Soden to Abraham Lincoln, June 22, 1877

Baron Von Soden to Mr. Lincoln.

Dear Sir and Colleague: According to article of the treaty between Germany and China, payments due to the Chinese customs may be made in bars or in foreign coin, whose relative value to the Chinese sycee-silver shall be fixed by special agreement, according to circumstances, between the consular officers and the superintendent of customs.

The provisions of the article of this treaty have as yet not been carried out at Canton, inasmuch as the above-mentioned agreement between the German consul and the superintendent of customs there has never been entered into.

I have, therefore, lately been instructed to cause the relative value of the coins current at the Chinese customs to the Chinese sycee-silver to be fixed in the manner pro-Added by the article in question. The motive for the instruction is the following:

As regards the value of the Mexican dollar, the result of fifty-two assays lately made at the imperial Japanese mint, at Osaka was, that the fineness of Haikwan silver varies between 984.5 and 986.5, and that by far the greater number of pieces examined showed a fineness of 985.5, containing besides from 0.20 to 0.22 of gold. The loss incurred by melting 54,018.34 ounces was 83.03 ounces.

According to American assays, weight and fineness of the Mexican dollar are: the old Mexican dollar 415.68 grains troy, and .901 fineness; the new Mexican dollar (balance dollar) 415.68 grains troy, and 902.5 fineness.

By an assay made on the 23d December, 1873, by Her Britannic Majesty’s consulate and the Chinese authorities of Canton, the value of 100 old Mexican dollars was fixed at 63.9 Haikwan taels, and that of the new dollar at 64.8 Haikwan taels, that is to say, 100 Haikwan taels are 154.32 new and 156.49 old Mexican dollars.

This unfavorable proportion can only be traced to the fact that the loss sustained by melting, &c, of the dollars was more considerable than what it would have been in the event of a careful and conscientious manipulation.

The weight of 100 dollars being 72.67 Haikwan taels, and assuming the fineness of the tael to be 1000/1000 and that of the dollar 90/100—which is too favorable for the former and too unfavorable for the latter—$152.90 would have to be paid for 100 Haikwan taels.

It hence follows, since Mexican dollars are of an actual fineness, of respectively, 901 and 905, instead of 900, and the average fineness of Haikwan taels not being 1000, but only 985.5, that for every 100 Haikwan taels $4.06 are paid in excess of their value in new and $5.98 in old Mexican dollars.

All consuls of the treaty powers having a right, and in view of the above facts sufficient cause, to desire the relative values of the current coins regulated upon a sound basis, I embrace the opportunity, dear sir and colleague, to inform you of my intention of engaging the Chinese authorities to subject the different coins to a fresh assay.

As this is a matter of common interest to all foreigners, I beg to inquire if you will consent to act conjointly with me and our other colleagues, to whom I have addressed a similar letter.

It will be a matter for future consideration in what manner the new assay has to be carried out, in order to be just and reliable. Requesting the favor of an early reply,

I have, &c.,