MATSUKATA MASAYOSHI, KOSHAKU

(Duke, or Prince) born April 3, 1834, Kagoshima, Japan died July 2, 1924, Tokyo statesman whose financial reforms stabilized and restored Japanese government finances in the 1880s, giving Japan the capital with which to modernize. In the new Imperial government that followed the overthrow (1868) of the Tokugawa family, which had ruled Japan for 264 years, and restored power to the emperor, Matsukata held various important positions. By 1881 he was named minister of finance. As such, he became the major advocate and executor of financial reform. The government had met the severe financial strain of modernization by printing paper money. In the 1880s currency was badly depreciated, specie was being hoarded, and revenues, because of the fixed tax on land, were declining in value. Under Matsukata's regime government expenses were cut; newly built factories were sold to private buyers, paper money was redeemed, and the Bank of Japan was founded with the right to issue convertible notes. In a period of three years the currency was stabilized and government finances restored to health. In 1891, and again in 1896, Matsukata was named prime minister, but each time he retired shortly after his appointment because of widespread opposition brought on by his harsh dealings with the Diet (parliament). He was minister of finance again in 1897, when Japan adopted the gold standard. After 1902 he was one of the elder statesmen (genro) whose advice the government relied upon in formulating policy.