The task was approached with wholesale energy by those in power. In general the direction of the work was divided among foreigners of different nations. Frenchmen were employed in revising the criminal code and in teaching strategy and tactics to the Japanese army. The building of railways, the installation of telegraphs and of lighthouses, and the new navy were turned over to English engineers and sailors. Americans were employed in the formation of a postal service, in agricultural reforms, and in planning colonization and an educational system. In an attempt to introduce Occidental ideas of art Italian sculptors and painters were brought to Japan. And German experts were asked to develop a system of local government, to train Japanese physicians, and to educate army officers. Great misgivings were expressed by foreign onlookers at this juncture. They found it impossible to believe that such wholesale adoption of an alien civilization could not be attended with due eclecticism, and they constantly predicted a violent reaction. But all these pessimistic views were contradicted by results. There was no reaction, and the memory of the apprehensions then freely uttered finds nothing but ridicule to-day.
FINANCE
One of the chief difficulties with which the Meiji statesmen had to contend was finance. When they took over the treasury from the Bakufu there were absolutely no funds in hand, and for some years, as has been shown above, all the revenues of the former fiefs were locally expended, no part of them, except a doubtful surplus, finding its way to the Imperial treasury. The only resource was an issue of paper money. Such tokens of exchange had been freely employed since the middle of the seventeenth century, and at the time of the mediatization of the fiefs, 1694 kinds of notes were in circulation.
The first business of the Government should have been to replace these unsecured tokens with uniform and sound media of exchange. But instead of performing that duty the Meiji statesmen saw themselves compelled to follow the evil example set by the fiefs in past times. Government notes were issued. They fell at the outset to a discount of fifty per cent, and various devices, more or less despotic, were employed to compel their circulation at par. By degrees, however, the Government's credit improved, and thus, though the issues of inconvertible notes aggregated sixty million yen at the close of the first five years of the Meiji era, they passed freely from hand to hand without discount. But, of course, the need for funds in connexion with the wholesale reforms and numerous enterprises inaugurated officially became more and more pressing, so that in the fourteenth year (1881) after the Restoration, the face value of the notes in circulation aggregated 180 million yen, and they stood at a heavy discount.
The Government, after various tentative and futile efforts to correct this state of depreciation, set themselves to deal radically with the problem. Chiefly by buying exporters' bills and further by reducing administrative expenditures as well as by taxing alcohol, a substantial specie reserve was gradually accumulated, and, by 1885, the volume of fiduciary notes having been reduced to 119 millions, whereas the treasury vaults contained forty-five millions of precious metals, the resumption of specie payments was announced. As for the national debt, it had its origin in the commutation of the feudatories' incomes and the samurai's pensions. A small fraction of these outlays was defrayed with ready money, but the great part took the form of public loan-bonds. These bonds constituted the bulk of the State's liabilities during the first half-cycle of the Meiji era, and when we add the debts of the fiefs, which the Central Government took over; two small foreign loans; the cost of quelling the Satsuma rebellion, and various debts incurred on account of public works, naval construction, and minor purposes, we arrive at the broad fact that the entire national debt of Japan did not exceed 305 million yen at the close of the twenty-eighth year of her new era.
A war with China in 1894-1895—to be presently spoken of—and a war with Russia in 1904-1905, together with the price paid for the nationalization of railways and for various undertakings, brought the whole debt of the nation to 2300 million yen in 1907, which is now being paid off at the rate of fifty million yen annually. It remains to be noted that, in 1897, Japan took the momentous step of adopting gold monometallism. The indemnity which she obtained from China after the war of 1894-1895 brought to her treasury a stock of gold sufficient to form a substantial specie reserve. Moreover, gold had appreciated so that its value in terms of silver had exactly doubled during the first thirty years of the Meiji era. There was consequently no arithmetical complication connected with the adoption of the single gold standard. It was only necessary to double the denomination, leaving the silver subsidiary coins unchanged.
EDUCATION
In the field of education the Meiji statesmen effected speedy reforms. Comparatively little attention had been directed to this subject by the rulers of medieval Japan, and the fact that the Meiji leaders appreciated the necessity of studying the arts and sciences of the new civilization simultaneously with the adoption of its products, bears strong testimony to the insight of these remarkable men. Very shortly after the abolition of feudalism, an extensive system of public schools was organized and education was made compulsory. There were schools, colleges, and universities, all modelled on foreign lines with such alterations as the special customs of the nation dictated. These institutions grew steadily in public favour, and to-day over ninety per cent, of boys and girls who have attained the school age receive education in the common elementary schools, the average annual cost per child being about 8s. 6d. ($2.00), to which the parents contribute 1.75d. (3.5 cents) per month. Youths receiving education enjoy certain exemption from conscription, but as this is in strict accordance with the Western system, it need not be dwelt upon here.
LOCAL ADMINISTRATION
For purposes of local administration the empire is divided into prefectures (ken), counties (gun), towns (shi), and districts (cho or son). The three metropolitan prefectures of Tokyo, Osaka, and Kyoto are called fu, and their districts are distinguished as "urban" (cho) and "rural" (son), according to the number of houses they contain. The prefectures derive their names from their chief towns. The principle of popular representation is strictly adhered to, every prefecture, every county, every town, and every district having its own local assembly, wherein the number of members is fixed in proportion to the population. These bodies are all elected. The enjoyment of the franchise depends upon a property qualification which, in the case of prefectural and county assemblies, is an annual payment of direct national taxes to the amount of three yen (6s., $1.50); in the case of town and district assemblies two yen; and in the case of prefectural assemblies, ten yen. There are other arrangements to secure the due representation of property, the electors being divided into classes according to their aggregate payment to the national treasury. Three such classes exist, and each elects one-third of an assembly's members. There is no payment for the members of an assembly, but all salaried officials, ministers of religion, and contractors for public works, as well as persons unable to write their own names and the names of the candidates for whom they vote, are denied the franchise.