CH
*
nis Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
(No. 307.) My Lord,
No. 1.
C. O.
41448
RECE
552
November ]
(REG! 21 NOV 05 · SECTION 2
Sir E. Satow to the Marquess of Lansdowne.-(Received November 4.)
Peking, September 17, 1905. WITH reference to my despatch No. 301 of the 8th instant, I have the bonoar to inclose herewith the translation of a Memorial to the throne from the Financial Commission and the Board of Revenue, presenting for approval certain Regulations drawn up for the purpose of introducing a uniform currency throughout the Empire.
The memorialists begin by stating that they have reported in another Memorial, to which I shall refer later on, the establishment of a head mint at Tien-tsin. They go on to briefly sketch out the history of the coinage of dollars in China, which began at As the coins, however, which Canton, and was afterwards extended to other mints. were produced at the various ints, differed in style, touch, and weight, much confusion ensued. Certain coins would not circulate beyond certain boundaries, and none of them ever obtained so wide a circulation as the Mexican dollar.
The memorialists then draw attention to the evils which have arisen from the minting of copper coins in the various provinces. This minting was first introduced in order to meet a deficiency of cash, but as the coins have obtained the popular favour large profits have been made, and there has been keen competition in establishing new mints.
As a result, minting machinery, copper, and zine have risen in price, while the value of the new coin has fallen. In a few years the mints will find it difficult to issue their coin, and will suffer great losses. Moreover, the licence given to the provinces in regardl to mints is not in accord with the provisions in certain Commercial Treaties with foreign
uniform currency. countries relative to the establishment of
in foreign countries, the memorialists point out, it is a general rule that the three kinds of coin-gold, silver, and copper-are produced at one mint, which is under the control of the Government, who regulate the amount of coin put into circulation, and fluctuations in its value are thus avoided. One mint, however, would not suffice for As the China, and it is therefore proposed that subsidiary mints should be allowed. supply of copper coins is still inadequate, it is further proposed that their coinage should be temporarily allowed to continue at existing mints, but the coins minted at them must be uniform and issued at the same price. Infractions of these Regulations will entail the suspension of the offending mint and the punishment of the officials concerned. The advisability of continuing to mint in the provinces will be considered from time to time, and whenever the supply of coins is sufficient, orders will be given for the suspension of minting operations.
The memorialists append fen Regulations, embodying their recommendations, for communication to the provinces, if they obtain the Imperial sanction. This has been given in an Imperial Rescript," Let the Regulations be issued as recommended.”
The Regulations in question are to the following effect :—
In Regulation it is proposed that when the weight and fineness of the silver coinage has been decided on, it shall be solely minted at Tien-tsin, but that the Canton, Peiyang, Hupei, and Nanyang Mints shall be retained as subsidiary mints, which will be supplied with model dies from Tien-tsin. Instructions are given for the minting of precisely similar coins at the different mints, which must send specimens of their coins to the Government assayers.
Regulation 2 deals with the copper coinage for which model dies will also be issued, Existing mints may continue, but not extend, their operations, and no new mint may be opened.
Regulation 3 regulates the production of the provincial mints in regard to the daily issue of copper coins of different values.
Regulation 4 enjoins on the officials the necessity of observing the money market, of fixing the exchange in relation to silver, and of issuing and recalling coin as circum- stances require. Brokers may not make any discount, nor may the mints issue eoin below its face value in order to make greater profits.
(2247 d―2)
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