Chinese Gold - Chinese Currency by J. Edkins.
PART IV.
Gold in Ancient Times.
In the Han dynasty gold was cheap, because Buddhist image worship had not then created a demand for this metal. Consequently it was in use for paying salaries and for market purchases. Gold is mentioned in A.D. 1375 as ten times the value of silver. A few years later ten piculs of rice were purchased with one tael of gold. This quantity was doubled in 1397 by a special enactment of the Emperor. In 1413 thirty piculs of rice were ordered by authority to be the equivalent of one tael of gold.
Before Japan was open to foreign trade gold and silver were the same in value. This anomaly was caused by the absence of foreign intercourse.
We learn from the Wei-shu in the first year of Hing Kwang, A.D. 454, that when five large Buddhist images were cast in China, each sixteen feet in height, 25,000 catties of copper in all were used, and gold leaf would be glued over the whole surface of these images. A few years later an image of Buddha, forty-three feet high, was made. Copper weighing 100,000 catties was used. The gold required was 600 catties.
Bronze casting was practised in India before it was common in China. The Hindoos learned it from countries further west. We have a remarkable example of gold casting in Exodus xxxii. 24, B.C. 1491, according to Usher's chronology. Gold, silver, and copper images of Buddha would be cast in India from about B.C. 400 continuously for a thousand years during the time of Buddhist prosperity in that country.
Gold leaf was profusely employed in the palaces of the golden dynasty. When the Mongols conquered this dynasty, very much gold was used in Buddhist temples. Kublai built the Wan-an-si and ordered it to be richly ornamented with gold leaf, both on the images and on the windows and walls.
Buddhist liturgical books were written out with gold leaf.
Increased Production of Gold.
Gold is now produced to a larger extent in the South African province of Transvaal than in any other country. The United States of North America were for many years the chief producers of gold, but they now stand second to the Transvaal province. Australasia follows, and these three countries together yield more than three-fifths of the world's supply. Russia is the fourth gold producer, and it yields about onetenth of the whole.
Waste of Gold.
An ancient writer says that when gold is made into gold leaf it cannot be restored to its original condition.
The beating out of gold leaf is highly wasteful. The Emperor about A.D. 490 forbade the manufacture on this account. A similar edict was promulgated in A.D. 1008. Neither gold nor silver were allowed to be in this form wasted. In A.D. 1040 a special edict made it criminal to glue gold leaf on Buddhist images.
In the year 1167 an edict forbade gold thread to be used on clothing. Those who wove and sold such clothing were treated as criminals and prosecuted.
In the year 1311 the Mongol Emperor published an edict forbidding the manufacture of gold leaf, of liquid gold to use in washing various articles, and gold thread woven into ornaments of dress.
The Chinese, when gold is beaten very thin, attach it to Buddhist images by means of gum. When gold is used as money it is in the form of bars or ingots.
In the Tang dynasty gold leaf was used to paste laudatory sentences and titles on sacrificial tablets. Kieu-tang-shu, 23, 13. The tablet was placed in a stone chamber called kam, kam is the camera in which the tablet is placed. The tablet shrine is yu-kwei, marble shrine. This word kwei for cot is our cot or cradle. The yu-tie tablet of jade was cut into for the inscription. The characters were then filled in with gold leaf. All such words as tiep, tablet ; cot, kam, are necessarily the same as the corresponding English words.
Gold in Circulation in Century XII.
About A.D, 1175 it is stated in the Su-chow-fu-chi, a brigadier stationed at Soochow, named Han Yeu-ku, ordered the execution of a Shoopan in the same city for receiving bribes. (Chap. 145, page 44) The gold he had in his possession was enormous in amount gold leaf, 29,250 catties; gold coins, 60 strings; gold shoes, 15,720 taels" ; five pecks of small gold lumps ; gold Lohaas, 500 in number, each of them two feet five inches high ; gold wine cups weighing 6,730 Taels; gold hair pins and bracelets, 143 in number; gold waist belts, 12. Other articles were in proportion. All this gold was confiscated. Brigadier Han was about this time killed in the war with the Kin Tartars.
