Chinese CHOPMARKS 

What Is a CHOPMARK?

Oriental chopmarks are counterstamps of Chinese businessmen, Chinese banks or Bullion Houses.  Once a coin was chopped, the coin became a Chinese coin accepted as "coin of the realm".  Merchants and bankers chopped each coin they handled.  It became a type of endorsement guaranteeing its genuineness.  It is much like an endorsement on the back of a check that we accept today.  If the check is returned for whatever reason the individuals who endorsed the check can be held responsible for payment.

Most collectors have a coin or two with chopmarks and many refuse to buy coins that have been "mutilated" by chops.  I was of the same mindset at one time but have long since changed my attitude toward these "pieces of history."  I now have a very nice collection of Mexican  8 Reales and Pesos with some pretty fantastic chops, as well as an assortment of coins from other nations.

Years ago, some collectors paid a premium for chopmarked coins, considering them to be especially historical and valuable.  Today, the general population of collectors do  not understand chopmarks or their historical significance.

Interestingly, John M. Willem (b. 11/1/1909; d. 12/15/1979), who rightfully can be called the father of U.S. Trade Dollar collecting, considered the chopmarked coin specialty to be the most challenging and worthwhile way to assemble a set of the series.  Chopmarked specimens exist of all business strike dates and mintmarks 1873-1878.  A complete set of these attracted attention at the 1985 ANA Convention.  [source: tradedollarnut.com]  

Mex Dollars:

The overwhelming majority of coins used in the China trade came from Latin America.  By decree, China would only accept silver coinage in payment for Chinese exports and Mexico was by far the biggest exporter of coins for the China trade.  The Mexican Pillar and Bust 8 Reales were known as "Mex Dollars" and latter the Cap & Rays became known as "Eagle Dollars."  The coins were boxed at the various mints in cases of $1,000 Reales each weighing about 60 pounds for shipment to China.  It was not uncommon for a ship to carry $1,000,000 in Eagle Dollars for trade in China.  This explains the large number of 8 Reales seen today with chops and the scarcity of some issues because the entire output for a particular year went to the Orient!

The Mex Dollars were approved for use by the Chinese in 1857 and shipments began in 1858.  Chop marked Cap & Ray 8 Reales dated before 1858 are scarce to rare.  A nice Date collection of Cap & Ray 8 Reales from 1859 through 1897 is is relatively easy to put together.   There was a period between 1869 and 1873 when Mexico minted a new coin known as the Balance Scale Peso or "Balanza."  Even though some Chinese accepted this new design it was not liked and in 1872 the Chinese convinced Mexico to once again mint the Cap & Ray Mex Dollar.  Chop marked Balanzas are considered Very Scarce to Rare and command premiums.

Chopmark Rarity Scale according to Frank Rose:

The following Table is taken from "CHOPMARKS" by F. M. Rose:

1. Test marks - Most Common
2. Edge cuts - Common
3. Small chops - Common
4. Large chops - Common
5. Relief chops [small] - Scarce
6. Relief chops [ large] - Rare
7. Assay chops - Rare
8. Letter chops - Scarce with the letter"S" being the most common
9. Number chops - Somewhat Scarce
10. Manchu chops - Extremely Rare
11. Bankers Ink chops - Scarce to Rare
12. Paper chops - Rare

If you found this guide helpful, please vote "Yes" and I will continue to issue new Guides on this fascinating subject as well as "Inside Info" on Mexican Republic Coinage.  Thanks!!

References:

The essential guide for Chop marked coins is "CHOPMARKS" by F. M. Rose.  This Manual was reprinted in 2000 by Numismatics International and can usually be found on Ebay or AMAZON.  It is the ONLY work published on this fascinating collecting subject.