This chapter contains those articles 1827 – 1844 about Asian countries ex China. It contains some interesting documents on banking in the Spring and Summer editions of 1837, the available reports on the two campaigns in Afghanistan and the collapse of British India finance pursuant on the opium/silver dispute at Canton and (somewhat) the costs of the invasion of Afghanistan:
Vol 1 No 2 – 23rd November 1827
The Singapore Chronicle reports that the Company has forbidden its employees at Penang, Malacca and Singapore to talk with the Press. This instruction is already observed within the three Indian presidencies.
Press censorship occurs from time to time in India – the most recent example was Buckingham’s Calcutta Journal which had attained a considerable circulation We are fortunate not to come under the control of the Company here (Canton) and will report on India as we see fit. We will not publish any scandalous information because there is no legal redress available here.
Vol 1 No 3 – 30th November 1827
According to the Singapore Chronicle of 17th September, HMS Waterloo (74) has arrived at Batavia with 700 troops. Hostilities are suspended and peace negotiations commenced. A resident intercepted the peace proposals of the insurgents and withheld them. He was arrested by police.
Vol 1, No 4 – 14th December 1827
A letter from Singapore dated 5th October notes the Java war continues. The armistice failed and the General has gone to the eastern provinces where fighting is still occurring.
Vol 1 No 7 - Monday 11 Feb 1828
Sakhalin Island has no name on our Chinese map but is shown as an island with a smaller island in between it and the mainland. The Japanese say there is so little water between the island and the mainland that the strait can be forded at low tide. On the north bank of the Amur river mouth is a Manchu town called Tsetaleho to which the Japanese go for trade. They are gradually usurping the island to their own use. The Tartars at Tsetaleho come from Irkutsk and also go to Japan to trade.
A ship dispatched north to Loo Choo, Japan and Tartary might also visit Sakhalin and bring back furs and metals for the Chinese market. It might also trade with Korea.
The Amur and the Sungari, which both debouche at the same place, open all of Siberia to our navigation.
Vol 1 No 10 – 8th March 1828
Manila news (per Milo just arrived) - In mid-February the Luzon Government issued an order forbidding foreigners from trading in the interior (which they call the provinces) and confining foreign trade to Manila town itself. This is to allow the Manila merchants to monopolise the trade by inserting themselves between producers and exporters. In fact foreign buyers have not hitherto gone into the interior to trade as goods are only brought together in marketable quantities after the usual time of our arrival at Manila.
There has been an increasing frequency of seismic activity of late. A large volcano that first emerged in 1818 has again become active since last June. It is about 180 miles from Manila but the ash reaches town.
No trade is occurring at present. The season is over and all foreign shipping has departed. Yesterday the French brig Telegraph, which brought 5,000 muskets for the government at $9.50 each CIF, left for Le Havre.
There is no produce in the market at present but the new sugar crop harvest is starting and is estimated to total 78,000 – 80,000 piculs this year. This is more than in former years and should reduce prices. Sales are being effected today at $5.75 – 5.875 per picul.
Vol 1 No 10 – 8th March 1828
We have an estimate of the overall value of foreign trade at Manila for 1827:
Exports $1,093,690 (38% Spanish, 18% American, 18% Chinese 11% French, 9% British 6% all others);
Imports $1,048,680 (33% Chinese, 24% Spanish, 20% American, 10% British 13% others)
Major exports – coffee, dried prawns, ebony, indigo, capiz shell, rice, sugar. (also some tortoise shell, beche de mer, animal skins and sinews and bird’s nest)
Vol 1 No 11 – Saturday 15th March 1828
Letter from Batavia, 15th Jan - The Dutch are losing control of eastern Java. The rebels have visited the north coast and occupied some settlements near Surabaya. They have burned the government shipyard at Bautier where three Government ships are under construction. A brig on the stocks at Dassoon has also been burnt. The available government troops are sickly and no reinforcements are expected.
Vol 1 No 12 – Sat 22nd March 1828
News from the Straits:
The Singapore Chronicle reports the Dutch have interfered in the affairs of the Princes of Johore in a dispute over ownership of the Karimun Islands (situated in the middle of the Straits). The Dutch think their resident at Rhio (Riau) controls the island. A Dutch schooner chased a trading prahu from Singapore to Kampar. Although the prahu hoisted a white flag and lowered her sails, the Dutch fired on her three times, killing the jerumoody and wounding one of the crew. The nacodah and remainder of the crew abandoned the prahu and made their way back to Singapore where they reported to the government which instantly sent a complaint to the Dutch Resident at Rhio.
The Malacca Observer reports a new gold mine at Mount Ophir. It is within the territory claimed by the Company at that port.
