Kinroku Kosai (金禄公債)

Kinroku Kosai was the public bond issued for people in the class below aristocrats in compensation for the abolition of the Roku-rewarding system after the Meiji Restoration.

The grand total of bonds reached 173,908,900 yen with four types of interest rate of 10%, 7%, 6%, and 5%. The number of people qualified to receive the bond, who were paid previously under the roku system, rose to 340,000. The bond was issued in 1877.

In September, 1875, the Meiji government supplied cash currency to each region, in the amount equal to 3 years worth of roku-type reward distributed in rice (Kinroku).

To avoid a government financial crisis, the government abandoned the roku-rewarding system, and established the kinroku kosai, a 30-year government bond, with a deferment period of 5 years; the interest rates were 7% for less than 100 yen, and 5% for more than 1000 yen.

Among bonds issued at the time, it was issued in the largest quantity, reaching a grand total of 173 million 900 thousand yen; all payments were completed in 1890.

[Original Japanese]