Edo Koban 60-me

The title of this study, "Edo Koban 60-me" means the following: in "Edo," one ryo (a unit of gold currency) of "Koban" (a middle-sized oval gold coin) was equal to "60-me" (me: the abbreviation of a unit of silver currency, momme, in round numbers) as the fixed exchange rate. This is a phenomenon seen only in the Edo commodity market, and the fixed exchange rate was used only when Edo citizens bought silver-denominated commodities from Kamigata (Osaka and Kyoto area) in gold coins. Osaka and Edo were the two major markets in early modern Japan. Osaka was the center of commerce, and exported large volumes of goods mainly to Edo. Edo was the political center and the largest consumer of goods from the Kamigata region. The early modern monetary system was a bimetallism of gold and silver coins, with copper coins used as small denominations. In Osaka, the pricing of goods and settlement of accounts was conducted in silver denomination. Contrarily, in Edo, transactions were handled in gold and copper coins. Gold and silver had fluctuating market prices. The shogunate set the rate at 60 momme per one ryo in 1700, but the Edo commodity market was the only one that adhered to this rate. The Kamigata market and the Edo financial market continued with the existing fluctuating prices. A unique phenomenon occurred. Kamigata merchants manipulated silver prices before shipping goods to Edo. In the mid-Edo period, silver usually had a high price, and the Edo selling price had already caused a price spike in Osaka before exporting. Thus, "Edo Koban 60-me" was a sociocultural phenomenon that could not have been created unless all the following conditions were met: a fixed exchange rate in the Edo commodity market, floating market prices in the Kamigata market, transactions in gold denomination in Edo, settlements in silver denomination in Kamigata, goods shipped to Edo being denominated in silver, and the pricing method in futures of Kamigata merchants. These historical commercial facts are readily apparent in the documents of merchant families in the early modern period, and are also discussed in early modern books. Even ukiyoe woodblock prints depict "Koban 60-me" in scenes of buying and selling inside Edo stores. However, this has not become common academic knowledge in modern Japan, and is hardly known to the general public even though the Japanese love their own history. For instance, in the academic world, the current understanding is that, despite the shogunate's effort to fix an exchange rate between gold and silver, in effect, they floated against each other in all markets. The specific circumstances of the Edo market are not recognized. Thus, the understanding of East-West trade also assumes only a unitary floating exchange rate; that when silver was high, the purchasing power of gold would decline, leading to a decrease in Edo's imports, which would, in turn, increase demand for the Edo market and lead to higher prices. This does not recognize that prices had been raised prior to exportation. The purpose of this study is to incorporate the "Edo Koban 60-me" phenomenon into the common knowledge of early modern Japanese history.