It appears from this entry in the Soochow topography that the quantity of gold in circulation in the 12th century was immense.
Gold in the Jehol Country and elsewhere in Chihli Province.
Shou Yin, General of Banner at Jehol, reported in the Peking Gazette November loth, 1898, the state of the gold mines under him. The locality is named Kon-liaug at Jehol, with Shwang-shan-tsz not far away. During the first four months of 1897 they yielded in gold the value Taels 19,490.4.1. If we divide this by twenty-four, there will be Taels 8,133.8.8 for the public revenue, the same sum for the shareholders, and the
remainder, amounting to- one-sixth, is to be given to the Weiyuens in charge. The government receives five-twelfths of the proceeds. There are also gold mines at Chao-yang, at Pingch'iuen, at Feug-uing, and at Lan-p'ing.
Gold in Moukden Province.
(S.E. 660), T4 ie-ling (N. 130), K'ai-yuen (N.E. 200), Hai-lnugch'eng (N.E. 480 li). These places are to the north east of Moukden at a distance of about a hundred or two hundred English miles. The edict orders the mining managers to continue their efforts at these localities with the help of shareholders. Mining shares are managed officially, as is the case with the China Merchants' Steam Navigation Company. The land belongs to proprietors and has to be bought from them. In the Amoor province the Mo-no mines are worked in unoccupied country, and all the land belongs to the government. The mines now being worked are near King-king. The eighty miners dig out 2,000 catties of stone containing gold in a day. In all they have collected 46,000 catties of stone, which will, when treated by the native method, yield seven candareens a picul. It is estimated that fifty thousand Taels of silver will be needed from shareholders to work this ore. The profit will be greater if foreign crushing machinery is purchased. The machine shops will be expensive to build. The Mo-ho mines have been worked for more than ten years. The methods there in use will be adopted here. After payment of salaries and dividends, the residue will be added to the revenue, tkiriug the two years 1896 and 1897 only 200 Taels of gold have been realized. This does not leave much after deducting interest of loan. In the five localities T'ung-hoa, Hwai-jen, etc. there are eight mines. The result has been an amount of gold worth 10,000 Taels of silver.
Gold in Darbagatal.
In 1881 the Manchn Governor-General asked the Emperor to allow gold mines to be worked in Darbagatai. The request was refused.
Gold near Urga, in Uliassutai and in Eastern Mongolia.
The Shen-pao of July 14th, 1899, says that the Manchu Governors of Urga and Uliassutai are consulting on the levy of a tax on those persons who wash for gold within the Chinese frontier. The region producing gold is not only that part which China formerly ceded to Russia. Gold is found within the frontier line running between Urga and Kiachta. It has been the habit of the Mongol chiefs secretly to allow Russians to search for gold. The secret connivance should become an open permission, subject to a tax on Russian gold hunters. On the 9th of the mouth (Western) a Wei-yuen was sent to the points, where gold is collected, to make inquiry and report.
In the Shen-pao of February 9th, 1900, it is stated that at a gold mine granted to Russia several Russian soldiers were killed by Lamas. The Russian minister in Peking demands from the Chinese government possession of the land containing the mine and pecuniary compensation for the lives of the soldiers. The mine is near Urga.
In the Peking Gazette of July 10th, 1900, there is a memorial from Prince Leng, a Manehn named Kong-sangnorbu, stating that in order to support the troops by funds faised on the spot, as he had been ordered to do by an edict of the Empres, January 8th, 1900, he has acted on his instrnctions. He belongs to the Horchin Jasaktolo division of Mongolia. He is a hereditary prince of the second rank. The localities mentioned by him where gold is found are Ho-lienkow, the greater and less T'saw-nien-kow, Lau-hu-kow, Cliukia- kow, and Pan-ch'ian-tsi. Gold ore is also abundant in other places near. Natives and foreigners struggle to elude government inspection. The petitioner sends competent inspectors, who assemble the Chinese shareholders and arrange with them to follow the old Chinese methods in opening mines. By this system an unlimited number of soldiers may be maintained and many natives obtain support. The gain to the shareholders is the same which is allowed by the rules of the Peking head office for railways and mines, that is to say, one or two-tenths, and twenty-five parts (in a hundred) of the remainder are applied to support the troops. The memorial asks for approval, and it is granted accordingly. Chung-waipau, December 23rd, 1900.
