The history of this nickel coinage is another illustration of the _opera bouffe_ methods which characterize Korean public administration. The discovery of the potentialities of fiat currency probably came in the nature of a revelation to Korean officialdom. It opened vistas of profit never before dreamed of; all that was needed was the raw material and a machine. Finally the industry ceased to be as remunerative as at first; and the “Korean Executive,” all branches of it, discovered (in 1903) that, sooner or later, even a nickel coinage will find its true level. Such, briefly described, was the deplorable state of the financial affairs of Korea when Mr. Megata’s administration began. This was only a brief time ago, or in 1905. What has already been accomplished for the reform of the Korean finances may be summarized as follows.[69] The first step taken was the adoption of the gold standard, followed by the promulgation of a law strictly prohibiting the private minting of nickel coins, and the endeavor to recall this currency already in circulation. Measures were also taken to popularize the circulation of notes issued by the Dai Ichi Ginko (First Bank), and to enlarge the sphere of circulation for the coins newly introduced. “The organ for the circulation of money and the collection of the taxes having been now fairly well provided, efforts will be made to restrict and ultimately prohibit the circulation of the fractional cash now in use in the three southern provinces, by encouraging the employment of notes in accordance with the law regulating currency.” “As regards the bank-notes issued by the General Office of the First Bank in Korea, the Korean Government has officially sanctioned their compulsory circulation. But, it being deemed desirable to have said Government grow firm and content in the idea that the notes are the national currency, a contract was concluded in July, last year (1906), between the Government and the First Bank, providing that the pattern and denomination of the notes shall be subject to the approval of the Resident-General and the Korean Minister of Finance; that the amount of their issue and of the reserve be reported every week to the said Minister; that the Korean Government have the power to institute inquiries and examinations with respect to the issue of notes; and that the bank be placed under reasonable obligations in return for the exclusive privilege of issuing notes.”