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


  • Yasuo Takatsuki

    () (Graduate School of Economics, Tokyo University)


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.

Suggested Citation

  • Yasuo Takatsuki, 2007. "Traditional financing and distant trades during modernization process of financial industry: a case of Yamaguchi prefecture in the 1870s," Discussion Papers in Economics and Business 07-39, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  • Handle: RePEc:osk:wpaper:0739

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    Japanese modern economic history; Rural financial institution; Commodity collateral loan.;

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • N95 - Economic History - - Regional and Urban History - - - Asia including Middle East

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