We have received from Yokohama some details of the projected (Japanese) Bank for foreign trade, the scheme for which has been laid by the promoter before the Japanese Ministry, ad referendum.
If our information is correct, it would appear that a number of European money-dealers have agreed, conditionally, to raise from the stock markets of London, Paris, Berlin, and other places, a sum equivalent to eight millions of dollars. The conditions are said to be as follows:—Tho Japanese Government is to subscribe two millions of dollars, and thereby become owner of one-fifth of the shares of a powerful. association, whose capital will be ton millions of dollars. This banking association, whose head office will be in London; whose branches will be in Japan; and whose management will be confided to a well-known banker, who will have the co-opera tion and support of at least three eminent financiers of Yokohama, will receive two guarantees from the Imperial Government. The first is: a guaranty of a minimum profit or interest of four per-cent, on four-fifths of the capital subscribed, i.e. eight millions of dollars. The second privilege is: that all business. of the Government, whether financial or commercial, or for import or export trade, will be given to the now trading bank, The bank will, in truth, have a much wider scope than our Yokohama correpondents suspect. The Japanese Government intends to monopolise all foreign trade, provided native buyers of foreign manufactures, such as yarn, woollens, metals, kerosene, &e., &c., will pay in coin; and that native sellers of Japanese products, such as silk, tea, rice, seaweed, curios, &e., &c., will part with their goods for paper money. If the buyers are accommodating, and the sellers have faith, the Government treasury will be filled, and the new bank will have a prosperous agency business without risk because, when foreign merchants are driven away—their occupation gone—competition will be at an end, and the Finance Minister will arrange the balance of trade—that hitherto has distressed him—just as he pleases. The new bank will also derive advantages from the happy circumstance of having the Japanese Government—represented by Japanese officials—in partnership. In ordnance contracts, for instance, the plan which is not new nor peculiar to Japan, works well. The Japanese Government will also be benefited, and, at the worst, if the treaty Powers become troublesome, and take action against the import and export monopoly, the national liability is only $20,000 dollars a year, which is a mere nothing.
Farther accounts are awaited with impatience, as, most of the foreign traders in Japan are thinking upon the prudence of betaking themselves to other climes. But we advise delay, and deprecate rash haste, a8, although the wisdom of the new scheme cannot be disputed, it may happen that the Japanese producers of tea, silk, rice, &e, &c. might be foolishly prejudiced against the Government inconvertible, unsecured, and irredeemable paper-money, and thus an important part of the Government's programme might be interfered with, and even subverted by stupidity or faction.
The new bank, if the accounts we have received are correct, has many olements of success in its design, which happily includes all the merits and omits all the defects of Law's famous financial plans, whose varied incidents make the history of the Orleans Regency both interesting and piquant to students of economical science, As we can say truly that the now scheme to which we refer, has been admirably contrived by a master of the art of eclectic and benign finance; that its merits are obvious and great; and its defects not worthy even of mention, we recommend the high Ohinese authorities to order the Envoy of Peking, who is now in Tokio, to investigate the bu: ness inallitscloverdetails, Thoknowledgo that may be acquired will be valuable to China in many ways, not yet apparent but potential. At any rate, the study will be a wholesome one for China, whose rulers are still ignorant of the laws of finance, the consequences of empiricism, and the dangers of improper and desperate expedients to repair injuries to @ nation's credit that has been recklessly imperilled.
Text read from the printed page and cleaned; old type leaves the occasional error.