Abstract: The Bourgeoisie Revolution or Jay`s National Return during 1867-1868 paved way for the relatively fast growth of capitalism in Japan. The dispersion of Feudalism was a history and large factories were being built all over the country. The state officials who were under pressure of farmers who were protesting the feudalism relationship had no way than making some reforms in agriculture. According to one of these reforms during 1872-1873, only the ownership of those would be recognized who had been an owner in advance; that is, those who had inherited plots of lands. The mortgage lands were owned by those who had paid money for mortgage. This reform gave important benefits and privileges to the landowners and rich villagers, merchants and usuries who had taken villagers` lands on lien. The villagers lost their ownership right on one third of the lands they used to possess: common lands, including forests, ranges and pastures were put in possession of emperor and changed him to the most powerful landowners of the territory. The owners of small lands and village units who were indebted in all their properties and an increase in land tax had made their burden heavier immediately found out that they were not able to keep the lands they had obtained in recent reforms and thus, they changed into lease villagers with no ownership right. Their lands were owned by large land owners and rich farmers and for all their lives, they had to be depended to those wealthy landowners.