Imperial government, when it first came into a renewed existence, should have met with much financial difficulty.' --' But how did you manage to tide over the transitory period?' asked one. --'The troops,' I answered, 'which fought for the Imperial cause were generally supported at the expense of their own feudal clan-governments. For the current expenses, some rich merchants either contributed or advanced the necessary sum of money, and also new paper money was issued. By such means as these the government managed to carry on its affairs, and in the course of time some revenue began to accrue to the Imperial treasury from the regions which had been under the control of the Shogunate, but the sum was insignificant. It follows, therefore, that for financial reasons only some great change was necessary, and thus a double impetus was given to the idea of such men as Kido and Okubo for the abolition of the feudal system.' --'Let us assume that the feudal system had already been abolished,' said another, 'the winding-up of the affairs of the different feudal governments, and the consolidation under a uniform system of central government must have been a very difficult and delicate matter.' --'Yes, it was so,' I answered. 'To begin with, most of those governments had debts of all kinds which had to be liquidated, above all, their obligations for paper money floated by them. The coinage of gold and silver was the monopoly of the central government, but all the feudal lords had the privilege of circulating paper money under different forms in different clans. The actual value of this paper money in gold and silver varied according to the financial condition of the feudal government by whom it was issued, and that money was legal only in the districts which were under the jurisdiction of the lords by whose governments they were issued. You can therefore easily imagine how troublesome and inconvenient the matter must have been to travellers and traders in localities where those feudal governments stood in close proximity to each other. Then again, the lords and their retainers could not be made penniless immediately on the abolition of the feudal system. To them, therefore, certain means of support were given, in proportion to their former rank and income; that support was ultimately converted into the form of government bonds. The income thus given was not enough for many of the Samurai to support themselves and their families, and they, therefore, had to seek some new occupation to which they were not accustomed. A large number of them even lost the bonds thus given, through their incautious or incompetent management. The government had to prevent things getting into a worse condition, and to make the transition state a smooth one, if possible. For that purpose the government often had to organise for them some kind of common work, for which sometimes some special funds were given. Somehow or other, we have got through those trying times.