Gold in Szchuen.
Mr. Archibald Little in the North-China Daily News of December, 1897, gays ; About half way between Snug-pan and Ijung-en prefecture, near a small picturesque village called Siao-ho-ying (small river encampment), I noticed a thick yellow muddy stream which I had to ford on my pony. This I at once saw must come from gold washing, and I distinctly traced a vein of white quarts? rock in the dark shales through
which the stream has here cut out a deep gorge. This vein and several others I saw later on were all cut through by the stream. I followed the side stream for about 300 feet where the shifting shale path ascends the precipitous slope of the river bank till I found a dozen Chinese engaged in quartz mining. They were pounding the quartz with a pestle and mortar ; the mortar of stone, and the pestle of wood, iron-shod. The mortar was abont three feet in diameter and the heavy pestle was worked by four men. They said they gained 100 to 200 cash each a day on the average, bnt sometimes a lucky day gave them 1,000 or 2,000 cash. Here is a rich field undeveloped.
To show the extent of this' field Mr. Little points out that all along the Tibetan border, from Sung-p'an to Ta-chieu-lu, auriferous quartz is present in great quantities. He writes hopefully of the result of abundant gold mining. It would be the cure for the poverty and opium drunkenness from which Szehwen now suffers. The Sin-wen-pao of April 13th, 1898, says that at present in China the locality where the most gold is found is at Mo-bo in Manchuria. The specially rich sands are found at a place bearing the name Birch Bark Valley, Hua-p'i-kou. It is about three miles from the Kuan-yiu mountain.
The Chung-wai-pao of December 2nd, 1898, has a memorial of the Viceroy En-tse and Fu-tu-t'ung-sa-pao stating the present condition of gold mining in Hei-lung-kiang, at the Tu-lu River, close on the north frontier, adjoining Russian territory. It is 1,000 li from Hu-lan, 600 li from San-sing, and 400 li from Lou-shang, in the midst of an almost uninhabited country. In order to engage miners it is necessary to store grain for their sustenance. In 1897 the government, in an edict regarding gold mining, sent an officer to Hei-luug-kiang, which he reached in sixteen days.
Gold Mines at Mo-ho.
In the Shen-pao of June 14th, 1899, a petition was printed regarding the Mo-ho gold mines. It is addressed by the Manager, Su Meng-siang, to the Chihli Viceroy, who has charge of the entire Manchnrian coast as well as that of Chihli and Shantung. The object of the petition is to obtain a change of system. The Mo-ho River is in the Hei-luug-kiang or Amoor province, and it flows into the large river at about four degrees east of Peking. The output of gold is not equal to the expense incurred. The petitioner states that as there is a falling off in the amount of gold obtained he would recommend a change of system. A portion is assigned to the support of troops as directed. The remainder is due to the shareholders and the official managing staff. The 200 miners must be superintended carefully. By the new rule the dividend was Dot to be over 20 % of the profits. In 1895 the output was 900 Taels. Twenty per cent of this would be about nine Taels each man. For two years past no distribution has been made. The output appears to have dwindled to nothing. At first the expenditure amounted to Taels 130,000 and later on to Taels 160,000, In the year 1895, 190,000 Taels were expended, and in 1897 the expenditure reached Taels 300,000. The Wei-yuens at the mines had to be paid and the expense of conveying the gold required to be met.
In the financial edict of July llth, 1899, the officers of all the provinces are called on to use strenuous exertions to increase the revenue. The production of gold at Mo-ho is spoken of as having recently been less than before. The Viceroy of Chihli is called on to use his best exertions to increase the yield of gold at Mo-ho and at Chien-an in the Yung-ping-fu prefecture, where the Chihli province stretches out to the eastward. The discovery of gold there is quite recent. On account of the very satisfactory out'put of gold the Viceroy is directed to prepare promptly a set of rules for the new mines in that part, with a view to aid the funds of the army.
