276
4
informed me that in a certain province the Treasury would only redeem its notes at nine-tenths of their face value, unless the person presenting them was prepared to await the convenience of the Treasury, a delay which would often extend to months. This informant was confident that if these notes were presented in any large quantity the Treasury would refuse to cash them altogether, or only at most ruinous rates of discount. I have taken every opportunity during the past three or four months to warn all officials with whom I have come in contact, from Viceroys downwards, of the danger to China's credit from the unlimited issue of unsecured notes. If this policy is persisted in, we shall soon be within measurable distance of a bad financial crisis. It certainly seems to me high time for the Foreign Ministers as a body to call the attention of the Chinese Government very strongly to this practice. The country is suffering, and with it all foreign trade, on account of the depreciated copper currency. The Provincial Treasurers reaped huge profits from minting copper coins a few years ago, and in subsequent years the country has had to pay those profits. The suffering caused by the minting of copper coins will only be a summer picnic compared with the disaster that must inevitably follow an unrestrained issue of bank notes.
0
[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[38026]
No. 1.
C.O.
[November 29, 1907]
SECTION 1.
Sir J. Jordan to Sir Edward Grey.-(Received November 2.)
24 NOV 08
(No. 414.) Sir,
Peking, September 14, 1908.
ON the receipt of your despatch No. 335 of the 17th July last, I visited the Wai-wu Pu and again urged upon the Ministers the desirability of coming to an early arrangement with Japan on the telegraph question in Manchuria. I reminded them of the efforts which we had previously made in their interests, of the abatements which had followed in the Japanese demands, and of the risks they incurred if they persisted in refusing to accept the compromise now offered.
The Ministers, who did not seem to be very familiar with the question, informed me that Mr. Dresing and Chow Taotai, who had been the Chinese Delegates at the Lisbon Conference, were now in negotiation with the Japanese Government in Tokio, and they added that they had every reason to anticipate an amicable settlement very shortly.
The Japanese Government had, I understood them to say, somewhat modified their conditions, and they appeared to be confident that a formula would be found which would reconcile the differences between them.
Some days later Mr. Campbell, the Chinese Secretary, saw Mr. Liang Shih-yi, of the Board of Communications, and endeavoured to obtain some more definite information from him. Mr. Liang confirmed the opinion that a favourable issue might be expected from the negotiations at Tokio, but had no precise knowledge of their nature except that he understood that the arrangement was likely to be modelled upon that which obtained at Tsingtau with the Germans. The matter was apparently left largely in the hands of the Delegates, in both of whom the Central Government had full confidence.
As the circumstances had changed since your despatch was written, and as I felt that I could not usefully intervene without a fuller knowledge of what was passing at Tokio, I telegraphed yesterday to Sir Claude MacDonald and asked his Excellency to let me know if at any time I could be of any service here in promoting a settlement of the question.
A copy of this despatch is being forwarded to Tokio.
[2029 6-1]
I have, &c. (Signed) J. N. JORDAN,
J
276
4
informed me that in a certain province the Treasury would only redeem its notes at nine-tenths of their face value, unless the person presenting them was prepared to await the convenience of the Treasury, a delay which would often extend to months. This informant was confident that if these notes were presented in any large quantity the Treasury would refuse to cash them altogether, or only at most ruinous rates of discount. I have taken every opportunity during the past three or four months to warn all officials with whom I have come in contact, from Viceroys downwards, of the danger to China's credit from the unlimited issue of unsecured notes. If this policy is persisted in, we shall soon be within measurable distance of a bad financial crisis. It certainly seems to me high time for the Foreign Ministers as a body to call the attention of the Chinese Government very strongly to this practice. The country is suffering, and with it all foreign trade, on account of the depreciated copper currency. The Provincial Treasurers reaped huge profits from minting copper coins a few years ago, and in subse- quent years the country has had to pay those profits. The suffering caused by the minting of copper coins will only be & summer picnic compared with the disaster that must inevitably follow an unrestrained issue of bank notes.
0
[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[38026]
No. 1.
C.O.
[Novembe42997
SECTION 1.
Sir J. Jordan to Sir Edward Grey.-(Received November 2.)
24 NOV 08
(No. 414.) Sir,
Peking, September 14, 1908. ON the receipt of your despatch No. 335 of the 17th July last, I visited the Wai-wu Pu and again urged upon the Ministers the desirability of coming to an early arrangement with Japan on the telegraph question in Manchuria. I reminded them of the efforts which we had previously made in their interests, of the abatements which had followed in the Japanese demands, and of the risks they incurred if they persisted in refusing to accept the compromise now offered.
The Ministers, who did not seem to be very familiar with the question, informed me that Mr. Dresing and Chow Taotai, who had been the Chinese Delegates at the Lisbon Conference, were now in negotiation with the Japanese Government in Tokið, and they added that they had every reason to anticipate an amicable settlement very shortly.
The Japanese Government had, I understood them to say, somewhat modified their conditions, and they appeared to be confident that a formula would be found which would reconcile the differences between them.
Some days later Mr. Campbell, the Chinese Secretary, saw Mr. Liang Shih-yi, of the Board of Communications, and endeavoured to obtain some more definite information from him. Mr. Liang confirmed the opinion that a favourable issue might be expected from the negotiations at Tokió, but had no precise knowledge of their nature except that he understood that the arrangement was likely to be modelled upon that which obtained at Tsingtau with the Germans. The matter was apparently left largely in the hands of the Delegates, in both of whom the Central Government had full confidence.
As the circumstances had changed since your despatch was written, and as I felt that I could not usefully intervene without a fuller knowledge of what was passing at Tokio, I telegraphed yesterday to Sir Claude MacDonald and asked his Excellency to let me know if at any time I could be of any service here in promoting a settlement of the question.
A copy of this despatch is being forwarded to T◊kið.
[2029 6-1]
I have, &c. (Signed) J. N. JORDAN,
J
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