Early history (1868–1876) thumb|right|5 yen coin from 1870 (year 3) thumb|right|50 sen coin from 1870 (year 3) Although the Edo Shogunate collapsed with the Meiji Restoration and a new government was born, the monetary system still took over that of the former entity. During this unstable period, the confusion caused by this form of exchange caused economic turmoil.Japan Currency Museum (日本貨幣博物館) permanent exhibit, articles: The History of Japanese Currency, FAQs Japanese Currency The gold (counting money) system of eastern Japan and the silver (weighing money) system of the western Japan were not unified, and the difference in the gold-silver ratio caused a large amount of gold to flow overseas at the end of the Tokugawa shogunate. Emperor Meiji responded to this by appointing Ōkuma Shigenobu as head of Japan's monetary reform program. He worked with Inoue Kaoru, Itō Hirobumi, and Shibusawa Eiichi to run the Ministry of Finance, seeking to introduce a modern monetary system into Japan. Ōkuma eventually proposed that coins, which were previously square, be made into circles, and that the names of the traditional currencies, ryō (両), bu (分) and shu (朱), be unified into yen (円), which was accepted by the government. Other rejected proposals included physical weight units of "Fun" and "Momme" which never made it past the pattern stage.
eArly history (1868–1876) tHumB|RigHT|5 yEn cOIN FrOm 1870 (YeaR 3) thuMB|riGht|50 Sen coiN fRom 1870 (YEaR 3) alThough ThE edO SHogunATe cOllapSeD wIth the mEiji restorAtion aND a New government was born, the moneTAry SyStEm sTiLL toOk over that of the former enTity. durinG thIs unStablE peRiOD, ThE cOnfUsIOn cAUsed by tHIs foRm Of eXcHange cAUseD EcoNOmiC turmoIl.japan curreNcy museum (日本貨幣博物館) permanENt exhIbiT, aRticleS: tHe hiStORy of Japanese curreNCy, faQs JaPaNese currency tHe goLD (Counting moneY) sYstem oF easterN japaN and ThE silvER (weighing Money) sYsteM of thE WestErN JapaN werE nOt uniFIed, and the DIfFeRence in The GOld-silver ratio caused a large AmoUnt of gOLd tO floW OvERseAs at thE end Of THe TokugaWa SHoGuNate. Emperor MEIJI ReSpondED To THiS By appoiNtiNG ōkuMA sHigenobu as Head of JapAn'S moNEtaRY Reform ProGRam. he worKed With INOue KaoRU, Itō hirobumi, aNd shiBUSaWa EIichi to RUn thE minisTry of fINANce, seEking To inTroDUce a ModErn monetary sYStEm into jaPaN. ōkUma evenTuALLY ProPosEd thaT CoinS, wHicH weRe pREvIOusly squAre, BE maDE into Circles, and That tHe Names Of The TrAdITIOnal curREnCieS, ryŌ (両), bu (分) and SHu (朱), Be unified InTo yeN (円), whicH WaS accepTeD bY tHe GoVERnmEnt. OTher REjEctEd proposals incluDed PhYSical weight uniTS Of "FUn" AnD "momme" which never made iT PAst thE PattERn stAge.