Publications and Research

Spring 2002

Inflation and the Macroeconomy: Changes from the 1980s to the 1990s by David Longworth Trends in Productivity Growth in Canada by Allan Crawford Private Capital Flows to Emerging-Market Economies by Jean-François Perrault Foreign Takeovers and the Canadian Dollar: Evidence and Implications by Lawrence Schembri See also: Tables A1, A2, and Notes to the Tables

Cover: Japanese Hansatsu

Affectionately termed "bookmark money" because of their strong vertical orientation, Japanese hansatsu were one of the world's most distinctive currencies. The notes derive their name from the territories (han) of cash-starved local feudal lords (daimyo) who, when faced with meagre revenues, issued paper notes (satsu) in place of precious metal coins.

From the early days of the Tokugawa Shogunate in the seventeenth century, until the mid-nineteenth century, thousands of these notes were issued by local nobles, towns, religious groups, companies, and merchants. In an attempt to promote its own coinage, the central government banned their issue in 1707. But faced with the financial ruin of the daimyos, the government rescinded the ban in 1730.

Designs featured on the notes included images of local flora and fauna, such as chrysanthemums and storks; waves (nami); and mythical figures, such as Diakoku the god of wealth shown seated atop two bags of grain, an early means of barter in Japan. Notes were denominated in weights of gold (kin), silver (gin), or copper—and sometimes even in commodities such as charcoal or umbrellas.

With the restoration of the monarchy in 1867, many private notes were pulled from circulation. Others, issued by more financially solvent groups, were significantly devalued and served as an additional form of payment until the government was able to produce enough coins. Even the first paper currency issued by the new government resembled hansatsu. It was not until 1879 that the last hansatsu were replaced by notes that were decidedly more Western in appearance.

The notes on the cover range in value from 5 ryo to 50 mon and date from the late eighteenth century to the mid-nineteenth century. The largest measures 5.5 by 16.8 centimetres. All four pieces are part of the National Currency Collection, Bank of Canada.

Photography by James Zagon, Ottawa.