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A History of Coins

1-8 The Genroku, Hoei, Shotoku, Kyoho, and Gembun Koban

Keicho Koban Weight:  approx.17.9g Fineness:   approx.84-87percent	Genroku Koban Weight:  approx.17.9g Fineness:  approx.57percent	Hoei Koban Weight:  approx.9.4g Fineness:  approx.84percent	Kyoho Koban Weight:  approx.17.9g Fineness:   approx.87percent	Gembun Koban Weight:  approx.13.1g Fineness:   approx.66percent
�@The Genroku, Hoei, and Gembun Koban have the Japanese Characters gen, kan, and bun, respectively, engraved on their reverse sides to indicate the era, but no such engravings appear on the Keicho, shotoku, and Kyoho Koban. (The Shotoku Koban, not illustrated here, is nearly indistinguishable from the Kyoho Koban.)

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By the Genroku Era (the end of the 17th century), the production of gold and silver mines had declined drastically. In addition, large amounts of gold and silver had left the country after a ban on exporting gold was lifted in 1664. This, along with the increasing demand for coins that accompanied economic growth, gave rise to a grave economic problem-a currency shortage. As a countermeasure against the crisis and to restore its own finances, the Tokugawa Shogunate resorted to recoinage, debasing the fineness (gold and silver content) and reducing the weight of gold and silver coins. The recoinage was made possible because of the disconnection of the gold and silver markets in Japan and abroad that accompanied the trade control policy of national isolation.       The shogunate decided to debase its gold and silver coins in 1695. As a result, the fineness of the Genroku Koban was debased to 57 percent, or two-thirds the value of the Keicho Koban in circulation (84-89 percent). Because the Genroku Koban was exchanged at almost the same rate as the Keicho Koban despite its inferior quality, the exchange process did not go smoothly. As for the Hoei Koban issued in 1710, although its fineness was improved to 84 percent, the weight was cut by half, and thus the net gold content remained lower than that of the Genroku Koban. The recoinages enabled the shogunate to restore its fiscal health significantly, but the sharp rise in the money supply induced inflation, damaging many people's livelihoods and reducing some to poverty.       To improve the fineness and weight of gold and silver coins, the Shotoku Koban-identical in quality and weight to the Keicho Koban-was issued in 1714 to replace old gold coins, on the suggestion of Arai Hakuseki. There were rumors, however, that the Shotoku Koban was not equal in quality to the Keicho Koban. Accordingly, in the following year the government issued the Kyoho Koban, which was slightly higher in quality than the Shotoku Koban. Because of this recoinage and the government's severely reduced budget, the amount of currency in circulation dropped substantially, economic activities came to a standstill, and prices dropped drastically. In particular, the plunge in rice prices had a grave impact on both the samurai class and farmers.       To stimulate the economy and raise prices, the eighth Tokugawa Shogun, Yoshimune, carried out another recoinage in 1736, lowering the quality of gold and silver coins and increasing their circulation. As had happened with the recoinage of the Genroku and Hoei Koban, the Gembun Koban was debased. Nevertheless, this recoinage deserves more credit, as it supported the Edo period's economic development from the aspect of currency circulation. Governmental profits from the recoinage resolved the problem of a currency shortage, succeeded in turning the economy around, and allowed the currency a high degree of stability for the next 80 years.

Mari Ohnuki: Research Division 3, Institute for Monetary and Economic Studies, Bank of Japan Monetary and Economic Studies 15(2), Bank of Japan, 1997

References Bank of Japan, Economic Research Department, ed. Zuroku Nihon no Kahei (Japanese Coins), Vol. 3, Toyo Keizai Shimposha, 1974 (in Japanese). Hisamitsu, Juhei, Nihon Kahei Monogatari (The Story of Japanese Coins), Mainichi Shimbunsha, 1976 (in Japanese). Mikami, Ryuzo, Edo Bakufu: Hasan e no Michi (Edo Period Government: The Road to Bankruptcy), NHK Books, 1991 (in Japanese).

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