Chinese Silver - Chinese Currency by J. Edkins.

Chinese Silver - Chinese Currency by J. Edkins.

 PART III

Sources of Chinese Silver.

   Monsr. G. Pietsch, of the Comptoir d'Escorapte de Paris, in his Memorandum on the Weight and Monetary System of Shanghai, July, 1864 (printed in 1896 in Imperial Maritime Customs papers No. 47 Sycee, Weight, Value, Tonch), states that at Ho-shan (Yunnan) and at Tung-sing, on the borders of Cochin China, there are silver mines farmed out by the government, the renters of which employ from 40,000 to 50,000 workmen. The annual product is estimated at Tls. 2,000,000. There are besides other mines in the interior of the empire less rich than these if considered individually, but whose united product would be in all probability something considerable. Refined silver is cast into sycee. The name of the caster and the date and place of the casting are stamped on the shoes of silver as they are made.

   On leaving the hands of the founder the shoes or other shapes of silver are submitted to the inspection of a government officer or public appraiser called Kung-ku Q fa. After having examined them he places on them two marks in Chinese ink, to indicate both fineness and weight. The shoes go into circulation at the value and degree of purity determined by the appraiser and so marked by him.

   In the Tung dynasty Chinese native silver was found in several localities. In A.D. 806 says the Tang-shn, ch. 54, pp. 5,7, 12, the amount annually obtained was Taels 12,000. In A.D. 850 it was Taels 25,000. At the rate here mentioned of about 20,000 taels a year only two million taels of silver would be added in a century. During the years 1894, 1895, from twenty-five to forty million taels of silver came into China from foreign countries in a single twelve month. It may be concluded that during the three centuries of the Tang dynasty the produce of Chinese silver mines was not more than the fifteenth part of the amount of silver now received from foreign countries by China in one year. Just at present there is an excess of exports over imports. China bays less foreign opium, and she sells to foreign countries much more of cotton, of wool, of peltry, and of straw braid than formerly. The war with Japan led to government loans, and government loans

were the chief cause of the large import of silver during some recent years. But if the exports of Chinese produce continue to exceed the imports there will necessarily be an annual money balance in favour of China. This will inevitably lead to a steady flow of silver into the country.

 1893 Imports Tis. 151,000,000. Exports Tls. 116,000,000

 1894                    162,000,000.                    128,000,000

 1895                    172,000,000.                    143,000,000

 1896                    203,000,000.                    131,000,000

 1897                    203,000,000.                    163,000,000

   The striking fall in exports in 1896 was caused by the loss of Formosa and by decreased export of tea, silk, and cotton.

   1898 Imports Tls. 200,000,000. Exports Tls. 159,000,000.

   1899                    265,000,000.                    196,000,000.

   By the Chu-pi (Ch. 13, p. 64) statements in A.D. 1727 it appears that in that year foreign vessels brought Spanish dollars to Canton to the amount of Taels 537,500. This we learn by noticing that the governor counted them at oneteuth less per tael and received himself Taels 43,000. Taels 430,000

+ 107,500=Taels 537,500. The hong merchants consisted of sixteen or seventeen firms. They had a monopoly of the foreign trade.

Silver sent by Chinese Emigrants.

   Sie Fu-cheng, minister to England, France, Italy, and Belgium, left China in 1889. He says in his diary, Ch. 1, p. 15, that Chinese emigrants send back large amounts of silver to China. This is useful in redressing the balance of trade and to a considerable extent prevents China from losing silver in paying for imports when as often happens the value of imports exceeds that of exports.

   This author says Chinese emigrants in Cuba, Peru, Saigon, and Singapore with those in the Southern Archipelago generally, must be several tens of millions. This is an overstatement on his part. He adds that Chinese imports amount annually to twenty million taels in value. But it is only in 1898 and 1899 that imports have exceeded exports by seven and sixteen million taels respectively. In 1893, when I saw the author in London, exports exceeded imports by three million taels and China was receiving this amount of silver. In 1894- 1895 the value of exports over imports was five millions and eleven millions. In these three years, taken together, China grew richer by twenty-one million taels. In 1896 China lost by purchasing too many imports, 31,000,000 taels, and in 1 897 she recovered 4,000,000 taels by adding largely to her exports.

   Judging by these seven years China has parted with thirty million taels through the purchase of too many imports. She ought to abandon opium smoking and expend less on cannon and other munitions of war.

