DENNY, Consul to William H. Seward, February 14, 1878

Mr. Denny to Mr. Seward.

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 part of the 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 now is, to small transactions with foreigners.

I am, &c.,