Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1920-12-02
China TO HAVE
new MONEY PLAN
Foreign Banks in the Republic
Heretofore in Control of
Her Currency.
Make profits III EXCHANGE
Charge Commissions Whenever the
Coins of One City Are Changed for
Those of Another-American's
Interesting Experience.

New York.--The new currency SyS-
tenn that is to be introduced in China
In the near future will make cOnSid-
cradle difference to the foreign banks,
mostly British. which have had con-
troll of the money circulated in the
country for the last so years. Prac-
tically the only money made by the
Chinese government was the leash"
as it was called. brass coin with
hole in the center so that 1t could he
carried on a string by the poorer
Mexican dollar.
The system of exchange and COM
mission by which the foreign banks
were able to pay their stockholders
from 40 to so per cent, with occasional
handsome bonuses. was very simple.
The nominal money in China was taels
made of silver and shaped like tiny
wooden shoe. AS taels. were not in
circulation in The country they were
changed into Mexican dollars, so that
the bank drew two commissions in
cashing a draft or a letter of credit
lol II liito tdVio anu ar
other for changing from taels into dol
lars.
Marking the Dollars.
Each port and city of any impor-
lance had its own particular manner
of marking Mexican dollars except
Hongkong and Shanghai, where they
were circulated intact. At FoOchow
the dollar had a hole punched through
the middle; at Annoy a piece was
clipped from the side and 1t was
known as "chop" dollar, and at Swa-
tow stamp was made In the middle
of the coin. These dollars were only
good for their face value at the port
or city to which they belonged, and
a person taking a Foochow dollar to
Annoy would have to pay commission
at the bank to have 1T exchanged for
local currency, and the same thing oc-
Cured when he carried Annoy money
to Swallow. No matter how often the
Mexican dollar had to be changed the
banks got their commission and the
traveller paid.
A New York business man tested the
plan by changing a $50 bill into Mex
lean dollars in Hongkong and then ex-
changing the money for local currency
at each port going up the coast, and
visiting Picking and Tientsin, Annoy,
Swatow, Foochow and other places en-
route. BY the time he reached Shang-
hal he had nothing left of his 500 bin.
and had not spent cent of it. The
banks had taken 1t all In commissions
on exchange
Before the war the Mexican dollar
was worth SO to 80 cents in China,
and at present, on account of the rise
in the price of silver, the American
dollar is worth about 80 cents in Hong
kong and Shanghai in the local cur
rency.
Handled by Cinnamon.
Cash transactions in the banks
throughout China are all handled by
Cinnamon, called compradores, who
are bonded in amounts varying frou
100000 to $25O,OOO, according to the
status of the house and the amount of
financial business transacted. The
clerks, usually sent out from London,
examine the drafts, checks or letters
presented at the counter In the bank
and, after initiating them for payment,
the compradores hand out the money.
On account Of the "chit" system,
which means credit until the first Of
the month the employees of the banks
are usually in debt to the compradorea
and in many cases. when the time
comes. at the end Of five years. con-
tinuous service, to go home on six
months leave at full pay, the clerk 10
not able to go because he owes too
much to the compradore and has to
use his vacation money to pay his
debts.
The Chinese compradores are we'll
educated men and speak English flu
emily. They gaze with surprise at
stranger who may address them In the
old-fashioned pidgeon English. After
a moments pause the compradores
will explain, Pardon me; I do not
quite grasp your meaning Do you
wish to change some money!" Then
the traveller, realizing that he has been
"stung" by the hotel clerk who told
him to talk that way, replies: "Oh,
yes, please. wish to draw some
money upon my letter Of credit" and
the incident closes.