The Kyoho Reforms

Sweet potatoes were introduced as a replacement for rice by Yoshimune.

As prices ran higher, Yoshimune was forced to enact policy to control the prices of commodities[1]. Financial condition were poor, and the Bakuhan system was breaking down[2]. Furthermore, since the economy had just switched from a rice economy to a money economy, reforms were necessary to correct for inefficiencies in the new system and mounting deficits[3].

Tokugawa Yoshimune presided over several reforms. These reforms included, but are not limited to[4]: the institution of import substitution for certain commodities, a shift from rice to physical currency as a medium of exchange, upward movement of rice tax rates, trade credit reforms, and various agricultural reforms. The two reforms that are most important to emphasize are the institution of import substitution for certain commodities, and the debasement of rice as the main form of currency.

Import substitution gained Yoshimune the nickname of Kome Shogun, or the rice shogun[5]. It also was one of the more successful reforms of his tenure, as the introduction of sweet potato as a substitute for rice not only allowed the Japanese agricultural economy to produce another commodity and increase the gross industrial output of each domain, but it also alleviated pressure off of rice prices. Furthermore, he recognized the poor trade balance between Korea and Japan, and acted on the fact that one of Korea’s main exports—ginseng—could be cultivated in Japan[6].

Unfortunately, the second reform was not as successful as the import substitution. By debasing rice as a currency, it forced peasants to exchange for cash in order to pay for items[7]. While in principle this seems simple, it is difficult to standardize and successfully integrate a new currency—especially in times of famine and economic recessions. Additionally, peasants were being taxed at a much higher rate, and therefore were accumulating essentially useless cash in exchange for giving up their food supply. Therefore, the viscious cycle created by this reform had effects that were more of a detriment than an aid. Ultimately, Tokugawa Yoshimune had interesting and methodical answers to the mounting issues in Japan’s economy. Yet, despite his best efforts, the Kyoho reforms were generally unsuccessful in correcting the Tokugawa economy from 1732 to 1745.