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most clearly upon the minds of the financiers of the country the necessity of adopting gold as the standard coinage in Japan, that metal being least subjected to changes in its price, and most fitted for use as the medium of exchange.
The reform so necessary was, however, very difficult to undertake. Unexpectedly the reception of the Chinese indemnity seemed to offer the desired opportunity. Now, according to the terms of the treaty of peace, Japan was to receive her indemnity in kuping taels. It occurred to me then that, on account of the inconsistency in the past of silver, as well as in view of the possible adoption of a gold standard by our country, it would be greatly to our advantage to receive the payment of the indemnity in British, instead of Chinese, money. The Minister President of State, Marquis Ito, acting on my suggestion, negotiated with the Chinese authorities, which led to our receiving the indemnity money in pounds sterling.
Not long after, on my appointment to fill the post of Minister President of State, my efforts were immediately directed toward making preparations for adopting the gold standard. In February, 1897, the Bill for effecting the reform was drawn up. There was, however, no little opposition. Some said the fall in the price of silver would rather encourage trade with the gold standard countries, while the adoption of a gold standard by Japan would decrease the amount of our exports to those countries. Others said Japan, situated as she was in the midst of the silver countries of the East, would be placed in a position of much disadvantage in her trade with these countries if she adopted gold monometallism. Some others said Japan did not produce a sufficient amount of gold to be able to maintain permanently a gold standard system. Yet again, others said the silver yen exported to foreign lands exceeded 100,000,000, and if all these coins came back for exchange, as might possibly be the case, the national treasury would have to suffer an immense loss. In the midst of all this opposition the Government stood firm in its purpose, and the Bill was introduced into the Imperial Diet in March, 1897, which, after being passed by both Houses of the Diet, was sanctioned by the Emperor, and promulgated as Law No. XVI. on the 29th day of the same month.
The Government had to find some proper method of disposal of the silver coins now suddenly brought in. They amounted to the sum of 75,093,822 yen. This large sum was disposed of as follows: 27,567,012 yen were recoined into subsidiary coins between the 30th and 32nd fiscal year of Meiji (1897–1900); 40,786,662 yen were sold in Shanghai,