Reading various Blue Books and the like, parliamentary reports. This one on the East India Company struck me as typical, though the clipped coins distraction is of course curious enough to make the distraction distracting. I recall that Jacques Derrida writes on clipped coins in his essay Given Time, and George Caffentzis has a fascinating book on Locke: Clipped Coins, Abused Words, Civil Government: John Locke’s Philosophy of Money, both of which repay reading in the light of this old evidence from 1832. A certain smuggler-trader called Davidson is giving evidence to the parliamentary committee.
The casual racism, that the committee was more interested in dollars and silver than the opium trade – which as Marx of course recalls, was a vicious and vengeful trade – and as carried on by what is called the Country Ships, or Country Trade, which means those private traders not in the employ of the East IndiaCompany but often doing the work of its servants or agents, its officers, who made their cut on such up-country ventures, from Clive on.
90% of the cargo cotton and opium.
The dollar is clipped
It does not thereby lose in value (since weight in silver still applies)
Holes in the coins – sometimes for stringing, but often they are punched and clipped (the idea is that you clip a bit of each of a dozen coins and melt the bits up into a new coin, or you punch out the middle, as circle or square, and use it as a smaller denomination coin). Eventually this clipping, and punching, practice defeats the denominations, and weight reasserts its interest.
Which all for me is interesting and if you think its ancient stuff, just look in your pocket and see – the British two pound is a punched coin, with gold rim, silver (alloy) middle, the Australian 50 cent piece is clipped on all sides, as is the Brit 20p and the Indian 5 paise, Danish 1, 2 and 5 krone have holes, the Thai Bhat reminiscent of the counter punched ones (and for a time was very useful in cigarette machines in England, a healthy killing made by arriving with pockets full of Bhat when travelling to pommie). Also various denominations of the yen, oh and I see the new British pound is a tribute to the clipped coin too – OK, look again at the pound pictured above, I call it, the contemporary British pound coin is in effect a silent tribute to the age-old bastard opium trade, in the memory of Walter Stevenson Davidson Esquire, giving evidence below:
Do you happen to know whether Advantage has been taken of the Removal of that Restriction from the Import of British Manufactures into China from India?
I have heard it stated to be so; I have understood that it has been done profitably.
What particular Species of Manufactures?
I really cannot enumerate them.
They have not been to any great Extent?
No, I think not; principally by the Officers of Ships. I should think not to an Extent sufficient much to attract the Attention of the great Houses in India.
What were the chief Articles consigned to you for Sale in China by your Constituents?
The chief Articles were Cotton and Opium; they formed, I think, upwards of Nine Tenths of my Consignments.
What were your Returns?
Besides the Supercargoes Bills on the Indian Government, when they drew, I remitted very largely in Sycee Silver, the Production of China, in Tutenag, and many other Articles.
Any in Dollars?
Sometimes in Dollars. We were occasionally compelled to remit in Dollars, owing to the Difficulty of smuggling the Sycee Silver; but never resorted to that Mode, I think, when we could obtain the Sycee Silver.
The Dollar in China is very much beaten and broken, is it not?
Constantly cut and clipped in all Directions; it almost ceases to be a Dollar when it has circulated in China; there it is weighed as Silver; all Payments are made by Weight.
Is the Dollar, in consequence of this beating and breaking, diminished in intrinsic Value in China?
The Moment the Dollar is clipped it cannot be said to diminish in Value, because it will be taken afterwards just for its Weight in Silver, although it be punched and clipped through and through.
(citation: ‘Affairs of the East India Company: Minutes of evidence, 25 June 1830’, in Journal of the House of Lords: Volume 62, 1830 (London, [n.d.]), pp. 1156-1164. British History Online http://www.british-history.ac.uk/lords-jrnl/vol62/pp1156-1164 [accessed 28 March 2018].)