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rapidly, and the Government was disinclined to adopt the necessary measures to meet these expenditures, and to regulate and moderate the progress and development of the country. Everybody was revelling in the luxury of European ideas. Such was the state of affairs at that time, when I and my colleague had quite an opposite opinion that some radical step must be taken before it was too late. Finally, in 1873, we resigned our offices, leaving a memorandum of what we thought necessary to be done to set the financial situation in order.

Count Okuma then assumed control of the Financial Department, and made great efforts to maintain the convertibility of the paper-moneys issued by the State. All hope of success was, however, removed by the outbreak of the Kagoshima Rebellion, which necessitated still further issues of paper-money. In 1881 Count Matsukata became Minister of Finance, and it was then found absolutely necessary to take decisive steps towards the redemption of the paper-money. This was agreed to by all parties, so apparent was the danger. In that year the silver yen was worth 1 yen 80 sen of paper-money. It was determined that all the paper-money should be made convertible within six years, and by the end of the fourth year already—in 1885—this work was accomplished, and the financial situation was improved.

The Europeanizing of the higher strata of public life while the lower ones were unchanged caused much disturbance and unquiet. The people at large began to clamour for some say in the Government, and in 1880 a Constitution was promised them. Marquis Ito was sent on a special mission abroad to study the different forms of governments and constitutions. On his return he drew up the present Constitution of Japan. This was inaugurated in 1889, but was not very successful at first, and cannot at present be described as working successfully, owing principally to the unpreparedness of the people for such unprecedented a share of power and authority. Thus, with many of the deputies local interests or self-interest outweighed national concern. There has constantly been friction between the Government and the Parliament, and the consequent frequency of changes of Cabinet have rendered it difficult to ensure the adoption of permanent and far-seeing measures for the good of Japan. At this time the question of organization, and of course of constitution, was in the foreground, and there ensued almost a craze for legislation on every conceivable subject. For example, a system of municipal government was introduced from Europe, and all other branches of national life were framed out in new forms. This period was also that in which the lower classes of society