Page:Japan by the Japanese (1904).djvu/369

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FINANCE
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Hong Kong, and elsewhere; 6,740,148 yen were taken over to Formosa, Corea, and elsewhere, and expended in those countries. The whole amount was thus disposed of in just one year and three months after the new Coinage Law was promulgated.

It is possible that the state of coinage in Formosa may act as a disturbing factor in the successful working of gold monometallism in Japan. Much as it was desired to establish a pure and simple gold standard in the island of Formosa, it was found impossible to do so, in view of the great difficulty of changing the uses and customs of the Chinese population in that island, and also because of the exceptionally close commercial relationship that is maintained between Formosa and the mainland. For these reasons, while gold is made the standard of value, yet for a limited period of time the silver yen is to be allowed to circulate as legal tender at a value fixed by the Government from time to time.[1]

It is plain, however, that, in order to strengthen the foundations of the gold standard system now established, it will be necessary that efforts be made in the future not only to keep up, but to increase, the gold reserve of the Bank of Japan. It will also be necessary that efforts be increasingly directed toward the development of the agricultural and industrial enterprises of the country, and the consequent growth of foreign trade.

IV. Financial Policy[2]

By Mr. Sakatani,
Vice-Minister of Finance

The business of the Finance Department proceeds very evenly, whatever may be the changes occurring in the Cabinet. The working out of the details and minutiæ of the financial estimates and accounts must necessarily proceed without interruption. The organization of the Finance Department is such that this will always be the case.[3]

As might be imagined, the Finance Department is the vital heart of the Government, since it is to it that application has always to be made for funds to carry out any schemes or programmes. Of the three bureaus of the Finance Department, the Account Bureau is the most important, as in it all the work of the Department originates and is put into action. The Cash and Debt Bureau and the Tax Bureau are the two wings of the

  1. ↑ Since the beginning of the war with Russia steps have been taken to place Formosa under the gold standard.
  2. ↑ This was written before 1904.
  3. ↑ Diagram illustrating the relation of the different bureaus in the Finance Department to each other will be found in the Appendix.
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