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The payment for merchandise was made in pangkais — Chinese silver half-dollars which were minted in Kunming specially for this region. Their value in the terms of American money was about eight pangkais to a dollar, but everybody had to look twice at the pangkais, for some of the newer vintage had more copper in them than silver and they were either rejected or accepted at a ruinous discount. During the last few years, preceding the fall of the Nationalist regime, Chinese paper money found its way into Likiang. It was brought by Hoking traders and government banks. These bank-notes were accepted reluctantly and not by everybody. Comparatively few people could read Chinese characters and one bank-note looked to them as good as another, and to simple mountain tribesmen some cigarette wrappers appeared like bank-notes. Many country folk were victimized by unscrupulous pedlars from Hoking and Tali. Ten-dollar notes were passed as hundred-dollar ones and hundred-dollar ones as thousands. I was constantly stopped in the street by peasants asking me to tell them whether it was a ten-dollar or a hundred-dollar note they had. Anyhow, the silver dollar always remained the basic currency and prices were calculated accordingly, and anyone with paper money always tried to convert it immediately into silver dollars. Exchange brokers flourished and they were invariably women.

The Tibetans, Lolos and other remote mountain tribesmen preferred to settle for their purchases in gold-dust, nuggets or the silver ingots they always carried with them. This procedure was most convenient and nobody suffered. The merchant, a woman of course, and the buyer would go to a goldsmith's shop near by; the gold would be analysed and the required portion weighed or a quarter or a half of the crescent-shaped silver ingot sawn off. Gold, silver and coins were not kept in a bank, as there were no banks in Likiang worthy of the name. They were kept in strong wooden chests, padlocked with heavy native locks, in the inner rooms of the house or, particularly in the villages, buried in clay jars in a secret place under the floor.

One of the streets off Main Street led to the Copperware Square. It was lined entirely with coppersmithies and the din was terrific, with every smith in his shop beating on a vessel with all his might. Likiang copperware was beautiful, heavy and extremely durable. It was all hand-beaten and hand-burnished and it possessed a wonderful lustre. The square was literally ablaze with the vessels. The gold content was high, for the copper was mined in the rich gold-producing area along the River of the Golden Sand, a day's journey from Likiang. There were classical Likiang water buckets of rounded form with stands; jugs and tea-kettles of all sizes; and fluted trays with brass inlays and borders, which were used for sending as ceremonial presents. The samovars, of which each household must have at least one to provide the eternal boiling water for interminable tea sessions, were different from Russian models, having only one big handle and a long spout instead of a tap. There were also innumerable houkous, large and small, of which, like the samovar, each house, rich or poor, must have at least one.

The houkou and, to a lesser degree, the samovar were the symbols of Nakhi happiness and enjoyment of life. Without them no social function, wedding or funeral, or picnic, could be complete. The meals, during the cold days of winter, would be cheerless indeed without the warm companionship of the houkou and samovar. The houkou is a Chinese-style stove, like a large bowl with a lid and on a stand, and with a chimney through the centre. Water is poured into the bowl, charcoal burns in the chimney, and raw vegetables, meat and etceteras are put into the water and soon a delicious stew is ready. As the people eat, more water and ingredients are added, as well as more charcoal, so it can supply hot food for as long as is needed. The houkou, under different names but basically the same, is most popular from Lhasa to Shanghai and from Harbin to Djakarta: the Japanese version of it is the sukiyaki.

An elegant street not far from the Copper Square led to the palace of the Mu kings. A triumphal gate across the street marked the beginning of this aristocratic quarter. The palace itself was a rambling structure in Chinese style and was used as the District Primary School. Adjoining it there was a series of walled houses where the ex-king, his family and other royal relatives lived. A great stone arch, elaborately carved, was in front of the royal compound and bore two Chinese characters, 'Loyal and Righteous', bestowed on a king by a Ming emperor in the seventeenth century. The title of king or chief, still used by the people in reference to the head of the Mu family, was really an honorary one. During the Manchu dynasty the feudal status of the king had been abolished and Likiang became a fu magistracy. For a period the Mu kings continued to rule as hereditary fu (senior) magistrates, but even that was taken away from them and a succession of Chinese magistrates began. The Mu dynasty traced its origin as far back as the glorious Tang dynasty and produced many heroic and just rulers, interspersed with a few bad ones. Towards the close of the Manchu dynasty the royal family of Mu was well on the road of degeneration. They had absorbed the then new-fangled fashion of smoking opium and other elegant vices of the Chinese court and their downfall was acid. Deprived of the revenue from their vast estates, the members of the royal family resorted to selling, one by one, their accumulated art treasures and the precious mementoes of their ancestors, to satisfy their insatiable craving for opium, and it was alleged that some princes had sold even their furniture and wives' wedding dresses. All the prestige and standing of this illustrious family had gone with the wind.

The king whom I met occasionally was a sorry-looking individual, pale, emaciated and dull, and was considered a nincompoop. He was seldom invited to big social functions, and even then was allocated a secondary place at the festive table. Other members of the family hardly presented a better appearance, although some of them were brilliant Chinese scholars. I had engaged a Mu king's cousin as the chief clerk at our office and he remained with us until my departure from Likiang. Sometimes he was absent for days and he never appeared at the office before the afternoon: but he was continually asking me for advances on his salary and trying to collect secretly, for himself, interest from our co-operative societies. He even stole an office clock and other articles and did everything in his power to squeeze a dollar or two from any source by hook or by crook. Yet I could not dismiss him: I tried, but found it impossible, for he was indispensable. His presentation of the accounts and his reports in Chinese for my head office were perfect, for he was a brilliant writer of Chinese official documents and knew all official usages and approaches.

It was only after I had opened our office in Likiang that I realized how few Nakhi or Minkia knew Chinese really well. Several men had been recommended for the post of the chief at my office. They had the highest credentials as teachers in high schools, secretaries in local government and so on. Each was given a fair trial, but their letters and reports were returned by my headquarters as incomprehensible gibberish, hardly worthy of comparison with a Chinese schoolboy's essays; and neither head nor tail could be made of the accounts. I was sternly ordered to find the right man. If they only knew how difficult it was! Finally I got hold of Prince Mu and everything went well. But what a smoker he was! Opium was the essence of his life and he was ready to do anything, and he did, to get it. His wife used to come secretly to get what salary remained and she always complained that she and her children were starving. Everything that could be sold at the house had already been sold. When he came in the afternoon, after his long morning smoke, Prince Mu would plunge into work with gusto. There were no problems that he could not solve. He was one of the most educated and intellectual Nakhi I have ever met. He knew Likiang's history and affairs as few people did. He was an expert on Chinese history and official life, and a brilliant conversationalist. He was polished, urbane and charming, yet he was lost to all decencies when the craving came.