Statistics show that on an average, during the past forty years, about £l,500,000 a year has been sent out in gold while about £3,000,000 has been received in silver. There have been exceptions to the rule as in 1892, when the imports of treasure amounted to £1,250,000 and exports totalled about £3,000,000. In 1877 the excess of imports was as high as £5,300,000 while again in 1911 the excess was as much as £5,000,000. Thus statistics prove conclusively that China has been uniformly importing silver while exporting gold. It is evident that the proclivities in this country have been exclusively towards the use of silver; and the Government could do nothing else but to continue to have silver as the basis of currency, next, of course, to cash. The majority of the population is certainly too poor to use silver to any large extent. But with the increase in foreign trade it was found impossible to continue to have the cash as the sole basis. The history of the ancient dynasties in China shows that, although there was a tael, which was a weight for several particular transactions and used in the imperial accounts, the main unit was cash. The price of an article was generally mentioned not as one or two taels, but as one thousand or two thousand cash. It must, however, be understood that there was never a fixed ratio between the cash and the tael. The tael has for centuries remained the unit of silver currency, and it was decimally divided into maces, candareens, etc. The tael was not only a standard of value, but also a measure of weight; as a matter of fact it was for long a measure of weight, before it ever became the standard of value. Owing to the nature of the goverment in this country for ages past, and owing to the fact that no regulations - even such as relate to vital problems, as the use of money - could be enforced, there was no uniformity in the several taels current in the different parts of the country. The weight and value were given in multiples or divisibles of taels, in Newchwang just as much as in Canton; but owing to the unsatisfactory state of decentralization, which has prevailed for centuries, the tael as a measure of weight and value in Newchwang was- altogether different to the tael in the same capacity in Canton.