Yunnan City is the great gold emporium of China, for most of the gold found in China comes from the province of which it is the capital. When a rich Chinaman returns from Yunnan to another province, or is summoned on a visit to the Emperor at Peking, he carries his money in gold not silver. Gold leaf sent from Yunnan gilds the gods of Thibet and the temples and pagodas of Indo-China. No caravan returns to Burma from Western China whose spare silver has not been changed into gold leaf. In the Arracan Temple in Mandalay, as in the Shway-dagon Pagoda in Rangoon, you see the gold leaf that Yunnan produces, and in the future will produce in infinitely greater quantities.

Gold comes chiefly from the mines of Talang, eighteen days journey by land S.W. from Yunnan City, on the confines of the district which produces the famous Puerh tea. The yield must be a rich one despite the ineffective appliances that are employed in its extraction. Gold has always been abundant in this province; at the time of Marco Polo's visit it was so abundant that its value in relation to silver was only as one to six.

When gold is worth in Shanghai 35 times its weight in silver, it may be bought in Yunnan City or Talifu for from 25 to 27.5 times its weight in silver, and in quantities up to hundreds of ounces. To remit silver by telegraphic transfer from Shanghai or Hong Kong to Yunnan city costs six per cent., and either of the two leading banks in the city will negotiate the transfer from their agents at the seaports of any amount up to 10,000 ounces of silver in a single transaction. The gold can always be readily sold in Shanghai or Hong Kong, and the only risk is in the carriage of the gold from the inland city to the seaport. So far as I could learn, no gold thus sent has gone astray. It is carried overland by the fastest trade route--that through Mungtze to Laokai--and thence by boat down stream to Hanoi in Tonquin, from which port it is sent by registered post to Saigon and Hong Kong. Here then is a venture open to all, with excitement sufficient for the most blase speculator. Ample profits are made by the dealer. For instance, a large quantity of gold was purchased in Yunnan city on the 21st January, 1894, at 23.2, its value in Shanghai on the same date being 30.9; but on the date that the gold arrived in Shanghai its value had risen to 35, at which price it was sold. At the time of my visit gold was 25.5 to 27 in Yunnan, and 35 in Shanghai, and I have since learnt that, while gold has become cheaper in the province, it has become dearer at the seaport.

The gold is brought to the buyer in the form of jewellery of really exquisite workmanship, of rings and bracelets, earrings and head ornaments, of those tiny images worn by rich children in a half circlet over the forehead, and bridal charms that would make covetous the heart of a nun. Ornaments of gold such as these are 98 per cent, fine and are sold, weighed on the same scales, for so many times their weight in silver. They are sold not because of the poverty of their owners, but because their owners make a very large profit on their original cost by so disposing of them. If, however, the purchaser prefer it, gold will be brought him in the leaf 99 per cent, fine, and this is undoubtedly the best form into which to convert your silver. The gold beaters of Yunnan are a recognised class, and are so numerous that they have a powerful guild or trade's union of their own.

Gold-testing is also a recognised profession, but the methods are primitive and require the skill of an expert, consisting, as they do, of a comparison of the rubbing on a stone of the unknown gold, with a similar rubbing of gold whose standard has been accurately determined. One of the best gold-testers in the city has been taught electric gilding by Mr. Jensen and does some skilful work.

The principle of self-protection restrains the Chinaman from the ostentatious exhibition of his wealth--he fears being squeezed by the officials who are apt to regard wealth as an aggravation of crime, to be the more severely punished the better able is the accused to purchase exemption from punishment. I have seen a stranger come into the room where Mr. Jensen and I were sitting, who from his appearance seemed to be worth perhaps a five-dollar bill, and after a preliminary interchange of compliments, I have seen his hand disappear up his long sleeve and produce a package of gold leaf worth perhaps 2000 taels of silver. This he would offer for sale; there was some quiet bargaining; when, should they agree, the gold was weighed, the purchaser handed a cheque on his Chinese banker for the amount in silver, and the transaction was finished as quickly and neatly as if it had taken place in Bond Street, and not in the most inland capital of an "uncivilized country"; whose civilization has nevertheless kept it intact and mighty since the dawn of history, and whose banking methods are the same now as they were in the days of Solomon.

The silver of Yunnan is of the same standard as the silver of Shanghai, namely 98 per cent, pure, and differs to the eye from the absolutely unalloyed silver of Szechuen.

The cash of Yunnan vary in a way that is more than usually bewildering. Let me explain, in a few sentences, the "cash" currency of the Middle Kingdom. The current coin of China as everyone knows is the brass cash, which is perforated so that it may be carried on a string. Now, theoretically, a "string of cash" contains 100 coins, and in the Eastern provinces ten strings are the theoretical equivalent of one Mexican dollar. But there are eighteen provinces in China, and the number of brass cash passing for a string varies in each province from the full 100, which I have never seen, to 83 in Taiyuen, and down to 33 in the Eastern part of the province of Chihli. In Peking I found the system charmingly simple. One thousand cash are there represented by 100 coins, whereas 1000 "old cash" consist of 1000 coins, though 1000 "capital cash" are only 500 coins. The big cash are marked as 10 capital cash, but count the same as 5 old cash. Nowhere does a Chinaman mean 1000 cash when he speaks of 1000 cash. In Tientsin 1000 cash means 500 cash--that is to say 5 times 100 cash, the 100 there being any number you can pass except 100, though by agreement the 100 is usually estimated at 98. In Nanking I found a different system to prevail. There cash are 1075 the 1000, but of the 10 strings of 100 cash, 7 contain only 98 cash each, and 3 only 95, yet the surplus 75 cash--that is to say the number which for the time being is the Nanking equivalent of 75--are added all the same. At Lanchow in Chihli on the Imperial Chinese Railway near Shanhai-kwan, 16 old cash count as 100 cash, yet 33 are required to make up 200; in Tientsin from which point the railway starts, 1000 cash are really 500 cash and 98 count there as 100. Now 2000 Chihli cash are represented by 325 coins, and 1000 by 162 coins, and 6000 by 975 coins, which again count as 1000 large cash and equal on an average one Mexican Dollar. Therefore to convert Lanchow cash into Tientsin cash you must divide the Lanchow cash by 3, count 975 as 1000, and consider this equal to a certain percentage of a theoretical amount of silver known as a tael, which is always varying of itself as well as by the fluctuations in the market value of silver, and which is not alike in any two places, and may widely vary in different portions of the same place.