In the Chung-wai-pao of August 3rd, 1899, there is mention of the output of the Mo-ho mines. From June, 1898, to January, 1809, the amount of gold was 6,806 gold Taels. At Kwau-yin-shan it was 9,125 gold Taels. Changed for silver the amount realized was Taels 426,600. The gold diggers receive six-tenths. The expense of the superintending office and the military guard was 159,240. The remainder, Taels 10,400, was applied by the Manchn Governor-General to the support of troops in the province. Gold is changed on the Mo-ho mines at the rate of 268 Taels silver to one Tael gold, if we can trust the correctness of this account.
The Shen-pao says (October 12th, 1900)a company works gold in the Mo-ho river, and at first there was no dividend. This was in 1898. The amount and value of gold collected were reported in a printed pamphlet, and included eight mouths' working. In 1899 the value in silver of the gold collected was Taels 45,780. Six-tenths of this were applied to the support of the array. The remainder, four-tenths, amounted to Taels 18,312.
In 1866 gold was not yet found at the Mo-ho river. In that year searchers for gold were scattered over the region watered by the rivers, Wei-sha, Se-te, Mu-chi, Piau-ho, and at Birch Bark fields. By an edict in November they were allowed to receive land without payment for two years. The government provided waste land for a multitude of diggers for gold who might not wish to return to China. In the third year of occupation they would pay a tax of 110 cash a mow. They were exempt from a license tax. In ordinary cases a certain, sum is paid to magistrates for the right to occupy waste land.
The Chung-wai of December 24th, 1900, says the output of gold at the Mo-ho river was in 1888 and 1889 each 9,000 Taels ; in 1890 and 1892 each 85,000 Taels ; in 1891, 12,000 Taels ; in 1894, it was 108,000 Taels ; in 1895, 100,000 Taels ; in 1896, 300,000 Taels.
After that time the rule was that the government appropriated six-tenths of the output. This would amount to several hundred thousand Taels. If the one gold river yields sp large a profit what will be the result when gold is worked for in a number of different localities? He mentions in Manchuria Yu-yen-chow, Hwai-jen, Tung-hwa, Kwau-tien, Fa-chow, Ta-lien-wan,all in the Monkdeu province, beside many places in Kirin and Hei-lung-kiang as having gold.
In the Chung-wai of July 24th, 1899, it is stated that the company for collecting gold, where there is gold sand, has had its difficulties. Manager Wang was not acceptable to the people. The Chamber of Commerce at Chungking has been asked to divide the work of the company between two companies, and to request the Viceroy to allow the coal mining company to commence operations. To this the Viceroy consented.
Production of Gold In the Chinese Provinces.
The Red Book mentions gold in Kan-su province in K'ung-ch'ang-fu, in Ching-yang-fu, and in Si-ning-fu.
Farther west it is mentioned in Hi. In Hupei, gold occurs in I-chang-fu, on the borders of Szchwen. In Hunan, gold occurs at Chang-te-fn, on the west side of the Tung-ting Lake.
In Szchwen, gold occurs in Ch'eng-tu prefecture in Pauning-fu, belonging to the northern superintendency of the province. It also occurs in Kw'ei-chow, belonging to the eastern superintendency and bordering on the I-chang-fn prefecture in Hnpei. It also occurs in Chia-ting prefecture, 200
miles south of Ch'eng-tu.
In Canton province gold occurs in Chao-ch'ing-fu on the West River, and in Lien-chow, which borders on Annam and forms the extreme western prefecture of the province. Gold also occurs on the island of Hai-nan.