The Penang Register has commenced publication but is presently merely reciting extracts from English periodicals.
Vol 1 No 15 – Sat 12th April 1828
Letter to the Editor – The Christian authorities at Malacca have proscribed religious comment in their press. They must have a reason. There are three religions there – native polytheism, Christianity and Islam.
Are the Christian authorities protecting their religion or are they protecting the pagans and Muslims. Or do they find religion so unimportant that the truth or falsehood of any religion is irrelevant.
Vol 1 No 15 – Sat 12th April 1828
The boat’s crew that deserted from HCS Inglis at Singapore was captured by pirates and murdered except for Benjamin Sly who has just arrived at Penang. HC Schooner Zephyr was attacked by 12 piratical prahu’s when approaching Penang
Vol 1 No 19 Sat 10th May 1828
There is rioting all over Malaya, Sumatra and Java. At Surabaya and Grissee the Arab trading communities are removing to Madura. The Dutch seem to be doing poorly in their Javan war.
Vol 1 No 22 – Sat 31st May 1828
Peace negotiations have commenced between Russia and Persia. The new frontier is on the Axartes and Persia has agreed to pay an indemnity of 10 million silver Tomans. These moderate terms are supposed to be due to British influence. Our influence in Persia is deemed essential for the safety of our Empire in India.
Vol 1 No 22 – Sat 31st May 1828
Lord Amherst left Calcutta 8th March for England. He has resigned the office of Governor-General which is taken over by Wm Butterworth Bayley.
Vol 1 No 22 – Sat 31st May 1828
|
Singapore census 1827 Chinese Malays Indians Bugis Javanese Europeans Armenians Arabs Others
|
Male 5,847 2,850 1,309 877 247 85 17 17 119 11,368 |
Female 363 2,486 80 375 108 23 8 0 74 3,517 |
NB – This is an increase of 1,100 over the 1826 census. There are also 561 Company troops in garrison, 382 convicts and a large floating population.
Vol 1 No 30 – Sat 9th August 1828
Manila report - The entire year’s sugar crop has been sold and partly shipped. Great demand has increased the price to refiners to $6 per picul. As a result several orders were finally abandoned.
Vol 1 No 30 – Sat 9th August 1828
The King of Cochin China has sent an ambassador to Manila to arrange free trade between the two countries. The embassy was received cordially. We are pleased to see this evidence of developing universal fellowship which is the effect of commerce and which contributes to the civilisation of the world by connecting countries which would otherwise remain separate.
Vol 1 No 35 – Sat 20th September 1828
Manila report – the sugar crop will be huge this year and prices are expected to fall to $5.00 - $5.25 per picul. Last year’s crop was 110,000 piculs of which 12,000 piculs was kept for domestic requirements and the remainder exported to Spain, France, India, Netherlands and America.
Vol 1 No 35 – Sat 20th September 1828
Medhurst, the English missionary who is studying Japanese, asked Dutch permission to go to Japan on their sole annual ship from Batavia to Nagasaki but was refused.
Vol 1 No 38 - Mon 3rd November 1828
Manila reports say that two famous firms have closed due to financial difficulty.
Vol 1 No 38 - Mon 3rd November 1828
Rebellion against the Dutch continues in Java and no expectation of its end is in sight. The coffee crop has been attacked and the harvest is expected to be only half of last year.
Vol 1 No 39 – Sat 15th November 1828
Regional trade news - The Sulu traders are expected to arrive at Manila soon with tortoise shell and mother of pearl. Cebu is to be opened for trade and opium will be sold there by the Spanish colonial government. It seems Spain is at last extending its influence from Manila to the neighbouring islands. The area has great potential for agriculture and commerce.
Dom Pascual Enrile has arrived at Manila to assume the governorship of the province. The Manila government has been greatly changed by the removal of all the American-born officials.
Vol 1 No 39 – Sat 15th November 1828
The Registro Mercantil, the commercial newspaper of Manila, notes the arrival of the British Ship Madalena in October 1828 bring 612 cases containing 10,000 muskets for the government, machinery for making gunpowder and for mining iron, copper boilers for sugar refining, cotton spinning machinery and other British manufactures.
The paper also prints a letter from the Manila Governor to the Director of the Economical Society saying gin and brandy imports are proscribed until regulations for their sale have been settled.
Vol 2 No 1 – 3rd January 1829
Nagasaki – we have received a letter dated 18th October from Nagasaki via a Chinese junk which trades out of Nanking.
