Q. David Bowers
"Mr. Henderson to Mr. Seward.
"AMOY, May 2, 1878.
"SIR: I now have the honor to submit the following in reply to the inquiries made in your dispatch No. 46. The American trade dollar is and has been for more than two years past in use at the ports in this consular district, though not so extensively as the Mexican. At present it commands a premium to buyers of one and a half cents at the cash shops in Amoy, and payers everywhere have a decided preference for it. One thousand trade dollars are 1-23-6 [sic] too heavy, or over the weight of 72 Amoy currency. But for the universal and unrestricted tendency of people who have payments to make to procure and use. the worst dollars that will pass, they might, for ought I can see, become the exclusive currency. They are better than the Japanese trade dollars, and neither the tael nor 'dollar Spanish' has any. existence in reality. Any official action that would restrict or prevent the circulation of debased or mutilated coins, or those of lesser weight and value, would necessarily promote the use of the trade dollar. Any measure of this kind would, however, encounter the opposition of the schroffs,! money-brokers, and compradores, as well as those concerned for the moneys of other countries affected by it.
"Mr. Colby to Mr. Seward.
"CHINKIANG, March 12, 1878.
"SIR: In response to the inquiry made in your No. 27, in regard to trade dollars, I beg to say that there are none in circulation at this port, and, from the best information I can gather on the subject, any effort to introduce them commercially would be attended with a considerable loss to the introducer, as they would not be received except at a discount of at least five per cent, as compared with the Mexican dollar, now in universal use here.
"I am, sir, your obedient servant, "J.C.S. COLBY,
"Consul.
"M.M. De Lano to Mr. Seward
"FOOCHOW, March 4, 1878.
"SIR: I have to acknowledge the receipt of your dispatch No. 52, making inquiries about the circulation.of the American trade dollar at this port.
"In reply I have to say that the annual import of the dollar, say for three years past, has been from ten to twenty lakhs. It is eagerly sought for by the Chinese, when not mutilated, and when brought up from Hong-Kong without having been subjected to the process of "chopping" it is taken in preference to the Mexican dollar.
"Upon first appearance of the trade dollar here, there was an effort made to place-it at a discount of two per cent, as compared with the Mexican, but at my instance the Chinese authorities were induced to order it to be taken for customs duties at the same rate as the Mexican, also to issue public proclamations commending it to the people and forbidding its mutilation. This action had the effect to bring it into notice, and it is still looked upon by the natives with much favor.
"I know of no official action which would tend to increase its circulation here unless means could be taken to prohibit the chopping of it in Hong-Kong and Canton.
"I am of the opinion that if official action could be taken to place it at par with the Mexican dollar at Shanghai, its circulation in China would thereby be increased fourfold.
"I have the honor to be, sir, your obedient servant, "M.M. DE LANO,
"Consul.
"Mr. Shepard to Mr. Seward.
"HANKOW, March 8, 1878.
"SIR: I have the honor to acknowledge your several dispatches, numbers 41, 42, and 43.
"Referring to the first, I have to report, from inquiries of merchants and the bank, I cannot learn that an American trade dollar was ever seen in Hankow. 'The Chinese are very notional about 'dollars,' and while the 'sun-dollar' is taken without question, the 'scale-dollar' is at a heavy discount. As you know, both are Mexicans, and even the manager of the Hong-Kong Bank tells me he does not know any real difference in their value. .
"Intelligent compradores assert, that if the trade dollars were introduced, the Mandarins 'would order It boiled, chop, chop;' i.e., condemn it to be smelted. I have no doubt such would be the case, and r can, therefore, recommend no official action to create or increase a demand for it at this particular Point.
"Its recognition as the standard at banking institutions, and by native officials, would doubtless pave the way for unquestioned circulation. I see no way to .this result otherwise, except by the very slow process of a gradual familiarity with the coin, extending from the great ports of Shanghai and Hong-Kong.
"I am, sir, your obedient servant, "ISAAC F. SHEPARD,
"Consul.
"Mr. Baudinel to Mr. Seward.
"NEW CHWANG, February 27, 1878.
"SIR: In reply to your excellency's dispatch, No. 36, of the 5th instant, I have the honor to state, the trade dollar has come into circulation at this port, but only to a very limited extent: it is sold at a premium as a curiosity to dealers from the interior, but can only be passed at a discount in general business. Official intervention would, I think, be undesirable as tending to prejudice the Chinese commercial mind against anything thus recommended, unless, indeed, it would be proper to insist on the foreign customs taking them (and Mexican dollars) in payment of duties, tonnage dues, &c. At present they only accept dollars as a matter of favor, not of right, and then at a discount on the market rate.
"Dollars, with the above exception, are seldom used here, except for ships' disbursements and at the foreign stores; the native currency of the port and district being sycee (small and in shoes) copper cash and tiao notes.
"I have the honor to be, sir, your obedient servant, "FRED K. BAUDINEL
"Vice-Consul.