Front time to time we read, in the Yokohama newspapers, surprising accounts of the ill.conditioned finances of Japan. Unhappily, there are no prospects, or, rather, possibilities of amendment, because the most recent" development of the perverse and vicious financing policy that has been imposed on the suffering Empire rust, without fail, end in catastrophe.
According to the independent journals of Yokohama, it is certain that the emission of paper notes, notes that, when the miserable specie reserves are taken into consideration, are both ince: vertible now and unredeemable at any future time, has been excessive and vastly beyond the credit of the Govern. ment with the Japnuese nation. We have no doubt that the Ministry could prove that the issues of paper money have been necessary evil, and that they sre to be Inid to the charge numerous and auccessice ical troubles that lave beset the Stikndo's Ministers' in past yenrs. The excessive issue and consequent discredit. of the paper money, may be fonnd to be exenenble, because there were no alternatives or means of avoidance. But the economical faults of superabundance of paper and corresponding deficiency of coin, are not the worst of the persistent mistakes of the Mikado's Ministers. Japan is not rich country, neither should it be poor one. It is very well known that in the country there are very numerous and ample: honrds of precious metal, both ovined and uncoined, that would in times of confidence be put into cirenl enable the note issue to be brought within reasonable limits, and suffice for all national expansions of home as well as external trade.
But the people distrust the economical and fisonl'policy of (be Government, coiu is withdrawn from circulation, and paper wotes, before this sear closes, may be proportion to the oredality or incredulity of the people, current for some mere percentage of denomina-us. The second but strongest reason for the hopeless financial future of Inpan is that the Iusperial Government, through its affiliated, and, actanlly, official trading and financial branches, is about to engage in a desperate entorprise on n largo and comprehensive scale, in the hope that the Treasury reserves of coin, uow low or nearly exhausted, may be replenished.
Some letters before us, and, in particular, the circular of a well-known merchant, describe the new and fingitions phase of the economical impolicy of the Japanese Government.
Government, by its new agencies—and orenson to doubt the absolutely Ministerial character of the now trading and banking companies—will in the coming season monopolise, or monopolise, (if the present intentions are or can be carried out) the trade in the two staples of Japanese export, viz., The circular to which we refer, If those staples, ten and silk, are to be dealt in by official companies or corporations, the effect upon trade, now interfered with by Government opera. tions in other branches,. especially imports, will be serious; for foreign commerce has hitherto been conducted upon the principle of barter; imports depending for their sale upon quantity and value of exports. Should the Intter be absorbed in any quantity by Government agente, purchasing with paper currency, shipping under advances, and specie proceeds going to the Treasury, the most serious effects upon imports may be anticipated."
We will make the matter plain to our readers by showing the method and motive of Japanese official trade.
Japanese Government agents purchase produce for export, heretofore rice mostly, but of late silk, ten, coal, timber, sen-weed, and in fact any articles that may be randily sold in foreign markets. The purchases are id for by paper money, never by coin, The goods and produce bought are exported to England or China, or France, or the United States, and even to Australia. Advances of coin are taken from a foreign bank, which in most cases will grant about 85 per centum of the invoice value, The coin thas raised, is paid into the Government treasury. The Government outlay apparently is a nominal one, morely inconvertible, unsecured, and irredeemable paper. The transactions will go on till the inevitable end comes, an end believed by the Finance Minister to be yet distant, and the extent of his opera. tions in tea, silk, or any other exportable article in the coming avd succeeding seasons depends on the readiness or refusal of the producers to take Government paper money.
We have said that there are stores of specie in Japan sufficient for all her requirements of interchange, but, of the Intest development of the enol economics will cause all coin to disappear. The perplexities and distresses of the Government will not be allayed by the mischievous scheme of illegitimate trade; on the contrary, the crash all know. to -bo impending and imminent, will be precipitated.
We guard ourselves from imputing evil designs to the Mivisters of Japan. Indeed we are willing to aseumo they are high-minded patriots. It is, however, permitted to us to point out that the notion of the Mikado's Goverment has had precedents, and that in every case the results have been disastrous, In truth, Japan is most unfortunate. Notwithstanding Formosa expeditions and internecine revolts, there would lave been a steady and considerable expansion of both home and foreign trade under the new order of politics, so that all the financial requirements of the re-born empire would have been provided for by ready, reasonable, and legitimate methods. Unhappily, at an early stage of the reconstitution' the Government began to interfere in all enterprises by sea or by land, and, although io all cases the firat intention might have been, or probable were, admirable, the effect has been to strangle Japan, For instance, as the Chinese traders of this place, who once carried on much bneiness with Hakodadi tell us, both Chinese and Japanese traders are now in course of being driven out of Yesso by the official asso-dations that have virtually limit. less paper money. The consequence is that the island of Yesso will soon be of very little value to Japan, us the Government monopolies have already effectually blighted the trade. In a short time the enterprising Chinese merchants will transfer the trade which is now languishing in Hakodadi, to the new markets of Russian Manchuria, as the Czar's delegates are disposed to welcome all peaceable settlers. Again, og a mote important illustration, Japan might be, nay, ought to be, one of the chiefest rice-exporting countries. The rice grown is of good quality, and vast quantities could be produced at a cheap rate if the farmer could find a market, By rice export alone, Japan'a
Text read from the printed page and cleaned; old type leaves the occasional error.