In Kwang-si, gold occurs in four prefectures in Lienchow, in Sz-en, in Ping-lo, and in Sin-chow. These cities are all on the npper West River, excepting Piug-lo, which borders on Canton province. Ping-lo is the south-eastern prefecture of Kwang-si province. Oat of the thirteen prefectures into which Yunnan is divided two of them on the western side Li-kiang and Yung-chaug have the reputation of producing gold. Kwei-chow province is said to possess gold only in the Tsun-i prefecture. The Bed Book statements in page 80 are old. They ate repeated from year to year, and the entries now found were those of the reign of Yung-cheng, when salaries to men in the civil service were first added to the old pensions, which date from the Han period.
The Sin-wen-pao of February 23rd, 1900, says gold mines must be worked in China in order to enrich the country. The foreign debt of Taels 120,000,000 obliges China to pay from the Lekin and the Customs' revenue Taels 2,500,000 per annum. On account of the heavy Interest payment cannot be postponed beyond date for even a day. The Customs' revenue in each province is short of the expenditure. Hence we need to work gold mines and increase exports to meet these new responsibilities. Shall we then become a gold country like India and Japan ? This we cannot do till we have gold of our own. To buy foreign gold would increase the world price of gold in proportion to the new demand and our difficulty would be increased.
If our exports were sold for gold the price would rise and the demand would be checked. We cannot afford to see the demand for our exports decline.
Gold in Corea.
In 1899 the value was 3,185,000 yen. This increase is due to the working by American capitalists of the Unsan mine. That mine produces gold which is valued at 10,000 yen. Some Germans are seeking the sanction of the Corean government to work mines at Kong-ch'on in Kang-won-do and at Son-ch'on in Phyong-an-do. The government is planning to secure the expected profit from certain promising mines for
itself by annexing them to the Imperial household.
Export of Gold from China.
In 1898 the net amount of gold exported was valued by the Customs at Taels 7,703,843. In the same year there was a net import of silver amounting to Taels 4,722,025.
In 1899 the net amount of gold exported was, in value of silver, Taels 7,639,779. The net import of silver was Taels 1,271,444 ; of the gold exported the bulk went to Japan aud Taels 2,468,151 to Europe.
The export of precious inetals from 1816 to 1840, caused mainly by the opium trade, amounted to $55,780,016.
Appreciation of Gold in 1897.
.A trader, Hsu Pin-nan, stated in the Shen-pao newspaper in August that on March 24th he agreed to sell 1,125 bars of gold at Taels 341.50 to 335.5 each bar. He had bought them at Taels 355.5. He lost eleven Taels of silver on each bar. The whole loss amounted to Taels 12,375. The Japanese adoption of gold currency caused gold to appreciate in terms of silver and occasioned him this loss.*
In October, 1897, gold was at 38.0, that is, thirty-eight times the price of silver. On December llth, it was 36.0. In 1892 gold was 25.3; in June, 1893, it was 27.4; in February and March, 1895, it rose to 35.5 ; on May 7th, 1897, it was 36.5 ; in August, 1897, it was 39.5 ; in January, 1898, it was 37.8 to 39.0 ; in April, 1898, it was 38.7 to 39.4; in April, 1899, it was 36.2 to 36.8; on June 3rd, 1899, gold was 35.7 to 36.5 times dearer than silver. In fourteen months it has fallen from thirty-nine times its silver value to thirty-six times. June 19th, 1899, gold was 35.7.5 ; on July 18th, it was 35.8 to 36.6 ; on July 28th, 35.7.5 to 36.2.5 ; on August 17th, 35.9 to 36.7 ; on September 16th, 36.3 to 36.8; on October 13th, 37.0 to 37.5 ; on Noveraber 21st, 30.1 to 36.7; on December 9th, 35.3 to 36.1.
In the year 1900 : May 28th, 36.8 to 36.3 ; June 26th, 36.2 to 38.2 ; July 26th, 38.0 to 37.1 ; August 24th, 36.0 to 36.9 August 25th, 36.3 to 38.0 ; August 30th, 36.5 to 38.0 ; September 1st, no sale, 36.5 to 38*0 ; September 3rd, no sale, 36.5 to 38.0; September 8th, 35.6 to 37.2 ; September 10th, no sale, 35.6 to 37.2 ; September llth, no sale, 35.6 to 37.2; September 12th, no sale, 35.6 to 37.2; September 13th, 33.9.5,34.9 to 36.5; September 15th, 33,9, 34.9 to 36.5 ; October 23rd, 33.6 to 36.0 ; October 31st, 33.6 to 39.3 ; November 5th, 33.6 to 35.3 ; November 14th, 33.6 to 35.5 ; November 25th, 33.6 to 35.5; November 27th, 33.6 to 34.7; November 29th, 33.6 to 34.0.
