Chapter 29

_Banks and Banking._--Native banks for purposes of inland exchange are to be found in most large cities. They are private banks using their own capital, and seldom receiving deposits from the public. The best known are the Shan-si banks, which have branches all over the empire. They work on a small capital, seldom over £50,000 each, and do a small but profitable business by selling their drafts on distant places. None of them issues notes, although they are not debarred from doing so by law. They lend money on personal security, but do not advance against shipments of goods. In some places there are small local banks, usually called cash shops, which issue paper notes for small sums and lend money out on personal security. The notes never reach more than a very limited local circulation, and pass current merely on the credit of the institution. There is no law regulating the formation of banks or the issue of notes. _Pawnshops_ occupy a prominent position in the internal economy of China. They lend on deposit of personality at very high rates, 18 and 24%, and they receive deposits of money from the public, usually allowing 6 to 10%. They are the real banks of deposit of the country, and the better class enjoy good credit. _Foreign Banks_ do a large business at Shanghai and other treaty ports, and a _Government Bank_ has been established at Peking.

_Currency._--In the commercial treaty between Great Britain and China of 1902 China agreed to provide a uniform national coinage. An imperial decree of October 1908 commanded the introduction of a uniform tael currency; but another decree of May 1910 established a standard currency dollar weighing 72 candareens (a candareen is the 100th part of the tael ounce) and subsidiary coins of fixed values in decimal ratio. This decree properly enforced would introduce a much needed stability into the monetary system of China.

The actual currency (1910) consists of (l) _Silver_, which may be either uncoined ingots passing current by weight, or imported coins, Mexican dollars and British dollars; and (2) _Copper_ "cash," which has no fixed relation to silver. The standard is silver, the unit being the Chinese ounce or tael, containing 565 grains. The tael is not a coin, but a weight. Its value in sterling consequently fluctuates with the value of silver; in 1870 it was worth about 6s. 8d., in 1907 it was worth 3s. 3d.[48] The name given in China to uncoined silver in current use is "sycee." It is cast for convenience sake into ingots weighing one to 50 taels. Its average fineness is 916.66 per 1000. When foreign silver is imported, say into Shanghai, it can be converted into currency by a very simple process. The bars of silver are sent to a quasi-public office termed the "Kung K'u," or public valuers, and by them melted down and cast into ingots of the customary size. The fineness is estimated, and the premium or betterness, together with the exact weight, is marked in ink on each ingot. The whole process only occupies a few hours, and the silver is then ready to be put into use. The Kung K'u is simply a local office appointed by the bankers of the place, and the weight and fineness are only good for that locality. The government takes no responsibility in the matter, but leaves merchants and bankers to adjust the currency as they please. For purposes of taxation and payment of duties there is a standard or treasury tael, which is about 10% heavier than the tael of commerce in use at Shanghai. Every large commercial centre has its own customary tael, the weight and therefore the value of which differ from that of every other. Silver dollars coined in Mexico, and British dollars coined in Bombay, also circulate freely at the open ports of trade and for some distance inland, passing at a little above their intrinsic value. Carolus dollars, introduced long ago and no longer coined, are retained in current use in several parts of the interior, chiefly the tea-growing districts. Being preferred by the people, and as the supply cannot be added to, they have reached a considerable premium above their intrinsic value. Provincial mints in Canton, Wuchang, and other places have issued silver coins of the same weight and touch as the Mexican dollar, but very few have gone into use. As they possess no privilege in debt-paying power over imported Mexican dollars there is no inducement for the people to take them up unless they can be had at a cheaper rate than the latter, and these are laid down at so small a cost above the intrinsic value that no profit is left to the mint. The coinage has in consequence been almost discontinued. Subsidiary coins, however, came largely into use, being issued by the local mints. One coin "the hundredth part of a dollar" proved very popular (the issue to the end of 1906 being computed at 12,500,000,000), but at rates corresponding closely to the intrinsic value of the metal in it. The only coin officially issued by the government--up to 1910--was the so-called copper _cash_. It is a small coin which by regulation should weigh 1/16 of a tael, and should contain 50 parts of copper, 40 of zinc, and 10 of lead or tin, and it should bear a fixed ratio to silver of 1000 cash to one tael of silver. In practice none of these conditions was observed. Being issued from a number of mints, mostly provincial, the standard was never uniform, and in many cases debased. Excessive issues lowered the value of the coins, and for many years the average exchange was 1600 or more per tael. The rise in copper led to the melting down of all the older and superior coins, and as for the same reason coining was suspended, the result was an appreciation of the "cash," so that a tael in 1909 exchanged for about 1220 cash or about 35 to a penny English. Inasmuch as the "cash" bore no fixed relation to silver, and was, moreover, of no uniform composition, it formed a sort of mongrel standard of its own, varying with the volume in circulation. (G.J.; X.)

