At the end of 1949, the Republic of China's government received a batch of gold from Japan after moving to Taiwan. Some of the gold was allocated to China by the Allied headquarters under the name of "stolen items". In short, it was war reparations.1
The source, quantity, and subsequent whereabouts of the gold compensated by Japan have long been a mystery. However, Feng Da-Zhong (馮大宗), who was employed at the Chengdu Branch of the Central Mint in July 1949 and was transferred to the Central Mint of Taiwan (Taiwan Mint) in September of the same year as the head of the department responsible for melting, was one of the witnesses to the shipment of this batch of gold. Many years later, he published an article entitled 'Memories of the Old Mint in the Stormy Times' (《風雨飄搖憶老廠》), which unmasked the hidden secret to the outside world.2
Feng's article writes, "...The material gold used in the Taiwan Mint was mostly shipped from the mainland, and it was the Bank of Taiwan that handed it over to the Taiwan Mint on demand... I was the head of the department responsible for melting, and our department needed to open many packages of gold ingots and gold jewelry wrapped in mulberry paper for the exchange of gold yuan notes every day......Later, we found that some of the gold ingots were weighing about 1000 taels in .9999 fineness, which was the most precious out of the Japanese repatriations. It was a pity to melt them together, but there's nothing we can do about it."
The event mentioned in the text above took place at the end of 1949 when the Taiwan Mint was ordered to cast various kinds of gold handed over by the Taiwan Bank into gold bars. All of the gold was transferred from the Central Bank, including the gold shipped from the mainland, the gold that the public were mandated to exchange into gold yuan notes, and later .9999 gold ingots from Japan. Feng Da-Zhong knew that these gold ingots made in Japan were compensated by Japan, and those of .9999 purity were the most valuable. Even so, he had no choice but to melt gold ingots and cast them into gold based according to the requirements. Feng's statement showcases what happened to the gold compensated by Japan after it arrived at the Taiwan Mint, that is, all gold ingots were melted and cast into gold bars as raw materials.
The source, quantity, and subsequent whereabouts of the gold compensated by Japan have long been a mystery. However, Feng Da-Zhong (馮大宗), who was employed at the Chengdu Branch of the Central Mint in July 1949 and was transferred to the Central Mint of Taiwan (Taiwan Mint) in September of the same year as the head of the department responsible for melting, was one of the witnesses to the shipment of this batch of gold. Many years later, he published an article entitled 'Memories of the Old Mint in the Stormy Times' (《風雨飄搖憶老廠》), which unmasked the hidden secret to the outside world.2
Feng's article writes, "...The material gold used in the Taiwan Mint was mostly shipped from the mainland, and it was the Bank of Taiwan that handed it over to the Taiwan Mint on demand... I was the head of the department responsible for melting, and our department needed to open many packages of gold ingots and gold jewelry wrapped in mulberry paper for the exchange of gold yuan notes every day......Later, we found that some of the gold ingots were weighing about 1000 taels in .9999 fineness, which was the most precious out of the Japanese repatriations. It was a pity to melt them together, but there's nothing we can do about it."
The event mentioned in the text above took place at the end of 1949 when the Taiwan Mint was ordered to cast various kinds of gold handed over by the Taiwan Bank into gold bars. All of the gold was transferred from the Central Bank, including the gold shipped from the mainland, the gold that the public were mandated to exchange into gold yuan notes, and later .9999 gold ingots from Japan. Feng Da-Zhong knew that these gold ingots made in Japan were compensated by Japan, and those of .9999 purity were the most valuable. Even so, he had no choice but to melt gold ingots and cast them into gold based according to the requirements. Feng's statement showcases what happened to the gold compensated by Japan after it arrived at the Taiwan Mint, that is, all gold ingots were melted and cast into gold bars as raw materials.
Fig. 1 A gold cake with yin trademark [寅] and its package made by Hashimoto Industry Group
However, the gold compensated by Japan that was sent to the Taiwan Mint for melting and casting was probably because large gold ingots were not suitable for circulating in the market. As for small gold bars and cakes from the Japanese reparations, Feng did not mention them. This phenomenon should be related to the fact that the Bank of Taiwan had already commissioned the Jin Ruei San Jewelry Shop to melt gold since June 1949, as the Taiwan Mint and the Jin Ruei San Jewelry Shop had received different tasks in melting and minting.