   According to Mr. Stephen Hallett's calculations the Chinese emigrants abroad amount to about 2,400,000 in number. He does not include Mauritius and South Africa.

We may then call them three millions.

Silver Mines in China.

   Silver was mined for in Yunnan in the Ming dynasty. Eunuchs were in charge of the mines with the title, Chen-show-tai-kien. The production gradually rose to Taels 30,000 in a year. The people were allowed to work the mines, but this liberty was sometimes withdrawn. In the year 1663 when the province came under the Manchu government, the people were allowed to work the mines. In 1708 the amount credited to the government was Taels 27,000. Twenty years later it was Taels 70,000. The people who preferred mining to agriculture mounted up to the number of 100,000 persons. The consumption of 2,000 piculs of rice a day and 800,000 piculs in a year was occasioned. Yunnan cannot be reached ,by boats and carts. A hundred thousand people needed food, which they, none of them, worked in the fields to obtain. Silver mining is fatal to agriculture.

   In the year 1885 Hsie Kuang-ch'i in a memorial presented to the Emperor asks for the withdrawal of the prohibition to work mines in Kuangsi. As a method of raising money for the needs of the government this had not been brought before - the Emperor by others. The five metals copper, gold, silver, iron, and tin are all found in Kuangsi. The metalliferous advantages of this province equal those of Yunnan. The most productive silver mines in the . province are those of Hsiunchou towards the centre. Silver has been mined for there at

P'ing-tien-chai, on a moimtain'of Kwei-hsien, which on account of its flat top may be called a table mountain. On the mountain side miners worked fifty years ago. A picul of the stone yielded a few taels of silver and from twelve to thirteen catties of lead. When the Tai-ping rebellion broke out these miners joined it and went to Nanking with the rebel army. About 1857 a robber band worked a silver mine on the same mountain.

After a time the Imperial troops attacked the fort they had erected, bat failed to take it till about 1862. The Knangsi treasurer, Lin Kwun-yi, the present Nanking viceroy, captured the head of this band and destroyed the fort. After this, parties in search of silver fonght and struggled with each other, and during several years not a few murders were committed. To avoid trouble the local authorities did not report these things, but represented that the silver mines were closed by imperial order. This was not the fact, and in 1871 the acting

magistrate, Chang Chia-chi, anxious to learn the state of the mines, sent men to inquire quietly. He found that silver was worked at 103 places and that there were between ten and twenty persons in each mine. Unfortunately the miners met with silver ore in fragments only. They did not work steadily, and never found large masses. The furnace used was small and rude in construction. If the miners were to work hard and with uniformity at each silver vein, and a large well-constructed furnace were in use, the results would be far more satisfactory than they are now. This magistrate wrote a despatch containing these particulars and asking for leave to work the mines. Nothing came of it, and shortly after the prefect of Hsiun-chou sent soldiers to the mines with unfortunate results, The miners attacked tne soldiers and killed several of them.

On this the prefect prudently desisted from disturbing the miners. A Kiangsi Taotai next proceeded to the spot. He was fired on with cannon by the miners, and in discouragement returned to the capital of the province. The difficulties met with by those who attempted official control of the mines after this time down to 1885 are described. Good managers could not be obtained. Those who were appointed, developed bad

qualities. They were successively relieved of their duties. No good opening presented itself for the effective commencement of official mining, and funds were not forthcoming.
   When this memorial was written, private miners still worked the mines, and as the reports of the commissioner at Lung-chow are silent on the question of the working of the mines, they are probably still in the bands of unauthorized persons. When Chang Chi-tung was viceroy of the Two Kuang he proposed J;o re-open and work the Kwei-hsien mines with foreign machinery, but the people of the locality objected from superstitious ideas.
    Silver mines have been worked during the present dynasty in Szchwen, Yiinnan, Kuangsi, and Kwei-chou. An edict of 1844 (History 11, 35 f 6) says that the faults of the Ming dynasty in the working of mines have, in the present dynasty,, been avoided. Insurrection and robberies at the mines have not occurred. Our system has succeeded better than that of the preceding dynasty. It is evidently preferable for private persons to open and have charge of the mines, and this system is better than to work them on official account. Orders were given that permits officially stamped should be given to suitable persons who desired to search for silver and open mines in new localities; in addition to those which at that time were worked, the Emperor gave reasons for not allowing official management. He feared rapacious appropriation of the metal and disturbances occurring at the mines. He preferred that private persons who could be relied upon should receive permits to open mines.

