Rank under the kindai shakaku seido was not simply an honour; it determined whether a shrine received state funding at all, and this made the system a direct incentive for local communities to seek promotion for their own shrine, or to fear demotion, since a shrine without any rank stood entirely outside state support. That pressure had a harsher edge in the shrine merger campaigns, jinja gappei, that the government pursued especially in the early years of the twentieth century, consolidating large numbers of small, unranked local shrines into fewer, larger ranked ones on the reasoning that Japan had far more shrines than the state could usefully administer or afford to fund, and that concentrating ritual and resources in fewer sites would strengthen shrine Shinto as a unifying civic institution.
The policy fell unevenly across the country, provoking local resistance in a number of prefectures and, most notably, sustained public opposition from the naturalist and folklorist Minakata Kumagusu, who argued the mergers destroyed both irreplaceable local shrine groves and the communal religious life organised around them. The episode shows the ranking system's real effect extended well past ceremonial precedence at Ise or the kanpeisha tier: it created a state administered hierarchy of religious worth that could be used to justify eliminating shrines the state judged surplus, a use of the shakaku system that the postwar Shinto Directive's abolition of the entire ranked structure was in part a reaction against, alongside the directive's better known aim of separating religion from state support altogether.