No. 69.
Mr. Seward
to Mr. Evarts.
Legation of
the United States,
Peking, May 8, 1877.
(Received June 18.)
No. 237.]
Sir: The chamber of commerce at Shanghai, as I have
heretofore-informed the Department, are taking much interest in the proposal
to establish a mint in this country, and for the last year a committee of
their body has been engaged in the collection of information, and
in-studying the question of the unit of coinage which could be most
conveniently adopted. With a feeling, however, that the government may not
be willing to hear their representations, they have hesitated to send up the
data which they have collected, and a statement of their views-on the points
mentioned and the general subject, until they have assured themselves that a
disposition exists to look upon the project with favor. They accordingly
addressed a note to the foreign ministers here, on the 12th of March, asking
for information whether the scheme in question, is likely to be entertained.
I inclose a copy of their note. Upon the receipt of this, the several
representatives addressed an identical note to the foreign office, which has
been courteously responded to. I inclose copies of the note and answer, and
also a copy of a letter which Mr. Butzow, as dean of the diplomatic corps,
has addressed to the chamber of commerce in response to their letter.
The reference of the subject to the northern and southern superintendents of
trade was made nearly ten months ago, and I have already informed the
department that their responses were favorable. The-early carrying out of
the proposal will depend primarily upon the submission, by one or the other
of them, or by Mr. Hart, of a detailed scheme, with estimates of
expenditures, &c, the demonstration to be [Page 99] then made of the advantages to be derived, and,
thereafter, upon the general disposition of the officials and boards to whom
the details indicated may be submitted.
The members of the foreign office are so powerful in the government, however,
that the adhesion which they have apparently given to the proposal goes a
long way to assure me that it will not be many years before China will be
provided with the means of coining money.
I have, &c.,
[Inclosure 1 in No. 237.]
Mr. Forbes to the
foreign ministers.
Shanghai General Chamber of Commerce,
Shanghai, March 12, 1877.
Your Excellencies: In accordance with a
resolution passed at a general meeting of this chamber, I have the honor
to address your excellencies on behalf of the merchants of this port, as
represented by the chamber of commerce, on the subject of a national
coinage.
The object of the chamber in bringing this question to the notice of your
excellencies is to solicit the combined action of the foreign
representatives, with the view of inducing the government of this
country to establish a legal fixed standard of value and a national
currency, the want of these aids to trade being deemed a great
impediment to the extension of commercial intercourse between foreigners
and natives, as also to the development of the native trade.
There exists at present, as your excellencies will be aware, numerous
arbitrary standards of value, the usual commercial medium of exchange in
the north of China being the tael, which varies in actual worth in
different places; while at ports in the south, and even for certain
trades where the tael is generally used, the coin of a foreign country
is introduced.
It would be superfluous further to urge upon your excellencies the
advantages of a legally-established general unit of value for the whole
of the empire, as this is recognized in all Western countries as
necessary, and it is hoped that the ministers will view the proposals of
the chamber with favor and ultimately induce the Chinese Government to
give practical effect to the merchants’ suggestions, at least so far as
the trade with foreigners is concerned.
The chamber has collected information regarding the original cost and the
working of a mint, and at a subsequent time will be glad to be given an
opportunity of offering some remarks upon the description of coin to be
legalized and other matters connected with the subject; but before
troubling your excellencies with details, the chamber deems it advisable
to solicit an expression of your excellencies’ opinion upon the general
question, and upon the prospect of the scheme being favorably
entertained by the native authorities.
I have, &c.,
F. B. FORBES,
Vice-Chairman.
[Inclosure 2 in No. 237.]
Mr. Seward to
Prince Kung.
Legation of the United States,
Peking, April 2,
1877.
Sir: Foreign merchants in China are continually
exposed to grave inconvenience in their commercial transactions because
of the absence of any Chinese coin of fixed and uniform value throughout
the empire.
The chamber of commerce of Shanghai, which represents the larger
proportion of foreign mercantile interests in China, has again called
the attention of the foreign representatives to this question, in the
hope that, submitted by them to the consideration of the imperial
government, it may receive a satisfactory solution. This question
deserves, without doubt, the most serious consideration. I doubt not
that your imperial highness recognizes this, and that you will favor the
discovery of some suitable means of [Page 100] removing the inconveniences of which foreign
merchants complain. It is with this conviction that I have the honor to
address myself to your imperial highness, with the request that you give
to this subject that consideration which it demands, and that you will
kindly inform me whether the imperial government does not judge it
expedient to take some measures in the direction indicated. The creation
of a system of coins would seem to be the most sure and simple mode of
arriving at this end, and it is particularly with regard to this mode of
ameliorating the present system that I desire to be informed as to the
disposition of the imperial government.
I have, &c.,
[Inclosure 3 in No. 237.]
Prince Kung to Mr.
Seward.
A few days since I had the honor to receive a note from your excellency
setting forth that foreign merchants in the transaction of business in
China meet with difficulties because China has no gold and silver
coinage, and requesting my reply as to whether it would be possible to
establish a mint and a system of coinage, &c.
According to Chinese law, the revenues received by the treasury board
from the several provinces, and the revenues sent forward by the several
provinces, are all received in the treasury tael of pure silver. This is
established by Chinese law, and there is no variation from it. Regarding
the quality and weight of silver used in mercantile transactions in case
it is not paid to Chinese officials, it is regulated by the convenience
of the merchants in the several provinces. In case it is to be paid to
the authorities, it must be equivalent to the treasury tael of pure
silver.
Having received your excellency’s note with contents, as mentioned above,
the superintendents of northern and southern trade have been instructed
by this office to take into consideration the circumstances of the
several provinces, whether coinage is possible, and how uniformity can
be secured, and to report to this office for its further consideration.
When their replies shall have been received, I shall have the honor of
addressing your excellency again.
[Cards of prince and ministers.]
[Inclosure 4 in No. 237.]
Mr. Butzow to the
chairman of the Shanghai General Chamber of
Commerce.
Sir: In consequence of your letter dated the
12th March, the representatives of Germany, the United States, Spain,
France, and Great Britain, and myself addressed the Chinese Government,
in order to call their attention to the disadvantages under which the
foreign merchants in China are working in the absence of a national
currency and of a uniform standard of value.
The step taken by us has elicited from the Tsung-li Yamên a reply
satisfactory, in so far as it states that the superintendents of trade
of the northern and southern ports have been instructed to submit to the
government their opinion on the establishment of a national
currency.
I beg to request you, sir, on behalf of my colleagues and myself, to
communicate the above to the chamber of commerce. You will be made
acquainted in due time with any further information that may reach us.
In the mean time we shall be glad to receive from the chamber such
remarks as they may desire to offer upon the description of coin which
should be issued, and upon other matters connected with the subject.
I avail myself, &c.,