According to the records, it appears that the Bank of Taiwan had given special instructions to Jin Ruei San Jewelry Shop before June 1949. For the gold handed over by the Bank of Taiwan, the shop only melted the miscellaneous gold, while the gold bars, such as London bars, Central Mint bars, and Hong Kong bars, must have been picked out to be used for other purposes.3 Such a situation did not appear in the Taiwan Mint. Therefore, the large gold ingots from the Japanese reparations should have mainly been handed over to the Taiwan Mint by the Bank of Taiwan to melt down, which was witnessed by Feng Da-Zhong. As for the smaller bars or cakes of less than ten taels, they were handed over to the Jin Ruei San Jewelry Shop and were specially preserved. Later, the Bank of Taiwan commissioned the shop to sell them in the market.
Among the gold that the shop was entrusted to sell, there was a kind of gold cake with the yin trademark [寅, one of 12 Terrestrial Branches used as a Chinese ordering system]. They weighed 5 mace, 1 tael, or 5 tael in either bar or cake shape. Their fineness was .9999, but it was changed to .999 for some reason. Since they were made in Japan, Japanese scales were used. One tael was about 37.5 grams per tael, similar to the scale in Taiwan. All of these high-purity gold ingots and bars with yin trademark were cast by the Hashimoto Industry Group.
Hashimoto was founded in 1885 in Osaka, Japan, near the Tennoji Temple, one of the busiest areas. During World War II, Japan was one of the few countries capable of refining .9999 pure gold, and Hashimoto was a leader in this technique. Under the instruction of the Japanese military, Hashimoto became a key industry group in national defense by refining high-purity gold to supply aerospace and communications equipment.
Nowadays gold purity of .9999 is perhaps just a standard purity of gold jewelry for modern society. However, more than 70 years ago, it was quite a different situation. As Feng Da-Zhong said, this purity was quite valuable, and these gold ingots and bars could not regarded as ordinary gold. For instance, when Queen Elizabeth of England ascended the throne in 1953, she received congratulatory gifts from various parties. One of these gifts came from the Bank of England, that is, 1 ounce of .9999 pure gold cake, and it is still on display in the Museum of the Bank of England.4
After Japan's defeat in the war, Hashimoto was placed under the jurisdiction of the headquarters of the Allied Forces, and its equipment and inventory were confiscated. All gold ingots and bars with yin were used as war reparations. Hashimoto transformed itself into a developer of gold for medical use.
According to the records, it appears that the Bank of Taiwan had given special instructions to Jin Ruei San Jewelry Shop before June 1949. For the gold handed over by the Bank of Taiwan, the shop only melted the miscellaneous gold, while the gold bars, such as London bars, Central Mint bars, and Hong Kong bars, must have been picked out to be used for other purposes.3 Such a situation did not appear in the Taiwan Mint. Therefore, the large gold ingots from the Japanese reparations should have mainly been handed over to the Taiwan Mint by the Bank of Taiwan to melt down, which was witnessed by Feng Da-Zhong. As for the smaller bars or cakes of less than ten taels, they were handed over to the Jin Ruei San Jewelry Shop and were specially preserved. Later, the Bank of Taiwan commissioned the shop to sell them in the market.
Among the gold that the shop was entrusted to sell, there was a kind of gold cake with the yin trademark [寅, one of 12 Terrestrial Branches used as a Chinese ordering system]. They weighed 5 mace, 1 tael, or 5 tael in either bar or cake shape. Their fineness was .9999, but it was changed to .999 for some reason. Since they were made in Japan, Japanese scales were used. One tael was about 37.5 grams per tael, similar to the scale in Taiwan. All of these high-purity gold ingots and bars with yin trademark were cast by the Hashimoto Industry Group.
Hashimoto was founded in 1885 in Osaka, Japan, near the Tennoji Temple, one of the busiest areas. During World War II, Japan was one of the few countries capable of refining .9999 pure gold, and Hashimoto was a leader in this technique. Under the instruction of the Japanese military, Hashimoto became a key industry group in national defense by refining high-purity gold to supply aerospace and communications equipment.
Nowadays gold purity of .9999 is perhaps just a standard purity of gold jewelry for modern society. However, more than 70 years ago, it was quite a different situation. As Feng Da-Zhong said, this purity was quite valuable, and these gold ingots and bars could not regarded as ordinary gold. For instance, when Queen Elizabeth of England ascended the throne in 1953, she received congratulatory gifts from various parties. One of these gifts came from the Bank of England, that is, 1 ounce of .9999 pure gold cake, and it is still on display in the Museum of the Bank of England.4
After Japan's defeat in the war, Hashimoto was placed under the jurisdiction of the headquarters of the Allied Forces, and its equipment and inventory were confiscated. All gold ingots and bars with yin were used as war reparations. Hashimoto transformed itself into a developer of gold for medical use.
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Fig. 5Fig. 2, 3, 4 and 5 Four types of gold ingots with yin
This batch of gold bars and cakes of .9999 fineness, which could not have appeared in the market, was sent to Taiwan at the end of 1949, and handed over to the Bank of Taiwan by the Central Bank. The large gold bricks were sent to be melted by the Taiwan Mint. In 1950, some of the smaller cakes and bars were turned over to Jin Ruei San Jewelry Shop for sale.
