Matsukata Masayoshi

Matsukata Masayoshi

▪ prime minister of Japan
in full (from 1906)  Kōshaku (Prince) Matsukata Masayoshi 
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.

      Matsukata was a high-ranking official in the Satsuma domain when the Tokugawa family was overthrown and ruling authority was formally restored to the emperor (1867–68). He then held various important positions in the new government and by 1881 was minister of finance. As such, he became the major advocate and executor of financial reform.

      The government had met the severe financial strain of modernizing Japan by printing paper money. By the 1880s currency was badly depreciated, specie was being hoarded, and revenues were declining in value because of the fixed tax on land. 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. By mid-decade 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) who advised the government on its policy making.

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Universalium. 2010.

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