On 17 – 18th September the port of Nagasaki and the offshore island of Deshima (where the Dutch factory is located) were devastated by a typhoon. Many hundreds of people died. The Dutch ship Cornelius Hootman was thrown ashore and wrecked. None of the crew nor any members of the Dutch factory were hurt.
Vol 2 No 4 – Thurs 19th February 1829
Singapore has firmly established itself in local trade. It has become the entrepot for tortoise shell and mother-of-pearl from the Celebes and Moluccas whereas these items were previously shipped on longer and more hazardous voyages to Manila and China.
Vol 2 No 5 – Mon 2nd March 1829
Manila Report – trifling disturbances have been adopted as pretext by government for oppression. They say the disturbances herald an insurrection. This is incorrect. The arrested men are nobodies.
The Registro Mercantil reports that a public bank is to be established as a joint-stock company. This will augment the productivity of the country.
The government, which now wishes to produce opium, also intends to develop cotton spinning and weaving and invites the introduction of machinery which will be free of import duty. It will financially assist people investing in dye production and cotton weaving. At present most clothing and piece goods are imported. A prize of $8,000 is available to the first two farmers who establish coffee plantations of 60,000+ feet. Similar prizes are offered for farming cocoa, cinnamon, tea and mulberry trees (for silk production).
Every farmer or farming association that produces 2,000 piculs or more of sugar or 100 or more quintals (100 kgs) of indigo will be exempted from land tax. Labourers with a record of work over five years will be exempted from the poll tax. Those capitalists most involved in developing agriculture will be preferred for civil service vacancies. Two existing investors, M/s L Calvo and Domingo Rojas, will have a monopoly of iron and timber industry.
Vol 2 No 5 – Mon 2nd March 1829
Manila trade statistics for 1828:
Spanish imported goods $432,415 + treasure $35,000
Foreign imports $771,712 + treasure $357,827 (US & UK trade total = Spanish volume)
China imports $346,806 + treasure $9,000
Spanish exports $514,650 + treasure $2,400
Foreign exports $775,186, + treasure $13,921
China Exports $185,198 + treasure $46,165
Main commodities exported in 1828 were - indigo 2,130 quintals, sugar 110,500 piculs, rice 70,000 piculs.
Manila Customs revenue $227,000
Vol 2 No 7 – Sat 4th April 1829
The war in Batavia at end-January was continuing in a desultory manner. European soldiers have been continually moved around but many have become sick. It is feared there are barely sufficient troops to defend the place.
The Prince of Saxe Weimar might send 5,000 - 6,000 mercenaries but reinforcements from Holland are thought more likely.
The coffee crop this year will be about 400,000 piculs, indigo 1,000 piculs and sugar 60,000 – 70,000 piculs
Vol 2 No 13 – Thurs 2nd July 1829
Batavia report – the coffee crop is nearly available; the sugar crop this year is huge and indigo is becoming an important export. The market for imported manufactures is at a standstill.
Manila report – The previously reported huge sugar crop will actually be quite normal. Although the farmers were obliged to plant twice the number of canes, they allowed half to spoil as they had insufficient boilers for refining.
Vol 2 No 17 – Fri 18th September 1829
News from Thailand:
In August 1828 two missionaries, Tomlin and Gutzlaff, went to
Bangkok to distribute Chinese-language bibles amongst the Chinese
community. There are 310,000 Chinese in Bangkok. They pay a poll tax
of $1 per annum (actually $3 triennially). The entire population of
Bangkok is 401,300 people.
Gutzlaff is also a medical doctor and
provides free consultations and medicines to his converts. Bangkok
residents and junk crews from Hainan, Canton and Fukien take his
books and Gutzlaff is now engaged with a Chinese, who writes, reads
and speaks Thai, in making Thai versions of his publications.
The
Thai government receives an almanac annually from the Chinese
government. It is the main evidence of Thai vassalage. Chinese
astronomy is better than Thai. The Thai King needs China to tell him
when to plant his crops and hold his festivals. There are some
Chinese in Thai government service. A 75 years old Chinese scholar
provides translation services to the Thai King. He speaks Balinese
and Thai as well as Chinese. The King has ordered him to translate
Gutzlaff’s Christian books into Thai.
Gutzlaff has been
treating some opium addicts at Bangkok. He uses an emetic of tartar
with laudanum which causes nausea and effects a cure. A Catholic
bishop resides at Bangkok and there are about 800 Christians.
Gutzlaff’s Christian books were initially represented to the King
by his Chinese translator as political and were banned but many
people demanded copies and the ban was soon rescinded.
Last January the King of Laos and his family (two wives, sons and
grandsons, totally 14 people), who had just been captured by the
Thai army, were exhibited in a cage to the Bangkok populace for a
fortnight. A large boiler and various instruments of torture were
arrayed nearby. Some comedies were enacted for the crowd’s
amusement.
