Turning Point - Sekigahara: Toyotomi's Global Expansion and its Consequences

Phase 17 - Japanese Society Under the Vienna System

In 1815, the so-called Napoleonic Wars came to an end.

Napoleon achieved a splendid comeback during the Congress of Vienna, but it all collapsed in the Battle of Waterloo, and Europe regained a temporary sense of stability within the conservative framework known as the Vienna System.

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During the Napoleonic Wars, Japan joined the Third Coalition against France and was the only nation of color to send a delegation to the Congress of Vienna. At the conference, Japan was formally recognized as gaining possession of the Spanish territories of the Philippines and Guam.

However, the conference was convened with special consideration from Britain, and separate negotiations for territorial exchange between Japan and Britain took place. Britain requested the sale of a specific location in exchange for Japan's participation in the conference and the acquisition of the Spanish territories.

As a result of the conference, Japan sold the Malay Peninsula, which it had taken from the Netherlands in the 17th century, to Britain. Additionally, Japan decided to relinquish its rights to the neighboring Aceh Sultanate. The sale price was 5 million pounds (30 million ryōs). Japan chose this path to minimize losses rather than wait until it could no longer withstand the pressure from European powers. The wars in Europe were more intense and advanced than those Japan had conducted.

Furthermore, Britain had gained the upper hand within the European coalition, securing its dominance in India. This resulted in the loss of profitability in the trans-Malacca Strait trade for Japan and difficulties dealing with local Islamic factions, which contributed to Japan's decision to sell the Malay Peninsula.

During this transaction, Britain promised to transfer advanced technology and provide technological assistance and support to Japan. Subsequently, industrial innovation in Japan would advance ahead of the European continent.

However, this Malay purchase is often seen as a strategic defeat for Japan. In the short term, Japan conditioned the sale on joint use rights for the port of Malacca. Still, Britain established Singapore Island (Kaishi Island) at the tip of the Malay Peninsula as its new base, causing Malacca to rapidly decline thereafter.

In the long term, it contributed to Britain's expansion into East Asia. Nevertheless, in the early 19th century, Japan lacked the power to resist Britain's immense influence. From the perspective of limiting immediate damage, this transaction can be considered effective for Japan. At the very least, it prevented Japan from becoming an immediate target, which brought certain benefits to Japan.

Moreover, in the early 19th century, Japanese society as a whole held a position of advantage over Britain, providing a certain degree of flexibility to the Japanese.

This flexibility extended to the financial system.

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Throughout the 18th century, Japan maintained a thriving economy, thanks to a highly skilled group of prospectors who had been active since the Sengoku period, searching for gold mines in the Pacific Rim region. This era of prosperity is often considered the largest in Japanese history, built upon vast quantities of gold. Since most economic zones around the world, including Europe and China, relied on silver as the economic basis, Japan further amassed gold by selling silver for profit.

Until the turmoil of the late 18th century, Japan's trade balance remained mostly in the black. Other economic zones had to pay attention to Japan's release of gold. Still, due to the overflowing gold from Japan, the trend of gold appreciation and silver inflation continued aggressively for over half a century. For about half a century in the 18th century, Japan was quite literally the "Land of Gold."