weight and fineness be stamped on the reverse of the coin. "There is certainly sufficient inducement to issue such a coin, and the proposition does not appear to be open to any objection. It will not be a coin of circulation, or legal tender in payment of debts, but simply an agent in our commerce with foreign countries. "The Mexican dollar exceeds in value both the Japanese yen and the United States dollar, as will be seen by the following statement: "The value of these coins and the proposed com mercial dollar may be stated as follows: or, say, about 21% mills more valuable than the Mexican dollar. "In the event of the issue of the proposed coin it will be well to give it a title, as for instance "silver union," differing from the coins representing our subsidiary and dollar of account. Intrinsic value of Mexican dollar as to gold is as At 8 per cent. premium its market price is as Fine silver at 1 per cent. premium, San Francisco 164 to I 04 15100% to I 151908% to I market rate 79 1510 to I In London, fine silver at 60d. per (present market "The average price of standard silver in London in 1853 was 61 pence. The present price is 60 pence per ounce; being a decline of 1 pence, or 23 per centum. "The price of bar-silver, (Doré silver, containing gold,) five years ago, was from 1 to 1 per cent. pre、 mium in San Francisco. The present price of the same is from 1 to 1 per cent. discount, being a decline of about 22 per cent. "While the average decline in silver in the last twenty years has been about 2 per cent., the increased weight of the proposed coin, as compared with the silver dollar, is only 1 per cent." From the commencement of the coinage of trade dollars, July, 1873, to the close of the fiscal year, June 30, 1877, 24,581,350 pieces have been struck, nearly all of which have been exported to China. As a general rule, a better return for silver has been realized when exported to China in the form of trade dollars than in fine bars, notwithstanding the expense of coinage is more than one per cent. above the cost of manufacturing and stamping fine bars; the charge in both cases being paid by the depositor. This coin is not a legal tender, nor receivable by law in the payment of debts, public or private, and can in no way interfere with our money circulation or money standard.* It is simply in the nature of an ingot, with its weight and fineness certified by the stamp of the United States Mint. At some of the Chinese ports it has been made by the proper authorities a legal tender, and as such is used as a dollar in money transactions the same as the Mexican dollar. The trade dollar possesses decided advantages over the other dollars with which the Chinese are familiar, by reason of its superior mintage and its more accurate conformity to standard weight and fineness; and it will, no doubt, continue to increase in favor in China, as no coinage of gold or silver is executed in that empire. * When the coinage of the trade dollar was first authorized, it was inadvertently made a legal tender to the amount of five dollars. Section 2, Act of July 22, 1876, repealed its legal-tender character altogether. The following reports made by the two leading foreign banks of China, the Oriental Bank, and the Hong Kong and Shanghai Banking Corporation, dated, respectively, January 31 and 30, 1877, and furnished by the United States Consulate at Hong Kong to the Secretary of the Treasury, show to what extent the trade dollar has gained a footing in China, and the estimation with which it is regarded by the Chinese. "The United States trade dollar has been well received in China and is eagerly welcomed in those parts of the country where the true value of the coin is known. It is a legal tender at the ports Foochow and Canton in China, and also at Saigon and Singapore, and although not legally current in this colony, it is anxiously sought after by the Chinese, and in the bazaars it is seldom to be purchased. In proof of the estimation in which the trade dollar is held in the South of China, we need only state that the bulk of the direct exchange business between San Francisco and Hong Kong (which is very considerable) is done in this coin, the natives preferring it to the Mexican dollar. Late advices from San Francisco report that so great is the demand for trade dollars for shipment to China that the California Mint is unequal to the task of turning out the coin fast enough to satisfy requirements. This is, in our estimation, evidence powerful enough to convince the most skeptical as to whether the United States trade dollar has been a success or not. It is the best dollar we have ever seen here, and as there can be no doubt as to the standard and purity being maintained, it will become more popular day by day, and, we doubt not, ultimately find its way into the North of China, where the people are more prejudiced against innovation." "Trade dollars are current by count at Singapore,. Penang, Bangkok and Saigon; they are current by weight at Swatow, Amoy, Foochow and Canton. In Hong Kong they are not a legal tender, and the banks will only take them from each other by special arrangement; but the Chinese take them freely in Hong Kong when they want coin of any description, which is very seldom, as they prefer bank notes, and only take coin from the banks when they require to export it from the colony. In the South of China, the Straits and Cochin China, the trade dollar is well known, and passes without comment along with the clean Mexican dollars, but in Shanghai, and the northern ports, it is unknown, and is not likely to be current for a length of time. "My opinion is that ultimately it will be current all over China; it is the best coin that ever has been imported, and being produced at the fountain-head of silver, can be laid down more cheaply than any other dollar. The reliable character of the coin (for weight |