The Savannah morning news., 1901-11-30
CaINA's MONETARY SYSTEM.
Wu-Ting-FanG Gives an Insight In
to the Matter of the Currency Of
the CeIestiaIS.

The following is a summary of ar
address by WI Ting Fang. the Chinese
minister, before the recent convention
of New York State Bankers at Buffalo
Our monetary system is not uniform
throughout the empire. The only mon
ey which has a recognized uniform val
ue in every part of the realm is a com
called by the foreigners in emma
cash" 1t is made of copper alloyed
with zinc or lead, about the size OF the
American silver 25-cent piece, but thin
ner and lighter in weight. The origin
of the cash is traced back to the
twelfth century B. c. In the collec-
tons of Chinese numismatists may be
seen two curious coins of much more
ancient origin. One is rectangular in
shane, with a round hole at one end
and a slit running from the center OF
the coin to the opposite end. The other
has the shape of a curved sword and Is
called sword cash. The origin of the
latter is traced to the twenty thlrd
century B. c. The first metallic coin is
said to have been made in the reign OF
Hwang Tt, about twenty-seVen centu'
ries before the Christian era
Silver acquired d iipiIEldi NdiuV anu
use in the Han dynasty, when WI IT,
about the latter part of the second
century B. c.. made coins of silver al
loyed with gold and tin. From that
time on silver filed a place of more
or less Importance as medium of eX-
change for large transactions and the
cash for small ones.
The value of gold as medium of ex-
change was not overlooked by the
fo,, r.
the use in the Chow dynasty, which
fiourished from the twelfth century TO
the third century B. c., of gold made
in square blocks of a catty in weight.
In the subsequent dynasty ingots of
twenty taels in weight were used. Gold
bullion now in use is usually in slabs
or bars of ten taels in weight. Al
though gold in China partakes more of
the character of a commodity than
money in the ordinary sense of the
term, it is an acceptable medium of
exchange in any part Of the empire,
and bankers as well as goldsmiths
often deal in it.
A brief notice of foreign coins in
China might be of interest. inasmuch
as all kinds of foreign coins find more
or less currency there, and the circu-
Iation of the Mexican dollar is now
firmly established at the several treaty
ports The American trade dollar at
one time might be met with in some
of the southern ports, but 1t never
obtained much currency, and has now
entirely disappeared from circulation.
The British government at Hong Kong
has also minted dollar with the EVIL
dent purpose of supplying the demands
of the Chinese foreign trade, and 1t is
current in that colony and in the
southern ports. An attempt was also
made to introduce the Japanese dollar
into China, but it's circulation is limited
10 Shanghai and one or two other
ports.
Paper Currency in the Empire.
Paper currency obtained favor in
greater or less degree at different times
in Chinese history. The earliest use of
it was in the reign of the Emperor Han
WI, in the second century, B. c. The
material employed was deerskin, of the
size Of a foot square. After the inven-
ton of paper that material was used
instead. The issuance of paper curren-
cy was regularly and Systematically
conducted under Emperor Hsien Tsung
of the Tang dynasty, in the early part
of the ninth century A ID. The use of
this form of money throughout its ear
ly history was only intermittent ii
seemed to have reached the culminat-
ing point of it's ascendency during the
beginning of the Yuan, or Mongol, dy-
nasty, when the aggregate value of all
the issues during Emperor Kuhlai's
reign of thirty years was esti-
mated to amount to a sum equivalent
to over $500, 100000
The use of paper currency in the pres
ent day is not general its issue and
circulation being confined to certain
localities rhiaHxr in
joining provinces in Northern China
and some interior cities in Western
China. The notes are issued, not by the
government, but by local banks, and
they represent mostly cash" though
frequently silver also. The value of
the cash notes ranges from rs cents IN.
without governmental supervision or
guarantee and issued by local private
banks. the bank notes must necessar-
liy by restricted as to amount of issue
ana radius of circulation. They. in
fact, do not pass current beyond the
limits of the town or city where thew
are issued. The reliability of these
notes depends, of course, upon tho
financial standing of the bank issuing
them. They command, however. public
confidence to such degree as to create
ana maintain large circulation with.
IN the aforesaid prescribed limits.
Dealings of the Cash" shops.
There are. generally speaking twc
classes of Chinese banking establish.
ments, the local banks, or cash shons
ana the exchange banks. The cash shor
is natural outgrowth and an indis.
pensaDle concomitant of the existing
currency system. Wages of laborers
servants and the like being extremely
low, and the daily necessities Of Iifs
oelng correspondlngly cheap. the con.
per cash enters very largely into the
dally transactions of the people ot
every class. Hence immense quaint.
Ties of cash change hands every dav
nose VINO nave silver must buy cash
,ol suhary uses Shopkeepers. who
nave received cash in payment for
wares sold, convert their accumulate
cash into silver by selling il 10 the
cash shops Buying and selling cash is
the principal business of the cash shor
ana It's chief source of profit. The rats
OF exchange between cash and silver
is daily determined by the guild NJ
cash shops, which is guided of course
by the law of supply and demand An.
other source of income consists in loan.
ing money to small traders and shon.
Keepers. Speculation In buying ant
selling cash is sometimes INDUCED II
Dy cash shops. When money beyonf
the amount of the capital stock i.
neeueu II Is obtalnable by loans from
the exchange banks.
The other large class or barp,n,
houses may be described as exchange
banks, which are numerically weaker
out financially far stronger and oper.
ate IN a wider field than the locaI
banks. Their usual line of business
comprises buying and selling drafts n,