“Rice being the greatest of our national products, the abundance or scarcity of its harvest and the fluctuations in its price naturally affect to no small extent the financial condition of the country. As to the contingency of a bad harvest, there is already in operation the Law of Storing, and ... I shall confine myself to providing means of disposing of surplus rice in a year of abundance. For should there occur an extraordinary depreciation in the price of rice, it would not only make it difficult to raise the revenues, but it would interfere with the development of agricultural enterprises, affecting thereby the general trade and commerce of the country. For this reason it seems to me that the best means to prevent such a contingency would be to export rice to foreign countries. It so happens, however, that work of this kind, owing to shrinkage from rotting and other causes, and the time involved in transport over wide seas, can hardly ever pay in private hands. If the Government undertakes it these apprehensions need not be entertained. When specie is as scarce as it is to-day, the Government must still provide it for the payment of unavoidable expenses, such as the army and navy, and it seems to me that every effort ought to be made to absorb specie by enlarging the list of exported commodities. The export to foreign countries of the surplus rice will be like killing two birds with one stone, for it will provide specie for the Government and protect the income of the farmer. There seems to be a growing increase in the demand for Japanese rice in Western markets, owing to the gradual recognition of its superior quality. As it is an urgent necessity to draw in specie, let what has hitherto formed the Reserve Fund (of the Department of Agriculture) be turned into capital for making yearly purchases of rice in suitable quantities according to conditions of crop and market price, in order that it may be sent abroad, and let the Finance Department be charged with the duty of keeping accounts.” The actual quantity of rice exported under this arrangement amounted to some 6,000,000 bushels, and in selling the rice British and American coins were taken in payment, and the various earnings were transferred to Japan through the agency of the Yokohama Specie Bank in the form of draft or of gold and silver bullion. Altogether the specie accumulated by the Government, by its several measures, was in English money value about £28,750,000 sterling, the total disbursements from this huge sum having been £23,500,000, leaving a margin of £5,250,000 to be applied to the redemption of paper money.