ABSTRACT

IN 1879 a scheme was submitted to establish a bank with 3,000,-000 yen capital, to be paid in silver. The main object in view was the discount of commercial bills drawn on foreign countries, so as to afford banking facilities to exporters and importers. It was also proposed to secure the privilege of issuing bank notes, with bonds convertible into specie as the basis, in conformity with the National Bank Act. This was called forth by the scarcity of metallic currency, and by the fact that the great volume of foreign trade in the treaty ports was in the hands of branch offices of English and of other banks. The assent of the Government was easily obtained, although the power to issue notes was reserved because of the incessant depreciation of the paper currency, and the Specie Bank came into existence on the 23d of February, 1880. Previous to this, two requests were made to the Government: