Mar. 12.
Mr. Davin Fraser's telegram, "published yesterday, in which he takes us to task for our unkind reception of the Shanghai mint loan agreement, is an example of how foreigners dwelling in Peking appear to become hypnotized by its atmosphere and incapable of taking any but its remote and narrow point. Mr. I'raser tells us that the scheme will appear in a new light when it is known that the Chinese Banking Group submitted, and the Ministry of T'inance unreservedly accepted, a memorial recommending the appoint-rent of a foreign assaying expert and the nomination of a special committee to include representatives of the Customs, foreign bankers, tind, chambers of commerce to supervise and advise on measures necessary t6 maintain the mint's efficiency." Mr. Fraser adfnits a weakness in this scheme, namely, that the position' of foreigners in the mint would not be internationally secured. But he thinks that the Government, having accepted the Chinese Banking Group's recommendations, would not dare face the storm that would burst out if the foreigners connected with the mint found themselves compelled to resign; and he believes that the foreign bankers would easily get assurances from the Government as regards the status and future conduct of the mint, which would justify their converting their accounts from sycee to dollars.
It is curious that nothing of all this.was mentioned in Reuter's telegram detailing the mint loan agreement. It is more curious that a man of Mr. Fraser's experience should be impressed with the Chinese bankers' memorial: most curious of all that he should appear to believe that it will make the faintest difference in the attitude of the Foreign Bankers' Association.. As for the Government's keeping its pledge to the Chinese bankers in more than letter, directly the spirit of observance becomes inconvenient, we must regretfully confess ourselves quite sceptical, As for its fearing any storm of public indignation if the foreign experts withdrew from the mint, we are equally sceptical: Chinese Governments have endured too many storms in recent years to bother about one more or Jess, especially over anything so unimportant to Chinese thinking as a foreign employee of a mint. And as for the value of that foreign assayer as any guarantee of the purity of the coinage, we are still more sceptical, for the simple reason that he would have no real control. The position of the Foreign Bankers' Association in this matter is perfectly simple and reasonable. For them to convert their accounts from sycee into dollars is so tremendous a thing—once done it could never be undone—that before they make the change, they must be unequivocally and unalterably assured of the permanent standard in the new coinage. To that end no foreign employee incapable of control, or foreign committee of merely advisory standing (in which they would not bother themselves to be represented) is of the least use. There must be a foreign mint master whose word shall be law, with a foreign staff comprising at least two assayers, three inspectors and one accountant. Otherwise, in ordinary parlance '"'nothing doing.'' It is for China to consider whether the enormous advantages accruing from such a mint would not be well worth the small sacrifice of pride involved.
It is difficult to write with any patience on this subject because the Ministry of Finance knew perfectly well what it was doing when it made the agreement with the Chinese Ranking Group and how its project must be received.
Anyone who wants evidence, on that point may be recommended to read, in this month's British amber of Commerce Journal. the correspondence of the British Chamber of Commerce, the Doyens of the Consular and Diplomatic Bodies and the Waichiaopu about the depreciated coinage turned out by the Wuchang and Nanking Mints, all an excellent illustration of Peking protestations ending in nothing; together with the report of the last conference of. British Chambers of Commerce, which gives an account of the tremendous efforts made by Sir John Jordan to convince the Government of the great utility of an adequately controlled mint at Shanghai. It is to he feared that the Ministry of Finance has now committed itself to a point from which there can be no going back. If there be yet space, however, for. second thoughts, we earnestly hope that it will change its mind, Having gone so far as to agree to a foreign assayer and advisory committee, can it not bring itself to go the whole way by which alone the scheme can be made effective?
Other countries, similarly placed, have done the same thing, with no loss of honour and immense enhancement of credit and prosperity. The importance of a stable currency to the millions of poor Chinese, who suffer incredibly from the vagaries of the present coinage, should be reeommendation enough of this first great step to financial reform and stability.
Text read from the printed page and cleaned; old type leaves the occasional error.