Q. David Bowers
"Mr. Lord to Mr. Seward.
"NINGPO, February 23, 1878.
"SIR: In reply to your inquiries relating to the introduction of the trade dollar at this port, I have to say that it has not been introduced here to any extent whatever. It would have been a great blessing if it could have been introduced, for we are suffering very grievous evils for the want of it or something like it.
"The Mexican dollar, the only coin (Chinese cash excepted) now current here, is so uncertain in its value and so liable to be counterfeited that there is for us no end for trouble, and this trouble has greatly increased of late. There have been several attempts made here to coin this dollar by natives, and the work produced was so well executed that only schroffs or experienced money-changers could detect them. The value of some of them was also quite fair, being only short some 4% or 5%.
"I think the trade dollar or any other invariably good and well-executed one would find great difficulty in coming into use here without official action. Bankers and schroffs control the currency here, and it is for their interest to have this as defective and difficult as possible so as to gain from those who are ignorant. For this reason the bright or newly coined Mexican dollar is usually at a discount here.
"I am inclined to think that if an arrangement could be made with the customs authorities to take the trade dollar in payment for dues, and at a fair rate of exchange, it might be brought into use, and if in addition it could be made a penal offense for the Chinese to melt, deface, or counterfeit it, I think there would soon be a large demand for it.
"The practical currency now of this port is the dollar. The tael is becoming more and more nominal, and the old method of keeping accounts and prices in cash is fast changing into dollars and cents.
"I have the honor to be, sir, your obedient servant, "EDWARD C. LORD,
"United States Consul.
"Mr. Stahel to Mr. Seward. "SHANGHAI, April 3, 1878.
"SIR: Referring to your dispatch No. 107, I have now the honor to enclose copy of a letter just received from the vice-chairman of the Shanghai Chamber of Commerce, to which body I applied for information on the subject, being myself so little acquainted with matters in China.
"I have, &c.,
"J STAHEL,
"Vice-Consul-General.
"Chamber of Commerce to Mr. Stahel,
"SHANGHAI, March 30,1878.
"Your letter of 21st February on the subject of the introduction of the trade dollar was briefly acknowledged on the 23d of the same month, and the committee has since gathered information which shows that there is no present prospect of inducing the natives to accept the coin or influencing official action on the part of the Chinese authorities to facilitate its recognition as a legal tender.
"The dollar has been imported in small quantities and has failed to make its way, having always been refused at its full value, while application to the Taoutai for assistance in introducing it has led to no result beyond a declaration of the inability of the officials to move in the matter, as the currency of this port for trade purposes is sycee silver.
"Those parcels of trade dollars which have been received have therefore been reshipped to the south, where the coin is easier of exchange.
"I have, &c.,
"F.B. FORBES, "Vice-Chairman.
"Mr. Denny to Mr. Seward. "TIEN-TSIN, February 14, 1878.
"SIR: In reply to your dispatch of the 5th instant, I have the honor to say that the American trade dollar is not known as a circulating medium at this port. As you are aware, nothing will be received in payment of obligations in the interior but sycee silver or copper cash, and the same rule is also observed at this port in most all transactions. For this reason the larger proportion of Mexican dollars shipped to this port are converted into sycee, leaving very few in circulation.
"The trade dollar being of equal fineness with the Mexican, and a trifle heavier in weight (its weight being 420 grains troy), and also more accurately and uniformly milled, there would be sufficient inducement for the Chinese to use it in preference to the Mexican if coined money circulated here as it does in western countries by its nominal value rather than by weight or intrinsic value; but under the prevailing custom of circulating by weight alone, I do not see that any official action can be taken that would be of practical use to create or increase demand for our trade dollars to any considerable extent in this country. Greater familiarity with the new dollar will perhaps overcome the present strong prejudice of the natives in favor of the Mexican, but its circulation as a dollar would even then be limited, as the clean Mexican dollar now is, to small transactions with foreigners.
"I am, &c.,
"O.N. DENNY,
"Consul."
The Year 1878 in History
(See entry under 1878 Morgan dollar)