FRED’K BANDINEL, Vice-Consul to William H. Seward, February 27, 1878

Mr. Bandinel to Mr. Seward.

Sir: In reply to your excellency’s dispatch No. 36, of the 5th instant, I have the honor to state: The trade-dollar has come into circulation at this port, but only to a very limited extent. It is sold at a premium, as a curiosity, to dealers from the interior, but can only be passed at a discount in general business. Official intervention would, I think, be undesirable, as tending to prejudice the Chinese commercial mind against anything thus recommended, unless, indeed, it would be proper to insist on the foreign customs taking them and Mexican dollars in payment of duties, tonnage dues, &c. At present they only accept dollars as matter of favor, not of right, and then at a discount on the market rate.

Dollars, with the above exception, are seldom used here, except for ships’ disbursements and at the foreign stores, the native currency of the port and district being sycee (small and in shoes), copper cash, and tiao notes.

I have, &c.,