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first standardise and render uniform her silver currency and then " carefully proceed to take measures for a further advance with a view to assuring the adoption of a gold standard in the future," proclaimed the Kuping tael as the unit of currency because "the use of the tael and its fractions had been so long established that it would be difficult to substitute any other denomination to take its place." This decree as a matter of fact has remained a dead letter until now the dollar is proclaimed in the place of the Kuping tael. The practical advantages of this change are obvious, but ) above all, the ratio between the new coinage is fixed and we have the old normal ratio of 1 to 1,000 instead of such a cumbersome arrangement as something like 1,482 copper cash as the equivalent of a Kuping tael.
It is perhaps too early to hazard a guess as to the speed and efficacy with which the promised reforms will be enforced, but at all events a step in the right direction has been taken, and though China is not yet in a position to consider the question of adopting a gold standard, the fact that she may soon have one recognised standard of currency to replace the varying values in different provinces should have a beneficial effect her commerce and lend stability to her financial and mercantile trans- actions.
upon
(Translation.)
Enclosure 1 in No. 1.
I have, &c.
W. G. MAX MÜLLER,
Imperial Decree of May 24, 1910.
Coinage. Last year a memorial was presented by the Board of Finance, urging the importance of reforming the coinage of the country. It was referred by us to the Reform Council, with instructions to consider and report on the subject, and, acting on their subsequent recommendations, we ordered that a bureau be established in the We have now Board of Finance to examine into the monetary system of China. perused the regulations drawn up by this board for the reform of this system, as well as the measures they suggest for dealing with the currency now in eirenlation, and we pronounce them sound and practicable, and consider that they should be clearly promulgated for general information.
The basis of Chinese currency is hereby fixed as "the dollar," of which the standard shall temporarily be silver, and of which the unit shall be a dollar of weight 7 mace and 2 candareens. Subsidiary coins shall be as follows :--silver, 50-cent. pieces, 25-cent pieces, and 10-cent pieces; nickel, 5-cent pieces; copper, 2-cent, 1-cent, cent, and cent pieces; in all, turee silver, one nickel, and four copper subsidiary coins. The coinage throughout is based on the decimal system, and bears a fixed ratio and value, which shall not be subject to arbitrary fluctuations.
We hereby command the Board of Finance to direct the various mints to strike at once the several new coins according to the prescribed weight, touch, and design, and to issue these coins as soon as a sufficient quantity shall have been minted. They shall then be legal tender for the payment of all taxes, duties, and li-kin dues whatsoever, and all government payments shall be made in the same. The Ta Ch'ing Government Bank is charged to co-operate with the various mints in devising a satisfactory method to smooth over the transition period of the coinage system.
We further command the Board of Finance to instruct the provincial Govern- ments throughout the Empire to suspend the minting of coins of all denominations now in circulation, and to inform all Governments offices both in Peking and in the provinces that they shall, within the prescribed limit of time, take all action necessary, as laid down in the table of comparative values of the old and new coinage, and in the regulations fixing the denominations now to be employed in all exchange transactions. When the new currency shall have been issued, syece and the various coins now in circulation in all parts of the Empire will continue to be current temporarily at market rates. Orders will, however, be issued by the Board of Finance to the mints and banks to gradually redeem this old coinage, and a date must be fixed by them after which such coins and sycee will cease to circulate as legal tender. When the new coins have come into full circulation, all receipts, payments, and monetary transactions, whether official or private, must be made in this new currency without premium or discount of any kind; they may not be refused in payment. The counterfeiting of coins is a grave offence against law, and local authorities are held responsible for the arrest and punishment of all such offenders.
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Orders are hereby issued by us to the Ministries, the prefect of Shuntien, Tartar generals, lieutenant-generals, high commissioners, and the viceroys or governors of provinces, with their subordinates, to act in strict accordance with the regulations prescribed. They should also instruct the chambers of commerce in their several jurisdictions to give lectures explaining the gist of these regulations, that all persons may know that this reform of the coinage system is designed for the benefit of the merchant and of the general public, and by abolising the irregularities that have prevailed in the weight and value of the various coins, to take the first steps towards the reform of the finances of the country.
It is our earnest wish to promote the welfare of the community, and these officials will accordingly punish with all the rigour of the law any dishonest merchant or trader who attempts to disturb and deceive the ignorant populace by manipulating prices.
We approve of the other suggestions made in the memorial of the Board of Revenue.
Let this be published for general information.
(Translation.)
Enclosure 2 in No. 1.
Extract from the "Official Gazette" of May 25, 1910.
Proposed Regulations in regard to the Coinage, with Explanatory Notes on the same, submitted for the approval of the Throne and sanctioned May 24, 1910.
Section 1.
The unit of China's coinage shall be named the dollar.
Explanatory Note.-The term "unit" is applied to that sum which forms a basis for money calculations. Sums below the unit are known as fractions.
Section 2.
The denominations of the national coinage shall be as follows:-
Silver coins of four kinds, i.e., 1-dollar, 50-cent, 25-cent, and 10-cent (or 1-dime) pieces.
Nickel coins of one kind, i.e., 5-cent. pieces.
Copper coins of four kinds, i..., 2-cent, 1-cent., -cent, and J-cash pieces. Explanatory Notes.-(a). The question of nickel mines and of the system of minting nickel coins being still under investigation, it is proposed to postpone temporarily the minting of 5-cent pieces.
(b.) It is proposed similarly to postpone temporarily the minting of 1-cent copper pieces owing to the likelihood of their confusion with the old 10-cash pieces.
Section 3.
The dollar shall be the standard coin; 50-cent pieces and all coins under that value being subsidiary coinage. The decimal system shall obtain throughout, ie. :-
1 dollar equals 10 dimes.
1 dime equals 10 cents.
1 cent equals 10 cash.
All exchange transactions shall be made in accordance with this relation of values.
Section 4.
The weight and touch of the various silver coins shall be as follows:--
The coin of 1 dollar shall weigh 7 mace and 2 candareens "Treasury weight" (as hereinafter defined). It shall contain 90 per cent. "pure silver" (as hereinafter defined), i.e., 6 mace and 48 candareens of pure silver.
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