Therefore, my proposal is that the unit of coinage should be five mace or 1/2 tael, only differing from the 50 sen piece of Japan in that, while the latter is only a token, the coin of China would also be a standard. The standard will, of course, be regulated by weight, on the basis of weight for value. The subsidiary coins in silver or in copper would only be tokens; and in the issue of these also, it would be wise to follow the established precedent. The Chinese people are already accustomed to the 20-cent and 10-cent pieces in silver and 2-cent and 1-cent pieces in copper. As a matter of policy, and as one of necessity, it would be advantageous to retain the weight and fineness of these coins, giving them, however, a different value - a value in relation to the new unit. However much the provincial mints have been haphazard in connection with the issues of the small silver and copper coins, the weight and fineness of these coins have been more or less uniform, in spite of their various exchangeable values. Once we accept the necessity for tokens in subsidiary coins, the point that should deserve special consideration is, that they should on no account be thrown into the melting pot, for whatever reasons - as has been happening during recent months. The token coins are principally, and, to a large extent, purely, for the convenience of exchange of commodities among the poor people Too many of them have quite as bad an effect on the market as too few of them Hence the farther they are away from specie point - in reason, of course - the better could they be regulated. The adoption of the existing subsidiary coins with the additions of a nickel five-cent piece and a copper half-cent piece should satisfy all the possible demands in the way of coinage in this country. Theoretically, there would be some objection to the adoption of the present subsidiary coins, because, under ordinary conditions, they would lead to a rise in prices. In other words, the retention of the present 20-cent piece, which is equal to one-fifth of a dollar as equivalent in future to one-fifth of a tael, or giving this coin one-third more than its present value may not always be attended with satisfactory results. This difficulty is, however, not insurmountable; and it cannot be obviated except in a land where token coins could be absolutely dispensed with, that is, in Utopia. In the Straits Settlements and the Philippines, a convenient process was adopted of giving a smaller coin the same value as the bigger coin that circulated previously; there was a slight disturbance of prices, but things soon adjusted themselves. In China it is possible that this action might cause a slight dislocation; but it must be remembered that along with this reform would disappear the fluctuations in the values of the subsidiary coins - which are now almost always generally at a discount. When the Government, with the aid of the district banks and the Chinese commercial community, is able to regulate values, dislocation would be brought to a minimum. In any case the retention of the shape, size, weight and fineness of these coins would prove more of an advantage than otherwise.