KOBE ECONOMIC & BUSINESS REVIEW No.5
Total Page:16
File Type:pdf, Size:1020Kb
ECONOMICBUSINESS & 5 bssSVTE'-oe g`l .IIIIIii :tht(' ese "se THE RESEARCH INSTITUTE FOR ECONOMICSAND BUSINESS ADMINISTRATION KOBE UNIVERSITY 1958 Copyright, 1958, by The Research Institute for Economics and Business Administration The Kobe University ' KOBE ECONOMIC & BUSINESS REVIEW 5 ,<`if/3 THE RESEARCH INSTITUTE FOR ECONOMICSAND BUSINESS ADMINISTRATION KOBE UNIVERSITY 1958 CONTENTS Page History of Yen lts Developments in the Japanese Economy (1)•••••••ny••••••••••••••••••••-•••••••••••••Hiroshi SHiNJo •- 1 Fundamental Features of the Accumulation of Capital in the Late Meiji Era••-•••••••••-•••••••••••••••••••••••••----•••••- Masahiro FuJiTA ••• 23 Some Aspects of Japan's Trade with South and South-East Asia, 1950-1957•••••-•••••••••••••••••••••••••t•••• Fukuo KAwATA ••• 43 Curves of Diminishing Values of Japanese Merchant Ships in Proportion to Their Age••••••••••••••••••••••••ny••••ny-•••••••••••Ginjiro SHiBATA ••• 53 The Modernization of Japanese Shipping Based on the Transportation of Hokkaido Marine Products•••••••••••• Seiji SAsAKi ••• 67 Deve!opment of the Marine Insurance Industry in Japan in the Meiji Period••••••••••••••••••••••••••••••••••••••••••••- Hiromasa YAMAMoTo ••• 77 A Assimilagao do Imigrante Japones no Brasil •••••••••••••••••••••••• Hiroshi SAiTo ••• 89 Rate of Profit and International Specialization of Production•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••Hikoji KATANo •••103 Replacement ()ost and Lifo Cost••••••••.•••••••..•••}•,••.•••••.••• Susumu WATANABE •••121 Spatial Problems of Business Activities••••••ny•••••••••••••••••••••••••••••Minoru BEiKA •••129 The Nature of the Morgan Control••••..••••-••..,••••••...•••••••...•Tadakatsu INovE •-• 138 On the Effect of Accelerated Amortization for Tax Purposes ••••••••••••••••,•••••••••••••••••••••••••t•••••••••••••• Nobuko NosE •••147 HISTORY OF YEN ITS DEVELOPMENTSIN THE JAPANESE ECONOMY (1) Hiroshi SHINJO 1 The modern age of Japan began with the Meiji Era (1868-1912) succeeded by the two following eras of Taisho (1912---26) and Showa (1926 -). The name of an Era has been customarily renewed when an emperor changes. When the 16 years old young Emperor Meiji was enthroned on the death of his predecessor, the old Japanese feudalism maintained for hundreds of years had just broken down by the downfall of the Tokugawa Shogunate and the political powers of the nation were again restored to the Emperor who had been quite nominal for a long time. So the socalled " Meiji Restoration " made the young Emperor the real Head of this newly centralized State. This first year of Meiji falls in 1868 A. D, The first coins of copper and silver were made as early as the Wado (1ll la) Era in 708 and gold coins in the Keicho (msft) Era in 1601, though Korean and Chinese coins had flowed into the country even before then. Ever since many kinds of coins different in value and quantity came into existence but they were not means of circulation in the present sense except in great cities and the country as a whole was not yet money-economized. However, in the last days of the Tokugawa regime, the central government as well as feudal lords began to issue inconvertible currency notes due to their financial diMculties, and at the time of the Restoration there were 1694 kinds of paper currency in circulation without any foundation of a definite monetary standard as there were not less than 100 kinds of gold (oval shaped Koban 1 2 HIROSHI SHINJO and Oban) and silver (grains and oblong shaped) coins of various quality. It was, therefore, for the new government most important and urgent to reconstruct the confused money economy on a sound basis. The most important international money in the orient at that time was the socalled "Mexican Dollar," a coin of 416 grains -fltT silver (374.4 grains or 24.2606 gm. in fine), and since the opening of some ports for trade by treaties with foreign countries the Mexican Dollars came to circulate in Japan and was deemed to be the most reliable and acceptable money. The government proclaimed in February 1868 the circulation of the Mexican Dollars throughout the country to be lawfu1 and fixed its rate of exchange as equivalent to 3 Japanese silver coins of Bu (Bu-gin) which was originally minted to be as equivalent to IBu of gold. In April of the same year, in order to mint new coins, an English coining mill at Hong kong for Mexican Dollar was purchased by an intermediary of the Oriental Bank Corporation (Yokohama branch), an active English bank, existed until 1885 and removed to Osaka but as it was burnt down by fire the new coinage minting was not started until October 1870 under the management of an English engineer, William Kindle who was appointed its director. The first coins thus issued, were denominated as Yen, a new monetary unit, but one yen was precisely of the same weight and fineness as a Mexican Dollar mentioned above. Apparently the value of the yen was fixed to correspond to the