The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1875-11-08
CHINESE SYSTEMS OF FINANCE

CHINESE SYSTEMS OF FINANCE.
It is singular fact, perh aps not gem
orally known, shat in the Chinese sys-
tens OF finance may be traced the OUT
lines OF nearly all the financial schemes
that have characterized our own none
tary history. In that ancient empire
were tried substantially the same ex-
periments, and with substantially the
same results, in relation to national
finances, that have been tried with US in
recent years. Our American statesmen
and fnanciers were wont to plume
themselves upon the discovery of finan-
cial schemes and systems of banking en-
tirely new to the business world, and as
original with themselves, when, in fact,
these Identical experiments had been
tried aud abandoned by the Chinese
ages before America was discovered.
This may not be very fiattering to our
national vanity, but it is nevertheless
true.
When the distinguished Asiatic tray-
eler. Marco Polo, returned to Europe.
now nearly six hundred years ago, he
made known the fact that the Chinese
were accustomed to the use of paper
currency. From them it had made its
way, through the Mongols, to Persia,
where it was called sdjaou," manifestly
derived from the Chinese word '..tcha'o," !"
and both words had the same meaning;
and in Chinese the word signitied
ascarcity, or lack OF metap'-that is, Of
"cnined money"
The Chinese authorities refer their
earliest use OF representative money"
to very ancient date. According to
them, 1t appears that in the reign of their
Emperor Ou-tai, of the celebrated Hahn
dynasty, in consequence Of a deficiency
in the revenues, a financial scheme was
devised to meet the exigency of the
times, that virtually introduced a cur.
rency of credit. This consisted in the
use OF the "phee-phee"-"yalues in
SKINS" This representative money was
made of the skins Of certain sacred white
deer, reared Ia the interior park apper
tanning to the Emperor's palace. These
bills were made exactly one foot square,
aud were ornamented with exquisitely
hue embroidery and delicate paintings
avery prince or magnate, when invited
10 attend the court festivals, was re
.iuired to use these decorated skins TO
covering their fans which the court eere
monies required should be held befor'
of the SUM-" to signify their dread o
having their eyes "blasted by excess o
light" The price or value of these skin:
Gas fixed by an imperial decree at a sun
equal to about $50 of our currency. ANT
at that fixed rate the phee-phee, 'yalue
In SKINS" were made current as "legal
tenders" in all money transactions i
connection with the royal palace. An
this was 119 years before Christ.
About the year GIT OF our era, tn
finances OF the empire becoming de
ranged by reason of lack Of the preciou
metals, they resorted to the use of Gil
eular bits of iron as metallic currency
and made receivable for public dues
On account of the great inconyenienc
of handling this in any great quantity
they adopted a species OF pasteboart
duly stamped, as the representative
the money itself. This was paper Gu
rency, but dollar for dollar in coin.
% Two hundred years later, in sO7,
the reign of the Emperor Htang-tsai'
of the F'whang dynasty, the coppe
coinage of the country became so scare
that an edict was issued prohibiting Ii
making of domestic vessels out OF COZ
per. Great quantities OF it had bee
worked up in images of Fo-hi and
other saints of his calendar, TO who's
grace and iavor copper was supposed
be a peculiarly good conductor. Ha
ing thus provided minor coinage fl
common use, the Emperor require
every wealthy traveller to deposit b
money in the hands OF designated ban
ers, or sub-treasurers, who ISSUED wri
ten vouchers as security therefor. The'
certificates of deposit became ever
where current as letters of credit; al
were called fey tSutn, 'fying money
l. e. money for travelling.
In A. d. 960, Tai-tsu, the founder
the Soung dynasty, made proyi
ion whereby traders and capitals
were permitted to deposit coin and eve
. some species of merchandise in the il
perial treasures, and receive theref
official vouchers called piaa-tstdn, "co
Eenience money! These vouchers fro
the government banks of deposit we
we'll received by the people, and circ
lated throughout the empire. BY Il
year 99T paper currency OF this kind w
in circulation to an amount represei
ing 100000 ounces of silver; and TIVE
ty.five years later, in 1922, it had
creased so that the paper money in C
culation in the country represented
sum no less than $3.50, 900 silver ounce
Stimulated by a desire to share in Il
business of banking on deposit OF CO
and merchandise, as conducted by 7
government through its sub-treasurit