The American Captain Coffin who was then in Bangkok
spoke with the Laotian King who died soon afterwards before the
victory proceedings began. His body was nevertheless decapitated and
exhibited by the river where all could see it. Mr Tomlin visited the
cage and saw nine inmates chained around their necks and legs. Two
were very young children who appeared unaware of what was about to
occur.
Vol 2 No 19 - Sat 17th October 1829
Letter to the Editor from Manila – your report on the Spanish Government in Manila is misleading. When Chinese settlers were first permitted to live here they agreed to restrict themselves to agriculture and arts. The Chinese act concertedly and have much capital. Since then they have incrementally engrossed the entire trade of this colony, certainly the import of all the European goods, to the detriment of Filipino traders. The poll tax was introduced to restore competition and the non-Chinese community welcomed this tax.
Had the Chinese confined themselves to arts and agriculture as required, as they do at Singapore, Rhio and Java, they would not have brought this oppressive action upon themselves. Chinese immigrants are continually arriving at Manila and find immediate employment amongst their compatriots. After a few years service they are enabled to open a shop of their own – thus the community grows.
Young Spaniards and Filipinos would pursue trade if they could overcome the obstacle of Chinese combination. I doubt the tax amounts to more than $400,000 but it will be a welcome addition to government revenue.
I do not understand your reference to the native language of Manila. Filipinos have a different language in almost every island. The missionaries coming to Luzon from Spain have to learn the dialect of an island before they are posted to it. Why should they trouble to do so if it is the government’s intention to make Tagalog the official language and suppress all the others? In the convents there are many books in many Filipino languages.
It may be true that foreigners are no longer permitted into the interior but when they were, they generally went to forestall the market and injure the commerce of all parties. Your correspondent says the government supports intolerance and ignorance. It actually protects and promotes useful knowledge.
Perhaps your correspondent wants to introduce those baneful principles that now guide Europe and America and having been opposed, he speaks of intolerance and ignorance. Any foreigner of any religion who lives peaceably is welcome to do business in Philippines and no obstacles are put in his way, provided he obeys the law.
Vol 2 No 20 – 3rd November 1829
The Java Courant carries a report on our April 1829 article (itself copied from Singapore Chronicle) about the insurrection on the island of Java. It says the Dutch colonial government now has some 27,000 European and native troops together with organised Barissans and these forces are independent of the garrisons in the major towns of Java and the other Residencies.
In the war against Diponegoro’s Jog Jakarta rebels it claims the sacrifices already made and the money spent reveal they are prosecuting the war vigorously.1
Vol 2 No 22 – Thurs 3rd December 1829
Penang – The Chinese merchants here have sent a letter to Sir John Claridge, the judge of Penang, Malacca and Singapore, dated 19th Sept 1829:
“In the three years since you arrived you have applied the law in accordance with human nature, been fair to the people and trade has prospered in peace and tranquillity. Now you are ordered to return home and we cannot detain you. We hope that Heaven protects you, that you are promoted and become prosperous, and that you may again come back and let us enjoy your administration of justice. We honour and respect your Court and do not want the Company’s Court in replacement.” Sgd 42 merchants and people of Penang.
Vol 3 No 1 – 4th January 1830
Batavia – We have seen a letter to the Netherlands Consul in Canton concerning the revolution in Java. Sentot, the most famous of Diponegoro’s generals, has surrendered to the Dutch government together with Dipo’s wife and several of his chiefs-of-staff. Dipo is now isolated and should soon be caught thus ending four years of insurrection that has laid waste to this fine country.
Vol 3 No 8 – Thurs 15th April 1830
Luconia (Luzon) – We have the Manila trade statistics for 1829:
|
Imports
Exports
|
41 Spanish ships brought $682,726 goods & $1,600 treasure. 78 foreign ships brought $971,776 goods and $396,847 treasure. This is a 10% increase over 1828. 43 Spanish ships took $415,444 goods and $8,286 treasure. 80 foreign ships took $982,179 goods and $53,989 treasure. This is a 5% decrease on 1828. |
The 78 foreign ships are 33 American, 14 English, 7 French, 6 Dutch, 5 Danish, 5 Chinese, 1 Prussian, 1 Hamburger and 2 Hawaiian.