Fall of Gold in 1900.
The disastrous movement of the Boxers has had a powerful effect on the price of gold and silver. Silver was wanted to enable owners of gold to travel. The roads were traversed by refugees who carried silver with them to pay expenses. They could not obtain loans of silver from cash shops, banks of transmission, or silver banks. Refugees were therefore obliged to sell gold ornaments for silver. The gold shops reduced the price of gold to obtain more of it. In this way gold fell from thirty-six Taels to thirty- three Taels during September 8th to 13th.
A gold shop advertised in November inviting owners of gold to sell to them. They sell the best gold in
bars, shoes, and leaf. Since the spring of 1900 the gold with which they parted was chiefly bars and leaf. 0ut of regard to their fair name they never sell any goods but the best. They invite any one possessing their gold to bring it ; they will give more than the market value for it.
The reason of this is that gold is growing scarce, and will now rise in price.
The fall of gold from thirty-six Taels of silver to thirtythree Taels was definitely stated in the Chinese native exchange on September 13th, 1900. Previous to that day for a fortnight the price of gold had heen uncertain, and no sales were effected. On September 19th gold was 34.6 ; on November 5th the quotation was 33.6. It remained steady at that price till December 29th, 1900. This fall may be better explained as a rise in silver due to an increased demand in China. On December 29th the lowest price of gold was 33.6 and the highest 35.5, that is to say, one Tael of inferior gold sold for thirty-three Taels and six-tenths of silver. The best gold
required 35J Taels of silver in payment.
Price of Gold in Kirin.
Rice is rising in value at Kirin. Each picul costs 37,000 cash in the 33.0 currency, or 5,600 cash at Shanghai; gold leaf, thirty-seven to thirty-eight silver Taels per Tael ; best gold; thirty-five to thirty-six silver Taels per Tael; sand gold made into bars, thirty-two to thirty- three do.; sand gold, twenty-eight to twenty-nine. Canton Trade Journal, quoted in Shen-pao; January 19th, 1901.
Price of Gold in the 18th Century.
The Tang-hua-hsu-lu, chapter 37, page 20, column 28, says that in A. D. 1782 a quantity of gold was confiscated in Chekiang province. It was 4.748 Taels in weight. The Viceroy sent silver to Peking instead of gold, and it amounted to Taels 73,594. This is a proof that exchange was then at 151/2. This fact is noteworthy, because this was the gold value of silver. in Europe in the last century. The ratio between gold and silver in Europe was in 1801 to 1810, 15.61. Foreign trade accounts for the ratio being the same in Europe and in Asia during the latter half of last century.
There is another mention of the price of gold in the same history, chapter 37, page 27, column 33. It says the best gold, chien-chin, changed for twenty times its weight in silver This shews that in 1782 gold varied its price according to quality between 15J and 20 times that of the same amount of silver. In A. D. 1772, chapter 28, page 13, of the same history, 2,000 Taels of gold are valued at 20,000 Taels of silver more or less. This gold belonged to Tsien Du, of Kiang-si province.
Unit of Gold in Japan.
When gold is said to be twenty-four carats fine the meaning is pure gold. The unit of money is gold of twenty-two carats fine, weighing 123.274 grains. An ounce contains 480 grains. To be of twenty-two carats fineness is to contain 11/2ths pure gold. This is the standard in Great Britain. In Japan the unit is two fen. The old Japanese five-yen gold coin weighs 2.2221 momme of 900 fineness. It was changed in 1897 to a ten-yen piece in the new coinage. The old ten-yen gold coin has become a twenty-yen piece in the new coinage. The silver subsidiary coins in Japan remain as they were. By the new coinage law in Japan the fifty-sen piece is still fifty sen. Only the gold coins are doubled in nominal value. The Japanese yen is now always twoshillings and a half penny or 24.5822 pence.
