ABSTRACT
NOTHING definite is known about the banking system of the early days of Japan; but it is clear that the system played no important part in affairs, since the insignificance of trade and industry called for no extensive credit arrangements, and the spirit of contempt for business was general. That sentiment was the result of the preference given to agriculture as the sole source of national wealth, and was also encouraged by the reign of feudalism, which was universal. The class of people who were esteemed were the Samurai (vassals), while tradesmen, artisans, and mechanics were held as of little account. Money was regarded as the ugliest of all things; and even to handle it was thought to pollute the hand of the Samurai. Little protection was given to the money-changers, the rate of interest was fixed by strict enactment, and the debtor was the more favored party. By force of so-called Tokusi (merciful laws), after a certain term the creditor was obliged to surrender the right of demanding payment, and often accumulated wealth was made the object of compulsory public contribution. With such a state of things, it is evident that banking could not make much progress, and the business of pawn-lending was done largely in secrecy. Strangely enough, blind men were often engaged in this business. However, even then the system of money-lending was tolerably well developed. In the fifteenth century (1453 A.D.) an edict was issued which decreed that:
Articles of daily use may be pawned, but the term for wearing apparel is limited to a year, and that for weapons to two years.
The rate of interest must be within fifty per cent.
Those who do the business without sufficient funds shall be punished, and if they abscond, the liability must be borne by the people of the district.