Value of Silver in the Eighteenth Century.

   Adam Smith said that in the English mint a pound weight of gold was coined into 44 guineas. This is 46. 14s. 6d. An ounce of gold was worth 3. 17. 10J in silver. A pound weight of silver was coined in the mint into sixty-two shillings. The mint price of silver was 5s. 2d. an ounce.

   The prosperity of China during the eighteenth century gave an impetus to trade. The Emperor Sh&ng Tsu (Kang Hi) acquired the whole empire about 1690. It was then Wu San kwei died who had long been a powerful rnler in South-western China. Tho Emperor was able in the year 1710 to give up

the whole revenue for one year. It was the fiftieth year of his reign, and he assigned it to the people as a jubilee gift.

   In A.D. 1726 the Shansi treasurer reported that in his province cash were very scarce, although his office was little more than 1,200 li distant from Peking. He found that in 1,000 cash there were not more than twenty or thirty newlycoined Yung Cheng cash. The expense of conveying cash from Peking was so great as to be prohibitory. The price of silver was, on account of the high value of copper cash, 900 to the tael. The market prices of rice and cloth were raised in consequence. This was unfortunate for the poor. He therefore recommended a change in the system with a view to increase the circulation of cash. From the year 1727 onward he asked that soldiers' pay in Shansi should be eight-tenths in silver and two-tenths in cash. The outlay in a year was Taels 800,000. Copper cash would be needed to the extent of 160,000 strings. Twice a year let the governor send messengers to the Board of Revenue to ask for 80,000 strings to be entrusted to the treasurer oil arrival at Tai-yuen-fu, and to the- circuit superintendents and prefects. The value should be 1,000 cash to the tael. Each soldier would receive 8-10ths silver and 200 cash to count as 2-l0ths copper cash as his pay per tael. After a few years, through this annual import of 160,000 cash, silver would easily recover its value of 1,000 cash per tael. The expense of conveyance would appear in the public accounts as soldiers' pay. The Emperor refused to allow this change to be made, but the price of silver was as stated. Chu-pi-yu-chi 13, 84.

   In the year A.D. 1739 (Tung-hwa 1, 56, 4), in the prefecture of Yung-p'ing-fu, east of Peking, 1,000 cash answered to a tael. Expenses made the grain tax exceed a tael by otie mace five candareens. The people paid at the rate of 1,150 cash. This shews that at that time silver was worth exactly 1,000 cash to the tael The people were allowed to pay silver or cash as was most convenient to them.
   In the year 1741 the Emperor in an edict blamed the Shanse revenue officers for levying too much from the people. Each tael was estimated as being in value 1,030 cash. The officers made it two mace above one tael. It onght to be only one mace three candareens. If we add two-tenths to 860 cash we have 1,030 nearly, so that a tael of silver in that year would he changed for 860 cash in the province of Shansi.

   In the same year the Emperor ordered the tax to be one tael a picul with additional two mace. This was to be the amount of levy in Shensi and Kansu.

   In the year 1782 the exchange between gold and silver at Hangchow was at 75J. History mentions that 4,784 taels of gold were exchanged for 73,594 taels of silver. Tnng-hua-hsii- In, ch. 27, p. 20. The best gold was at that time twenty times that of the same weight of silver. Do., ch. 27, p 27.

Value of Silver in the Nineteenth Century.

   By the Regulations of the Board of Revenue it appears that in the year 1831, when the edition of the Regulations here used was printed in Peking, the tael of silver was exchanged for a thousand cash in that city, but for twelve hundred cash in Yunnan. The cause of the difference of two hundred would be the cheapness of copper in the province where it is now worked. The bannermen and soldiers were paid in Peking 1,000 cash as a tael of silver. Soldiers in Yunnan were paid 1,200 cash. If the market price of a tael was less than 1,200 cash the cash given to the soldiers was proportionately less. If the price of silver rose above 1,200 cash the soldiers were paid six parts of their monthly wages in silver and four parts in copper cash. The Board of Revenue did what it could, as the regulations shew, to maintain the standard of silver value at twelve hundred for Yunnan. At the same time they directed that in Shansi, Chekiang, and

Sheusi allowances to prisoners for salt and vegetables should be charged not in cash but in the current market equivalent in silver. They also directed that in Chekiang when the rice tribute was to be levied in the money equivalent on small proprietors, fouiteen cash were to be accepted for one candareen and six-tenths of silver. This points to a low price of silver in that part of China at the time when this regulation was made. In China silver always falls in value at a distance from the chief centres of traffic.

