Speaking some time ago of those early days of banking in Japan, the Baron explained that “It was the 1st day of August 1873 when the First National Bank received the certificate of authorisation. From that time we issued the new bank-notes for circulation, little by little, but there were none who came to make demands for the redemption thereof. It was our idea to have them circulated in the country districts rather than in the cities and open ports. The people of the country districts, although they were very unfavourably impressed by the old Government paper, were now better disposed to circulate the notes issued by a bank under strict Government inspection, and the general public began to put more confidence in these notes than in those which had been issued before. But we were very careful not to put too many of them into circulation, because we were well aware of the possibility of fluctuation in the price of gold and silver that would seriously affect the value. So, at first we kept back a large quantity of the paper in our vaults....” And thus by prudent management the First National Bank passed its first year with a record of 112,000 yen net profit, out of which 11,000 yen were carried at once to a reserve fund. At the end of 1874 the bank received a severe blow by the failure of the Ono firm, which had been one of the largest shareholders, and owed the bank a considerable sum. At a general meeting it was resolved that the Ono house’s obligation would be met by the shares of 1,000,000 yen which it owned, and consequently the capital was reduced by that amount. Mr Shibusawa was elected first president of the bank, and as the Government had been a little alarmed by the Ono affair, and was determined thenceforward to establish an accountant bureau in each department of State under its own charge, the First National Bank had to hand over all Government moneys left in its control, and seek to extend its business solely among the people. It was believed that no fears need be entertained of the result, and it has, as a matter of fact, done well. In recent years it has been the chief financial organ of the Japan-Korea trade, and has floated loans for the Imperial Household and Government of Korea with complete satisfaction. The Dai-ichi Ginko notes are the recognised medium of circulation in Korea still and are facilitating the commerce of that country.