(This Document is the Property of His Britannic Majesty's Government.]
2
1,000 copper cash, can have no fixed relation to the silver or gold standards of other countries.
As the Chinese Government have decided, for reasons the force of which is fully apparent, to abandon the idea of proceeding at once to the adoption of a gold standard, the only means of complying with the Treaty obligations is the introduction of a silver standard coin of uniform weight and fineness. The precise amount of fine silver to be contained in this coin is a matter of minor importance. The essential thing is that the prescribed amount shall be adhered to, at whatever mints it may be coined. But silver dollars have long been current in the most active trading centres. They are known and trusted, and there would be considerable practical convenience in the adoption of a coin corresponding as nearly as possible to the weight and fineness of existing dollars.
The relation of the dollar to the Haikwan tael could then at once be fixed, and would remain permanent. Its relation to the copper currency would be liable to variation, but could be fixed provisionally from time to time. When the dollar had become established in circulation, steps should be taken for the definite fixing of its relation to the copper coins, the issue of those coins from the mints being controlled so as to render the ratio stable. If these steps could be carried out--and with efficient and determined effort on the part of the Central Government, they should present no insuperable difficulty-China would then be in the possession of a uniform silver currency with a token currency of copper regulated like the subsidiary currencies of other countries. Then the problem could be faced, if thought desirable, of changing the currency from a silver to a gold basis, as has been already done in other countries whose position in currency matters was similar.
Whether the production of coins should be limited to one central mint or be carried on at several provincial mints will naturally be decided according to conve- nience, but it will no doubt appear to the Chinese Government to be essential that the provincial mints, if they continue to operate as branches of the central mint, should do so uniformly under central control and supervision rigidly exercised by inspectors sent out by the Government.
I trust your Highness will be able to give me assurances on this subject which will satisfactorily prove to His Majesty's Government that effectual measures are being taken to provide for a uniform national currency such as is contemplated by Article II of the Treaty of 1902.
I avail, &c.
(Signed) ERNEST SATOW.
CHINA TRADE.
(
CONFIDENTIAL.
(No. 337.) My Lord,
No. 1.
C. O.
191
[December 2]
P SECTION 1 JAN 06
638
Sir E. Satow to the Marquess of Lansdowne.--(Received December 2.)
Peking, October 13, 1905. IN my despatch No. 242 of the 11th July, I had the honour to forward copies of a letter addressed to the Diplomatic Body by the Shanghac General Chamber of Commerce on the subject of the new copper coinage, and of a reply sent through the Doyen, asking for more exact information. I added that it was probable that a representation would be addressed to the Chinese Government by the foreign Representatives in regard to this question.
The reply received from the Chamber of Commerce, of which a copy is inclosed, was disappointing. It did not furnish the desired answers to our questions, but on some points suggested that information could be obtained from the Chinese Govern- ment. On the important item of the alleged deviations from a supposed standard, and the varying intrinsic values of the coins issued by different Provincial Govern- ments, it merely quoted hearsay statements. Under these circumstances, when the reply of the Chairman was circulated here, I expressed the opinion that the letter did not furnish sufficiently exact data for basing on it a representation to the Chinese Government, but I had no objection to addressing to them a note framed in general terms calling their attention to the necessity of regulating the issue of 10-cash pieces. Most of the other foreign Representatives were disposed to agree, but the American Minister stated that, under instructions from his Government, he was unable to join his colleagues in making any representations to the Chinese Government in this matter.
The Doyen of the Diplomatic Body then put the papers once more in circulation, pointing out that the objection of the United States' Minister precluded collective action on the part of the Diplomatic Body, and he suggested that those of us who considered it desirable might present their observations to the Chinese Government separately, adding that he had, as German Minister, already taken that step. Beyond Baron von Mumm and myself, I do not know that any other foreign Representative has addressed the Chinese Government.
It was then agreed to send the inclosed reply to the Chamber of Commerce. The report transmitted with this letter formed Inclosure 1 in my despatch to your Lordship No. 307 of the 17th ultimo,
I have, &c. (Signed)
Sir,
in hound
Inclosure 1 in No. 1.
ERNEST SATOW.
Extract from the "North China Herald" of August 25, 1905.
Shanghae General Chamber of Commerce to Dr. Knappe.
I HAVE the honour to acknowledge receipt of your letter of the 13th July, inclosing copies of a letter and Memorandum received from Baron Mumm von Schwarzenstein, Doyen of the Diplomatic Body in Peking, relating to the minting of copper cash in China.
I note from the letter that the question was thoroughly looked into by the Ministers, but that several of those present wished for further information on several points, which are set forth in the Memorandum.
The information given by the Chamber was derived from merchants and bankers who have given careful study to the question, but it is extremely difficult to obtain through unofficial channels absolutely accurate information as to the present producing power of the various mints established. If the four mints which appear to have been omitted from our list are added to the fifteen established or projected, as stated in my
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