Gold as Currency in China - Chinese Currency by J. Edkins.
Gold as Currency.
Gold has retained its remarkable preeminence among the
metals from the dawn of civilisation to the present time. It
early attracted notice because of its weight aud beauty, and
was used extensively, where the art of working in metals
was at all known, for the manufacture of useful implements
and ornaments. The author of the Shioo Wen writing in the
second century, gives the reasons for its being higher in esteem
than other metals. It does not tarnish after however long
a time. It does not become lighter when melted, even if it
goes into the crucible a hundred times. It yields without
resistance to the manipulation of the artificer. If this
account be compared with that given by Pliny, who wrote a
century sooner, it agrees substantially. Pliny savs the
superiority of gold is in its losing no weight when in the melting pot or in a funeral pyre on the occasion of a
cremation. Even drawn into wire the hands are not soiled
by it as is the case when silver, copper, or lead are handled.
It is also capable of being spread oat into thinner leaf than
any other metal, and is divisible into a greater number of
parts. Nor is there any other of the metals which can vie
with gold in the facility with which it can be spun and woven
like wool, so as to take its place among the materials which
compose textile fabrics. Some of the ancient kings of Rome
wore golden tunics when they triumphed ; and Pliny himself
saw at a naval sham tight, at which the Emperor Clandins
was present, the Empress Agrippina seated beside him
wearing a robe woven entirely of gold thread. This was the
Empress who afterwards poisoned her husband to open the
way for her son Nero to obtain the imperial dignity. It is on
account of its durability and many uses that gold has always
preserved its preeminence in market value and has always
been in demand among the cunning craftsmen of every
country.
When history begins in Europe and in Asia it is observable
that there was everywhere a great abundance of gold.
In the time of the Roman Empire it was found in Europe
in the Tagus and the Po, as well as in the Hebrns in Thrace,
while in Asia it was found in the Pactolus in Asia Minor.
All these were within the Roman world, while beyond it the
Ganges was famed for its gold. The Scythians had large
quantities of gold ornaments ; and it was quite easy for the
Persian monarchy to use gold as a coin because of the considerable
quantities at that time brought from the Ural and Altai
mountains and the rivers which flowed from them. In Spain
mountains which produced nothing else were observed to
produce gold, and the miners used both tire and acids to
reduce the stony masses which contained the precious metal.
Gold coins were cast by the Romans, and on them was engraved or stamped the number of pounds they represented.
They grew smaller under each reign, till in the days of Nero
they became the smallest that had been known. In China
the places chiefly mentioned as producing gold are Yunnan
and Szechnan, Kiangsi, Canton, Knangsi, and Fnkien. The
Chinese collect gold in the sands of rivers. They also beat
and hammer rocks, melt stony masses, and persevere till they
separate the stubborn metal from its stony envelope. Formerly
they placed the ore in the fire of a furnace. They
never, so far as we know, till recently used powder to cause
explosions in rocks. They now adopt the foreign methods
and employ Europeans and Japanese to help them in mining
operations. They also use large quantities of dynamite.
For a long period gold mines have not been worked, and what
gold existed in the country has been hoarded or sold to the
goldsmiths to make various implements. The following story
from a Chinese book may be placed alongside of Pliny's in
regard to the use of gold : A Mongol Aln petitioned one of
the Mongol Emperors to permit him to use three ounces of
gold in embroidering a pair of boots for his Majesty. The
Emperor said,
"
Certainly not. Gold should not be used in
making boots." The courtier then asked for three ounces of
silver thread, to be covered with gold.
"
No," replied the
Emperor,
"
gold and silver should only be used to adorn the
head." He then asked,
" What do most people employ at
present as thread for embroidery?" Alu replied, "Copper
thread is most commonly used." . "That," said the Emperor,
" will do ; use copper thread."
The high price of gold renders it everywhere an important
standard of value, although it may not be made into
money. It has always been sold by weight, and is everywhere
acceptable in payment for commodities. It was in the time
of Herodotus valued at thirteen times its weight in silver. It
is now (February, 1901) in the Shanghai market worth thirty-five times its weight in silver. Not many years ago it was
in China valued at sixteen times its weight in silver. In the
days of Herodotus gold was coined by the Persians, but its
chief use in buying and selling would be as an uncoined
metal in barter, on account of the small space it occupies
in packing iu proportion to its weight and value. At any
rate its use has been of this sort in China. Gold was always
in ancient times the article first in rank among the commodities
bartered for grain in Chinese markets silver, silk,
grass cloth, salt, and other things coming after it. But it
must have been much cheaper then than now, for Rang Hi's
Dictionary mentions that formerly a thousand catties of gold
were needed per day for an army of 10,000 men. In that
case ten men would need a catty, and each soldier; would
require three catties a mouth. Gold then must have been
not only abundant but cheap. The reason of this would be
in the large quantities found in the early ages of civilisation
on the surface or near the surface of the earth, in the beds of
rivers or elsewhere in many parts of China Proper and of the
countries with which China had intercourse.
Gold Export Previous to 1889.
Gold has kept its price well in China during recent years.
The constant demand from Europe to meet the needs of the
countries that have lately established a gold coinage has had
its effect on the gold market in China. Germany began to
absorb eighty million pounds sterling fourteen years ago. It
was done in the following manner. There were in 1875 in
circulation G40 million marks of small notes, equal in English
currency to 32 millions sterling. They were replaced by
notes of 100 marks or above 100 marks in value, that
is, 5 notes, and 10 notes, and by gold and small coins.
