No. 164.
Mr. Seward
to Mr. Evarts.
Legation of
the United States,
Peking, April 24, 1880.
(Received June 14.)
No. 666.]
Sir: Referring to my dispatch No. 665, of the 22d
instant, in which I informed you that the foreign representatives had agreed
with the Tsung-li Yamên to proceed to the discussion of trading grievances,
and that I had been requested by my colleagues to present to the ministers
of the Yamên a statement of the reforms needed in the collection of
[Page 257]
customs dues and duties on foreign
trade, having reference to the irregularities in the currency system of
China, such statement to be based upon the facts and considerations set
forth in a memorandum which I had prepared for their examination, I have now
the honor to hand to you a copy of my memorandum.
The papers referred to therein as bearing upon the subject under
consideration were transmitted to the department with my No. 413, of March
6, 1878, and Mr. Holcombe’s dispatch No. 11, of June 24, 1878.
You will remark upon an examination of the several papers named, that no gold
or silver coins are issued by the Chinese government; that bullion, chiefly
silver, is passed as money; that the scales by which bullion is weighed and
the fineness of the silver vary in different parts of the empire, and even
in the ports open to foreign trade; that there is a standard scale and a
standard of purity known as the treasury tael; that the exact weight and
fineness of this tael have not been determined by foreign processes; and
that the customs authorities have setup an arbitrary scale which is somewhat
more favorable to the customs than the treasury scale. You will remark,
also, that the values of foreign coins relatively to the standard tael have
not been, indeed could not have been, determined.
You will remark, further, that it is our opinion that the standard or
treasury tael should be declared the standard for customs dues and duties;
that its weight and fineness should be ascertained; that the weight and
fineness of local taels should be ascertained; and the relative values of
foreign coins declared.
I am of opinion that since the customs tael is somewhat more favorable to the
customs than the treasury tael, and since payments to the customs have long
been made by the customs tael standard it will not be easy to secure the
adoption of the treasury tael standard. For this reason I suggested in my
memorandum that a percentage to cover expenses for the examination of
bullion, meltage, &c., should be allowed to the customs on all duties
and dues collected in treasury taels. These expenses have heretofore been
defrayed out of the premia on customs taels, the
imperial and provincial authorities receiving from the customs treasury
taels only, tael for tael, of the collections made in customs taels.
My colleagues are disposed not to yield this point to the Chinese, but I
believe that it will be difficult, if not impossible, to carry our proposals
unless we do so.
I shall report, of course, each step of my procedure in this business.
I have, &c.,
[Inclosure in No. 666.]
memorandum.
Mr. Seward, the minister of the United States, having been requested by
his colleagues in conference to prepare a statement of the reforms
needed in the collection of customs duties and dues on foreign trade,
having reference to irregularities in the currency system of China,
submits the following:
- 1st.
- The subject has already been studied and certain, conclusions
stated by Mr. von Brandt, the minister for Germany, and by Mr.
Seward. The conclusions of Mr. von Brandt and the data upon
which they are founded are contained in a printed paper prepared
by the former in February, 1878, and entitled “Memorandum on the
Chinese Currency.” The conclusions of Mr. Seward and the data
upon which they are founded are contained in a printed paper
prepared by him in February, 1878,* and entitled
[Page 258]
“Memorandum on the
Currency of China.” Copies of these papers are appended
hereto.
- Examination of these will show that the results declared by
each of the persons named are in substantial accord.
- 2d.
- The facts elicited by them are as follows:
- a.
- That the standard of value in China, and of the
receipts and expenditures of the government, is the
Kuping or treasury tael of silver.
- b.
- That the weight of this tael and the fineness of the
silver have not been determined accurately.
- c.
- That customs duties and dues should be paid according
to this standard.
- d.
- That an arbitrary standard has been set up, called the
Haikwan (customs) tael, and that duties are collected,
nominally, upon this assumed basis.
- e.
- That the weight and fineness of the Haikwan tael have
not been determined accurately.
- f.
- That customs duties and dues are collected, generally,
in the local taels of the ports.
- g.
- That the weight and fineness of such local taels, and
their values relative to the Kuping and Haiknan taels
have not been determined accurately.
- h.
- That foreign coins are sometimes paid into the
customs, and that the values of these, relatively, to
the Kuping and Haikwan taels have not been determined
accurately.
- i.
- That the values of local taels and foreign coins,
relatively to the Haikwan standard, are not constant
even at the same port.
- j.
- That at one port at least the relative value of local
and Haikwan taels have been assessed differently at the
foreign customs, respect being shown to the nationality
of the merchant.
- 3d.
- It is evident from what has been thus stated that it is
desirable to take steps intended to give uniform results in
assessing the sums due for customs duties and dues on foreign
trade, and in collecting such duties and dues. Mr. Seward
suggests the following measures to this end, to effect which
negotiations with the Chinese Government would be necessary.
- k.
- The Kuping tael should be declared the standard for
customs collections.
- l.
- The weight of the Kuping tael in grains, troy, and
grammes should be ascertained and declared.
- m.
- The fineness of silver of the Kuping standard should
be ascertained and declared.
- n.
- The values of local taels and the fineness of the
silver of such taels should be ascertained and
declared.
- o.
- The values of foreign coins should be ascertained and
declared.
- p.
- The regularization of customs collections should apply
to foreign trade at large, under the treaties, whether
conducted by foreigners or natives.
- Mr Seward suggests further:
- q.
- That, in order to make the foreign proposals less
difficult for the Chinese Government, a percentage
should be allowed upon all customs duties and dues
collectable under the treaties, to cover the necessary
expenses attending the examination, weighing, &c.,
of the moneys tendered in payment. Such percentage might
be one-half of one per cent, upon collections, or even
one per cent., and still leave the foreign merchant less
to pay than at present under the Haikwan assumed
standard. The sums received from the customs by the
imperial and provincial governments would, in such case,
not be less than at present, for it is believed that the
native bankers who actually receive customs payments do
not account for the premia on
moneys received, but make their returns in Kuping taels,
tael for tael, thus receiving the benefit of the
irregularities of which foreigners complain.
Mr. Seward believes that the reforms indicated can be demanded of the
government, under the treaties, and that they are so far reasonable and
in the interest of good government that they may not meet with strenuous
opposition anywhere, excepting on the part of those who derive advantage
from existing irregularities.
Mr. Seward has not spoken of the establishment of a mint, for the reason
that foreign representatives have no right to demand such a step; that
they have already met with a rebuff in proposing it for the
consideration of the government, and because the reforms now sought
would go far to prepare the way for it.
Mr. Seward believes, however, that so many inconveniences and so much
uncertainty attend the passing of bullion for purposes of money, and
that Chinese methods of assaying, in particular, are so defective, that
no opportunity should be lost to urge upon the government the fact that
no currency system which they can devise will meet public wants so
perfectly as that which provides for the coinage of the precious metals
under governmental supervision.
