The next important scheme and one which appears to have attracted a fairly large amount of attention at one time at the hands of the Chinese authorities is that of Dr. Vissering. In his memorandum "On Chinese Currency" the learned doctor states that "the problem which he has endeavoured to solve is how to devise a monetary reform for China which will first of all be suitable during a long but necessary period of evolution from the present complicated condition down to a well-organized system, and will, moreover, contain a nucleus of ultimate usefulness." He claims to suggest and explain a solution which will possibly avoid disturbances such as have been connected with currency reform in other countries and which purports to give an answer to the question: how can a stable currency be established in China which combines the following principal characteristics:
"(1) That it be serviceable during a preliminary period in which it will still be necessary to maintain a circulation of dollar, sycee and copper cash on the present footing; (2) That it will be serviceable as long as it is yet impossible to use token silver coins, which are a necessary consequence of a gold standard or a gold exchange standard system; (3) That it will not run the risk of a break-down on account of adverse balance of trade or of payment; (4) That it will, from the first moment, obviate the evil of speculations in silver and in commodities, which would be unavoidable as long as the value of the new unit had not yet been fixed; (5) That it will offer the additional advantage of a fairly long period of transition during which the population can become familiar with the new system. During this period both systems must be used with equal facility, the one not necessarily ousting the other from its place, so that the whole currency reform could be carried out very smoothly and no final adoption of a gold exchange system or a gold system, as a single system for the whole country, need be made until the country were really ripe for it; (6) That it will in the meantime assure China's foreign relations (also with respect to loans, etc.), of the certainty of a fixed unit, which is of vital importance, if capital is to be attracted from abroad for the development of the country; (7) That it will offer a new unit which does not in the least disturb the existing agreements, and is based on the present circulation of taels - the new unit being a sub-divided part of one of the most common taels, in order that all existing agreements may without difficulty be fulfilled in terms of the new unit; (8) That it will otter a new unit, which is not too high in value, since it would otherwise cause dislocation with regard to many subsidiary coins and have a tendency to raise prices; (9) That it will avoid the issue of new silver coins of so high an intrinsic value, that they would already prove too high on a slight rise in the price of silver, with the result that they will have to be demonotised as has been the case with the Straits and Philippine dollars, a measure which would practically amount to another currency reform."
Dr. Vissering, of course, does not discuss even the bare possibility of having silver as the standard. His idea is that the very first step must be the adoption of a future gold unit as the foundation of a new system in order to avoid speculation on the announcement of the gold par, as also to avoid the new unit having to be raised later to its future nominal value. He laid special stress on the organization of a central bank of issue for the achievement of the desired result; for convenience's sake he would reorganize the Taching bank - called the Bank of China after the establishment of the Republic - as a central bank for the whole country. Along with the organization of this bank he proposed the introduction of a new gold unit as a money of account for book credits and book transfers. The next step would be to secure the co-operation of the foreign exchange banks and private Chinese banks and bankers for the introduction of the new gold unit into their book-keeping. With all the banks supporting the unit it would be certainly easy, says Dr. Vissering, to issue bank notes based upon the new gold unit. These banks notes would become legal tender eventually, but before arriving at such a position steps must be taken to accumulate a gold reserve against them and regulate the management of the gold reserve. Apart from this the course of reform must also depend on the condition of the balance of trade and the balance of payment for China.
Having secured satisfactory results from the above steps the Government would have to issue new coinage and fix the weight, fineness and alloy of the token coins and of the new subsidiary coinage. He would advocate the issue of these token coins and subsidiary coins first; and simultaneously the accumulation of a gold reserve against the token coins and the regulation of its management. If desirable and practicable it would be all the better to coin and issue gold coins; otherwise admit temporarily some particular foreign gold coin as legal tender, also issue temporarily gold certificates. The token and subsidiary coins would be in silver, nickel and copper, the silver unit weighing 8.50 grammes, 900 fine, the fine weight in grammes being 7.65; there would also be a two-unit piece with the same fineness and double the weight, gross and fine; the half-unit piece was to be 4.75 grammes in weight, 800 fine, the fine weight in grammes being 3.80; the only other silver coin to be the 1/5 unit, 1.90 grammes, 800 fine, the fine weight in grammes being 1.52. There were to be two nickel coins, one 1/10-unit piece and one 1/20-unit piece, the weight and alloy to be determined later on. There were to be three copper coins, one 1-cent piece and one -1/2-cent piece and one 2-cent piece, the last coin to be introduced only if necessary - the gross weight and eventual alloy of these coins to be determined later on. The gold coins should be issued, only after the silver and subsidiary coins had been in circulation for some time. There was to be the 20-unit piece, 8.09974 grammes in weight, 900 fine, the fine weight in grammes being 7.289766; there would also be a 10-unit piece 4.04987 grammes, 900 fine, the fine weight in grammes being 3.644883. When all these coins had been issued and circulated, first all the silver token coins of 1 and 2-unit should be proclaimed unlimited legal tender; then, the gold 20-unit unlimited legal tender; then, the gold 20-unit and 10-unit pieces and eventually the gold certificate would have to be proclaimed unlimited legal tender. After a short interval steps should be taken to bring about the gradual withdrawal and subsequent demonetization of old silver dollars, the old sycee, as far as necessary and practicable, and all the existing copper cash.