In the Sken-pao of February 9th, 1900, it is said that Japan has sent an officer to London to purchase gold to the value of 20,0003000 silver dollars. There is not sufficient reserve in Japan. This is felt on account of the circulation of gold coins. Under the new currency regime gold being the only legal tender, more gold is necessary to keep as a reserve. This purchase, it may be expected, will raise the value of gold in London.
Unit of gold in India The Japan Nail of July 15th, 1899, says the Indian government currency committee has reported favourably on the adoption of a gold standard in India the sovereign to be legal tender and the rupee to pass for Is. 4d. For a long time now the rupee has been steady at Is. 4d., so that there is no abnormal stringency. Before coming to this decision the committee took the evidence of the leading bankers and financiers. British sovereigns will now be current in India along with rupees.
Melting Gold, etc.
An amalgam of gold and quicksilver is made. Silver vessels are washed with the amalgam and become white. Under the blow pipe the quicksilver disappears and the gold remains. Repeating the process, at last the yellow colour of gold is obtained. Gold of the shape of melon seeds and wheat bran is found in sand. Excellent gold is found with cinnabar. Gold is met with at ten feet deep from the surface on mountains. Above it may be noticed brown, serge coloured stone. About A.D. 1100 at Yi-yang, near Changsha, in Hunan, a piece of gold was found weighing forty-nine catties. It was taken up from the bed of the Yi-yang river.
When gold is found with lead, it is separated by heating and washing. When gold is inclosed in silver ore, three-tenths of a Tael of Japanese sulphur to every Tael weight are used in the melting pan. When cold, break the pan ; the gold will be at the bottom ; the silver will float in black flakes above. See Wu-li-sian-sh'i. The melting pot used in Peking is made of a kind of earth of a reddish white colour. The vessels made of this earth are very thin, whether in the form of a can or a bowl ; pass heat quickly, and are easily broken.
Japanese Finance.
When the gold standard was adopted in 1897 it was feared that the amount of silver yen presented for payment would be too great and that the gold held by the treasury would not be sufficient to meet demands. In fact only eighteen million yen were presented from abroad and thirty-four millions in Japan. Total fifty-two millions. Of this amount 27,600,000 were used for subsidiary coins ami forty-seven millions were sold at Hongkong, Shanghai, Singapore, and elsewhere. The loss incurred was 5,700,000 yen, but there was a profit on the subsidiary coinage of 5,790,000 yen, and the net result was a gain of 90,000 yen. The period 1867 to 1871 was the period of currency confusion. The mint was established at Osaka, and silver monometallism was adopted. In 1870 Marquis Ito advised the adoption of a gold standard, and depreciation set in. A paper currency was issued nominally redeemable in gold. The paper fell to a discount of eighty or ninety per cent in 1881. This was the period of inflated currency. The period from 1881 to 1885 was marked by financial adjustment. The interval from 1886 to 1897 was the period of preparation for the gold standard.
On September 22nd, 1900 (Japan Mail) the following account to September 15th of the Bank of Japan was made public :
Dr.
Share capital fully paid up $30,000,000
Beserve fund and other liabilities
to shareholders 16,429,189
Convertible notes issued 191,946,274
Government deposits 41,619,797
General deposits 7,867,448
Exchange liability 8,859
Total $287,867,569*
Or.
Discount notes $69,246,285
Foreign account notes ... ... ... 9,651,495
Loan to government 22,000,000
General loans 57,037,264
Exchange liability 1,844,891
Government bonds 52,433,711
Property 2,168,741
Bullion and Specie 73,485,179
Total $287,867,569
ISSUE ACCOUNT.
Bullion and Specie.
Gold $68,714,715Silver 3,000,000
Total $71,714,715
Securities.