   One of the causes of the remarkable rise and fall in the value of silver in the nineteenth ceutary is to be found in the extended trade with India and China carried on by England and other countries. In China this may be considered the chief canse.

   In 1847, says the History (Tung-hna 12,27), salt at Hankow was 50 to 60 cash a catty. In silver this was Taels 0.2.3 to Tls. 0.2.4. Silver then would be worth about 1,300 cash at that time. This was an appreciation of thirty per cent, above its old value. But the tael was worth 1,300 cash for twenty years before that time. In 1827 one tael of silver was changed for 1300 cash. Salt was sold at 16 cash per catty. During the years 1840 to 1880 siver was in great demand to pay for opium in particular, because of the unexampled eagerness of the people in the purchase of that drug.

   The people must have it, whatever it cost them, and on the opium smokers must rest the blame of the consequent derangement in the currency. In Wei-yuen's remarks on silver in the g 5 fjj Sheng-wu-chi, he quotes Huang-chiotsz, who said in 1838 in a memorial that this was the chief cause of the rise of the value of silver from 1,000 cash a tael to 1,600 cash a tael. This was attended by a boom in the price of dollars. The Emperor camraanded the viceroys to give their advice. That of Viceroy Lin Tse-hsfi was to establish a system of absolute prohibition. He was sent to Canton to act at his discretion, and his action in destroying 22,000 chests of opium brought on the war of 1841. In 1765, 200 chests were imported yearly. In 1796 the import was prohibited on account of the alarming increase in the consumption of opium. By 1820 the sale amounted to 3,000 or 4,000 chests a year. In 1821 there was another prohibitory decree. The advice of Yuen Yuen when he was Canton viceroy was to restrict the trade at present, with a view to ultimate strong action when a plan could be found for driving away the ships that bring opium. Gradually there came to be 20,000 chests in twenty-five ships. It would be about A.D. 1816 that Yuen Yuen wrote this memorial, for in 1812 he was chief manager of grain conveyance in An-hni, a much inferior office. About this time a great change for the worse had taken place. Li Bung-pin was viceroy at Canton. The Chinese cruisers appointed by him to prevent smuggling received presents to the amount of Taels 36,000 each mouth. In return for this gift they allowed the contraband trade to be carried on unchecked. Before this the rule had been made that no silver should be exported. Goods were to be exchanged for goods. The goods foreign traders sold to China were less in value than those they bought. The balance was paid in silver. The amount of silver thus imported in return for tea, silk, puicelain, and rhubarb was four or five million dollars. This was a very valuable addition for the time to Chinese currency. When the import of opium increased, this drug took the place of silver and the price of the dollar and of all silver rose rapidly in China from that time forward. The prohibition of the export of silver became a dead letter.

    In the year 1832 the Canton Viceroy Lu Kwnn ceased to use anti-smuggling vessels. Corruption was too deep-seated to be eradicated. This is shewn by the following facts. In 1837 the viceroy of Canton, Tens: T'ing-cheng, again placed vessels to watch against contraband trade. Colonel Han Chao-ch'ing formed a plan for his own profit. Being naval colonel he coald do this. Every ten thousand chests allowed by him to pass were to obtain this freedom by a present of several hundred chests to the prevention vessels. They were reported as captures. He even used the vessels to carry chests for the importers. He was rewarded with the rank of brigade-general and a peacock's feather. All his men received money, and the import of opium grew to 40,000 or 50,000 chests.

    At this juncture the Emperor was asked to allow opium to be imported as medicine on payment of duty. The Emperor made no reply. Liu Tse-hsti counselled strenuous measures, and the Emperor entrusted to him the duty of putting an end to the opium trade. The result was that Commissioner Lin compelled the British vessels to surrender 20,283 chests of opium. This was in the spring of 1839. The opium weighed 237,600 catties. Three catties of tea were given as a reward for each chest. He asked the Emperor if he should send the opium to Peking. The reply was, destroy it at Canton that the people on the coast may all see and know what is being done and be afraid to transgress any more. Each chest was worth $250 in India and $500 or $600 on arrival at Canton. The entire value was $5,000,000 to $6,000,000. Including profits to importers it amounted to about $10,000,000 (King-shi-wensii-pien, ch. 78).

