Prince Kung to To George F. Seward, April 9, 1877

Prince Kung to Mr. Seward.

A few days since I had the honor to receive a note from your excellency setting forth that foreign merchants in the transaction of business in China meet with difficulties because China has no gold and silver coinage, and requesting my reply as to whether it would be possible to establish a mint and a system of coinage, &c.

According to Chinese law, the revenues received by the treasury board from the several provinces, and the revenues sent forward by the several provinces, are all received in the treasury tael of pure silver. This is established by Chinese law, and there is no variation from it. Regarding the quality and weight of silver used in mercantile transactions in case it is not paid to Chinese officials, it is regulated by the convenience of the merchants in the several provinces. In case it is to be paid to the authorities, it must be equivalent to the treasury tael of pure silver.

Having received your excellency’s note with contents, as mentioned above, the superintendents of northern and southern trade have been instructed by this office to take into consideration the circumstances of the several provinces, whether coinage is possible, and how uniformity can be secured, and to report to this office for its further consideration. When their replies shall have been received, I shall have the honor of addressing your excellency again.