Between Copper, Silver and Gold: Japanese Banks of Issue in Taiwan, Northeast China and Korea, 1879–1937

This article provides the first comparative overview in English of Japanese colonial banks before World War II with an emphasis on their roles as banks of issue in Taiwan, Korea and Northeast China. It discusses at length similarities and differences in these banks’ note circulation patterns, in their note-reserve requirements and their actual application, and in their geographical spread and respective colonial mandates. There was some variation in Japanese bank note issuance in the colonial setting of Korea and Taiwan, in ‘Manchukuo’ and in those parts of China that remained nominally sovereign. But all Japanese colonial banks seem, in one way or another, to have astutely adjusted the spread of their note issue in order to control for flagging demand due to nationalist boycotts, or to conversely cash in on demand spurts for notes resulting from crises in the indigenous financial sector. The banks of issue under review here were theoretically subject to a 100 per cent reserve requirement, but the make-up of their metallic bullion reserve and the degree of their notes’ convertibility were very dissimilar, reflecting varying local conditions. Both in terms of reserve ratios, and note denominations—the banks prudently followed charter obligations that were devised by the Japanese Treasury but, at the same time, were reminiscent of the obligations that British overseas banks also had to abide by. Thus, the findings discussed here shed light on the inception and adaptability of Japanese colonial policy in the lead-up to the Pacific War.