Currency in China (July, 1857)

Source: Pacific Commercial Advertiser. Honolulu: July 23, 1857.

European and American merchants have ever experienced much difficulty in obtaining the current coin with which teas, silks, &c., may be paid for in China. With the exception of bars silver, or lumps, called “shoes of Sycee,” the Chinese use no current silver coin in their commerce between themselves. They buy and sell by the TAEL, a measure of value equal to about $1.75-100 of our money, and of weight about one ounce and a third. They are so suspicious of all foreign coin, that in their trade with foreigners they will receive no other than the Carolus Dollars, and it is believed that at this time nearly the entire issue of that coin by the Spanish mint is in China.

Efforts have been repeatedly made to induce the Chinese Government to establish a mint of their own, but in vain: for it is alleged on their part, that the government suffer from peculation, and the people from a debasement of the precious metal.

The mandarins have often issued their edicts at all dollars (silver) should be received in trade, but the Chinese merchants have paid no attention to it, and have uniformly refused to part with their produce for any other than those of the Carolus pillar and stamp. Even those with the head and signet of Ferdinand, are not accounted receivable at par.

The consequence is, that the Carolus dollar has become the standard of foreign currency in China, and exchange on Europe and the United States is always regulated by that standard.

These inconveniences have so much embarrassed foreign trade that the English Government of the Hong Kong merchants have ascertained the idea of establishing a mint for striking dollars in all respects in weight and fineness to the Carolus- and the foreign merchants of all nations there have joined in memorials to that end. But it does not appear that this course of procedure would overcome or obviate existing difficulties, for the prejudices of the Chinese against all foreign coin, with the exception of the Carolus dollar, would not be removed. 

Generally silver, whether in the form of coin or in “shoes,” or lumps, is paid and received by weight. The chopped dollar -or Spanish dollar which is so cut up by the marks of Chinese traders that it cannot be told in the reign it was cast- is more valuable than the Mexico: and the fair and unmarked Carolus dollar more valuable than either; although each may be of the same weight.

It requires 108 taels weight of Mexican dollars to buy a 100 taels weight of Sycee, or pure silver; 101 taels weight of chopped dollars to buy 109 taels of Sycee; and only 74 taels of Carolus dollars to buy the same weight of Sycee.

If there is all this difference in the fineness of those several coins, we believe the Chinese have been the first to discover it. We incline to the opinon that the difference is to a great extent imaginary; and that it is attributable not so much to a difference in the actual values, as to the unconquerable prejudices of that remarkable people. 

This condition of the currency in China accounts for the enormous rate of exchange at Shanghae. Nearly two dollars in the formed drafts on England or the United States are required to propose one unbroken or unmarked dollar of the Carolus camp at that place. The necessity of a common currency there is very great, but we shall be slow to believe that it can be afforded by an English mint at Hong Kong, certainly not until the Chinaman's exclusive love of the Carolus dollar can be updated. 

-N.Y. Journal of Commerce.

*Lumps of silver cast in the form of the thick soled shoes usually worn by the Chinese women.