CO129-121 - Sir MacDonnell - 1867 [3-4] — Page 48

45

13.

It is quite true that clean Mexican and Carolus dollars had been used for conducting trade operations with China, and when the Country was first opened to foreigners, the Chinese tea and silk growers gave them as old acquaintances a preference over Bar Silver, with which they were not familiar, and required melting to ascertain its intrinsic worth. Moreover, as the trade of Japan which had just commenced was by treaty obliged to be conducted in clean Mexican dollars alone, an unusual and temporary value was given to those coins.

14. The Mexican dollars at the time available had been for the most part stamped and defaced by the different Hong merchants and other firms through which they had passed, and were therefore not in demand, and a large quantity had to be imported to meet a sudden requirement. Many millions might at that time have reaped a profitable harvest. It was not long, however, before the Chinese found that silver in bars and other forms had a greater intrinsic value than dollars, and consequently the course of trade was once more settled in its ancient channels, whilst the dollar was actually only valued for the silver it contained. At this moment, therefore, the trade of Japan and even that with the interior is conducted according to Chinese usage, which accepts all silver by weight and "touch," and the dollars are quitting the Country as the cheapest medium.