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Memoranda on a New Monetary System for China (Classic Reprint)

Memoranda on a New Monetary System for China (Classic Reprint)

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Excerpt from Memoranda on a New Monetary System for China

Sir: Referring to my note No. 276, of the 19th instant, in which I informed you that I had received instructions from the Imperial Government relative to a proposed plan looking toward an international concert of action bearing upon the monetary question, I have the honor to submit to you the accompanying memorandum containing the views of my Government relating to the above-mentioned subject.

It is the confident hope of the Imperial Government that the subject-matter of its memorandum may receive the careful consideration of the Government of the United States, and that such steps may be taken as it may deem proper toward bringing about the desired end, to the mutual benefit of all concerned.

Memorandum.

The serious results which are threatened by the recent fluctuations in the value of silver bullion to the commerce both of gold and silver standard countries have induced the Chinese Imperial Government, acting in concert with the Mexican Government, to ask the cooperation of the United States in seeking a remedy for these conditions for the mutual benefit of all concerned. Safe and profitable trade between any two countries is dependent to a considerable degree upon relative stability in the value of their currencies. This stability is destroyed in the trade between a gold-standard country, like the United States, and a silver country, like China, when the variations in the gold value of silver, as was the case during the year 1902, reached nearly 10 cents an ounce in gold in a single year, or nearly 20 per cent. upon the price of silver bullion.

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