4
45
The Imperial Decree, issued on the 5th October last, ordaining the introduction of a uniform silver currency throughout the Chinese Empire is a welcome though tardy recognition by China of her obligation to provide for a uniform national coinage "in terms of Article 2 of the Shanghae Treaty of 1902. Had China paid earlier attention to this Treaty obligation, it is probable that much of the currency chaos which bas arisen in the past few years might have been obviated. It is earnestly to be hoped that the Decree will not be allowed to remain a dead letter, but that it is an admission of the necessity for immediate action, and expresses real carnestness of intention to rectify the almost hopeless confusion into which currency matters of China have been allowed to drift.
The provisions of the Edict will no doubt meet with general approval, but it is to be remarked that no indication is given whether the new coins are to be issued solely from mints under the control of the Board of Finance-a very necessary proviso; nor is any mention made of a fixed ratio between the new coinage and the copper currency-another matter of first importance. It is understood that both points have attracted the attention of His Majesty's Minister at Peking.
The arguments in the Memorial which accompanies the Edict, favouring the adoption of the Kuping tael as the national coin in preference to the dollar, do not appear to be very convincing. The opinion in the provinces is admittedly divided, and it is difficult to understand the pleas in favour of the tael: such as that from the point of view of China's national dignity she ought to try to stand alone; that she cannot afford to throw away her sovereign rights-(how are they affected?)—in order to gratify the wishes of others, nor change the tradition of the country for the convenience of the open ports or trading marts. While it is hardly to be supposed that the open ports will meet with much sympathetic consideration, it might reasonably be suggested that the convenience of China's own trading marts is a matter of prime domestic importance.
There is much force in the argument that the higher standard unit will tend to increase the cost of living. As Shanghae points out, "the effect will be more plainly felt in expenditure involving small sums such as 5 to 10 cents; translating these sums into 4 cands and 8 cands will not be convenient in actual practice." It is, however, no doubt true that (as stated in the Memorial) the bulk of the people in their daily life mostly rely upon the copper currency. A point in favour of the adoption of a dollar coinage is that the exchange between the dollar and the cash might be conveniently fixed at the old normal ratio of 1 to 1,000, whereas the cash exchange of the K'uping tael (at the same rate) works out at the inconvenient figure of about 1,482.
C. J. DUDGEON.
London, December 1908.
O
(Signed)
267
This Document is the Property of His Britannic Majesty's Government.]
C.O.
CHINA TRADE.
CONFIDENTIAL.
[January 73 4135
SECTION RECE
(REGB 4 FEE 09
[763]
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received January 7, 1909.) (No. 564) Sir,
Peking, December 16, 1908. REPRESENTATIVES of the British and American Tobacco Company, Limited, called upon me recently in connection with the business of their Company, and spoke of the prospect of considerable expansion of trade if the Chinese authorities will consent to a more regular incidence of taxation on the Company's cigarettes and manufactured tobacco in places not declared open to foreign trade in Manchuria. The inclosed letter, addressed by the Company to the Acting British Consul- General at Mukden, describes the existing conditions and proposes a remedy. By present practice, the Company's products manufactured in China pay 4 m. 5 c. duty per picul on exportation from the Treaty port where their factory is situated, and a further half duty on importation to another Treaty port; but if they are sent to places not declared open to foreign trade they are subjected to varying levies of li-kin which affect prices and restrict their business.
As they have now set up a large factory at Mukden, they desire to consolidate all dues upon its output by the payment of a duty and a half, viz., 6 m. 75 c. per picul on exportation from Mukden to any place in Manchuria.
It will be seen from their letter that the question has been broached with the provincial authorities, but I have not yet learnt from Mr. Willis whether any further progress has been made. I understand, however, that the Company would be willing, if necessary, to agree to a higher consolidated duty than the above-mentioned sum, and with a margin for negotiation it is possible that the Chinese Government may be induced to accept the proposal which appears to me perfectly reasonable.
1 have, &c. (Signed)
Sir,
Inclosure in No. 1.
J. N. JORDAN.
British-American Tobacco Company to Acting Consul-General Willis.
Museum Road, Shanghae, December 1, 1908. AS you are aware, the British Cigarette Company, a Company which we control, has recently erected extensive premises in Mukden for the purpose of treating Chinese tobacco and also of manufacturing cigarettes on a large scale for the Manchurian market, should conditions prove favourable.
We are of opinion that, with reasonable facilities, we can establish a practically new industry in Manchuria, which will be of great benefit to that country, for, should our operations be successful, the following economic benefits would accrue, viz.-
1. More land would be cultivated in the growing of the additional tobacco required, to the great benefit of the farmer and agricultural labourer.
2. The carrying of that tobacco from the points where it is grown to the factory would provide profitable employment for a great number of carters and coolies.
3. In the preparation and handling of the tobacco when received by us, employment would be given to very many Chinese.
4. If reasonable facilities are granted to us by the Government a further large number of people will obtain remunerative employment, not only in the manufacture of cigarettes for consumption in Manchuria and, perhaps, in other parts of the Empire, but in the carriage of those cigarettes to market. Furthermore, a large number of Chinese merchants and traders will benefit by the creation of this new trade.
5. A reasonable basis of taxation-one which will enable the goods to reach the consumer at a price which he can afford, and which will thus encourage the extension of the industry--would provide the Government with additional revenue on the
[2090 g-1]