ABSTRACT

At the time when the state of the metallic currency was utterly confused and coins were greatly discredited, it was natural that paper money should not obtain much credit. It is related by historians that, in 1334, an order was issued by the Emperor Godaigo directing paper money to be used together with copper coins. But on account of the prevalence of civil war and the generally unsettled state of affairs, it is doubtful whether the paper actually circulated. After this, we hear nothing about it till 1615, when a paper note was issued, and used for the payment of the excavation work of the canal in Osaka. This was equal to seven bu in silver. On the face was written, “Issued for the canal work of Osaka as a permanent treasure of the people,” and on the back the name and signature of Kikioya and Kinokuniya firms, who were possibly charged with its redemption. Also, in 1866, 100,000 rio of 100, 50, 10, and 1 rio, 2 and 1 bu notes, were prepared for the use of the harbor works of Kiogo, to circulate in the country around Kioto. But it was never actually issued. However, about 300 Daimios of different districts issued paper notes (Han Satsu) to circulate within the limits of their own rule. Innumerable kinds of these notes existed, over-issue and counterfeiting being common; so that the state of the paper currency was one of hopeless confusion. This practice began with the grant to the Daimio of Fukui in the latter half of the seventeenth century, as an offset to the failure to carry out the promise of increasing his revenue. That privilege was abused, and many Daimios, to bridge over their financial difficulties, obtained a similar grant. At first, the date of redemption was prescribed, but this not being adhered to, the grant was withdrawn. Such a prohibition, issued toward the end of the Tokugawa dynasty, was of no effect, because the prestige of the dynasty had dwindled almost to nothing. Overissues continued common, and some issues were made without any permission at all. These notes were not only depreciated in value, but were of all grades of depreciation, some being without any value at all. The amount which came into circulation is shown in the following table: Circulation of Notes Issued by Daimios. https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9781315026060/4be6aa62-beb4-49c8-95d4-b1cd4065bede/content/page115_01_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/>