New-York tribune., 1901-06-22
CHINA,S MONETARYS SYSTEM
Kv1-.TTNcsr s-lG'S ADDRESS BEFORE
KERs-CONVENTION AT BUFFALO.


-. ,o,,,,er1isin was called 10 order this morning
IN, President John B. butcher. The convention
was largely attended. every seat pelhs oc-
cupied Mr.. Dubcher announced tnat l. Ell
wood CARPENTER, OF West Chester, hao Oeeh
cbosen. permanent secretary Of the ASSOCIATION
Mr butcher then introduced W l. Buchahali'
director general Of the Pan-American EXPOSE
ton. who delivered short address, ms 'i''iNe
being THE Pan-.AmeTican Exposition
,K-ben Nv Fuc,anan had,concluded. Wu-Tins-
fang the Chinese Minister was introduced ana
spoke in pant as follows;
Minister Wa said in part:
orr monetary system is not uniform throuehoGl
fbe eu-nre The only money which has a reGos
niTed % ni ' m t of foreisners m In China cash 1t is
made OF copper, alloyed wan ziiS e,t 81 niece but
the size Of the American sEer -cellr i5o ~ the
thinner and lighter in weight, Lefib ne century B. c
In the collections cf Chine2s hi aara ancIent
sren two curious coins of much more aLCitIS ,S
oriqin one is rectangular in shape, VIZ ~ .ra i
boie AZ one end and slit running from the centre
OF the coin to the opposite 1 enc aIIoS sword ca sh
IT, Lhe "rle I ~ "a g The first metallic coin is said
10 have been made in the reign OF twang IL apouI
tWerty-seven centuries before the CHRISTIAN era;
silver acquired monets1ry value ana use IN me me
Han dynasty. when WI r. about me & iatIer f par par
alloyed with gold and tin From that @ nrle on sli-
,,er flle6 place Of or less importance as a
medium OF exchange for large transactions ana the
o@Tb Tb i4 Iala Of gold as a medium Of exchange
MENTIONS mo- The use in the chow dynasty. which
aourshed from the twelfth century TO the third
century B. c. OF gold made in square blocks or a
caftv in weight. In the subsequent dynasty ingots
S tu,sT.v taels in weight were used Gold bullion
Dor IN use is usually in slab. bars OF taels
In weight. Although gold IN China paTtakes more
the ordinary sense of the term. ii is an acceptable
medium of exchange in any part of the empire and
Iarkers as well a godsmiths often deal in il.
4 brief notice OF foreign coins in China might be
o. 3l r or iess Gsrrency there and the circula-
tion Of the Mexican dollar is now hrInly established
e a., s,,1fl,ern ~ ports but il never obtained much
y me and mas now entirely disappeared from
circuIaGjon The British Government at Hong Kong
m has aI2 m'fb b demands Of the Chinese foreign
trade and it is current in that colony ano IN the
fro5nce he Japanese dollar into China, but its cir
cuation is limited 70 Shanghai and one or TWO
other ports.
PAPER CURRENCY IN THE EMPIRE.
Paper currency obtained favor in greater or less
5eqree al different times in Chinese history The
earliest use of it was in the reign OF the Emperor
,smUloved was deerskn. of the size of a foot |
square. After the invention OF paper that ma
currency was regularly ard systemetcslly con |
SgGasi in te early part cf the ninth century A
D. The use Of this form Of money ti3ronE hoat its
] acy 5I@' th hegnnin Of the Yuar or Moneo
during Emperor Kuhlais reign OF thirty-tour /
years was estimated to amount to a sum equivalent |
The use OF parer currency in the present day Is |
not general. its issue and circulation being con-
fined certain localities. chiefly in Child and /
interiors; inferior cites IN Wastera nina The notes are
issued. not by the government, but by local banks
quently silver also. The value Of the cash notes |
supervision or guarantee and issued by local pri-
waite banks. the banknotes must necessarily be re-
stricted TO amount Of Issue and radius Of cir |
culation. They in fact do not pass current be /
yond the limits OF The town or city where they are
issued. The reliability Of these notes depends. OF
course. upon the financial standing Of the bank is
fdence to such degree as to create and maintain |
limits
DEALINGS OF THE CASH" SHOPS
Chinese barking establishments the local banks or
cash shops and the exchange banks. The cash
concomitant of the existing currency system.
tremely low, and the daily necessities Of life being
p & Ghfap 2 & me copper cas- enters very
every class. Hence immense quantities Of cash |
must buy cash for sundry uses shopkeepers who |
have received cash in payment for wares sold. CON
the principal business of tn cash shop and tts |
chief source of prom The rate of eWcbange % he he /
tween cash and silver Is daily determined by the
6y the law Of supply and demand Another source
OF income consists in loaning money TO small trad
selling cash is sometimes INDUCED in by cash shops
stock is needed it is obtainabe by loans from the
The other large class Of banking houses may be |
Described as exchange banks, which nVmer- !
crate in wider held than Inc local banks Their |
usual line OF business comprises buying and selling
drafts or bills Of exchange other cities of the
empire, and issuing letters of credit for purposes
81 tIaNe OF business. The system Of remittance by
crafts compares iarorably with that in vogue I'm |
America or Europe in respect its completeness /
They do not rule receive deposits from in !
divfduals, though some banks receive money on a |
fNed deposit, ana keep current drawing sc- |
counts with individuals and mercantile houses A /
small interest OF or per cent is allowed fixed
deposits 10y such banks accept them They /
loan noneJ 10 local banks, cash shops. and 1
mercantile firms, which they do, not on collateral
nut personal security. In such cases the signature
the TRANSACTION Instaycss ~ pa, 'ies M t ns LIe m
large loans made On verbal pledges Wit So,,, I o1
this illustrate the peculiar rractic. .Jo,lrg i
nese bankers and business men and moi Ia 5ilate
upon their high commercial honor. which has been
generally and 1ayorahly spoken Of oy Foreigners |
who nave had actual experience with them.
EXCHANGE BROKERS ALMOST UNKNOWN. |
,5e EEehange g 6TqkeTase does not exist distinct
sald 10 have any exchange brokers al all When /
sends clerk to several exchanee hanks 70 ascer II
ItIh lhe!I respective quotations, and then deals
interest charged ny these banks on loans varies /
,i ,n 1T cttt 70 y per cent according the /
The commercial standing OF the borrower
T. Ierg Is a sInaL class OF licensed bankers who
treasurer taotai district rnseistraTe sd
Others. one Of the sources of income ~ tt@nse @ |
ban6s is IN assaying and refining silver and cast
lis II INTO ingots. for which a small percentage is |
allowed for commission or seigniorape Tbase |
ingots bear the official stamp Of the banker and |
the percentage OF hneness. All other banking es- /
taoAshments Of whatever class. are private con
To give you idea Of the abundance Of hank, |
llg houses IN Chna may take. for instance the
CATION places the number Of hanks rfGeh5 % lnvesti,
nearly -FOUR hundred; and the number in Tien-Irsin
large but by far the majority Of these hanks sra
cash shops with limited capital W