IÓ2  THE  CHINESE  EMPIRE
twelfth  months,  but  allow  transfers  from  account  to  account.
This  “transfer  money”  is  exclusively  used  in  the  settlemen
of  all  mercantile  transactions.  On  deposit,  and  foi  renewa
on  each  quarter  day,  the  depositor  is  credited  with  a  premium
which  varies  with  the  demand  for  money,  but  whic  1,  m
ordinary  peaceful  times,  ranges  from  0  20  to  6  pei  cen  •
Exchange  quotations  also  are  always  quoted  in  tr  ans  e
money,  not  in  hard  silver.  An  ordinary  exchange  operation
would  be  as  follows  :—

Silver  deposited,  Newchang  taels  ..
Premium  on  deposit,  r6o  per  shoe
Transfer  money  credited  ..
Exchange  premium  34  per  cent.  .
Shanghai  taels

10000
300
103  00
3  35

106-35

It  may  be  noted  that  the  parity  of  exchange  is  100
Newchwang  taels  of  silver  =  104-89  Shanghai  taels.  ie
rates  of  premium  given  above  are,  as  has  been  stated,  those
of  ordinary  conditions  ;  the  effect  of  the  stress  of  wai  on
the  money  market  and  the  financial  position  of  the  bankers
may  be  seen  from  the  quotations  of  the  last  day  of  I9°4  •
Silver  Tls.  1,000  =  Transfer-money  T1s.i,35®’5°  (finóte
Tls.72  per  shoe)  ;  Transfer  Tls.1,000  =  Shanghai  ris.785.
These  figures  show  the  banker  protecting  his  reserves,
apparently  giving  36  per  cent,  premium  for  deposits  and
charging  22  per  cent,  discount  for  withdrawals  instead  ot
giving  a  premium.  This  works  out  to  a  rate  of  exchange
foi  cash  transactions,  however,  of  Newchwang  Tls.100
Shanghai  Tls.10565.

Introduction  of  Foreign  Coins
A  foreigner,  as  an  individual,  objects  to  carrying  around
in  his  pocket  a  4-lb.  lump  of  silver  which  he  cannot  subdivide,
and  he  equally  objects  to  carrying  6-lb.  weight  of  coppers  as
the  only  fractional  equivalent  of  the  silver  dollar  to  which
he  is  accustomed  ;  he  also  objects  to  ignorance  of  the