HENDERSON, Consul to William H. Seward, May 2, 1878

Mr. Henderson to Mr. Seward.

Sir: I now have the honor to submit the following in reply to the inquiries made in your dispatch No. 46:

The American trade-dollar is and has been for more than two years past in use at the ports in this consular district, though not so extensively as the Mexican. At present it commands a premium to buyers of one and a half cents at the cash shops in Amoy, and payers every where have a decided preference for it. One thousand American trade-dollars are 1.236/10 too heavy, or over the weight of 72, Amoy currency. But for the universal and unrestricted tendency of people who have payments to make to procure and use the worst dollar that will pass, they might, for aught I can see, become the exclusive currency. They are better than the Japan trade-dollars, and neither the “tael” nor “dollar Spanish,” have any existence in reality.

Any official action that would restrict or prevent the circulation of debased or mutilated coins, or those of lesser weight and value, would necessarily promote the use of the trade-dollar. Any measure of this kind would, however, encounter the opposition of the schroffs, money-brokers, and compradores, as well as those concerned for the moneys of other countries affected by it. If the Chinese Government could be induced to make it the only legal tender for customs duties, much would be gained for it, but this could not easily be accomplished, and might not be desirable. I have for a year past required all official fees at the consulate to be paid in clean trade-dollars, but the amount collected has been small, and no favorable influence of the plan can be perceived.

I am, &c.,