The Development of the Feudal Economy and the Issue of Domain Notes : A comment on the views of Prof. Hirokichi Taya

DOI Web Site

Bibliographic Information

Other Title
  • 近世経済発展と藩礼の発行 : 田谷博吉氏の見解に対する私見
  • 近世経済発展と藩札の発行--田谷博吉氏の見解に対する私見
  • キンセイ ケイザイ ハッテン ト ハンサツ ノ ハッコウ デンタニ ハクキチシ

Search this article

Abstract

This paper undertakes to examine the role and functions of domain notes (hansatsu), or han issued currencies, in the development of the Japanese economy during the Edo Period. The earliest domain notes go back to the issue of silver notes by the Fukui Han of Echizen in the first year of the Kanbun Era (1661). In later years, up to 244 han, or roughly eighty percent of the country's 300 domains issued their own notes which remained in circulation until the edict of 1871 and the emergence of the new national currency. The issue of domain notes were closely related to the development of han economies as they were used to finance han monopolies which bought up local products such as cotton fabrics, paper, and candle wax for resale in the national markets. Generally, circulation of domain notes was limited within the domain of their issue. Supposedly, holders could demand conversion into Bakufu specie-gold, silver, and copper coins. However, overissuance as a measure to cover budget deficits was not uncommon, and as a result, in relatively many cases convertibility was lost and domain notes tended to become irredeemable paper money. In an earlier study of the historical characteristics of domain notes, I have used the concept of "credit money," and in this light have done a case study of the Tashiro domain of Hizen (under the rule of the Tsushima Han). In his review of the study, Prof. Hirokichi Taya has concluded that the Tashiro domain notes cannot be viewed as credit money, but rather merely functioned as government issued paper money. In the present paper, I attempt to give some counter-arguments against the interpretations of Prof. Taya. My point is to show that while domain notes had the characteristic features of fiat money within the issuing domain, they simultaneously and basically were credit issues, and that it is important to turn our attention to the fact that the establishment and circulation of domain notes with these compound features expanded the scope of economic development in the Edo Period and contributed to the formation of the historical foundations of the modern Japanese economy.

Journal

  • SOCIO-ECONOMIC HISTORY

    SOCIO-ECONOMIC HISTORY 48 (2), 131-153,234-23, 1982

    THE SOCIO-ECONOMIC HISTORY SOCIETY

Details 詳細情報について

Report a problem

Back to top