Government bonds $26,595,204certificates 22,000,000
bills 10,180,286
Commercial notes 62,015,173
Total $120,790,663
From this return it appears that specie reserve in the Bank of Japan, compared with the preceding week, varied as follows :
Gold ,.. ... Decrease, $150,500
Silver ... ... ... ... No change.
Government deposits . ... Decrease, 1,526,234
General loans Increase, 788,878
General deposits 2,241,109
In the Japan Mail of December 3rd, 1900, the corresponding items in the acconnt of the Bank of Japan as compared with those of the previous week are stated in the following manner:
Gold , Increase, $103,470
Silver Decrease, 300,000
General loans Increase, 988,944
Government deposits ... ~. Decrease, 248,7(57
General deposits Increase, 263,889
In the Japan Mail of July 1st, 1899, the figures w^re:
Gold Increase, $322,529
Silver ... ... ... ... No change.
General loans ... ... ... Increase, 161,144
Government deposits ... ... Decrease, 1,293,822
General deposits ... ... Increase, 514,657
Gold is then slowly leaving the country at present.
Fall in Value.
In 1895 gold ceased to rise in value, and a fall in value commenced. The cost of producing it has become less than formerly, and the quantity brought to market is much greater. Silver, until legislation was directed against it, was stable in value, while gold was unstable and constantly rising in value. Sauerbeck's index numbers for gold are, for 1867 to 1877, one hundred ; in 1892 the index number for gold is sixty-eight ; in 1895 it was sixty ; in August, 1898, it was sixty-four. The output of gold from 1852 to 1871 was twenty-five millions per annum ; in 1893 it was nineteen millions ; in 1894 it increased ; in 1896 it was forty-five millions ; in 1897 it was fifty-one millions. Fall in value is irresistible, although through the adoption of a gold standard by several countries the fall has been delayed. In a free currency the three factors of value are : cost of production, supply, and demand. Mr. E. F. Marriott published these views in the Fortnightly, October, 1898. Now that India has adopted a gold currency there will be a tendency to delay the fall in value of gold as the effect of the increased demand.
On January 15th, 1901, the price of a silver Tael was 2/101/8th. In the autumn of last year gold bad fallen in value three pence, but on this date it has risen a penny nearly.
In Japan December 8th, 1900, the dollar was 2/01/4 on September 22nd, 1900, it was 2/01/4 on September 3rd, 1898, it was 2/01/4 Silver from London was 1/16th higher. On October 14th, 1899, there was no change in silver. The dollar was 2/05/10 hs.; on January 3rd, 1900,2/01/4; on November 8th, 2/05/16 hs.; on September 27th, 2/01/4 but silver in London was 1/8th higher; on September 20th, 2/01/4 but silver in London was 1/16th higher and discount also 1/16th higher ; on September 8th, 2/01/4 but silver from London was Jth higher and sterling was th higher, causing weaker rates in China ; on August 25th, 2/01/4 but silver from London was 1/16th higher and discounts down to 31/2 and 31/4 per cent. Local rates were steady ; on August 11th,
2/1/4, but silver from London | lower and discount 1/16th easier;
on August 17th, 2/1/4, but silver from London was 1/16th lower
and discount easier at 4% and 37/8%.
It appears from these data that silver rose and gold fell about August 25th, 1900. This phenomenon lasted for six weeks. On October llth, silver in London began to fall again. It was Jth lower and discount Jth higher. Local rates in China were lower accordingly. The Shanghai native newspapers did not understand the reason of the fall in the price of gold and ceased to record the price of gold in the daily exchanges. The Hu-pao alone continued to record gold prices, probably because the Japanese who own this paper knew the steadiness of gold value in Japan and were not staggered by its unsteadiness in September last in Shanghai. The Hu-pao, January 19th, 1901, gives inferior gold 33.1, good gold 34.5, exchange price of best gold 36.0. The Hu-pao on September 10th, 1900, registered the three gold prices: first as uncertain, there being no sales ; 2nd as 35,6 ; and 3rd as 37.2. Hupao, February llth, 1901, gold pieces were 35.45, 37.5, 36.0.