I'm afraid that the situation of these gold bars and cakes is no longer comparable to the phrase "The swallows raised by the former royal family have now flown into ordinary people's homes". The people of Taiwan even acquired this ultra-high-fineness gold three years earlier than the Queen of England did.
However, most gold circulating in Taiwan was in .99 purity at that time. In order to sell gold and stabilize the price of gold, the Taiwan gold market was established on June 27, 1949, and the standard of fineness of the gold listed on the market was .99. Later on, there were different types of fineness, such as .985, .988, .991, etc., specified in terms of 0.1% units. The .9999 gold bar and cake with the smallest unit of 0.001% enjoyed far advanced purification technique. Undoubtedly, the way to price it and make it acceptable to the market is a problem that must be overcome before selling.
The Bank of Taiwan and Jin Ruei San Jewelry Shop apparently reached an agreement on this very quickly, deciding to give up the fineness bonus and downgrade their purity to directly into .99 gold for easy sale, and no longer apply for a new listing license. As a result, Jin Ruei San stamped these gold bars and cakes with zu chi (足赤, pure gold), Taipei Jin Ruei San, or Jin Ruei San on the gold bars and cakes with yin. This act was to sell gold of higher purity at a lower price. Those who purchased these gold ingots could earn a profit. It caused a sensation at that moment. Although people were not clear about their origin, they still scrambled to buy some. These gold ingots sold out immediately.
I'm afraid that the situation of these gold bars and cakes is no longer comparable to the phrase "The swallows raised by the former royal family have now flown into ordinary people's homes". The people of Taiwan even acquired this ultra-high-fineness gold three years earlier than the Queen of England did.
However, most gold circulating in Taiwan was in .99 purity at that time. In order to sell gold and stabilize the price of gold, the Taiwan gold market was established on June 27, 1949, and the standard of fineness of the gold listed on the market was .99. Later on, there were different types of fineness, such as .985, .988, .991, etc., specified in terms of 0.1% units. The .9999 gold bar and cake with the smallest unit of 0.001% enjoyed far advanced purification technique. Undoubtedly, the way to price it and make it acceptable to the market is a problem that must be overcome before selling.
The Bank of Taiwan and Jin Ruei San Jewelry Shop apparently reached an agreement on this very quickly, deciding to give up the fineness bonus and downgrade their purity to directly into .99 gold for easy sale, and no longer apply for a new listing license. As a result, Jin Ruei San stamped these gold bars and cakes with zu chi (足赤, pure gold), Taipei Jin Ruei San, or Jin Ruei San on the gold bars and cakes with yin. This act was to sell gold of higher purity at a lower price. Those who purchased these gold ingots could earn a profit. It caused a sensation at that moment. Although people were not clear about their origin, they still scrambled to buy some. These gold ingots sold out immediately.
Fig. 6 Imitation Type by Taiwan jewelry shop
A senior jewelry shop owner told me that some jewelry shops even acquired gold ingots and bars with yin trademark in early times due to profit. In addition, many imitations have begun to appear in the market. Against this background, owing to the effect of "bad money driving out good", those who had acquired gold ingots and bars were reluctant to sell and would only collect them. These locally cast imitations were rough in pattern, without a stamp of Jin Ruei San or other jewelry shops. Although they are labeled as .999 or .9999 in purity, their purity is actually an ordinary .99, and some of them have been converted to the Taiwan official scale (1 tael = 31.25 grams). Now, it has become "selling a goat at the price of a dog"!
Before we had the chance to find out the origin of gold ingots and bars with the yin trademark, they had been collected by people and the private sector, and there were only purchasers but no sellers. The story fell silent as few of them came to the market again. It was not until recent years when the gold price kept rising when many people began to sell the gold bars and gold jewelry passed down from their elders, that the gold ingots with yin trademark saw the light of day again, and the truth behind them finally came to light.
Note：
1 Stephen Tai, Stephen Tai, 'What You Don't Know About the Gold in the Government Treasury' (《你所不知道的國府黃金》), Studio Boduoxi. April 2018, second edition.
2 Feng Da-Zhong, Special Issue on the 50th Anniversary of the Opening of the Central Mint. Pp. 106-107. 1983
3 Stephen Tai, 'The Republican Gold File' (《民國黃金檔案》), Studio Boduoxi, pp. 192-193. January 2020.
4 Stephen Tai, Stephen Tai, 'What You Don't Know About the Gold in the Government Treasury' (《你所不知道的國府黃金》), Studio Boduoxi. April 2018, second edition.