26
CURRENCY PROBLEMS IN A CYCLE OF CATHAY
G. FINDLAY ANDREW, O.B.E.*
44
In these days of simplified travel, when one may either "pay as you go" or travel first and pay later; when the traveller is spoon-fed by agencies and bear-led by travel bureaux, the many difficulties which faced the would-be traveller in the Chinese Empire during the early days of this century are almost entirely forgotten. Not the least of these were the many problems which arose in connection with financing such journeys. I shall only refer to foreign exchange very briefly as my subject has to do with the disbursement of Chinese currency. Suffice to say, in passing, that the sixty years under review has witnessed the pound sterling at $2.90 Mex, and the U.S. $ at sixty cents Mex. at the nadir, through to the astronomical zenith of 1949 when staffs had to be paid in the National currency twice daily and then given time off to spend the money before it deteriorated further.
To-day the would-be traveller presents himself, hat in hand before the Manager of his bank, arranges an overdraft, converts the proceeds into letters-of-credit or travellers' cheques, then proceeds blissfully upon his way shedding rays of sunshine through the distribution of his "promises to pay". This was not so in the days at the turn of the century. Then, the traveller in the interior of China might be able to engage his transport by payment with the native bank draft or gold or silver bullion, but the day by day road expenses had to be paid in the existing common currency of China, the old brass cash—the coin with a square hole in the centre. At that time the issuance of this currency was under the control of the Imperial Throne and new issues were uttered by each fresh monarch, perpetuating his memory by the inscription thereon. The value of the brass cash was based upon the tael of silver and fluctuated with the law of supply and demand. In the larger centres the daily rate of exchange was fixed by the Chamber of Commerce.
But in the matter of the exchange of silver into cash at the exchange shops there were many vagaries to be taken under
*The author was born in China and was engaged for many years there in welfare work,
26
CURRENCY PROBLEMS IN A CYCLE
OF CATHAY
G. FINDLAY ANDREW, O.B.E."
44
In these days of simplified travel, when one may either pay as you go" or travel first and pay later "; when the traveller is spoon-fed by agencies and bear-led by travel bureaux, the many difficulties which faced the would-be traveller in the Chinese Empire during the early days of this century are almost entirely forgotten. Not the least of these were the many problems which arose in connection with financing such journeys. I shall only refer to foreign exchange very briefly as my subject has to do with the disbursement of Chinese currency. Suffice to say, in passing, that the sixty years under review has witnessed the pound sterling at $2.90 Mex, and the U.S. $ at sixty cents Mex. at the nadir, through to the astronomical zenith of 1949 when staffs had to be paid in the National currency twice daily and then given time off to spend the money before it deteriorated further.
To-day the would-be traveller presents himself, hat in hand before the Manager of his bank, arranges an overdraft, converts the proceeds into letters-of-credit or travellers' cheques, then proceeds blissfully upon his way shedding rays of sunshine through the distribution of his "promises to pay ". This was not so in the days at the turn of the century. Then, the traveller in the interior of China might be able to engage his transport by payment with the native bank draft or gold or silver bullion, but the day by day road expenses had to be paid in the existing common currency of China, the old brass cash-the coin with a square hole in the centre. At that time the issuance of this currency was under the control of the Imperial Throne and new issues were uttered by each fresh monarch, perpetuating his memory by the inscription thereon. The value of the brass cash was based upon the tael of silver and fluctuated with the law of supply and demand. In the larger centres the daily rate of exchange was fixed by the Chamber of Commerce.
But in the matter of the exchange of silver into cash at the exchange shops there were many vagaries to be taken under
*The author was born in China and was engaged for many years there in welfare work,
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