exchanging coins of similar metal and fineness on a weight-for-weight basis) were allowed in 1858. On this basis, three pieces of Japanese ichibu-gin (silver coin equivalent to a quarter of one ryō) would be equivalent to one dollar silver coin (American or Mexican), or 100 pieces of one dollar silver coin would be exchanged for 311 pieces of Japanese ichibu-gin. At the same time the foreign powers insisted that within Japan the ichibu-gin continue to exchange for gold coin at its face value as subsidiary token coinage, that is to say, as one quarter of a ryo. As the Japanese coinage then stood, this represented about three and a half times the international value of its silver content.
A foreigner who obtained 311 pieces of Japanese ichibu-gin in exchange for 100 silver dollars could then exchange them for 77.75 ryō in Japanese gold coins. The gold/silver ratio in this transaction (1/4.5) was much higher than the international gold/silver ratio (1/15.5). This extraordinary arrangement made foreign merchants' trade very profitable in importing silver and exporting gold. The profit from exchanging silver for gold in this manner must have been more than 100%.3 As a consequence a large quantity of silver was brought to Japan and a correspondingly large amount of gold flowed out. Despite official Japanese efforts to keep exchange of silver dollars for ichibu-gin to a minimum, the outflow of gold coin in the first year is estimated at 500,000 ryō. Clearly the only way to deal with this situation brought about by the demands of the foreign powers was to bring the nominal and bullion ratios between ichibu-gin and gold coins into line with each other. The Shogunate was well aware of this and took steps to bring about this reconciliation by debasing the gold coinage in the Ansei-Man'en monetary reforms of 1859-1860.
2 The primary reason why there was no bullion market is that the Shogunate exclusively owned the gold and silver mines and the bullion produced there was sent to the mint which was completely controlled by the Shogunate. In addition, free transactions in bullion were not permitted.
The Japanese Economy in the Tokugawa Era, 1600-1868
Michael Smitka 編集
A foreigner who obtained 311 pieces of Japanese ichibu-gin in exchange for 100 silver dollars could then exchange them for 77.75 ryō in Japanese gold coins. The gold/silver ratio in this transaction (1/4.5) was much higher than the international gold/silver ratio (1/15.5). This extraordinary arrangement made foreign merchants' trade very profitable in importing silver and exporting gold. The profit from exchanging silver for gold in this manner must have been more than 100%.3 As a consequence a large quantity of silver was brought to Japan and a correspondingly large amount of gold flowed out. Despite official Japanese efforts to keep exchange of silver dollars for ichibu-gin to a minimum, the outflow of gold coin in the first year is estimated at 500,000 ryō. Clearly the only way to deal with this situation brought about by the demands of the foreign powers was to bring the nominal and bullion ratios between ichibu-gin and gold coins into line with each other. The Shogunate was well aware of this and took steps to bring about this reconciliation by debasing the gold coinage in the Ansei-Man'en monetary reforms of 1859-1860.
2 The primary reason why there was no bullion market is that the Shogunate exclusively owned the gold and silver mines and the bullion produced there was sent to the mint which was completely controlled by the Shogunate. In addition, free transactions in bullion were not permitted.
The Japanese Economy in the Tokugawa Era, 1600-1868
Michael Smitka 編集