Some authorities will have it that the debased silver-coins_ which were so Provalent during 1925 were the result of successful activities of outside coun-forfeiters. In other quarters it is maintained that the issuing mints and the Canton Mint in particular are respon-lo for the marketing of the debased silver-coins, which were on the point of undermining the purchasing power of that part of the community, which forms the bulk of the population. It is easily understood that I refer here to the 11th year coins and the 20-cent coins bearing the effigy of the 9th year, but issued last year, and having practically.the same silver-content as those of the 11th Year, both supposed to emanate from the Canton Mint. The former coins are said to have been ready to inundate the market already in 1922, but thanks to the alertness of the Custom authorities, we made their acquaintance only three years later. Be this as it may, whether these coins are counterfeits of the mints themselves or of outsiders, we are only interested in the ultimate issue, There is no doubt that the subsidiary coins have during the year under review: passed through a crisis, and according to popular opinion we should have reached a climax, meaning that no further depreciation is possible without drastic changes taking place. This is unfortunately.not so.. The present "legal: tender" is round' 670 fine commanding a minimum circulating rate of 130 silver-cents. to the dollar. The presence of the Lith year silver-coins lids proved that the silver-content may be reduced to 520 commanding a ciring, rate of. 170. minimum, without::-H]..:
éciably' changing the consistency of the coin, ie. superficially judged, and provided the silver-content is reduced by degrees and with discrimination, According to researches made by Mr. E. Kann in his work "The Currencies of China" recently published, _silver-coins of a fineness as low as 270 have been successfully marketed in Manchuria. A fineness of 270 corresponds to a circulating rate of round 330 silver-cents to the dollar, based on intrinsic value. Such' a low rate is by: no means outside the bounds of possibilities should the mints' activities be allowed to continue unchecked as hitherto, During the past year the dollar-unit has also shown continued signs of being suitable object for the mischievous policy of the mints, who have never lived up to their mission towards the Government and society, continuously trying to flood the market with coins of an intrinsic value lower than those, which for the time being are dictating the rate of exchange, and which thus are accepted as "legal tender." They may not be able to achieve anything marvellous for the benefit of their own pockets in respect of the dollar-unit, since more powerful, alert and intelli gent forces are at work to safeguard Public interests in this respect, but the small subsidiary coins being apparently the concern of nobody is left at the mercy of unscrupulous mints acting dead against the instructions of the Government. Therefore, as be clear from the foregoing, we have still a long way to go before the economic laws, which are always working in the interests of the commonwealth, will be able to help us out of a bad fix engineered by selfish interests, THE money market in Canton is feoded with counterfeit fractional euro rency, mostly of 10-cong denomination. Most of these spurious coins were forged by the Kwangsi and Yunnan troops dur-og their stay in Canton in 1923, Counterfeit coins are not, however, lew thing on the Canton market, Ten wr fifteen years ago, they were occasionally discovered, but did not differ very much in weight, fineness, or in other respects ivom the genuine coma, For instance, the genuine coins issued by the Kj Government Mint contain Iver and 30 per cent per cent cop but these sorged coins contained 60 per vent silver.
But when counte citing was started the Yur mand Kwangsi troops on.
large scale, coins forged tom pure metals were issued, Under. the pretext of establishing a gun smith's shop or a machine shop, the milita ordered mint plans and counterfeited fractional currency coins in large num bers.. At one time it was estimated that the daily output irom these illegal mints amounted {0 over $10,000 worth of 20 cent pieces, which were xold to the local money exchangers at from 50 to 70 per cent. face value. Military officers were erten seen bar vaining openly with money ne in regard to the price of the brice of the counterfeit coins, The de-Seat of the Kwangsi and Yunnan troops put a stop to the counterfeiting business in Cunton city, but up to the pres sent the Canton authorities have not yet been able to run down all the forgers in the country districts, where quite a number of illegal mints are still believ= ed to be operating, The Principal Weekly Business and Financial Newspaper in China Capital AND TRADE is the leading weekly source of business intelligence to men in China and these abroad who pi. ay an important part in the building of the trade of China.
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Text read from the printed page and cleaned; old type leaves the occasional error.