As a natural consequence of the non-existence of gold or silver coin, imported dollars, from being continually weighed and stamped when passing from hand to hand, became 'chopped dollars' or 'cut money' in Canton phraseology, the first from being stamped by the Shroff on examining them, with any character which he may select, and which is his guarantee of goodness. In the shapeless form which they thus acquire, payments are made by weight in taels, and its component parts of mace, candareens, and cash.[33] This custom of weighing metals has existed in China since 903 A.D. If any money stamped by a Shroff on examination proved bad, it was exchanged by him, but such cases were extremely rare. A small pair of scales for money transactions is generally carried by Chinese attached to a waistbelt.
Shroffs examined all amounts brought to them by any one, but went to the foreign Factories, to the Hong merchants or other customers, when required. The charge was small, and the amount of silver passing yearly through their hands was enormous, as amongst the Chinese all transactions were for money or its representative.[34] Shroffs were also 'changers'--providing when required either Sycee, chopped dollars, or gold--as well as bankers, making loans or receiving deposits. The floors of their shops are covered with brown tiles, and at the end of the year they can sell the privilege of removing the floor for the chance of finding scraps of silver which may have escaped through the interstices of the tiles, the buyer of the privilege replacing the floor at his own cost. I have heard of as much as fifty taels (about $70) being paid to an important Shroff-shop for such a transaction.
Several descriptions of dollars were imported from 1825, previous to which time the most numerous were those of Carolus IV. of Spain. These kept the preference above all others, and were currently known as 'Old Heads.' So accustomed were the Chinese to this dollar, that when Carolus III. or Ferdinand VII. were offered, they were taken with reluctance, while the 'Old Head' commanded a premium, and it thus became an exception to the general rule of 'breaking up.' For a long time they had been taken by dealers in raw silk from the middle provinces, in whole dollars, and finally so much prejudice existed in their favour that they would take no others except as cut money. This caused them to advance in value to 10 and even 15 per cent.; finally, during one season, we sold to the senior Hong merchant $60,000 at a premium of 30 per cent.,½ receiving in exchange $78,000 in cut money. Ferdinand VII.'s dollars became 'New Heads,' and next came into favour, there being a diminishing supply of the 'Old,' but they were never at more than 1 to 2 per cent. premium. Of other kinds there were Chilian, Peruvian, Mexican, and United States, which were submitted to the process of breaking up, and were never in greater favour with the Chinese than cut money. They were not 'old custom,' and they could not reconcile themselves to the new effigies or legends which they bore. Now and then, if wanted for a special occasion, Mexican dollars could be passed at a small premium, say 1 or 1½ per cent. It is very probable, as often supposed, that the Shroffs had much to do with these varied transactions; they were behind the scene and perhaps they had, as many of the establishments belonged to wealthy proprietors, who used them for purposes of speculation in money.