At the period of the outbreak of war between Japan and China, Count Matsukata was in private life, pondering his all-important scheme for the permanent settlement of Japanese finance, but the successful floating of the War Loan was in a measure ascribable to his influence, for the nation had learned to couple his name with not a few judicious measures of national finance that had given relief to commercial enterprises in a very marked degree. And as the end of the campaign in Shantung and Liaotung was seen to be approaching the Emperor expressly decreed the Count’s assumption of the duties of Finance Minister, in order that he might undertake the adjustment of the country’s finances on the termination of the war. He remained in office long enough, with Marquis Ito as Premier, to initiate a movement which in effect carried him a great way towards the realisation of that cherished plan on which he had expended so much mental labour and close application both when in and out of office. He says that when India, the greatest silver country in Asia, took steps in 1893 to reorganise her currency system, the sudden fall in the price of silver had most noticeable effects in Japan, and the need of the adoption of gold as the basis of her coinage was more and more impressed on her financiers. The reform was, however, very difficult to undertake. Quite unexpectedly, however, the receipt by Japan of a large indemnity from China seemed to offer the long-desired opportunity. “It occurred to me then,” wrote Count Matsukata afterwards, “that on account of the unstable price of silver, as well as in view of the possible adoption of a gold standard by our country, it would be greatly to our advantage to receive payment of the indemnity in British, instead of Chinese money. The Minister-president of State, Marquis Ito, acting on my suggestion, negotiated with the Chinese authorities, which led to our receiving the indemnity money in pounds sterling.”