Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, With the Annual Message of the President, December 2, 1878

No. 79.
Mr. Seward to Mr. Evarts.

United States Legation,
Peking, February 7, 1878. (Received April 19.)

No. 398.]

Sir: In view of the decision of the Chinese Government to take no steps for the establishment of a mint and a currency, I have thought the moment opportune to inquire of our consuls whether the trade-dollar is coming into circulation, and whether any official action may be taken which will increase the demand for it. I inclose the form of a letter which I am addressing to them.

You will notice that in my letter to the officer at Canton, I point out the fact that an official assay of the coin mentioned, made at his port in 1873, did not produce a correct result, and ask whether it is desirable to request another assay. The Canton assays are accepted by the customs at other ports, and the matter seems important under these circumstances. In point of fact, however, foreign coins are not imported for use at their bullion value, but to be put into circulation at the higher value which their convenience for circulating purposes creates. I have understood that the trade-dollar sometimes commands two or three per cent. premium at Canton, but it has not come into circulation, so far as I have heard, elsewhere.

At Shanghai, in 1876, the singular spectacle was seen of Mexican dollars ranging in value, in the local currency, from 72.6. per cent. of the tael, to 82.5 per cent., a fluctuation of 10 per cent. between silver in the form of dollars, and silver as bullion. A more pertinent commentary on the fact that the Chinese would appreciate a coinage system could not well be offered.

I have, &c.,

GEOEGE F. SEWARD.

[Inclosure 1 in No. 398.]

Mr. Seward to Mr. Stahel.

February 5, 1878.

No. 107.]

Sir: Please be so good as to inform me whether the trade-dollar has come into circulation at your port; if so, to what extent, and whether official action may be taken which will be likely to create or increase demand for it.

I am, &c.,

GEORGE F. SEWARD.

Same sent, mutatis mutandis, to consuls at Amoy, Foochow, Ningpo, Chinkiang, Hankow, Neuchwang, and Tientsin.

[Inclosure 2 in No. 398.]

Mr. Seward to Mr. Lincoln.

February 5, 1878.

No. 31.]

Sir: By an assay made at your port in 1873, the trade-dollar was declared to be 8961 fine, and 111.9 taels weight of them to be equal in value to 100 taels Haikwan (or pure) sycee. In point of fact, however, the trade-dollar is 900 fine, and 111.11 taels weight of them should be equal to 100 taels Haikwan sycee. By the same assay 100 trade-dollars were found to weigh 72 taels 6m. 8c. The Haikwan tael is declared to weigh, however, 1 oz. 4 dwts. 3 84/100 grains, or, say, 579.84 grains. The trade-dollar weighs 420 grains, and its weight by the Haikwan standard should be 72.4.3.2 taels.

Please be so good as to inform me whether, looking to the facts recited above, and to the course of exchange and any other considerations which may be involved, it is worth while for us, in your opinion, to ask for another assay of the trade-dollar.

Please advise me also whether any official action may be taken which, in your opinion, will tend to increase the demand for trade-dollars in this country.

I am, &c.,

GEORGE F. SEWARD,