This Document is the Property of His Britannic Majesty's Government.
CHINA TRADE.
CONFIDENTIAL.
[38791]
No. 1.
389
44783
[November 7]
SECTION 2.
5 DEC 08
Sir J. Jordan to Sir Edward Grey.~(Received November 7.)
(No. 461.) Sir,
Peking, October 16, 1908.
WITH reference to my despatch No. 11 of the 6th January on the subject of Chinese currency, I have the honour to inclose herewith translations of an Imperial Decree issued on the 5th October, and of the Memorial of the Government Council upon which it was based, ordaining the introduction of a uniform silver currency throughout the Empire, of which a coin weighing 1 Kuping or Treasury tael is to be the unit.
That China has decided to institute a national silver currency before proceeding further towards the adoption of a gold standard appears to be universally approved, but the selection of the tael, rather than the dollar, as the unit of value has come as a surprise to many.
According to the Memorial of the Government Council, eleven provinces voted for the tael against eight in favour of the dollar, and there can be no question that the tael, variable as it has been hitherto in weight and value, represents a standard to the Chinese mind which the dollar has failed to impair.
The new tael and half-tael coins are to be 98 per cent. pure silver, and there will be subsidiary 10-cent and 5-cent pieces of 88 per cent. pure silver. The Board of Finance and the provincial authorities are enjoined to take measures for the early introduction of the new coinage into general use, it being recognized that the use of sycee and the various dollar currencies now in circulation will have to continue for some years to come.
It will be noted that the Memorial of the Government Council was evoked by the representations of Tong Shao-yi on the eve of his departure for America and Europe, that the unfulfilled Articles of the Commercial Treaties (of 1902-3) should be carried out without further delay. One of the objects of Tong Ta-jên's mission being to gain enforcement of Article 8 of the Mackay Treaty, it was obviously essential to him to be able to show that his Government was giving effect to the other Articles of that document, which have hitherto remained under consideration.
Though the present measure is a step towards the fulfilment of Article 2 of the Treaty, it does not require specialized knowledge of the subject to perceive that there are several important omissions in the enactment. Of these, the chief is that no ratio is fixed between the copper currency and the new tael coinage, and the second that no indication is given as to whether the new coins are to be issued solely from mints under the direct control of the Board of Finance. Without provisions upon these two points, it can hardly be said that a national coinage is likely to result from the present Decree, though it is possible that the Board of Finance will safeguard the interests of the Central Government by a supplementary enactment.
I have, &c.
(Signed)
J. N. JORDAN.
* Not printed.
† Abolition of li-kin in return for increase of import duty from 5 to 12 per cent.
‡ Eg., mining currency Di-kin,
$ Uniform Chinese coinage.
[2020 g--2]
necessary-make a reduction for the imitation, though he omitted to state what reduction he proposed to make. Our correspondent gives us particulars as to the whereabouts of the store where this fraud was perpetrated, and if the authorities wish for these particulars we shall be pleased to furnish them. It is bad enough to have foreign trade-marks and designs boldly copied, but it is worse when the retailer knowingly enters into the deception, and charges top prices for inferior goods, thus making an illegitimate profit through the original fraud of the manufacturer,”
Our correspondent sends us two bottles which have contained table vinegar, and at first sight it is difficult to detect any difference between the labels which are affixed to the two bottles. Both have metal capsules, a white label printed in gold on the neck, a plain white narrow slip bearing the words "Superior Table Vinegar," and a large label at the foot, printed in gold, black, and red on white paper. Both labels bear statements that the makers have been awarded prize medals for preserved provisions, and illustrations of these awards are printed in gold. On closer inspection, however, a curious fact comes to light, which is that the firm of C. and E. Morton, and another firm, G. and E. Morison, both have offices at 107, 108, 109, Leadenhall Street, and what seems equally curious is that each of these firms were awarded prize medals at London in 1862, Paris in 1867, Oporto in 1865, and Havre in 1868. Still more remarkable, both Messrs. Morton and Messrs. Morison have branch establishments at Milwall, Lowestoft, and Aberdeen! The explanation of this extraordinary series of apparent coincidences is, however, very common-place. Messrs. Morton, a well-known London firm, are merely the victims of an imitative Japanese rival, who has closely copied their labels, and is apparently filling their empty bottles with his inferior vinegar. The Patent Bureau, which is so keen upon trademarks and designs that may lead to confusion, would do well to study the labels of Messrs. Morton and Messrs. Morison, and if the latter "firm" is using a colourable imitation of the London makers' label, it is the duty of the authorities to prevent the public being defrauded by the maker and the retailer, whether Messrs. Morton have registered their label or not.