V. HISTORY

(A)--_European Knowledge of China up to 1615._

_China as known to the Ancients._--The spacious seat of ancient civilization which we call China has been distinguished by different appellations, according as it was reached by the southern sea-route or by the northern land-route traversing the longitude of Asia. In the former aspect the name has nearly always been some form of the name _Sin, Chin, Sinoe, China_. In the latter point of view the region in question was known to the ancients as the land of the _Seres_, to the middle ages as the empire of _Cathay_. The name of _Chin_ has been supposed (doubtfully) to be derived from the dynasty of _Ts'in_, which a little more than two centuries before the Christian era enjoyed a vigorous existence, uniting all the Chinese provinces under its authority, and extending its conquests far beyond those limits to the south and the west. The mention of the _Chinas_ in ancient Sanskrit literature, both in the laws of Manu and in the Mah[=a]bh[=a]rata, has often been supposed to prove the application of the name long before the predominance of the Ts'in dynasty. But the coupling of that name with the _Daradas_, still surviving as the people of Dardistan, on the Indus, suggests it as more probable that those _Chinas_ were a kindred race of mountaineers, whose name as _Shinas_ in fact likewise remains applied to a branch of the Dard races. Whether the _Sinim_ of the prophet Isaiah should be interpreted of the Chinese is probably not susceptible of any decision; by the context it appears certainly to indicate a people of the extreme east or south. The name probably came to Europe through the Arabs, who made the _China_ of the farther east into _Sîn_, and perhaps sometimes into _Thîn_. Hence the _Thîn_ of the author of the _Periplus of the Erythraean Sea_, who appears to be the first extant writer to employ the name in this form (_i.e._ assuming Max Müller's view that he belongs to the 1st century); hence also the _Sinae_ and _Thinae_ of Ptolemy.

It has often indeed been denied that the Sinae of Ptolemy really represented the Chinese. But if we compare the statement of Marcianus of Heraclea (a mere condenser of Ptolemy), when he tells us that the "nations of the Sinae lie at the extremity of the habitable world, and adjoin the eastern Terra Incognita," with that of Cosmas, who says, in speaking of _Tzinista_, a name of which no one can question the application to China, that "beyond this there is neither habitation nor navigation"--we cannot doubt the same region to be meant by both. The fundamental error of Ptolemy's conception of the Indian Sea as a closed basin rendered it _impossible_ but that he should misplace the Chinese coast. But considering that the name of _Sin_ has come down among the Arabs from time immemorial as applied to the Chinese, considering that in the work of Ptolemy this name certainly represented the farthest known East, and considering how inaccurate are Ptolemy's configurations and longitudes much nearer home, it seems almost as reasonable to deny the identity of his India with ours as to deny that his Sinae were Chinese.

If we now turn to the _Seres_ we find this name mentioned by classic authors much more frequently and at an earlier date, for the passages of Eratosthenes (in Strabo), formerly supposed to speak of a parallel passing through _Thinae_--[Greek: dia Thinôn]--are now known to read correctly [Greek: di'Athênôn]. The name _Seres_ indeed is familiar to the Latin poets of the Augustan age, but always in a vague way, and usually with a general reference to Central Asia and the farther East. We find, however, that the first endeavours to assign more accurately the position of this people, which are those of Mela and Pliny, gravitate distinctly towards China in its northern aspect as the true ideal involved. Thus Mela describes the remotest east of Asia as occupied by the three races (proceeding from south to north), Indians, Seres and Scyths; just as in a general way we might still say that eastern Asia is occupied by the Indies, China and Tartary.

Ptolemy first uses the names of _Sera_ and _Serice_, the former for the chief city, the latter for the country of the Seres, and as usual defines their position with a precision far beyond what his knowledge justified--the necessary result of his system. Yet even his definition of Serice is most consistent with the view that this name indicated the Chinese empire in its northern aspect, for he carries it eastward to the 180th degree of longitude, which is also, according to his calculation, in a lower latitude the eastern boundary of the Sinae.

Ammianus Marcellinus devotes some paragraphs to a description of the Seres and their country, one passage of which is startling at first sight in its seeming allusion to the Great Wall, and in this sense it has been rashly interpreted by Lassen and by Reinaud. But Ammianus is merely converting Ptolemy's dry tables into fine writing, and speaks only of an encircling rampart of mountains within which the spacious and happy valley of the Seres lies. It is true that Ptolemy makes his Serice extend westward to Imaus, _i.e._ to Pamir. But the Chinese empire _did_ so extend at that epoch, and we find Lieut. John Wood in 1838 speaking of "_China_" as lying immediately beyond Pamir, just as the Arabs of the 8th century spoke of the country beyond the Jaxartes as "_Sin_," and as Ptolemy spoke of "_Serice_" as immediately beyond Imaus.

