Evening star., 1902-08-21
coREA's CURRENCY.
Intrinsic Value of Coinage in Small
Ratio to It's Face.

From the London Globe.
"a An interesting report has just, been is
sued by the foreign office on the trade of
Corea for the year 1901, by Mr.. H Goffe,
acting British vice consul at Chemulpo. 1t
states that the chief difficulty with which
foreign trade has to contend is the disas-
trous condition Of the currency throughout
the empire. The Corean government, in
defiance of the first principles Of sound
finance, is flooding the country with a
nickel coinage whose intrinsic value is only
one-eighteenth Of its face value, without
any gold or silver reserve with which to
redeem it. AS natural consequence these
coins, which under proper conditions should
be merely tokens, are at continually in
creasing rate of discount against jap
anese gold yen. the recognized basis for
calculation Of prices where foreign articles
are concerned.
Hitherto the circulation of nickel pieces
has been confined to the, capital and the
neighborhood of two or three Of the treaty
ports, the old cash being current elsewhere
in the country; but recently, with view
to making their use general the maeis-
trates throughout the empire have been or
dered to accept payment of the Land tax
in this currency only. The face value of
these coins is 8 sen, and they now stand
at a discount of 80 per cent, as against
japanese gold yen. The wages Of Corean
laborers and employees are generally paid
in this currency, and this class. which COM
prise the bulk of the nation, are no better
paid now than they formerly were; conse-
Quenty the purchasing power of their earn
ings, far as foreign goods Is concerned.
is little more than half what is was
few years ago. And. unfortunately, there
does not seem any prospect Of these condi-
tions being improved in the near future
The government, caring only for the
profit they are making out Of this transac-
ton, and ignoring the permanent harm
they are doing to the country, are bent
upon continuing their present reckless
course. and 40,00O.O00 more of these coins,
contracted for with an American firm are
now almost due for delivery The issue of
these will bring the total face value of this
coinage in circulation up to 100000 yen,
or more than Fl 100000.
But even this Is not the worst feature
The number Of counterfeit nickies Ia ran
idly increasing; permits to coin are freely
issued by the government to private ipdi-
viduals: nickel Is openly imported through
the customs, and spurious coins in large
quantities are brought by almost every
steamer from Japan and smuggied into the
country. The commissioner Of customs at
Chemulpo. In his annual report, writes as
follows: 1.-The $4,000 worth Of nickel.
against $4,000 in 1900. have. 1t is feared,
been entirely employed in manufacturing
counterfeit nickel coins" The fact that in
Chemulpo quotations are current for 10
government nickeis;ap CD frst-class counter
feits 90 medium co1nterfeits, and a. those
passable only after dark-wfii show what a
condition affairs have reached"
This currency question Is of vital impor-
tanee to foreign merchants, and is eneag-
ing the earnest attention of the foreign
representatives. japanese silver ven. the
supply of which seemed to be exhausted in
1900 have again appeared in large ouanti-
ties. most of them having come from the
interior, where they were boarded by the
natives. They are now at a discount of
Is per cent as against gold yen The largest
Of the copper cash continue to be exported
to Japan. where they are melted down for
the value Of the copper they contain. No
ernnent with their projected subsidiary sil-
yer coinage, although silver to the value of
some fS5. 900 has been imported by the i'm
perial mint for this purpose.