all fluctuations of exchange value. As to which metal should be the standard of value, the opinion of the economists all tend to coincide in regarding gold as the fittest metal for standard. That Austria, Holland, and some other countries still maintain a silver standard is probably due to the great difficulty of changing the old system. If a system of coinage were to be newly established by any of these countries, there is no question but that the gold standard would invariably be adopted. It will be a wise policy for Japan, therefore, to consider the trend of opinion in Western lands and establish her new system in accordance with the best teachings of modern times. It may be that for the time being, on account of the possible great loss to the country from the too sudden adoption of the gold standard, a silver standard may have to be maintained. Otherwise there is no question that gold is the best metal for the standard of value. If the gold standard is introduced, silver may be fitly coined for a subsidiary medium of exchange, putting a limit to its legal tender amount. It may be as well to establish our system on this basis, making silver provisionally the standard, strictly keeping in view, however, the time when gold will be made to supersede silver as the standard of our system of coinage. The foregoing memorandum was chiefly instrumental in effecting a change in the coinage policy of the country,—it bore a postscript to the effect that the contents thereof had been penned in haste, but that the main points which Ito wished to emphasise were:— I. The necessity of slightly reducing the weight of the unit of value of the silver coinage; and II. To determine the weight of the gold coin according to the metric system. And it concluded:— “Written in America on the 29th day of December 1870.” (Signed) HIROBUMI. The Government decided to adopt at once the gold standard, and issued the new coinage regulation on the 10th of May 1871. The various measures then taken, and supported at subsequent dates by the administration, proved unavailing, however, to maintain gold monometallism in healthy growth at that period. The issuing of a large amount of inconvertible paper money drove specie, especially the gold coins, out of the country. This and the smallness of the natural output of gold in Japan compelled the Government to have recourse to gold and silver bimetallism in 1878, as being more conducive to the national prosperity at that time.