Principal exports were indigo 11,800 quintals, sugar 120,274 piculs, ebony 8,723 piculs, sapanwood 11,675 piculs, white rice 114,793 cavans, rice in husk 30,830 cavans, hides 34,853 pieces, cigars 4,595 arrobas, rum 7,889 gallons.2
Vol 3 No 11 – Tues 1st June 1830
On Fri 16th April a Chinese man arrived at Malacca after 3 days walk from the tin mines at Sungei Ougou. He reported that 400 – 500 Chinese miners had been killed by the neighbouring Malays and a similar number had fled into the surrounding jungle.
The dispute started when a Malay murdered a Chinese for his opium and sank the body in a swamp. Another Malay saw the opium, enquired of its source and learned of the deed. He mentioned it to one of the Chinese community which, thus alerted, attacked the Malay village of the murderer.
This provoked the disproportionate response. The involved mine is outside the area of the Company’s jurisdiction at Malacca.
Vol 3 No 24 – Sat 4th Dec 1830
Manila – at mid-November there was a prohibition on rice export but it was daily expected to be lifted.
Vol 4 No 8 – Sat 2nd April 1831
During the recent British war with Burma, the King of Thailand sent for the prominent English merchant in Bangkok (Hunter) and asked how many troops the British had used for their invasion.
On hearing there were 30,000 soldiers fighting there, he thought they were sufficient to cut the grass for the King of Ava’s elephants. He likened the British Empire to a spreading tree with shallow roots.
Vol 4 No 9 – 19th April 1831
A new trade tariff has been promulgated in Manila:
All foreign trading ships pay 2 Reals per ton of registered tonnage. Ships coming in ballast or for repairs or watering pay 1 Real per ton
Prohibited goods – gunpowder and all Asian and American produce (sugar, coffee, indigo, rum, tobacco etc).
Duty free – all machinery, teak, treasure.
There follows a long list of dutiable commodities.
Vol 4 No 10 – Fri 13th May 1831
We see from the Registro Mercantil of Manila that every vessel lately departing for China is required to carry four Chinese who are banished for not paying the capitation tax placed on Chinese residents. This tax is $1 - $10 per man per month depending on his rank in the community. Considerable arrears were allowed to accumulate before the government commenced deportations.
Non-payment now earns imprisonment until a ship to China is available. It is a condition on the rice junk masters that they take four men free with each export cargo to Amoy. 89 men were expelled in February and March. They are all Fukienese. The government’s intention is to create employment for Filipinos in preference to Chinese.
Vol 4 No 11 – Mon 6th June 1831
Java - The social revolution working through Europe will bring about the end of the VOC’s monopoly. Already Batavia is very unsettled. Hopefully Java commerce will soon revert to its natural channels.
At Padang, on the west coast of Sumatra, a Malay force is approaching the port and the merchants are preparing to evacuate.
Vol 4 No 22 – Tues 15th November 1831
Tin – we have previously mentioned a problem of adulteration of Straits tin from Singapore. Banka tin from Batavia and Straits tin from Malacca have been fine all along but buyers in both Calcutta and Canton have rejected consignments of tin from Singapore.
We now have a letter from a London house to its local correspondent saying good tin is scarce. It says Singapore tin is half-spelter and unsellable.
Vol 4 No 22 – Tues 15th November 1831
Over 700 years ago, in about 1080, the people of Cochin China invaded southern China and occupied several towns in Kwang Si and Kwang Tung. They besieged Nanning and massacred all 58,000 occupants.
The cause that Cochin China was responding to was the ‘green rice law’ whereby local government forced a loan on farmers but raised the interest rate when the crop was half-grown (green rice) and thus took possession of the crop and, eventually, the land.
We mention this because something similar is now happening in Singapore. Land that has been cleared for agriculture at great expense is attracting ever-increasing quit rents. Now the latest quit rent (for three years) if unpaid will result in forfeiture of the land. It exceeds the value that the land can produce. Some Malays recently rioted in the Company’s part of Malacca for the same reason.
Vol 5 No 7 – Sat 7th April 1832
Manila trade for the year April 31 – Mar 32
Ships arrived Spanish 43, American 25, English 19, Danish 7, Chinese 5, Portuguese 5, Dutch 4, Hamburg 2, France 1, Prussia 1 - Total 112
Main exports – rice, sugar and hemp; Other exports - sapanwood, indigo, hides, coffee and ebony.
Value of imports $1,794,379 + $337,287 silver
Value of exports $1,414,719 + $45,219 silver
Gross duties on trade paid to government $244,006
Vol 6 No 3 – Sat 16th February 1833
The Dutch and British authorities, who still contend for mastery in Malaya, have allowed piracy to affect shipping in the Straits. Several incidents have occurred recently near Singapore. The old Malay Rajahs issued passes to prahu to carry guns and act as pirates. If they were caught by the British, they could display the pass to claim Dutch protection.
