This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
餅
[28819]
No. 1.
335
[July 31.]
93
SECTION 1.
Sir,
Manchester Chamber of Commerce to Sir Edward Grey.-(Received July 31.)
Manchester, July 30, 1909. THE president of this chamber has received a letter from the Tien-tsin Chamber, of which a copy is enclosed, calling attention to the difficulties which the commercial community in China experience owing to the condition of the currency. The letter refers particularly to the state of affairs in Tien-tsin arising from depreciation of the Hongping sycee.
The president is aware that His Majesty's Ambassador in Peking is cognisant of the importance of the general question and has from time to time made representations to the Chinese Government.
From the letter of the Tien-tsin Chamber it would appear that the gravest difficulties are now being experienced by those who have the conduct of commercial affairs, and the president desires me to bring the matter under your notice once more, though he does not doubt that such action as is possible will be taken by His Majesty's Ambassador when there is a chance of anything effective being done.
I have, &c.
WALTER SPEAKMAN, Secretary.
Sir,
Inclosure in No. 1.
Tien-tsin General Chamber of Commerce to Manchester Chamber of Commerce.
Tien-tsin, June 28, 1909.
I HAVE the honour to invite the co-operation of your chamber in the matter of the reform of the Chinese currency, which is a question of paramount importance to all commercial communities in China, and to all countries having trade relation- ships with the Far East.
Currency reform has for some years past been the subject of periodic joint memorials from this chamber and the chambers of commerce of Hong Kong and Shanghae, but, as you are aware, the memorials have had no effect, and the same chaotic state of affairs continues to exist,
Shanghae has recently been endeavouring to prevent the issue of bank notes without bullion reserve, and the over-issue of the copper currency. In Tien-tsin the question has again been brought vividly before this chamber by the wholesale depreciation of the local currency, and matters have reached an impasse.
The fineness of the local Hongping sycee is supposed to be 992, and the shoes are so stamped, but no control has for some time been exercised over the melting-shops, and the touch has deteriorated to anything round about 965. Things have reached such a pass that a payment of 1,000,000 tacls recently required to be made on Chinese Government account to one of the banks could not be made owing to their having no sycee of the requisite fineness.
This is a phase of the question that vitally affects the holders of all Chinese bonds or securities of any sort.
In February 1908 a notification was issued here by the Imperial Maritime Customs which stated that, owing to the deterioration of sycee, an extra 2 per
cent. would be imposed on all duties. Here was an instance of a Government depart- ment calmly notifying the public that the currency of the country had deteriorated in touch so much that the larger dues must be paid to itself! It was not until seven months later that this illegal imposition was, after much agitation, done away with, although a proclamation had been issued in March 1908 ordering the melting-shops to issue sycee of 992 fineness. This proclamation has been a dead letter.
The position. then is this: The former currency of debased sycee, lower than 922, which formed the currency of the port has been demonetised and no effective steps
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