   The loss to China in silver through the action of Lin Tshsti may be seen in these figures. The indemnity was paid in silver when peace was proclaimed. The price of silver in the country rose in consequence. In the year 1900 the Boxer insurrection has been accompanied by a rise in the value of silver, through the demand for it by refugees. In China silver in indispensable in traveling. Gold cannot be changed for copper money except in large cities. The Boxers cansed a universal exodns of the iiihnbitants wherever they went. These robbers were encouraged by the government, and the result was the sale of gold for silver to so large an amount as to raise silver to 1/33rd of the price of gold instead of 1/16th. Silver rose about three pence through these events.

Japanese Adoption of a Gold Standard.

   In February, 1897, gold bars were quoted in Shanghai at Taels 331/2. This price continued to March, when it was 345 for one description of gold and 338 for another. March 10th, the numbers were 343 and 350 ; March 18th, 354 and 361 ; March 24th, 343 and 350; March 31st, Taels 349 ; April 5th, Tls. 346 ; April 6th, at this time since February 27th, silver had fallen 151/2 Taels or 1/22nd part of the value of gold of the same weight. To speak more correctly, gold had risen Taels 15.5.0 or 4.42 %, and silver had fallen 11/2 or 4.35 per cent. February 8th, silver was 2/11 in exchange reports; February 16th, 2/10| March 4th, 2/10; March 15th, 2/9|; March 23rd, 2/9; on April 6th, gold was 351 ; on April 6th, gold was quoted at 351 Taels.

   In 1896, February 28th, gold was quoted at 393 to 398; on April 10th, it had fallen to 387 and 391. Silver was 2/6. May 6th, 387.5 with silver at 2/51/2 ; on August 1st, gold was 378 and silver 2/6| ; on November 4th, gold was 362 and silver 2/83/8.

   On January 4th, 1899, when the Mexican cost 930 cash, gold was 361 and silver 2/85/8. The rise in gold was on February 28th, after just one year, 55 Taels. On May 27th, 1899, gold was quoted at 357 and the Shanghai Tael was 2s. 8d. 5/8ths ; on May 28th, 1900, gold was 363 to 368. Value of silver Tael, 2s. 8d ; on December 2nd, 1900, gold was 340, 338, 3461/2 ; Tael of silver, 2s. 11d.

   It is by the use of silver as money that this metal keeps its value for a year in relation to copper cash. It is by the fall of the value of silver in European markets that gold rises in value. Another cause for the appreciation of gold is ita adoption by Japan as the standard money of that empire.
   In March, 1897, when the coinage bill was discussed in the Japanese legislature, Count Matsnkata said that 500,000 yen were in circulation in Hongkong and 800,000 in Singapore. The reason that these amounts were so small was that Japanese silver coins are converted into bullion for nse in the interior of China. About 25,000,000 silver yen were at that time in circulation in Japan. Every individual needs subsidiary silver coins to the amount of two silver yen. The Japanese government must therefore provide silver coins to the amount of 80,000,000 yen. A reserve sufficient to maintain this proportion of silver coins is always desirable.

   All through the year 1898 gold in the Shanghai market was a little over 36 times the price of silver. In May, 1899, it fell a little below 36 ; on May 27th, it was 35.7. At the same time the Mexican dollar was rising in copper cash value to 930. On April 19th, 1899, it rose from 910 to 920. Thus silver has risen in value and gold has fallen in value if judged by copper cash. Yet on the average in this year silver was worth only 1 in 36 if judged by the gold standard. May 29th, 1899, gold was 35.7 to 36.2 ; on August 25th, 1900, gold at Shanghai was 36.13 to 38 ; in September, gold fell to 339 and 349 while silver was at 2s. lid.

Canton Dollars in Peking.

   The Board of Revenue noticing on the new railway from Peking to Tientsin the convenience attending the use of dollars and parts of dollars, became convinced that the time was come for introducing dollars in the metropolitan currency. A memorial from the Board of Revenue on Peking currency appeared in the Hu-pao, February 24th, 1898. The Canton dollar was first made by Chang Chih-tung when viceroy of Canton. It contains Taels 0.7.2 of silver weighed with the Kiug-p'ing scales. The Board recommended the Emperor to direct the Canton viceroy to send to Peking Taels 300,000' in the form of coined dollars and parts of dollars as a part of the Canton tribute. This can be done at the Canton mint, because each month they are able to coin three million dollars and parts of dollars. The mint officers are to use the utmost care in securing correct weight and fineness in their coins.