Vol 6 No 6 – Fri 3rd May 1833
Piracy in the Malacca Straits has become so bad that the Singapore Chronicle reports Chinese merchants of Singapore have commenced a subscription to buy the protection that has been denied them by their government.
Vol 6 No 7 – Sat 18th May 1833
The inhabitants of Manila are suffering from a water shortage since last month. The river has shrunk due to some volcanic activity in the interior and the little water now flowing has a green colour and unpleasant odour. It is unsuitable for either drinking or cooking.
Vol 6 Nos 13 & 14 – Mon 16th September 1833
The British and native inhabitants of Bombay have been struck with the popularity of the steamer Hugh Lindsay which travels the Bombay/Suez route over the last four years. They believe a steamer service between Europe and India should be established. News sent by the steamer from Europe arrives at Bombay in under two months (via Malta to Alexandria and thence over land and lake to Suez). With proper communications and better ships they suppose it could be done in 50 days.
If this plan is successful, Bombay will become the communications centre for all places to the East. Subscriptions are invited from the communities at Canton as well as Madras and Calcutta. Remington & Co is our agent for collection.3
Vol 6 Nos 13 & 14 – Mon 16th September 1833
The USS Peacock (Geisinger) remained at Lintin for six weeks and left on 29th December 1832 to take Edmund Roberts, U S Presidential envoy to Thailand and Cochin China, to his post. They took Morrison as interpreter and he has returned with his report on the voyage.
Cochin China:
They tried to anchor at the Bay of Turon, the closest a ship can get to Hue (Shun Fei), the capital city of Cochin China but the current was too strong to enter and they took the envoy to Phu Yen (now Tuy An). This fine coast contains three separate anchorages – Shun Tai, Vung Lam and Vung Chao. Shun Tai is exposed and without a convenient landing place. Vung Lam has a continual heavy swell but is popular with native craft. Vung Chao (Song Cau) would be excellent for foreign ships as it is little used by the natives and very well protected.
Geisinger was soon visited by an old man in a shabby silk dress with whom a conversation was held in written Chinese (the spoken dialect being unintelligible to Chinese speakers on board). Later some smarter-looking officials came, the most senior of whom was a Judge. The official dress is very similar to Chinese officials. Shoes and stockings are not worn by the people but the gentry wear sandals or slippers. Their hair is uncut and worn in a knot at the back of the head under a black crepe turban (men) or white cotton turban (women). Poor people have coloured turbans. Important people travel in a hammock suspended from a pole carried by two, four, eight or more men according to the rank of the recumbent occupant. Attendants ride on horseback there being many breeds of small pony in the country. A few elephants follow the most important dignitaries. The military escorts appeared smart and well disciplined when compared with China and Thailand. We had brought some rice with us which we traded for vegetables and dried fish.
We discovered that women are the only traders. We daily saw 400 - 500 of them in the bazaar selling fruit, vegetables, fish, rice, pottery, tobacco etc. Whenever we asked a man for the price of an item he would turn to a woman for the answer. There is a large Chinese community and most of the artisans are Chinese. The only Europeans still resident are Catholic missionaries but they remained hidden from us. Whenever we went ashore to ramble, the soldiers followed but, as soon as they became tired, we were ordered back to the ship. The common people were very dirty and most exuded natural odours but they were generally hospitable. The officials placed repeated hindrances in the way of our Envoy proceeding to Hue and after five weeks in early February we broke off attempts at negotiation and left Vung Lam for Thailand.
Thailand:
The Thais were blunt but civil in comparison to the people of Annam. We arrived off the River Mei Nam on 18th February finding it too shallow to enter. We anchored 10 miles off and took a small boat to Pak Nam the local town on the right bank 2 miles up. After some correspondence the envoy, Geisinger and nine others went by barge up to the capital.
Bangkok (the Fukienese name for the capital) is a water city about 30 miles above Pak Nam and has 500,000 inhabitants. The majority are Chinese but there are many nationalities. A large number of floating houses align both banks of the river for four miles. We reached Bangkok on 25th February and interviewed an official who called himself the Chao Phraya Phra Klang. He was surrounded by many small golden vessels containing betelnut, tobacco, water, etc. These gold cups are dispensed only by the King to distinguish men of rank. Several attendants were prostrated around him. The officer wore a chintz skirt to below his knees but was otherwise naked. He asked many trite questions using some Thai Portuguese as interpreters. We visited him several times informally thereafter but he is a boorish man and communicates by grunting.
The entire Thai community is divided by strict rules of inequality, people of inferior rank being unable to do anything before superiors except prostrate themselves.
