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In a recent issue of the " Peiyang Kuan Pao," anterior to the 6th June, it is stated that there are eighteen mints for the production of copper coins. Of these the Kuanghsi, Yunnan, Fengtien, and Tien-tsin (Board of Revenue) Mints are not mentioned in the Chamber of Commerce list.
The "Peiyang Kuan Pao" gives the share of profits each mint is ordered to provide annually towards the expenditure of the Lien-ping-chu (Military Commission), amounting to a total of 7,050,000 taels. Doubtless these mints will continue to give a profit, at least until the quantity of coin produced by them reaches the point at which no more can be absorbed by internal commerce. It is not unlikely, however, that the Chinese Government imagine that they have here a perennial source of profit, and to warn them against the danger of depreciation owing to over-issue seems a quite legiti- mate step for the Representatives of Powers to take who have Treaties containing a clause similar to Article II of the British Commercial Treaty of 1902. Whether the Representatives of Powers which have not concluded such Treaties can nevertheless appeal to the British, American, and Japanese is, of course, a question for them to decide.
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The Chairman of the Chamber of Commerce refers the Diplomatie Body to the statements given on pp. 12 and 13 of the "Report on the Trade of China, and Abstract of Statistics," published this year by the Imperial Maritime Customs. This publication estimates the output for 1904 at 1,745,000,000 copper pieces (variously denoted as "one-hundredth of a dollar" and "ten mills "), while the Chairman of the Chamber estimates that when the whole of the mints, new and old, are in operation the annual output will be 16,413,000,000 pieces, or nearly ten times as many.
An explanation of the apparent difference between these two estimates is to be desired, And further, as these new coins are presumably to replace the existing cash, it would be useful if the Chairman of the Chamber could inform us how many of such pieces (including fractional coins such as he speaks of in the last paragraph of his letter) would, in the opinion of his Chamber, be required for a population of 400,000,000 people.
The Chairman remarks that "in permitting the provincial authorities to produce these 10 cash pieces in varying intrinsic values she (China) is evading her Treaty obligations." Something more explicit than this statement is necessary as a foundation for a remonstrance to the Chinese Government against evasion of her Treaty obliga- tions, It is desirable that precise information, accompanied by expert evidence, should be furnished as to what mints have produced 10-cash pieces of a less intrinsic value than the assumed standard, and to what extent such issues vary from the standard.
June 24, 1905.
Again, Chou Fu, Acting Viceroy of the Liang Kiang, proposed in a Memorial last year that the mints for copper coin should be amalgamated, pointing out that the establishment of every new mint meant another addition to the expenditure, and that differences in the qualities of the coins produced by these various mints was a serious inconvenience. He therefore counselled greater care in this question.
The Board agrees that, though the increased minting of copper coins is desirable, yet the issue of them from an unlimited number of mints is inexpedient. After much consultation, the Board has come to the conclusion that the abolition of the already existing mints would be attended with difficulty, but they consider that the high provincial authorities should carefully superintend their operations and should not establish additional branch mints. No new mints for the coinage of copper should be started in places where they do not now exist, and if there is a necessity for the introduction of copper coins in such places, the authorities should be instructed to pay over a sum of money to the mint of a neighbouring province, which would then return the equivalent in copper coin. In important places where the erection of a mint is desirable this Board will inquire into the circumstances, and, when the head mint at Tien-tsin is in operation, will gradually establish branch mints at Shanghae and other ports with a view to furnishing a uniform currency.
Orders were given by the Board, when the erection of mints in the provinces was first permitted, that monthly reports of their operation should be made. Up to the present, though the mints have been in operation for a long time, the officials have shown of what little importance they consider the currency question by altogether neglecting to do so. The Board, therefore, with a view to saving correspondence and exercising thorough supervision, requests that the high provincial authorities may be called on to strictly direct the officials in charge of the mints to furnish collective annual reports, and also to forward without delay copies of the Local Regulations with regard to the minting and issue of coin to the Board for inspection.
The contributions which it has been admitted the mints should make towards the expenses of the Army Council are matters of great consequence, and further orders should be issued that these should not be allowed to fall into arrears on any pretext, but should be transmitted in full.
Imperial Rescript.-Let it be done as proposed.
Inclosure 21 in No. 1.
Inclosure 20 in No. 1.
Memorial by the Board of Revenue urging that a Limit be set to the Minting of Copper Coin in the Provinces, and that a Uniform Currency be established.
A SOUND currency is the foundation of financial administration, and it is essential that coinage should be uniform. This Board has, in obedience to Imperial Edict, established a head mint at Tien-tsin for the express purpose of producing a uniform currency.
The introduction of copper coins commenced in Kuangtung. Since then this example has been followed by other provinces in order to remedy the scarcity of cash, until now there are not less than twenty mints erected in seventeen provinces. Unless a stop is put to this, further requests will be made to erect similar mints, or to extend the operations of old ones, leading to further waste of money and greater confusion in the currency. In addition, it is feared that not only will great impetus be given to the counterfeiting of spurious com, but also that the com- petition between the various mints for the purchase of foreign copper will be so great as to cause an excessive rise in the price of that article, and cause great financial losses.
Last year the Reform Council (Cheng Wu Chu) and the Army Council (Lien Ping Ch'u), in their joint Memorial on the request of Wei Kuang-tao for permission to extend his minting of copper, declared that în future the minting of silver and copper coins ought to be wholly places under the control of the Board of Revenue, in order that there should be uniformity in the currency and stability in the finances of the country, and, further, that the promiscuous establishment of mints throughout the province should be stopped.
Dear Sir Ernest,
Consul Ker to Sir E. Satow.
Wuhu, December 15, 1904. I BEG to inclose copies of a private correspondence that has passed between Mr. E. S. Little and myself on the subject of mining rights of foreigners in the interior. Mr. Little maintains that the Mackay Treaty "gives foreigners exactly the same right to buy and hold land as the natives anywhere in the interior."
I am unable to accept this view, and as Mr. Little says that he is about to see you on the subject, I think it well that you should know exactly what I wrote to him. If my interpretation of the Treaty is wrong, I should be grateful for instructions.
Dear Mr. Ker,
Inclosure 22 in No. 1.
I remain, &c. (Signed) W. P. KER.
Mr. E. S. Little to Consul Ker.
Shanghae, December 1, 1904. I AM sorry to find on my return your letter cutting short Ede's Concession. I do not yet know what we shall do about it, but it is a pity that the Minister has taken the view he has. One of the oldest and most respected merchants in Shanghae said to me a day or two ago, in connection with another enterprise, "I would not put a penny into any British affair; the only people who get any support are the Germans." It is absolutely
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