By the late 1870s, the new government faced enormous financial pressures.  It dealt with yen depreciation and price inflation.   The former Samurais  suffered greatly because of the conditions.  For that, and other reasons, some of them revolted in early 1877.  This caused the Seinan or Samurai War.  The Meiji Emperor was able to defeat the former Samurais after eight months.The Ryukyu Island nation status had long been ambiguous.  Both Japan and China had claims to some or all of the islands.  This was finally decided in Japan's favor in 1879.  In a limited capacity, the decision involved an attempted mediation by former United States President US Grant.The Korea issue was finally decided in the Treaty of Kanghwa (or Ganghwa) (1876) with Japan.  Not without, however, further damage to the relations between Japan and China.