CO129-331 - Public Offices - 1905 — Page 93

:

This Document is the Property of His Britannic Majesty's Government. ¡

FAIRS OF CHINA.

CONFIDENTIAL.

No. 1.

92

[March 25.]

SECTION 2.

Sir E. Satow to the Marquess of Lansdowne.-(Received March 25.)

Peking, February 5, 1905.

(No. 49.) My Lord,

I HAVE the honour to transmit copy of a despatch which I have received from His Majesty's Consul-General at Hankow, with regard to the new silver currency of Hupeh Treasury taels,

I have, &c. (Signed)

ERNEST SATOW.

Inclosure 1 in No. 1.

Consul-General Fraser to Sir E. Satow.

(No. 9.)

Hankow, January 23, 1905. Sir,

I HAVE the honour to forward copy and translation of a Proclamation by his Excellency the Viceroy Chang, notifying the adoption of a new silver currency of Hupeh Treasury taels, which, his Excellency told me on the 16th instant, will be minted at Wachang at the rate of 30,000 a week. The new coin weighs 558 grains, as against 411 grains, the weight of the Hupeh silver dollar, and is composed of 877 parts silver, 71 parts copper, and 52 parts zine or tín.

The silver dollar is marked as being ths of a treasury tael; but, according to the weights of the two coins, the dollar is 20 grains too heavy, or the new tael 12 grains too light.

If the silver in the new coin is reckoned at the proportion mentioned, the number of grains of silver is 489-366, and the intrinsic value, at 2s, 3 d. per ounce, would be about 28. 8d., whereas the Hankow tael demand rate with silver at that figure on the London market was 2s. 10,5d.

There seems little reason to expect that the new currency will ever be accepted at its face value by foreign bankers at least, while, if the native Government banks (which would never accept Hupel dollars at more than 71, instead of the indicated 72) were to change the tael coins, as the Viceroy promises, at a premium of 6-2 over the market tael, there would be a perpetual and ruinous demand for change.

The Viceroy's pronouncement of a legal standard currency to be extended through- out China does not seem likely to be verified.

I have, &c.

(Signed)

E. H. FRASER.

Inclosure 2 in No. 1.

Proclamation by Viceroy Chang regarding the Introduction of a Tuel Silver Currency for the convenience of the people.

WHEREAS China's officials and people have hitherto used uncoined silver, every place having its own weight and touch, all differing without any uniform standard treasury tael, the touch varying and the denominations being many and confused, with the result that cash merchants and market hucksters were able to manipulate exchange to their own profit and the hindrance of trade and livelihood.

Whereas in the Commercial Treaties now arranged with all countries it is provided that China will herself institute a uniform national currency, and in the Treaties it is explained that the currency of the whole country shall be made uniform, that is, that

[1889 bb-2]