18
The Taotai specially pointed out that most of these conditions had been in force at Wuhu for many years, the suggestion being that what had been accepted there need meet with no objection here. Having been informed that the native merchants had agreed to the li-kin clause, I laid the rest of the conditions before the local British shipping agents, pointing out that the various limitations were frankly contrary to the existing Treaty, and that the question was practically one of "half a loaf or no bread." These gentlemen referred the matter to their principals in Shanghae, who replied that they were willing to accept the conditions, but they wished to state that as their steamers had long been and were at this moment carrying rice from Wuhu to Chefoo and Amoy it seemed absurd to exclude these ports at Chinking.
I thereupon replied to the Taotai that the conditions proposed were contrary to Treaty, but that, as the British merchants were willing to accept them, I thought they might, as a special compromise, be given at least a temporary trial. I added that the northern ports and Amoy should be put on the list, and pointed out, with reference to clause 5, that if the prohibition was removed, and it was sought later to reimpose it, the provisions of the Mackay Treaty would have to be observed and three weeks notice be given. The Taotai replied that Tien-tsin was excluded on account of the war, and that Chefoo and Amoy had not tormerly been in the list of permitted places as far as Chinkiang was concerned, and could not therefore he now. The reason is absurd, of course, but as the shipping agents did not wish to press the point I let it pass. The clause as to the 6 dollars price limit was also modified to the effect that if rice became scarce or the price rose the export might be stopped.
The Tantai bas just notified me that the export of rice and wheat under the above conditions will be allowed on and after the 12th April. I have telegraphed to you to that effect.
Your Excellency,
Inclosure 15 in No. 1.
Mr. W. D. Little to Doyen of Diplomatic Corps.
Shanghae General Chamber of Commerce, Shanghae, June 2, 1905.
I HAVE the honour to bring to your notice the enormous expansion in the coining of ten-cash pieces which has taken place during the past twelve months and which is still further developing. The following provincial mints are established or projected :---
Canton
Mints.
Old.
Machines.
Total
New.
35:22::8:92:
60
30
80
Fouchow
20
12
82
Soocbow
18
56
74
Hangchow
16
80
96
Nankin
32
32
Hupeh
150
Hunan
4
36
40
Ngankin
12
20
Chingkiang
60
Honan
6
Citihli
100
100
Szechuan
$2
Shanghae
45
40*
Kiangse
12
17
Shantung
12
19
413
erection, and 20 per cent, have not arrived. It is estimated that these 846 machines when in full working order will absorb (at the rate of 180 piculs or 10·71 tons per machine per month), a total of about 9,060 tons of copper per month, or about 108,700 tons per year. As 1 ton of copper will coin into approximately 151,000 ten-cash pieces, one year's out-turn of 108,700 tons of copper will yield 16,413,000 ten-cash pieces, equal to 40 ten-cash pieces per head of a population of 400,000,000 people. This rate of production will presumably be reached in about five or six months from now, when all minting machinery on order will be duly installed.
As regards the cost of production, taking as a basis the present price of copper, say, 721. per ton, the profits of the mints amount to about 35 to 40 per cent., of which it appears one-third is retained by the provincial mint authorities and other officials connected therewith, and two-thirds go to the Viceroys. Although there is no immediate prospect of an over-supply of these new coins, the danger prevails that :--
1. Owing to the large profit in the production thereof to all concerned larger quantities will in course of time be turned out than required. Should this occur the new coins would inevitably go to a heavy discount, causing the manifold evils attendant on a depreciated currency, and most serious disturbance to all trade, internal and external.
2. The temptation would crop up to lower the standard of the coin in order to keep up a high level of profit, in the production thereof, should its circulating value decline. Then the problem of debased as well as dopreciated coins would arise, and confusion become worse confounded. It may be here mentioned that the intrinsic inetal value of one 99 per cent, copper ten-cash piece only equals 2-24 old one-cash pieces, made in the reign of the Emperor Kien Lung, 1735-95, very few of which are now left in circulation, having been melted down. owing to their relatively high metal value, or 4-4 one-cash pieces, made in the reign of the Emperors Tung Chih (1861-78) and the present Emperor Kuanghsu.
In recent Treaties with foreign Powers China agreed to establish a uniform national coinage; therefore, in permitting the provincial authorities to produce these ten-cash pieces in varying intrinsic values, she is evading her Treaty obligations.
The purpose of this letter is to request your Excellency to impress upon the Chinese Government: firstly, the supreme importance of regulating the supply of ten-cash coins according to the demand, since they are taken coins and therefore liable to depreciation; secondly, the imperative necessity to maintain these coins up to their full and proper standard, since otherwise the confidence therein of the population would be destroyed.
These coins did not in the beginning fetch their face value, so they have had a fair start on the downward course of depreciation, which can only reasonably be expected to end in their purchasing power coming down to their intrinsic value, viz., a fall of 50 per cent.
When or before this is reached, the copper cash, the currency of the people, will have disappeared from circulation, and, before the industry of the country can afford to adjust the big resulting difference, a period of bare subsistence for the people and great slackness in trade will be experienced.
For this reason alone it is of great importance to foreigners that the currency of the country should be better regulated.
In conclusion, I beg reference to the Report of the Imperial Maritime Customs, Part I ("Report on Trade of China and Abstract of Statistics for 1904), published 1905, pp. 12 and 13, which treats on this subject, and I would further add that quite recently coins of the face value of 5 cash have made their appearance, to which the foregoing applies equally and even more forcibly.
I have, &c.
(Signed)
WILLIAM D. LITTLE, Chairman.
<<
new
These figures are only approximate, as some of the machines under the heading may by now be in working order. Roughly speaking, out of an approximate total of 846 machines, 60 per cent. are now working, 20 per cent, are in course of
* These are transferred to Nankin.
Inclosure 16 in No. 1.
Doyen of Diplomatic Corps to Mr. W. B. Little.
Pékin, le 12 Juin, 1905.
LE Doyen a l'honneur de faire circuler une lettre du Président de la Chambre de Commerce de Shanghai, qui lui est parvenue par l'intermédiaire du Doyen du Corps Consulaire à Shanghai.
ARG
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