Traditional financing and distant trades during modernization process of financial industry: a case of Yamaguchi prefecture in the 1870s

Yasuo Takatsuki

No 07-39, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper investigates traditional financing and distant trades during modernization process of financial industry in Japan. Especially, a case of Yamaguchi prefecture in the 1870s is focused on. At the beginning of the Meiji era, although the system of the remittance draft was sufficiently developed, that of the commercial bill, which should be crucial for distant trades to expand, was in an undeveloped stage. In such a stage, what sustained the expanding distant trade? To answer the question, this paper investigates the commodity collateral loan, which had developed through the Tokugawa era. "Jun-eki-sha", which was established in 1874 at Yamaguchi prefecture, is the one of the representatives of such a traditional financial organization. Through the investigation of their books, "Jun-eki-sha" was found to be managed rather healthily, and it provided the commission merchants with the short term operating capital. Thus, expanding trades at the begging of the Meiji era were sustained, at least partially, by the heritage from the Tokugawa era: That is, the commodity collateral loan.

Keywords: Japanese modern economic history; Rural financial institution; Commodity collateral loan. (search for similar items in EconPapers)
JEL-codes: G20 N25 N95 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2007-10
New Economics Papers: this item is included in nep-his
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www2.econ.osaka-u.ac.jp/library/global/dp/0739.pdf (application/pdf)

Related works:
Working Paper: Traditional financing and distant trades during modernization process of financial industry: a case of Yamaguchi prefecture in the 1870s (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:0739

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by The Economic Society of Osaka University ().