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553
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Regulation 5 forbids the wholesale export of copper coin from one province to another so as to create a surplus. Provinces requiring copper coin must apply to Tien-tsin for it, but the more distant ones may obtain it from the nearest provincial mint,
Regulation 6. Provincial mints shall report their proceedings to the Financial Commission and Board of Revenue every three months and annually.
By Regulation 7 certain provinces whose sycee contributions to the Imperial Exchequer are of finest touch, will be directed to send such contributions direct to the mint at Tien-tsin.
Regulation 8. Applications from merchants for permission to mint copper coins on the payment of royalties are not to be entertained, nor may private capital be invested in the wints.
Regulation 9. The coins minted by the head mint are to be current in all the provinces.
Regulation 10 prohibits the purchase of Japanese copper blanks, which merely require stamping before being put into circulation, as they are probably not of the requisite standard, and are often sold to counterfeiters. A standard has now been settled, and the mints should be able to produce sufficient blanks for their requirements.
The Memorial respecting the establishment of a head mint at Ticn-tsin, to which I referred in the second paragraph of this despatch, and of which a précis in translation is inclosed, states that this mint was already fit for use last spring, and that the first trial minting was made on the 10th June. As the machinery does not yet run quite smoothly, the output of coin is not as great as was contracted for, but it will be gradually increased with practice. As soon as better results are obtained silver will be minted and more machinery purchased. Eight rules regulating the operations of the mint are presented for the information of the throne.
The first contains the official name of the Tien-tsin Mint and the names of the coins which it will produce.
It is stated in the second rule that, as the weight and touch of the gold and silver coins have yet to be settled, only copper coins will be minted at first, of certain given weights and values.
The third rule relates to the disposal of the profits of the mint, and the fourth to the localities in which the copper coins are first to be circulated.
By the fifth rule all the coins minted will be handed to the Board of Revenue for issue, the latter paying the face value of the coin and not the cost price.
The three last rules relate to the discipline of the employés, the submission of an annual report to the Board, and the disposal of the revenue received from the issue of the copper coin.
In
These Regulations, if they are really brought into effect and conscientiously carried out, should go far towards the solution of the question of a uniform currency for China. But time will be needed for the introduction of these reforms in their entirety, which will no doubt excite the opposition and obstruction of the provincial authorities, who see themselves now deprived of what has been hitherto a lucrative source of income. any case, the publication of the Regulations is a long step in the right direction, whatever may be the immediate outcome of this first attempt to reform the national currency of this Empire.
I have, &c. (Signed)
(Translation.)
Inclosure 1 in No. 1.
Memorial.
ERNEST SATOW.
MEMORIAL of the Financial Commission (Tsai Cheng Ch'a) and the Board, presenting for approval the Regulations which they have drawn up to be enforced in all the provinces for the purpose of introducing a uniform currency.
(From the "Peiyang Kuan Pao" of the 8th September, 1905.)
THE memorialists state that they have reported in another Memorial the establish- ment of a head mint at Tien-tsin in obedience to the Imperial commands. This having been done, it is now their duty to carry out the wish of the throne to introduce a uniform currency by drawing up a set of rules regulating the minting of coin throughout the Empire.
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The coinage of dollars by China was started in Canton to stop the influx of foreign dollars and to remedy the scarcity of copper coin. Afterwards mints were from time to time established in Hupeh, Kiangnan, Chibli, Chekiang, Anhui, Fengtien, and Kirin and the coining of dollars started. But as the coins produced in these various mints differed both in style, touch, and weight, much confusion resulted, so that a certain coin would not circulate beyond certain boundaries, and none of them ever had so wide a circulation as the Mexican dollar, which is current from North to South China. Within the last few years the minting of copper coins has been introduced to meet the deficiency of cash, and as they have obtained the popular favour large profits have been made by the mints which the various provinces have competed to be first in establishing. As a result of this competition the price of minting machinery and of copper and zinc has gone up, while the value of the new coin has fallen, and it is feared that, if this independent state of affairs continues, this evil will be further exaggerated, and after some years the mints will find it difficult to issue their coin and will suffer great losses. Moreover, the licence given to the provinces with regard to mints is very far from establishing the uniform currency which is provided for by the recent Commercial Treaties with foreign Powers.
In foreign countries 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, which regulates the amount of coin minted according to the excess or deficiency in circulation. By this means fluctuations in the value of the coin are avoided. But it seems probable that for a large country like China one mint would be insufficient, and it is therefore proposed that the Nanyang, Peiyang, Hupei, and Kuangtung Mints, which have been selected because their operations have the most satisfactory results, shall be created branch mints for the coinage of silver. The coinage of copper, which as yet has been insufficient, will be allowed to be continued temporarily at the mints now working, but as proposed in the Board's previous Memorial, the establishment of the new mints should not be allowed. The memorialists will still take care that the coin minted by them is uniform and issued at the same price. If the appended Regulations are not obeyed, the operations of the offending mint will be suspended and the officials respon- sible punished.
The abvisability of continuing to mint in the provinces should be considered from to time, and whenever a sufficient supply of coin has been produced the Board will, if circumstances require it, order the temporary suspension of operations. Such order must be complied with by the provinces, who will not be allowed to continue minting on the pretext that they are in need of funds. If these steps are taken an excessive production of coin will he avoided, and it is hoped the coins will be circulated as if they were all issued by the same mint.
The memorialists humbly present, for the Imperial information, the ten Regulations which they have drawn up. Should they receive the Imperial sanction, the memorialists will communicate them to the provinces, who will be instructed to conform thereto.
Imperial Rescript.
Let the Regulations be issued as recommended.
Regulations for the Reform of the Currency.
1. At the present moment it is most desirable that the currency be reformed and unified. It is proposed that when the weight and fineness have been decided on, the silver coinage shall be solely minted at the Tien-tain Mint; but the Nanyang, Peiyang, Hupei, and Canton Mints will be retained as subsidiary mints, which will be supplied with model dies from the Tien-isin Mint. The coin issued by these mints will be of the same touch, weight, and design. At each separate coining the mints shall send to the Tsai Cheng Chiu samples of the coins minted, which will be tested as to their weight and fineness by the assayers appointed by the Roard of Revenue. The amount of remedy" allowed in weight and fineness when the coins are issued shall not exceed per cent. If the coins do not come up to standard the whole coining shall be melted down and reminted, and the persons responsible punished. The Head Mint at Tien-tsin is under the direct management of the Ts'ai Chieng Ch'u, and the four subsidiary mints will be inspected by capable officials appointed by the Tsai Cheng Ch'u and the Board
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