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

Phase 08 - Japan's Early International Relations

The foreign policy of Osaka Regency was mostly related to trade until the mid-17th century.

In 1602, red seal permits were issued once again, and by monopolizing the issuance of these permits, they aimed to centralize trade, increase the central government's revenue, and decrease the income of the daimyōs. They particularly controlled the trade of overseas-produced raw silk and strengthened their connections by granting these rights to prominent merchants in cities such as Kyoto, Osaka, Sakai, and Nagasaki.

On the other hand, they allowed each daimyō to take independent actions in the exploration of new trade routes, albeit under a permit system. The intention was to let the daimyō bear the hardships and, once profits were generated, the central government would take them over. This policy marked the beginning of the development of Ezo (Hokkaidō) and played a significant role later when expanding to the Pacific.

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At that time, most of the imported goods were luxury items like silk, which Japan did not particularly need, exotic items like sugar, and products that were only available overseas. On the other hand, the goods that Japan should have exported were primarily centered around metals and processed metal products, but despite not being in extreme wealth, the shortage of processed export goods, akin to what we might call a trade deficit today, was accumulating. To compensate for this, Japan relied heavily on silver, which was abundant in various regions of the country, particularly in terms of its production. During this period, Japan could be said to have used silver as a kind of export item, acquiring a vast amount of luxury and exotic goods from overseas, thanks to its possession of nearly one-third of the world's silver production. In addition, Japan had a substantial production of gold, which was abundant on a global scale, and both gold and silver, along with various copper coins, were widely used in domestic circulation.

Having these globally valued commodities—gold and silver—allowed Japan to conduct smooth trade with various parts of the world. The reason Spain and the Netherlands (Holland) went out of their way to come to Japan was precisely because of its abundant gold and silver. After all, they paid little attention to the neighboring Korean Peninsula. It's clear what their purpose was.

Japan's trade, centered on the use of abundant gold and silver, revolved primarily around luxury goods, especially silk and its processed products, with daimyōs and major merchants at the forefront. This trend was particularly strong in the first quarter of the 17th century, during which a significant outflow of gold and silver occurred from Japan.

The massive outflow of gold and silver gradually began to pose a threat to the Regency, becoming a significant catalyst for the implementation of countermeasures.

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As Japan began to venture on its own towards Southeast Asia, especially near the equator, shipbuilding technology and navigational skills inevitably improved. Around 1610, keel-strengthening structures were introduced to enhance the oceangoing capabilities of ships, and in the 1620s, sails were also designed similarly to those in Europe. To achieve higher speeds, both the number of masts and sails increased. Sails designed to catch crosswinds became common. Multiple decks were added to ships to increase their strength, and technology involving pulleys and gears for handling sails rapidly improved. A full-fledged factory for producing various tools and equipment for building sailboats was established in the town of Sakai in 1618.

Initially, ships had a small carrying capacity of around 1.000 koku (approximately 140 tons). However, they doubled in size approximately every ten years, and by the 1630s, large sailboats with a displacement of around 1.000 tons (carrying capacity of 10.000 koku) had become commonly used. Such large vessels were necessary for serious Pacific crossings.