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different degrees of fineness, with about a score of different weights, so that there are "at least sixty currencies possible in this town alone!" The chaos of the tael is not, however, the least part of the currency confusion, for there are current in China nineteen different kinds of dollars of different exchange values, as well as newly coined taels, Chinese rupees, and an infinite variety of copper coins and brass cash,” the debased subsidiary coinage being issued, though not accepted, at its face value by the Government issuing it (Peking telegram to the "Times," 19th September, 1908). The chaos of currency conditions are well summed up by Mr. Morse in his work referred to above :--
"In China the currency is, at the top, a weight pure and simple, in the middle a combination of weight and token currency, and at the bottom a coin which stands on its own feet, and neither receives support from, nor absolutely gives it to, any other unit in the series. At the top is the tacl (call it the ounce,' and it will be better realized), in which payments are made in precisely the same way that delivery is taken of a lot of silver bars. Then comes the dollar, which, though à coin, is nowhere legal tender, and of which the specimens from the Chinese mints are inscribed, not generally 'dollar' or 'yuen,' but merelyths of a tael.' Though so inscribed, dollars of silver are nowhere fixed in terms of taels of silver, but are quoted at rates which vary from day to day, according to the demand and supply, fluctuating within a range of 6 to more per cent. Then come subsidiary coins fractional to the dollar, but subject to a fluctuating rate of exchange, such that the dollar may this year change for 110 cents and next year for only 95 cents in small coin. Next comes the copper cent, inscribed at the mints of some provinces as worth th of a dollar' and of others as worth 10 cash,' but never treated as correlated to the dollar. Whether considered in its relation to the dollar or to the cash, it is a token coin, worth intrinsically less than half its nominal value. Last comes the copper cash, the currency of the people."
Here we have a series of non-related currencies, each unit of which is in a state of unstable equilibrium, fixed neither in itself nor in relation to other units.
A most serious question of the moment is that of the new copper coinage, for it has to be borne in mind that copper is the coin of the people, and that, consequently, any juggling with the copper coinage strikes at the very foundation upon which the trade of the Empire is based. The last three or four years have witnessed a most far- reaching revolution in the copper coinage of China, through the opening of provincial mints over the length and breadth of the Empire, the main industry of which has What the actual been the coinage of the 10-cash copper pieces above referred to.
but amount of such issue has been it is impossible to say with any degree of accuracy, an estimate, believed to be conservative, which has been prepared by Sir Alexander Hosie for the years 1905-1906, puts the issue at the enormous amount of 9,000,000,000 coins. The issue of this new coin of the 10-cash piece on an honest basis was welcomed as a move in the right direction towards a stable copper coinage, intended to gradually supplant the old cumbersome copper cash, and in the beginning the coins were honest, the discs being mainly imported from Europe of a purity of ninety-five parts copper, four parts zinc, and one part tin-the same, in fact, as the British penny. It was not long, however, before the cupidity of the officials was aroused, very likely inclined thereto by the heavy calls made upon the provinces for the service of the "Boxer" indemnity; in any case, however, discs speedily began to be imported of lower and still lower standard, until the intrinsic value of the coin was depreciated to more than half of its face value. The profits to the provincial mints were immense, hence, no doubt, the enormous proportions which the issue assumed, but far more enormous has been the loss to the people, for not only have they had to hear the loss of the depreciation on the new coins, but as all previous issues are affected, there is the loss of the depreciation on these issues to be faced as well. To show what this depreciation means, it needs only to be stated that, whereas in 1905-1906 (when the minting of the 10-cash pieces commenced) the cash exchange of the Shanghae taei was between 1,100 and 1,120, to-day it is 1,680; while a recent mail from China advises that in Hankow the cash exchange of the Hankow tael (Shanghae tael 102) has risen to 1,885.
Seeing that these 10-cash pieces are now circulating at about their actual value, the profit on minting them has disappeared, and the deluge of spurious coins has been checked. In these circumstances a new expedient has been hit upon for "raising the wind," in the form of the issue of native bank tael and dollar notes, in a few instances issued by recognized banks of the local Governments, but in others by merely private
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institutions. These issues are not authorized by the Imperial Government, and they are neither limited, nor have they any proper cash reserves behind them. Appended to this Memorandum is a statement received from Shanghac regarding this note issue. The statement lays no claim to be complete or authoritative, it has been compiled from the most reliable native sources available, and there is every reason to believe that the ramifications of the note issues are even more widespread than they are represented to be therein."
Shanghae further states that-
"In addition to the large circulation of notes representing taels and dollars, there have been issued, within the last two years, an immense number of notes representing copper cash. We have been unable to get any details as to the amounts issued by the individual banks, but the estimates made of the circulation in the various provinces are said to be on a conservative basis, not only have between 9,000,000,000 and 10,009,000,000 of 10-cash pieces been struck by the mints, but about 56,000,000 of tael's worth of copper cash notes have been issued during the same period, which, at 1,650 cash to the tael, would represent over another 10,000,000,000 of 10-cash pieces,"
The estimate is given as follows:----
1906
1907
1908
1908
1908
Year of Issue.
Shanghae's comment is as follows:-
Province.
Amount
Taels.
Manchuria Hupeh Shantung Canton Hunan
30,000,000
10,000,000
7,000,000
5 000,000 4,000,000
"It seems almost incredible that a country with a sound financial reputation, such as China has enjoyed in the past, should permit reckless dealing of this nature with the currency of the country, inore especially with the money of the millions, the standard in which wages and all small retail transactions are settled, but so it is
if stringent measures are not taken to control these issues, China will eventually be face to face with all the evils attendant upon a large portion of her currency being composed of inconvertible paper."
The recommendation of remedies, in presence of the confusion now prevailing in financial questions, is a matter of extreme difficulty. Some hope for the situation may, however, perhaps he found in the belief expressed by Shanghae, "that Chinese bankers and officials are becoming more and more amenable to foreign advice, owing to the Such advice is offered by Shanghae in the stringency of the native money market.' following suggestions:-
1. The issue of an Imperial Edict, prohibiting any further issue of bank notes, until Regulations controlling the terms of issue shall have been published.
2. Severe penalties to be imposed for disobedience, whichi should be made & criminal offence.
3. Regulations, based on the experience of foreign banks, should be drawn up forthwith.
4. Issues now in circulation which do not conform to the Regulations should be withdrawn within a specified period, on penalty of the issuing banks being closed or wound up.
(The engagement of the 5. The immediate appointment of a Board of Currency, services of at least one foreign expert adviser would be of great advantage to China)
6. The appointment, under the Board of Currency, of an Imperial Master of the Mint, who should have control of all the mints in the Empire. (The interest and co-operation of Chinese banks which have maintained the standard of sycee in the past might be enlisted in the management of the mints.)
7. Pending the establishment of the central control of the mints, the further issue of subsidiary silver coins and copper cash to be suspended until they circulate at par; the rate for par
cash to be definitely fixed.
copper
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