   In the programme of regulations attached to the memorial it is stated that an office will be established for changing dollars at the official value. If dollars are refused by cash shop keepers the owners can have them changed at the official exchange office.

The Carolus Dollar.

   In June, 1896, the Carolus dollar began to rise in price at Wuhu. It reached nine mace. It realized that value till August 3rd, when it was 9 mace .15 ; at midday it was 8 mace .675 ; in the evening it was the same. At lamp lighting a telegram came which caused it to fall to 8 mace .1. On August 4th, at noon, it was 8 mace .65. It afterwards rose to 8 mace .7. The price of the Carolus is the guild price. The guild managers inquire into the amount of reserve and the state of the market as holding out the hope of a profit in exchange. On December 28th, 1897, the price in Shanghai was 9 mace .2; on April 6th, 1898, it was 9 mace and one

candareen.

   In the year 1883 taxes were paid with the Carolus dollar in the province of Au-hui. The governor arranged that the tax on one mow of the best arable laud should be SI. 4.0. It was seventy cents for second rate land and thirty cents for third rate laud.
   The weight of the Carolas is 8-10ths of an ounce, but it is worth more as a coin. On April 19th, 1899, it was in Shanghai current at 9-10ths of an ounce. The Mexican dollar is about the same in weight as the new Canton and Woochang dollar. They count as seventy-two hundredths of an ounce. The Mexican (January 7th, 1898) was 73, but this is through a difference in the weights used. The Mexican was at the same date 74.5 hnndredths of an ounce. April 6th it was 75.75; April, 1899, it was 74; on May 29th, 1899, at Shanghai the Carolns was taels 0.9.3 in one Chinese newspaper and Taels 0.9,0 in another. It is then as a coin about 16% above its value as metal, and this difference continues steadily from year to year. On November 23rd, 1900, it was Taels 0.9,3.

Tientsin Coinage.

   The viceroys are aiming to increase the nse of silver dollars coined in mints under the charge of the treasurers. In the Sin-wen-pao in 1898 a set of new rules, promulgated by the viceroy of Chihli, was published. They are intended to promote the coining and circulation of new silver dollars. Very recently the Chen-tung-clr'eng and other cash shop proprietors consulted together and agreed to pray the viceroy to issue a set of rules regarding new silver dollars. This request they presented through the prefect and district magistrate of Tientsin. The rules are (1). That the daily price of the silver dollar in copper cash be notified publicly along with the price of silver. (2). The market value of rice and other articles of large consumption which is easy to determine, shall be publicly announced each day in dollars and parts of dollars. (3). The viceroy publicly recognizes and appoints that the new silver dollars shall be paid out and received in payment

officially in all departments of the provincial administration. (4). Pawnshops have hitherto kept accounts in cash. They will now on all pawn tickets state all sums of money in the cash currency for convenience as hitherto, bnt in receiving money they are not allowed to refuse to receive new dollars or cash bank notes. (5). Cash shops may issue dollar notes and cash notes. (6). Cash shops when paying ont money for notes presented of less value than 10,000 cash, may pay out cash or notes or silver as convenient. For amounts above 10,000 cash a certain proportion of dollars are to be used. If they are refused the mngistrate can be appealed to in order that he may assist with his authority to enforce the use of silver dollars. At the doors of all cash shops and firms the daily copper cash price of silver shall be posted for the information of the public. (7). Silver dollars being now officially recognised the Tientsin arsenal should be requested to coin a number

sufficient to meet the needs of the time. (8). The arsenal makes use of silver to coin dollars. When they ar given to traders it is not advisable to pay for them with notes, for then the mint will be without silver to continue coining dollars. When traders receive dollars they ought to give silver in return. Bnt should the arsenal need notes at any time they can by special regulation receive them. Otherwise silver onght to be given in return for dollars received.

   It may be noted here that the free coinage of silver is implied in these new rules. Sin-wen, April 6th, 1898.

Woochang Coinage.

   In the Shen-pao, October, 5th, 1899, a letter from Wachaug said that the new coins there made are satisfactory in regard to touch and workmanship. They are the best that are made in China. An edict was lately received stating that in future no silver coins will be made at Nanking or Anhui. The mint machinery there in use is now to be sent to Wuchang and Canton to be added to the machinery already employed at those two mints. No other mint for silver coinage is to be established. This is a measure dictated by economy. In future the coins required for circulation in any province will all be made at Canton or Wuchang.

