The sun., 1896-09-22
CHEAP DOLLARS IN CHINA.
DISTRESSING EFFECTs OF TIE NEW
SILVER TIEL COINAGE.

I
Taeis and Silver Dollars DeeIine Sharply
In Value s~ Measured In Copper Cash
Although Copper Coins Arc Non-ex.
portable They Become Scarce and Dear.
A correspondent has sent to this ofice the
number OF Kuhlow's German Trade Repfe,D
published In Berlin on the 9th inst In II Is
printed an article on the fluctuations in relative
values of the Chinese copper and silver coins,
which has n surprising though of course
wholly unintended relevancy to the parity of
value" feature OF the financial question in
volved In the Presidential campaign.
In the article 10 no reference, even indirectly.
| to bimotalllsm In this or In any European coun-
| try. yet there is a clearly stated exposition of
how the recent greatly increased coinage of
silver In China resulted in the depreciation of
| the value OF the silver coins as compared with
not gold, but copper; or, to put 1t the other way
| how copper coin appreciated" In fact, the
parity of value between silver and copper could
not be maintained.
The conflict was between, the Chinese silver
tael and Mexican and United States dollars
on one side, and the Chinese copper coin called
"cash" " on the other.
Last Jear n silver tael was worth 1.4SO
cash." says the article mentioned. AT the bo-
ginning of this year strange news suddenly ar
rived in Shanghai from all the outports. In
Chnkianr, one Of the centres OF the opium
t'ouVs tho ESphnibH buuuenly Iel from
1900 to 1,175 cash, and tho tacl from 1.4sO to
1.345. At Hankow the Mexican dollar fell to
920 cash. and the same thing at Nngpo. At both
these last places proclamations had appeared
new dollars COINED at HanRow now in the same
way as at Canton) would shortly be placed on |
Ing OF MeHcan FFeneS nnd Tm 'he Reas6
dollars; that is, they must be taken freely by |
all good lieges. subject 20 market fancies. The |
proclamations announced. moreover, that the |
new dollars would bo received in payment of |
taxes and customs duties. That always sounds |
rience that all exchanges 20 against him when when
ho pays his taxes. The authorities at Chinkiang |
their pay In the new dollars instead Of in copper
per cent. discount and would only give o:,5 cash
tSnt tST the doa Ere E59m HanGchoT came news
for dollar 20 per cent. Of base cash were insePt
ed IN each string so that In effect only 900 really
as to eSsG and thu Sse MeI
can dollar to a trifle over 900. From Wuhu and
the towns of the Poyang Lake similar reports
The conditions OF the money market became
abnormal. and during the New Year holidays
were caused. The, people knew nothing OF tho
had been issued declaring that the value Of the
tSei should be 1,4so cash, and that in spite Of
continues:
~ never seemed 10 occur to any ono that the |
more dollars were coined the easier they were TO
ket ana the easier to get the less there IN uot be
70 pay for the accommodation; in short tho
1earer copper.cash must be- The export of
cash from China has always been forbidden by
treaty. but permission to export from MORT To |
port has invariably been granted under customs |
,urveil!arce: The Illicit coinage and the melting
Town OF cash are offences which have ALWAYS |
oeen severely punishable. TWAS sus ted that |
me present dcarness in cash was in some undc- !
lnec way connected with the japanese indem-
lity; II was known that smashcrs were n ut TO |
'oln INFERIOR cash, for mixing with the standard |
rttcic, whenever the demand was active and |
! was more than suspected that the high price |
u raw copper in the market made 1t worth the |
while OF roguish merchants not only to cyport |
"pper cash to Hong Kong and Japan but TO |
melt them down to be fashioned into pots and |
'asihs The Chinese mandRrins accordingly
HeryWhere took the same fatuous steps Cash
'ahRs were ordered by proclamation not 10 fix
unreasonable prices; the export OF cash from
ort 10 port was either limited to n few strings
Iorth at time or entirely forbidden; dire neS
itieS were threatened against any persons who ,
hould olandestinely melt down or coin cash
nuer any preteNt, and so on"
hithough cash was not exported" driven
rom the country''-and although cash notes" ,
Vere Freely issued. the cash themselves became '
aruer ana harder to get although the silver
oihs were easier and easier to get. Finapciers q
ere In doubt and wonder They did every .
hing to cure tho evil they could think Of, but I
hey do not seem to have thought OF limiting t
he coinage of silver The article concludes: S
Incalculahle popular injury hns already Y
cen worked all over China by this singular
ionetary crisis. and II ought to be a lesson IN n
u who rashly interfere with tho status O,iD of | 1
urrency, be 1t gold. silver, or copper. >