January.
As a contribution to the discussion of the burning question of the euro rency of China, we printed in this column on the 4th of December last some remarks of much value and interest. We have since received from the same correspondent some farther remarks, as follows:—"Referring to the memorandum I sent to you on the 2nd ult.:—The suggestion I made was that the Chinese Government should inangurate a coinage for the Maritime Trade of the Empire, by means of the machinery ready to their hand in the shape of the Maritime Customs; which coinage would be able to maintain a fixity of value with gold, because all duties on the maritime trade would have to be paid in this coinage or its equivalent. The equivalent would include gold: it would be allowable for any one to lodge gold with the Haikuan Bank at the fixed rate of exchange. The Haikuan Bank, however, would not undertake to give gold back in exchange for the coinage: thus following the policy of the Indian Government in 1893.
"The feasibility of this idea is based on the fact, that by reason of the successive treaties between China and the Foreign Powers ever [since China was opened to foreign lo, the maritime trade of the Empire with foreign countries, which is located entirely at the Treaty Ports, can be separated from the internal trade, and from the land frontier trade, in so distinct a manner as would} not be possible in any other country.
"The Haikuan tael when minted must be of the same weight and fineness as the present tael weight. It would be a very inconvenient coin but that difficulty could be easily. overcome by coining half-tael pieces, "The nominal value fixed as regards gold must be considerably above the intrinsic value of silver to-day you suggested in your Editorial remarks, merchants might complain that the duties they had to wou'd be increased by an enactment of this kind, This is absolutely unavoidable; and it is one of the difficulties in avy currency reform that some people must suffer by the change. But the advantage to the entire trade in having a stable exchange would outweigh every other consideration.
"The vital points of the idea are these:—
"Ist—Vhere must be a coinage No other arrangement permits a stable exchange with gold.
"2nd—The unit of coinage, whatever it may be, must be fixed as in other countries with an exchange value in gold. When it is fixed, the exchange value can be maintained, because the Customs duties can only be paid in that currency.
"Article IT of the treaty of Shanghai provides for an Imperial coinage instend of a weight of silver. It will certainly be a long time befure this is carried into effect, and even if that takes place, there is nothing in the article suggesting any idea of fixing the gold value of the new coin."
Our correspondent's propos that there shall be a silver coinage for all China, the Haikuan tael being the one used, and the value of this tael being fixed in gold. To assist this reform, ull duties collected by the Imperial Maritime Custom, are to be paid in gold or its equivalent. Tuis is a concession for which the Chinese have already asked, but which has been refused because "'tis not so nominated in the bond," This is a valid argument as far as it goes; but can be shown that this reform if consummated will be to the advantage of us all, there is no reason why the Powers should not unitedly consent to it. The consent must, of course, be unanimous, and " there's the rub."
Anocher very valuable contribution to the discussion is Mr, E, S. Lirtle's paper on the subject' which has recently appeared in our columns, and which has now been republished in pamphlet form. His argument shortened, for there is much intro-might have been advantageously
ductory matter which is already universally accepted and might have been omitted. He does not seem to be very clear in his own mind on the subject of the stimulation of exports by the fail in silver. The fact is, of course, that the silver prices of exports in China are fixed by the gold value of the goods at home. As silver falls in relation to gold, more silver can be given for China's exports, and it is by this rise in silver value, which seems to puzzle Mr. Little, that exports are stimulate-d; but this stimulus requires a little time to work; exports cannot be expected to respond instantly to the fluctuations of exchange. AS a mater of fac, wherever foreign i valued in the question is, how to make this, which is now the unrecognized, the officially recognised
Text read from the printed page and cleaned; old type leaves the occasional error.