Mr. Denby to Mr. Blaine.
Peking, September 26, 1890. (Received November 8.)
Sir: I have the honor to inform you that a proclamation has been issued by the Tien-Tsin and Ho-Kien taotai and the customs taotai at Tien-Tsin that the Canton dollars and parts of dollars, made by order of the late viceroy, Chang Chih-tung, are a legal tender in any part of China.
Some account of these new coins was given in my dispatch No. 1161 of the 12th instant.
The new coins have full imperial sanction. The proclamation was issued by order of the viceroy of Chih-Li, who is also superintendent of northern trade. All merchants and others are ordered to receive these coins at their standard value.
There can scarcely be any doubt that the introduction of this coinage, should it be generally received and not tampered with until the dollars become chopped dollars, will work a financial revolution in China. It would not be too much to anticipate that the establishment of a national bank may result therefrom, and that it may become the basis of a paper currency.
I have, etc.,