If we fuse into one the ancient notices of the Seres and their country, omitting anomalous statements and manifest fables, the result will be somewhat as follows: "The region of the Seres is a vast and populous country, touching on the east the ocean and the limits of the habitable world, and extending west to Imaus and the confines of Bactria. The people are civilized, mild, just and frugal, eschewing collisions with their neighbours, and even shy of close intercourse, but not averse to dispose of their own products, of which raw silk is the staple, but which included also silk-stuffs, fine furs, and iron of remarkable quality." That is manifestly a definition of the Chinese.

That Greek and Roman knowledge of the true position of so remote a nation should at best have been somewhat hazy is nothing wonderful. And it is worthy of note that the view entertained by the ancient Chinese of the Roman empire and its inhabitants, under the name of _Ta-thsin_, had some striking points of analogy to those views of the Chinese which are indicated in the classical descriptions of the Seres. There can be no mistaking the fact that in this case also the great object was within the horizon of vision, yet the details ascribed to it are often far from being true characteristics, being only the accidents of its outer borders.

_The Medieval Cathay._--"Cathay" is the name by which the Chinese empire was known to medieval Europe, and it is in its original form (_Kitai_) that China is still known in Russia and to most of the nations of Central Asia. West of Russia this name has long ceased to be a geographical expression, but it is associated with a remarkable phase in the history of geography and commerce. The name first became known to Europe in the 13th century, when the vast conquests of Jenghiz Khan and his house drew a new and vivid attention to Asia. For some three centuries previously the northern provinces of China had been detached from indigenous rule, and subject to northern conquerors. The first of these foreign dynasties was of a race called _Khitán_ issuing from the basin of the Sungari river, and supposed (but doubtfully) to have been of the blood of the modern Tunguses. The rule of this race endured for two centuries and originated the application of the name _Khitât_ or _Khitâï_ to northern China. The dynasty itself, known in Chinese history as _Liao_, or "Iron," disappeared from China 1123, but the name remained attached to the territory which they had ruled.

The Khitán were displaced by the Nüchih (_Nyûché_ or _Chûrché_) race, akin to the modern Manchus. These reigned, under the title of _Kin_, or "Golden," till Jenghiz and his Mongols invaded them in turn. In 1234 the conquest of the Kin empire was completed, and the dynasty extinguished under Ogdai (Ogotai), the son and successor of Jenghiz Khan. Forty years later, in the reign of Kublai, grandson and ablest successor of Jenghiz, the Mongol rule was extended over southern China (1276), which till then had remained under a native dynasty, the Sung, holding its royal residence in a vast and splendid city, now known as Hang-chow, but then as Ling-nan, or more commonly as _King-sze_, i.e. the court. The southern empire was usually called by the conquerors _Mantzi_ (or as some of the old travellers write, _Mangi_), a name which western Asiatics seem to have identified with _Mâchîn_ (from the Sanskrit _Mahâchîn_), one of the names by which China was known to the traders from Persian and Arabian ports.

The conquests of Jenghiz and his successors had spread not only over China and the adjoining East, but westward also over all northern Asia, Persia, Armenia, part of Asia Minor and Russia, threatening to deluge Christendom. Though the Mongol wave retired, as it seemed almost by an immediate act of Providence, when Europe lay at its feet, it had levelled or covered all political barriers from the frontier of Poland to the Yellow Sea, and when western Europe recovered from its alarm, Asia lay open, as never before or since, to the inspection of Christendom. Princes, envoys, priests--half-missionary, half-envoy--visited the court of the great khan in Mongolia; and besides these, the accidents of war, commerce or opportunity carried a variety of persons from various classes of human life into the depths of Asia. "'Tis worthy of the grateful remembrance of all Christian people," says an able missionary friar of the next age (Ricold of Monte Croce), "that just at the time when God sent forth into the Eastern parts of the world the Tatars to slay and to be slain, He also sent into the West his faithful and blessed servants, Dominic and Francis, to enlighten, instruct and build up in the faith." Whatever on the whole may be thought of the world's debt to Dominic, it is to the two mendicant orders, but especially to the Franciscans, that we owe a vast amount of information about medieval Asia, and, among other things, the first mention of _Cathay_. Among the many strangers who reached Mongolia were (1245-1247) John de Plano Carpini and (1253) William of Rubruk (Rubruquis) in French Flanders, both Franciscan friars of high intelligence, who happily have left behind them reports of their observations.

