Unfortunately the tael is not a constant weight, nor does it con sist of fineness of silver. There are many taels in existence, all varying in both these important respects. The most important taels are now described : (I) The Haikwan Tael.—This weighs about 583.3 grains of silver, r,000 fine. All customs duties are payable in this tael, and as a result, it forms the unit in which foreign trade and exchange are carried on. The Chinese rate of exchange is always quoted in London in pence to the Haikwan tael, and as a rule foreign bills of exchange are reckoned in and payable in taels (unless drawn in sterling or other foreign currency). This tael thus forms the link between China and abroad, and therefore is the most important of all.
The internal silver currency of China takes the form of silver dollars. The earliest of these was the Carolus dollar. This is now disappearing. Next came the Mexican dollar, which, owing to its high reputation for purity, has enjoyed a wide circulation in many parts of the world. The former Chinese empire at the end of the 19th century tried to coin and introduce its own silver dollar, called the Dragon dollar, while just before the World War, the new Chinese republic introduced a new dollar. The weakness of all Chinese money is that each province has its own mint, which works according to its own rules, with the result that continued debasement has undermined public confidence. The same objec tion applies to the many note issues.
It is impossible to describe the chaotic condition that has arisen during the troubles of post-war years. All that can be said is that, before China can have a national currency, she must establish a stable national Government. Meanwhile the use of silver taels and silver dollars is well understood by bankers and traders, and provides a satisfactory medium for the conduct of trade. (See also CURRENCY.) (N. E. C.)