SHEPARD, Consul , to William H. Seward, March 8, 1878

Mr. Shepard to Mr. Seward.

Sir: I have the honor to acknowledge your several dispatches, Nos. 41, 42, and 43.

Referring to the first, I have to report, from inquiries of merchants and the bank I cannot learn that an American trade-dollar was ever seen in Hankow. The Chinese are very notional about “dollars,” and while the “sun” dollar is taken without question, the “scale” dollar is at a heavy discount. As you know, both are Mexican, and even the manager of the Hong-Kong bank tells me he does not know any real difference in their values. Intelligent compradores assert that if the trade-dollar were introduced the mandarins “would order it boiled chop-chop!” i. e., condemn it to be smelted. I have no doubt such would be the case, and I can, therefore, recommend no official action to create or increase a demand for it at this particular point. Its recognition as the standard at banking institutions and by native officials would doubtless pave the way for unquestioned circulation. I see no way to this result otherwise, except by the very slow process of gradual familiarity with the coin, extending from the great ports of Shanghai and Hong-Kong.

I am, &c.,