Carpini, after mentioning the wars of Jenghiz against the _Kitai_, goes on to speak of that people as follows: "Now these _Kitai_ are heathen men, and have a written character of their own... They seem, indeed, to be kindly and polished folks enough. They have no beard, and in character of countenance have a considerable resemblance to the Mongols" [are _Mongoloid_, as our ethnologists would say], "but are not so broad in the face. They have a peculiar language. Their betters as craftsmen in every art practised by man are not to be found in the whole world. Their country is very rich in corn, in wine, in gold and silver, in silk, and in every kind of produce tending to the support of mankind." The notice of Rubruk, shrewder and more graphic, runs thus: "Farther on is Great Cathay, which I take to be the country which was anciently called the Land of the Seres. For the best silk stuffs are still got from them... The sea lies between it and India. Those Cathayans are little fellows, speaking much through the nose, and, as is general with all those eastern people, their eyes are very narrow. They are first-rate artists in every kind, and their physicians have a thorough knowledge of the virtues of herbs, and an admirable skill in diagnosis by the pulse... The common money of Cathay consists of pieces of cotton-paper, about a palm in length and breadth, upon which certain lines are printed, resembling the seal of Mangu Khan. They do their writing with a pencil, such as painters paint with, and a single character of theirs comprehends several letters, so as to form a whole word."

Here we have not only what is probably the first European notice of paper-money, but a _partial_ recognition of the peculiarity of Chinese writing, and a perception that puts to shame the perverse boggling of later critics over the identity of these Cathayans with the Seres of classic fame.

But though these travellers saw Cathayans in the bazaars in the great khan's camps, the first actual visitors of Cathay itself were the Polo family, and it is to the book of Marco Polo's recollections mainly that Cathay owed the growing familiarity of its name in Europe during the 14th and 15th centuries. It is, however, a great mistake to suppose, as has often been assumed, that the residence of the Polos in that country remained an isolated fact. They were but the pioneers of a very considerable intercourse, which endured till the decay of the Mongol dynasty in Cathay, i.e. for about half a century.

We have no evidence that either in the 13th or 14th century Cathayans, i.e. Chinese, ever reached Europe, but it is possible that some did, at least in the former century. For, during the campaigns of Hulagu in Persia (1256-1265), and the reigns of his successors, Chinese engineers were employed on the banks of the Tigris, and Chinese astrologers and physicians could be consulted at Tabriz. Many diplomatic communications passed between the Hulaguid Ilkhans and the princes of Christendom. The former, as the great khan's liegemen, still received from him their seals of state; and two of their letters which survive in the archives of France exhibit the vermilion impressions of those seals in Chinese characters--perhaps affording the earliest specimen of that character which reached western Europe.

Just as the Polos were reaching their native city (1295), after an absence of a quarter of a century, the forerunner of a new series of travellers was entering southern China by way of the Indian seas. This was John of Monte Corvino, another Franciscan who, already some fifty years of age, was plunging single-handed into that great ocean of paganism to preach the gospel according to his lights. After years of uphill and solitary toil converts began to multiply; coadjutors joined him. The Papal See became cognizant of the harvest that was being reaped in the far East. It made Friar John archbishop in Cambaluc (or Peking), with patriarchal authority, and sent him batches of suffragan bishops and preachers of his own order. The Roman Church spread; churches and Minorite houses were established at Cambaluc, at Zayton or Tsuan-chow in Fu-kien, at Yang-chow and elsewhere; and the missions flourished under the smile of the great khan, as the Jesuit missions did for a time under the Manchu emperors three centuries and a half later. Archbishop John was followed to the grave, about 1328, by mourning multitudes of pagans and Christians alike. Several of the bishops and friars who served under him have left letters or other memoranda of their experience, e.g. Andrew, bishop of Zayton, John of Cora, afterwards archbishop of Sultania in Persia, and Odoric of Pordenone, whose fame as a pious traveller won from the _vox populi_ at his funeral a beatification which the church was fain to seal. The only ecclesiastical narrative regarding Cathay, of which we are aware, subsequent to the time of Archbishop John, is that which has been gathered from the recollections of Giovanni de' Marignolli, a Florentine Franciscan, who was sent by Pope Benedict XII. with a mission to the great khan, in return for one from that potentate which arrived at Avignon from Cathay in 1338, and who spent four years (1342-1346) at the court of Cambaluc as legate of the Holy See. These recollections are found dispersed incoherently over a chronicle of Bohemia which the traveller wrote by order of the emperor Charles IV., whose chaplain he was after his return.

But intercourse during the period in question was not confined to ecclesiastical channels. Commerce also grew up, and flourished for a time even along the vast line that stretches from Genoa and Florence to the marts of Cheh-kiang and Fu-kien. The record is very fragmentary and imperfect, but many circumstances and incidental notices show how frequently the remote East was reached by European traders in the first half of the 14th century--a state of things which it is very difficult to realize when we see how all those regions, when reopened to knowledge two centuries later, seemed to be discoveries as new as the empires which, about the same time, Cortes and Pizarro were conquering in the West.