December 1850: Edo's All-Stars Rise to Face a Currency Crisis! Famous Magistrate Toyama Kinshiro and the '30,000 Ryo' Market Manipulation Strategy - A Record of Struggles with Ancient Documents - #049
As practice for reading ancient documents, I am studying using a Kuzushiji (cursive script) deciphering app and generative AI. This time, it's another story about money 🤑
Did you know that in the Edo period, the 'famous magistrate' we know actually held a role similar to a modern Finance Minister or Bank of Japan Governor, facing economic crises at a national level?
In the third year of Kaei (1850), what struck Edo at the end of the year was an abnormal situation called 'the rise in the value of Zeni (coins)' as an abnormal situation. In the previous article, this was an abnormal situation that even led to arrests.
Let's look at how they faced the crisis.
What I read this time
First, the Kuzushiji deciphering app 'Komonjo Camera' by Fuminoha.
I hold up my smartphone to read the image and try to identify the characters. Recently, I've noticed a habit of making mistakes. I tend to skip the first [ I ].
Then, I fed the obtained transcription to Gemini and asked for a modern Japanese translation and context explanation.
Deciphering using the power of civilization!
1. Collapsed economic balance: Both samurai and commoners are screaming
Edo at the time had a floating exchange rate system between 'Gold' and 'Zeni'. For samurai families who received their salaries in 'Gold' and did their daily shopping in 'Zeni', the rise in the value of Zeni (Zeni-daka) meant that the relative value of gold fell, directly hitting their livelihoods.
【Status of historical materials】 'Coming to this point, as 1 Ryo of gold has become worth about 6,000 mon, compared to the official rate until last year, there is a difference (price increase) of about 500 mon per Ryo... (omitted)... If this situation continues, it is rumored that it will become the foundation for the decline of low-ranking samurai.' (Modern translation) 'Recently, 1 Ryo of gold has become about 6,000 mon. Compared to the official rate until last year, you lose 500 mon per Ryo. Commodity prices have not fallen, and it is rumored that if this continues, low-ranking samurai will not be able to make a living and it will become the cause of their downfall.'
2. Formation of the Edo version of the 'Currency Crisis Response Headquarters'
Against this panic, the Shogunate deployed its strongest lineup. It was truly Edo's economic all-stars.
Toyama Saemon-no-jo (Kinshiro): Town Magistrate (Minister of Economy, Trade and Industry / Governor of Tokyo)
Matsudaira Kawachi-no-kami: Magistrate of Finance (Vice Minister of Finance / Chief Budget Officer)
Ishikawa Tosa-no-kami: Magistrate of the Shogunate Treasury (Director of the Ministry of Finance/Chief Treasurer)
Sasaki Bisuke: Kinza Official (On-site manager for the Bank of Japan/Mint Bureau)
Toyama Kinshiro absorbed the cries from the front lines, Matsudaira and Ishikawa moved the budget and the keys to the treasury, and Sasaki, a professional in practical affairs, handled the operations. This team began to move with astonishing speed.
3. The '30,000 Ryo' Market Intervention Strategy
What Kinshiro and his team unleashed was, in effect, a 'live ammunition intervention'—releasing a massive sum of cash held by the Shogunate, '30,000 Ryo (equivalent to several billion yen in today's value)', into the market all at once.
【Toyama Kinshiro's Decision】 'As notified yesterday, by the end of this year, coins worth 30,000 Ryo of gold will be divided into two installments... (omitted)... I wish to have them released once around the 15th or 16th, and once around the 22nd.' (Modern translation) 'As notified yesterday, by the end of this year, we will release coins worth 30,000 Ryo of gold held by the Shogunate into the market in two batches. I want to release half around December 15th-16th and the remaining half around the 22nd, to supply cash to the market and stabilize prices.'
Kinshiro did not simply force the Shogunate's logic upon the market; instead, by injecting a large amount of 'physical currency' into the market, he sought to lower prices by utilizing market principles.
4. The 'Eight Elite' Money Changers Supporting the Front Lines
The ones who undertook this project on the private sector side were eight money changers, including Hayanosuke of Kanafusacho. They staked their professional pride and submitted a written oath.
【The Money Changers' Pledge】 'The aforementioned coins worth 30,000 Ryo will be divided into two installments of 15,000 Ryo each... (omitted)... we will sell them at the nightly market exchange and work to lower the prices.' (Modern translation) 'We will receive the coins worth 30,000 Ryo in two installments at the Kinza. We will then put them up for sale at the nightly exchange (night market) and will surely lower the prices. We will remit the proceeds to the Shogunate by the due date.'
The strategy was to forcibly increase the 'supply of coins' by putting them up for sale at the night exchange, thereby driving down their value.
Conclusion: The 'True Face' of the Famous Magistrate
The 'Toyama Kinshiro' we see in period dramas is a hero who scatters cherry blossom petals while judging evil. However, the true face revealed by historical documents is that of an 'insomniac economic bureaucrat' who deciphered complex economic figures and teamed up with financial officials and private-sector professionals to protect the Edo system.
December of the third year of Kaei.
The passion of the practitioners who sweated while feeling the weight of 30,000 Ryo at the Kinza mint still breathes in these ancient documents.
Disclaimer
Since this was read by an amateur, the accuracy and quality cannot be guaranteed 😢 Please check the original source when referencing.
Click here for the previous article
Click here for recommendations on dictionaries and books for ancient documents.
I feel like I can read them by looking at many examples.
You don't need these when you've just started studying. But the time will come when you do!!
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