DE LANO, United States Consul to William H. Seward, March 4, 1878

Mr. De Lano to Mr. Seward.

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 10 to 20 lacs. 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 2 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,