The Phra Klang’s children were 13-14 years old and a ceremony of shaving their heads was performed with the Portuguese Consul, Carlos Manuel da Silveira, in attendance. He was very informative on Thai culture and customs. The Thais are vegetarians and drink no wine. After our official business was concluded we saw the King on 18th March. Capt Burney’s prior mission of 1826 provided us with references for etiquette but we were allowed to wear shoes which is fortunate.4 The palace is a fine whitewashed brick building. The guards were well turned out. The audience room was large and carpeted. The supporting pillars are square and the wall had been painted in a way that resembled wallpaper. Lighting was by some common Dutch tin lanterns. The walls were decorated with Chinese daubs from Hog Lane. Thai, Chinese, Portuguese and other nationalities were represented. The Portuguese were Benedito and Pascoal d’Alvergerais, two natives of Cambodia in His Majesty’s army and Jose da Piedade, a native of Thailand and port captain. The Thai King is very fat.
A few days later we concluded a treaty. The terms are believed to be the same as those accorded to the English in 1826. On 6th April we left.
Vol 7 No 2 – Tues 14th January 1834
On 8th Jan, one of the Canton news-sheets published (from what was said to be an official report from Leen Chow, near Hainan) an article concerning the royal family of Cochin China. An uncle and a nephew are now contesting for the crown.
The article says the Yuan dynasty of Cochin China commenced with Yuan Kwang Chung and continued to Yuan King Shing when another Yuan arose and usurped the entire country. He based his capital at Foo Chun in Kea Lung and gave his younger sister in marriage to the King of Thailand. Kea Lung’s first son died leaving two grandchildren and, when Kea Lung himself died, the people wanted the eldest grandson to be King but Kea Lung’s second son Ming Ming allied himself with the army, seized power and made himself King.
Friends of Kea Lung then sent the first grandson to live in Thailand, fearing for his safety. It turned out that Ming Ming did murder some relatives of Kea Lung. He made the region called Nung Nae into a province and levied heavy taxes on the residents. They became impoverished and wished to rebel but lacked a leader.
Kea Lung’s first grandson in Thailand heard of these developments and in July 1833 he entered Nung Nae and the people joined him. He executed the officials of Ming Ming and proclaimed himself King of Nung Nae. Then six neighbouring provinces submitted to him. It is said the Thais provided troops for the grandson’s use.
Ming Ming has responded by amassing an army of 4,000 and fifty warjunks. There is no way of guessing how this will turn out. The supporters of the old rebel Lee Wai Leung (who has been seized) are still in the hills. The frontier with Cochin China should be guarded with care.5 It is said the To Kwong Emperor has sent 2,000 troops to assist Ming Ming.
Vol 7 No 4 – Tues 28th January 1834
A new regulation at Manila requires a foreign ship to undergo repairs worth at least $2,000 before it can load a rice cargo for export. This does not apply to Spanish ships.
Vol 7 No 8 – Tues 25th Feb 1834
Charles Marjoribanks has written a letter to Charles Grant about developing British trade in the East. He says Thailand, Cochin China and Cambodia offer prospects but their governments are autocratic and not susceptible to law.
The best ambassador to such countries is a ship-of-war, which officers can explain our commercial needs. As Lord Nelson said, “a British admiral is the best of all ambassadors for he settles in a few hours what diplomatists take weeks and months to achieve”. Yet people still tell us that if we must go to these countries we have to abide by their laws.
Sir Henry Wootton described the duties of a diplomat 200 years ago – “to tell lies for the good of his country”.
Vol 7 No 11 – Tues 18th March 1834
Indian news – Ram Mohan Roy is tipped to become a legislator in the new parliament of the Bombay Presidency (first post-Charter parliament).
Vol 7 No 11 – Tues 18th March 1834
Manila trade statistics for 1833:
Ships (in and out - a double count) – Spanish 120 (of which 97 to/from Macau); American 58; English 56; French 16; Chinese 4.
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Spanish Trade - Others - - |
$535,586 imports + $31,730 silver from Macau; $549,786 exports + $168,896 silver to Cadiz. $494,588 imports + $457,063 silver (of which $286,000 from British Empire); $853,330 exports + $1,680 silver. |
Vol 7 No 12 – Tues 25th March 1834
The Governor of Bombay has proposed making his city a free port. It is fortunate for mankind that the true principles of existence are now becoming apparent. The pursuit and defence of individual happiness, unshackled by false legislation, is the aim. Knowledge, progress, the happiness of mankind and nations depend on commerce. All British Indian ports should soon be free. Hopefully Goa, Macau and Manila will follow. Then four great European nations (England, France, Spain and Portugal) with America, will have unrestricted commerce.
