paper-money would be the ruin of the country and alleging that the compensation claims against the Seoul-Fusan Railway Company were purposely paid in those notes with a view to an ultimate declaration of bankruptcy upon behalf of the bank, Yi Yong-ik summoned on January 24th a meeting of the Pedlar's Guild, at which he forbade their acceptance of this paper-money. A few days later, February 1st, the Mayor of Seoul posted an edict throughout the city giving effect to this prohibition and, at the same time, threatening with most severe penalties any one who used the notes or in any way assisted to circulate them. The Finance Department then circulated the edict throughout the provinces, whereupon an immediate run upon the bank ensued. Three days later, upon February 4th, the Acting Japanese Minister threatened the Government with the demand of an indemnity and a number of mining and railway concessions in compensation for the injury occasioned the bank, unless the obnoxious measure was withdrawn. After considerable discussion and various meetings, the Korean authorities agreed to withdraw all obstruction and to publish throughout the Empire their recognition of the existence of the bank. From that day the validity of the position of the Dai Ichi Ginko has been unquestioned.
The exactions and dishonesty of the officials impose a perpetual drain upon the national exchequer. In the removal of this one great evil, another serious obstacle to a more flourishing financial condition would be surmounted. Unfortunately, the drought and famine of 1901, added to the decrease in the revenues of 1902, created a discrepancy of five million yen. If this deficit may be considered extraordinary, no extenuating circumstances can excuse the supplementary losses of revenue attributable to the personal