Taxes Paid in Chinese Dollars.

   The new dollars manufactured at provincial mints are now received as revenue along with silver by weight. In conveying silver to Peking from the provinces Chinese dollars are received. Foreign dollars are not sent. (See Peking letter in Sin-wen-pao, January 28th, 1898). This new rule came into operation from the beginning of the 24th year of Kuaug Hsii.

   The treasurer of Anhui province in November, 1897, stated that salaries would be paid half in newly-coined Chinese dollars and half in other modes. The salaries of the Che-hsien, sub-prefect, and Customs staff would come under this rule.

   In the Hu-pau, April 3rd, 1898, it is mentioned that Chinese silver is inferior in purity to foreign silver. The

Anhui governor directed superintendent Pan to buy at Shanghai, for the An-ching mint, foreign silver ingots in quality quite pure to the amount of $10,000. In Anhui province the people are accustomed to the Carolus, and the cash shops keep up its price to nine mace. Mexicans are eight per cent lower. The governor in his proclamation says the weight is the same, and that the market price of the Carolus, the Mexican, and the Chinese dollar ought to be equal. In payment of taxes the Mexican and Chinese dollar are received at one

price. In April, 1898, the Carolus was in Shanghai newspapers nine mace one candareen and the Mexican seven mace five candareens. The difference then is nearly one-seventh.

   By the latest information the Canton silver coins are taking firm hold in circulation in the northern part of Canton province. The prefecture of Shao-chon and the sub-prefecture of Lien-chon there border on Honan. I learn from a missionary resident there for eight years that Mexican dollars and the Canton five-cent and ten-cent pieces are readily circnlated. Cash are used bnt little. The Hongkong small silver coins are also favoured. This fact shows that subsidiary silver coins are of considerable benefit in the prefectures of the interior not very far from treaty ports. It is also shown that the fullsized Chinese dollar still circulates with difficulty when compared with the Mexican. The resistance to innovation met with in common Chinese life and in the transactions of the daily market, is still too strong to be overborne by official proclamations. Yet the cheapness of silver at present renders it easy to keep up the supply of Mexicans. If the subsidiary silver coins succeed through a large extent of country in attaining a wide circulation as they now are doing near Canton, copper cash will be much less used in the future and small silver coins will take their place to a large extent.

   The fact above mentioned is also true of Hunan in its southern prefecture, Kwei-yang, where it borders on Canton. The subsidiary coins are also obtaining there a large acceptance. Small silver coins are more seen in the markets than copper cash. This fact also is derived from the same missionary who is resident in that vicinity. He speaks in mandarin and in the Hakka dialect.

Amount of Silver in China.

   The receipts of the government amount yearly to about eighty-three million Taels of silver. The amount then of silver in circulation in China is about 830,000,000 Taels, and the value of this is about one hundred million pounds sterling. But this estimate is based on the supposition that the income of private individuals, clans, temples, and companies is not more than ten times the income of the government. The Chinese think the government receives in taxes only half per cent of the incomes of the people. But if it is one per cent the amount of silver and other property should be eight thousand three hundred millions. It would then r be about eight hundred million pounds sterling or about half the money value of Great Britain, speaking roughly.
   The amount of silver circulating in India is about 1,800 millions of rupees, or speaking roughly, 900 million

Taels of silver. A native of China is about as well to do as a native of India. He ought to have a larger income than a Hindoo, considering the agricultural advantages of China. Both countries lose money to Europe through the greater force of character of the Europeans. They have to work hard for less wages than Europeans. This is inevitable.

   Feng Kwei-fen says in Kiug-shi-wen-sti-pien, ch. 24, that silver in the Tang dynasty was only used as money in commerce with aboriginal tribes. Silver during the Ming dynasty came to be commonly used as money in China at about the middle of the time during which that dynasty lasted.

Increased Demand for Silver.

   The Board of Revenue, according to a letter from Wuchang in the Shen-pao of November 29th, 1899, made six proposals for increasing the imperial revenue. 1. An addition to the salt contribution. 2. Increase in the duty on native and foreign opium. 3. The increase on tobacco and wine duties to twice the present amount. 4. Duty on deeds of sale of land and houses. 5. Diminution in the expense of conveying silver to Peking. 6. Silver should be sent to Peking in place of silks and satins from the three imperial factories at Nanking, Soochow, and Hangchow.

   The tendency of legislation has been for many years to transmute the regular grain tribute into a silver tax.