A City Guide To Luoyang for In 1899, the Bank of Japan issued 10-yen gold coins and convertible banknotes. The gold standard remained in effect until WORLD WAR I (1914 18) forced the advanced capitalist powers to halt their gold shipments. During the war, Japanese companies made windfall profits exporting to the Allied powers and to Asian markets vacated by European firms. This wartime boom rapidly increased Japanese domestic prices and forced Japan to suspend the yen’s convertibility to gold. After the war, the Japanese government’s attempts to restore convertibility with deflationary policies aggravated an already severe RECESSION. The yen’s convertibility to gold was finally restored in 1930, but the timing could not have been worse. The onset of the Great DEPRESSION further weakened Japanese exports resulting in mounting trade deficits. A City Guide To Luoyang 2016.