No. 192.
Mr. Denby
to Mr. Bayard.
Legation of
the United States,
Peking, March 28, 1888.
(Received May 5.)
No. 604]Sir: The currency of China is anomalous. It is in a
transition state which is destined to lead up to a mint.
The want of uniformity in the size and value of cash is a crying evil.
The Government understands thoroughly the confusion that exists, but
conservatism and a fear of the people have hitherto prevented the adoption
of a remedy.
Some time ago it was proposed to issue “standard” cash in part payment of
monthly salaries. It was not intended to supersede the large Peking cash.
These cash were first introduced during the reign of Hsien Teng, when, owing
to the Yunnan rebellion, copper became scarce. Their circulation is confined
to Peking.
The issuing of standard cash is for the purpose of creating uniformity
between the provincial and Pekingese currencies, but the proposed change has
disarranged the currency in Peking. The people believe that the Peking cash
will be withdrawn from circulation. At first the Peking cash was worth 10
standard cash, now it is worth two and a fraction. The banks have withdrawn
their notes from circulation, for fear that they will have to be paid in
standard cash, and have substituted notes payable in Peking cash. The
influence on business is most disturbing.
I inclose herewith a decree issued March 12; its purport is that Peking cash
will not be withdrawn, but that this cash shall be supplementary to the
standard cash.
I have, etc.,
[Page 284]
[Inclosure in No. 604.]
currency question in peking.
A decree.
Wears in receipt of a memorial from the governor of Shun-t’ien Fu stating
that, owing to the proposed issue of standard cash in part payment of
monthly salaries, the circulation of Peking cash has become restricted
in the market. When the introduction of standard cash was first decided
upon it was intended that they should be supplementary to the Peking
cash, with which they were in all mercantile and official transactions
to exchange in the proportion of two to one; but the disuse of the
latter currency was never contemplated. Though this has been announced
in successive edicts and confirmed under regulations published by the
board, of revenue, still it has not had the effect of removing the
uneasiness felt in commercial circles, and the process of selecting the
larger and heavier Peking cash and rejecting the lighter still goes on.
The result is that the people are unable to exchange their cash for the
necessaries of life. The exchange is manipulated by dishonest traders to
the great injury of the rest of the population. We therefore command the
governor of Shun t’ien and the commandant of the Peking gendarmerie to
issue fresh proclamations authorizing the continued circulation without
any process of selection of all Peking cash, two made and upwards in
weight, which have been coined at the Government mints. Let any attempt
to restrict the circulation of this currency under the pretext that it
is to be discontinued, or any forcing of the price of commodities, be
severely punished in accordance with law.