Between the middle of 1875 and the end of that year notes
bad been exchanged for coin to the extent of 15,000,WO.
Paper gave place to coin in Europe jasfc as in the Ming
dynasty in China silver increased in quantity and the government
found that it wonld be better not to issue any more
paper notes. The new love for gold in Europe has influenced
the most distant money markets. Consequently Peking, Chefoo,
and Corea are now every year sending gold to Europe.
They are sending all they can and as fast as they can get it
ready. Take for instance the export of gold from Tientsin.
The following figures appear in the Customs' Reports, and it
must be remembered that it is Peking gold chiefly that is here
entered :
Export of Gold from Tientsin.
1882 Taels 574,414
1883,,
*
610,022
1884 , 112,228
1885 1,781,337
1886 ,,1,875,976
1887 1,706,864
1888 ,,1,398,264
1889 (six mouths) 1,044,459
The rich families in Peking are parting with their hoards
of gold because of the good price at Shanghai. Silver is
cheap, and all the rich property holders of China count their
treasures in taels of silver. They are attracted by the gain
which they can acquire by an increase in the number of taels
of silver which is paid them at Shanghai for hoarded gold,
since the price of silver went down. This table shews how
steady on the whole the outflow now is year after year. It
went on increasing till 1886. Then it declined a little.
Now it is rising again. In Chinese life it is quite common
for rich families to become poor. In such cases gold ornaments
will be exchanged for silver. The thick needles round
which women's hair is bound, their bracelets, rings, and other ornaments, if of gold, will, when poverty comes in at the door,
be exchanged for silver. Gold thus sacrificed may go far to
pay a husband's debts. Men who are not poor will give their
gold to make profit by exchange. In Peking there are likely
to be many rich men who have acquired wealth in the
provinces and who have for convenience carried it to Peking in
the form of gold. From their hoards much of the present
stream is probably supplied. They see a sufficient reason
when they read in the Chinese newspapers that they canobtain
perhaps Tls. 23.6 of silver for one tael of gold in, the
Shanghai market.
The gold sent from Chefoo to Shanghai is gradually
increasing in quantity, as 'may be seen in the following table:
Export of Gold from Chefoo.
Value in Haikua-
n Taels.
1881....,,.,........,. , .,.., 58,348
1882 68,448
1883 , ., 48,893
1884 , .,...,, 47,457
1885 69,520
1886 , 164,648
1887 140,970
1888 233,000
1889 (six months).., , 66,260
897,544
The export rose until 1882. Then it declined during two*
years. In 1885 it rose again during three years ; now it is
falling. The highest amount it has reached has been about
the value of 60,000 sterling a year. Books say little about-
Shantung gold. In the Book of History lead is the only
metal foand there, in the section known as the Tribute of YlL
In those days, four thousand years ago, gold, silver, and copper came from southern China as tribute to the Emperors, the
two last corning from southern China alone. The great source
for receiving gold was, however, the tribes who inhabited
Tartary. War with these tribes in the first and second
centuries before Christ brought to China immense amounts
of gold. History mentions gifts made to victorious soldiers
at one time of more than 200,000 catties. Of course it was a
very small catty which was in use then. This was after a
battle in which 19,000 of the Hinng-nu were killed. The gold
would be taken from the captured tents and the armour of
the slain warriors. All the gold then used as ornaments by
Tartar men and women would naturally be brought from
Siberia or the mountainous parts of Tartary.
The gold of Corea is partly forwarded to China, but most
of it goes to Japan. In both cases it is probably sooner or
later sent to Europe to meet the present demand.
Export of Gold from Corea.
Value in
Dollars.
1885 To China 46,100
1886 218,743
1887 210,294
1888 348,564
1889 (six months) 115,014
938,715
1885 To Japan 388,269
1886 911,745
1887 1,177,975
1888 1,025,401
1889 (six months) 339,448
3,842,838
There seems to be no probability of a rapid increase in
the yield of Chefoo gold or that of Corea. The native apathy
in regard to the existence of gold in various parts of Shantnng
Promontory is noticed by Dr. Williamson in his Jonrneys
in North-China. Yet there is a sufficient yield of the most
precious of metals, to warrant the expectation that after a
time Shantung may produce gold in greater abundance. The
legal prohibition to search for gold has led to the surface only
being scratched. To dig beneath the surface is to deprive
the land of its prosperity. This belief has influenced both
the people and the government. The consequence is that
more is left for the men of coming ages. In Australia the
abundance of gold does not diminish as the works become
deeper, and it is expected that they may be continued for a
depth of two thousand feet, and gold still be found. If this
view is correct China must have a good prospect of obtaining
large quantities of gold in future years, not only in Shantung
but in many parts of the southern provinces, and on the
southern slopes of the Altai mountains in particular. The
present drain of gold from Shanghai does not alarm the
Chinese much, but it must later produce an effect on them.
The following table shews the present condition of the
export :
Export of Gold from Shanghai.
Value in Haikuan
Taels.
1886 1,746,248
1887 3,449,853
1888 2,018,899
1889 (six months) 862,875
The maximum was as appears from these figures about
eight hundred and thirty thousand pounds sterling in 1887.
The amount of export is now declining. This is not because
the demand in the west is less, but more probably because there is a limit to the quantity of gold which the holders are
willing to convert into silver at the current price.