Mexican Dollar independent of the existing monetary unit. The monetary units prevailing until then ' were very complicated. Regarding gold, there was a unit of Ryo (iili)" originating from the Chinese Tael, and one Ryo was equal to 4 Bu (c"v) and 1 Bu (Bu-Kin) to 4 Shu (2Ik). Regarding silver, a unit of Momme (AsL) or Me (g) was used, which was decimalized into Fun (tfi) and Rin (za) and for Copper coins, the unit was Mon (J5() * Ryo was originally the unit of weight in China, as pound was in England. Kan, Momme, Fun, Rin were alike units of weight actually used in Japan. When the Japanese gold coins, Koban, were first struck in 1601 (6th year of Keicho) the large one, which was called Oban (big coins) was worth 10 Ryo and the small one, Koban (small coins) weighing one tenth of the former, was worth ! Ryo. Koban of the Keicho Era weighed 4.773-4.775 Momme, consisting of ?tt9 of gold, 114tiZ65 of silver and the rest of miseellaneous metals, which was equivalent to about 4.053 Momme of fine gold. Oban contained ten times the amount of this fine gold• As the content of the Japanese new Yen defined by the new Act of 187i was 1.5 gramm, that is to say O.4 Momme of fine gold as aferesaid, a gold 1 yen compared to 1 Ryo of Keicho Koban is approximately one-tenth. 1 Ryo was so much devaluated at the time of its replacement by the yen in 1871. There lay about 170 years between the two periods. HISTORY OF YEN ITS DEVELOPMENTS IN THE JAPANESE EcoNOMY 3 with IOOO mon making a Kan (er) In the past, it was once oMcially decided that a gold Ryo is equal to 60 silver Me, and to 4,OOO copper Mon. But as there appeared various kinds of coins different in quality according to their date of issue, no fixed rates of exchange really existed between gold and silver units, and excepting copper coins, which were widely in circulation and accounted by tale, most of them were evaluated by weight. The new unit Yen (en or re) means literally circle or roundness and has no connection with weight, The new one yen was really the first round shaped coin in Japanese history, as prior to it, only copper coins were round, yet they had without exception square holes in the center. This is the birth of the Yen in 1870, but the above step was taken rather for temporal convenience and more fundamental reforms remained untouched. The New Coinage Act (;efH{liE:ptJ) enacted in May of the following year was intended to change the standard of money from silver to gold, declaring that the 1 yen gold coin should be hereafter the standard money lawfu11y payable without limit, and all silver coins were to be auxiliaries. This policy was decided by the cabinet according to the advice sent from Hirobumi Ito, a later prime minister and a then high othcial of the finance ministry, who had been sent to the United States to study public financing and observe the directions of monetary reforms going on in America and Europe. The new one yen gold coin fixed by this Act was to contain 1.5 gramm (23,14 grains or O,4 Japanese Momme) of fine Gold. Beside the one yen, 20, 10, 5, and 2 yen gold coins were to be minted. As subsidiaries were four kinds of silver coins with denominations below 50 sen (S yen) and three kinds of copper coins below 1 sen. (i8o yen) According to the Act a silver coin of 50 sen was to contain 10 gramm (154.4 grains) of fine silver. Though the new monetary unit Yen was introduced, it was provided in the Act that 1 yen should equal 1 Ryo, and 1 yen be equivalent to 1,OOO Mon of the nominal standard copper coins (Eiraku-sen). Thus upon the surface of things the new coinage act introduced the gold standard system to Japan in l871 but in reality it was not so, because of the maintenance of the Mexican Dollar as legal money on the other side. As already mentioned, Ito advocated the adoption of the gold standard after the manner of the advanced countries in the west. But opinions of English envoys and representatives of the Oriental Bank were against it and they 4 HIROSHISHINJO persuaded Japan to adopt the Mexican Dollar as a standard and warned them of the disadvantage caused by taking the double standard system. As there was no gold reserve, that is enough to adopt the monometallic system without financial suppert from outside and the existence of the Mexican dollar as a de facto international currency in the orient was not to be ignored, the only pessible method was eclecticism. The Mexican silver dollar was thus permitted to circulate, at first " for the time being in compliance with the request of people in and out of the country to facilitate trade in licensed ports." " A silver coin of the same weight and fineness as the Mexican dollar, named the Trade dollar (Boeki-gin) shall be coined and be current side by side with the Mexican dollar" and " in all licensed ports 100 yen of them shall be fixed as equivalent to 101 yen of gold coins." As the currency of silver coins was not confined to port districts in reality the Mexican dollar and not the gold yen functioned as a real standard from the beginning.