No. 408.

Mr. Hubbard to Mr. Bayard.

No. 42.]

Sir: I have the honor to transmit herewith, for the information of the United States Government, a translation (by the interpreter of this legation) of the official statement of the finance department of the Japanese Government, published in the “Official. Gazette,” No. 670, of date September 22, 1885, relating to the national debt in outstanding bonds.

It will be observed from this statement that the present bonded indebtedness of Japan is 229,002,960 yen, which at the present value of the yen is equivalent to $229,002,960 in silver dollars. The average rate of interest on these bonds is about 7 per cent., payable semi-annually. Of this amount, the Interest on 168,897,000 yen is payable in gold, and these last-named bonds are styled “gold salary bonds.” The remainder of the national bonds are payable in “kinsatsu,” or the paper currency of the Empire.

In this connection, I have to state upon unofficial information received that the Japanese Government are endeavoring to negotiate a new loan in London, where the financial agent is now, of $10,000,000, to be used, it is said, in the speedy completion of a railway system already begun, and in the inauguration of new lines, connecting the interior with the coast. Such a consummation, it is believed, will largely increase the agricultural and manufactured products as well as commerce of this people (both as to imports and exports) with other countries.

I have, &c.,

[Page 566]
[Inclosure in No. 42.]

Amount of national public loan bonds of Japan outstanding August 31, 1885.

New public loan bonds issued 1872 10,652,850
Old public loan bonds issued 1872 10,972,725
Public loan bonds payable in kinsatsu:*
Issued 1873 1,147,950
Issued 1874 511,100
Issued 1880 2,843,000
Issued 1881 597,050
Issued 1882 415,400
Issued 1883 372,550
Capitalized pension bonds:
Issued 1874 100
Issued 1875 6,650
Issued 1876
Five per cent. gold pension bonds, 1877 30,925,115
Six per cent. gold pension bonds, 1877 24,616,600
Seven per cent. gold pension bonds, 1877 106,578,945
Ten per cent. gold pension bonds, 1877 6,576,350
Ten per cent. gold pension bonds, 1878 200,000
Pension bonds granted to Shintu temples, 1878 115,975
Industrial loan bonds, 1878 11,009,000
Nakasendo railway bonds, 1884 15,000,000
Unregistered Kinsatsu bonds, 1884 1,414,600
Unregistered Kinsatsu bonds, 1884 47,160
Nakasendo railway bonds, 1884 5,000,000
Total 229,002,960

Correct translation.

W. N. WHITNEY, Interpreter.
  1. Kinsatsu = paper currency.