LORD, United States Consul to William H. Seward, February 23, 1878

Mr. Lord to Mr. Seward.

Sir: In reply to your inquiries relating to the introduction of the trade-dollar at this port, I have to say that it has not been introduced here to any extent whatever. It would have been a great blessing if it could have been introduced, for we are suffering very great evils for the want of it, or something like it. The Mexican dollar, the only coin (Chinese cash excepted) now current here, is so uncertain in its value and so liable to be counterfeited that there is for us no end of trouble. And this trouble has greatly increased of late. There have been several attempts made here to coin this dollar by natives, and the work produced was so well executed that only shroffs, or experienced money-changers, could detect them. The value of some of them was also quite fair, being only short some 4 or 5 per cent.

I think the trade-dollar, or any other invariably good and well-executed one, would find great difficulty in coming into use here, without official action. Bankers and shroffs control the currency here, and it is for their interest to have this as defective and difficult as possible, so as to gain from those who are ignorant. For this reason the newly-coined or bright Mexican dollar is usually at a discount here.

I am inclined to think that if an arrangement could be made with the customs authorities to take the trade-dollar in payment of dues and at a fair rate of exchange, it might he brought into use; and if, in addition, it could be made a penal offense for the Chinese to melt, deface, or counterfeit it, I think there would soon be a large demand for it.

The practical currency of this port now is the dollar. The tael is becoming more and more nominal, and the old method of keeping accounts and prices in cash is fast changing into dollars and cents.

I have, &c.,