China and the Chinese

valuable trees; it was the bark of the tree called Cou-tchu, which is of little value, and resembles the elder tree; and of this they make a paper stronger than that of bamboo."-Du Halde, Vol. ii. page 293. We find that in the fifteenth century, the government ordered all taxes and dues to be paid in paper, the use of silver and copper monies being prohibited. Notwithstanding this edict and prohibition, the paper currency gradually sank into disuse, until the government ceased to issue bank-notes.

There are bankers in many parts of China, and these establishments as in England are composed of one or more partners. The method of transacting business is similar to that adopted in Europe, they receive deposits of cash, occasionally allowing interest if left beyond a certain time, and will lend money on good security. The interest allowed by law is three per cent. per mensem, or thirty-six per cent. per annum, and at the time of repayment, interest can only be demanded up to the time the interest has not accumulated beyond the principal; should it be greater, then the lender loses the overplus. Bills of exchange, or promissory notes, bearing the names of partners of these banks, circulate, their value increasing or decreasing, according to the demand for them; these bills are sometimes made payable at sight, or at a certain period after presentation, as in England, and vary in value from a quarter of a dollar up to fifty thousand.

The banks in the northern cities transact immense business, the partners frequently are mandarins, or men of immense wealth; the local government employ

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them to transact money, for the payment of the consular authorities, for which a moderate per-centage is charged, we believe about two per cent. The two largest and wealthiest banks are at Shang-hae and Canton, the latter carrying on regular and constant correspondence with Pekin, and Nan-kin.

When money is placed in a bank, a book is given in which the receipt of the sum deposited is acknowledged; but should the book be lost, the party who presents the book can obtain the money not previously drawn out; the system of cheques appears to be entirely unknown.

The Oriental Bank has established a branch at HongKong; we have heard from those connected with the establishment, that it does not answer, as was foretold by every one who understood anything upon the subject, as from the habits of merchants in China, it would be very inconvenient, if not impossible, to keep banking accounts.

Surplus cash is generally, if not invariably, invested in opium, when it can be purchased at a low rate; the drug is kept until the market rises, when it is sold; to the warehouse or godown of each merchant is invariably attached a treasury for money-Sycee or opium, this room is well built and strongly secured.

The compredore of each establishment has the custody of this treasury, whose probity is secured to the merchant by one or more wealthy Chinese; should any defalcation, either of specie or opium, be discovered, the merchant immediately calls upon the compredore, or his security, to make the deficiency good. This system has been so long adopted in China by the merchants, that they evince great disinclination to

commence or try a different one. The only accounts, therefore, likely to be kept at the bank, are such as, from the smallness of their amounts, will not pay; as in all probability, the principal deposits will be from government servants, who could not make any considerable lodgments from their monthly pay, or from European shopkeepers and petty speculators, whose accounts would rarely exceed one hundred pounds.

From the information we have obtained, it appears the result of the experiment has been in conformity with the mercantile predictions; the local government, however, have given every encouragement to the undertaking, and very properly have allowed the bank a military guard.

Although the Chinese bankers will change coin, there are numerous money-shops and money-changers, who gain immense sums by trading in money. The trade must be a most lucrative calling in China, if we can form an opinion from the numbers engaged in it. In the money-changing shops no coin will be changed, unless an article is purchased, or some few cash paid for the accommodation. In this manner, and by intermixing spurious coin, they must make enormous profits. The money-changers may be constantly seen in the bazaars and streets, and are distinguishable by a long string of cash, hanging, like an alderman's or lord mayor's chain, around their necks; and piles of this copper coin are arranged in stands before them. Pawnbrokers flourish as much in China, if not more than in England, and are licensed by and pay a tax to the government. The rate of interest at which they lend money is exorbitant, but the scale is fixed by law. These establishments usually

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consist of several partners, and it is no unusual occurrence for a Minister of State, or Viceroy of a province, to have shares in pawn-shops. Every description of article is received in pledge, and, as no questions are asked, they are the great receivers of stolen goods. Gods from temples, bells from josshouses, pictures, trinkets, furniture, clothing, the most expensive to the most trivial mechanical tool, may be found in a Chinese pawnbroker's. The mode of transacting business is methodical, the system similar to our own, tickets being given corresponding to ours, and a duplicate attached to the article pledged.

All in these establishments appear to thrive, and the person in charge of the shop generally has a most comely and prosperous appearance-his dress betokening wealth, and the embonpoint of his person is the beau ideal of Chinese ideas of masculine beauty.

China is not only as striking an example as can be found amongst the nations of the earth, of great inequality of wealth amongst the population, but of the extremes of wealth and poverty; for in the Celestial Empire there are many Rothschilds amongst her merchants, and George Hudsons (the railroad king), amongst her monopolists, but there are also many a Lazarus, and starving mendicant in her streets.

Owing to the absolute monarchy of China, the fluctuation and insecurity of wealth is greater than in any other country-to-day a mandarin is one of the richest in the land; to-morrow he is disgraced, and not only the whole of his wealth confiscated, and declared forfeited to the Emperor, but that of his sons, brothers, and other relations, if he have any.

A merchant is amongst the healthiest of his class;

has junks, shares in banks, pawn-shops, salt-works, and mercantile establishments, has houses, lands, and is in the most prosperous circumstances; the merchant is detected in purchasing or smuggling opium; before sunset he is arraigned, in a few short days the whole of his vast wealth, that of his sons, brothers, and relations, is in like manner forfeited. The mandarin and merchant are now equal-alike criminals and beggars.

We have been enabled to obtain, through the kindness of an esteemed friend, a statistical return of the revenue of China for the year 1847, which we believe will be found interesting; especially as it proves what we have before stated, namely, that the finances of China are not in a flourishing condition.

Revenue Returns of the Chinese Empire in 1847. Land-tax

Forwarded to the capital in kind from the various Provinces 4,719,385 shih of Rice and other grain, equivalent to

Duty on Salt

Transit duties