However, due to the revision of the regulation of national bank in 1876, it was virtually permitted to issue inconvertible paper currency, and inflation caused by issuing inconvertible paper currency repeatedly in accordance with increasing war spending for Seinan War rapidly progressed.
しかしすでに明治9年の国立銀行条例改正により事実上不換紙幣の発行が認められるようになっており、ｃ不換紙幣の増発が続いたため、インフレが急速に進行。