How can Chinese ports remained closed against our joint perseverance and enterprise? We append a letter from Lord Clare (the governor of Bombay) of 4th January 1834 to the merchants concerning free trade:
“Sirs, On determination of the Company’s charter, our Bombay shipping could be injured by competition when the trade to China is made free. I wish to prevent this while not prejudicing the free traders. Please consult the principal European and Indian merchants and ship owners and let us have your advice. I myself suspect that all aims can be achieved by declaring Bombay a free port for Chinese produce going to England and vice versa.”
Vol 7 No 12 – Tues 25th March 1834
To Richard Jones, President of the Sydney Chamber of Commerce.
The British Treasury and Customs Department have recommended parliament that Sydney be constituted a free port. Please canvass your chamber members.
Vol 7 No 19 – Tues 13th May 1834
The recent collapse of Indian Agency and finance houses:
It is notorious in each of these failed businesses, that every two or three years a partner has sold out and taken his fortune back to England and is replaced by another who, after 2-3 years, does the same. This constant withdrawal of profits has impoverished the houses and contributed to their failure.
How did recent partners withdraw with profits when the business as a whole was in debt to millions of dollars? How did they make up their accounts to do this? It seems the creditors of the companies have effectively given vast sums to retiring partners who now claim to be beyond reach.
The Times of London says since the beginning of January 1830 four Calcutta houses have closed owing £12 millions, one Bombay house owing £250,000 and two associated London houses owing nearly £3 millions. They are:
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John Palmer & Co of Calcutta Alexander & Co of Calcutta Mackintosh & Co of Calcutta Colvin & Co of Calcutta Shotton & Co of Bombay Fairlie & Co of London Rickards & Macintosh of London |
£5,000,000 £3,500,000 £2,500,000 £1,000,000 £ 250,000 £1,800,000 £ 950,000 |
The majority of these failures were known to be approaching by the partners of the involved firms. There has been no natural disaster or war to cause them. There has been no change in the law or fraud or extortion by the Indian government to explain them. They derive solely from the way the Indian firms and their London agents have been transacting business during the last 10-15 years. The directors speculate for inordinate gains and their customers become overly confident of windfall profits.
On the last renewal of the Company’s charter in 1813, Indian commerce was opened to private investors and many new trading companies were started in Calcutta. These had to compete vigorously with the established businesses for market share and the commercial community generally was tempted into types of business that they would not formerly have contemplated entering. Their investments in sugar and cotton have not yielded the expected returns but indigo was worse. They made large advances (£1,500,000 – 2,000,000 a year) to indigo planters who grow an unpredictable commodity. In 1825 they produced 10,750,000 lbs and in 1826 produced 6,700,000 lbs. Consequently its value moves like a yo-yo and a third of their loans to indigo growers are non-performing. Throughout these vicissitudes the companies continued to pay the same interest each year on customer’s deposits. This is the crux of the financial problem.6
About 18 months ago a partner of Alexander & Co of Calcutta gave evidence to a Select Committee of the Commons of the above facts. He implicated the formation of a Government Bank of issue, discount and deposit as contributing to the financial collapse. This Bank competed with the Agency houses for deposits. They continued to pay the customary 6-8% per annum to their investors whilst at the same time the Government Bank was lending its revenue at 4-5%.
Over-trading, unprofitable investments and the partners’ high personal costs of living are the causes of all the failures. The investors who have been ruined should have reflected that security and speculation never go hand-in-hand. Great gains cannot be had without taking great risks.
A slightly different view has been expressed by people close to the banking industry in India. They say that the ill-advised and unexpected war with the King of Burma was the beginning of the end. Before the war, commercial interest rates were at 5% but even at that rate the agency houses were refusing many deposits and requiring their big investors to withdraw some of their funds. Money was washing around the city. Then the government suddenly announced it was at war and published its requirement for a new loan which soaked up all surplus capital and a good deal more besides. The Agency houses responded by competing with the government by increasing interest payable to stem their loss of funds. An additional factor in this scenario was the reduction of Indian government spending that resulted from retrenchment associated with the costs of war. This reduced many debtors’ ability to repay. On this analysis from the banking industry, the proximate cause of the failures was the policy of the Company’s government.
A final note – we are informed by letter that the great agency house Palmer & Co is about to reopen its office in Hyderabad (the Calcutta head office and other branches continue closed) and is soliciting funds at 12% (Editor – that’s too much).7 Sir Wm Rumbold is to manage the firm and he is living in opulence in his new palace at Neilgheries which cost 100,000 Rupees to build. This intelligence can only be true if Palmers have recovered the whole of their claims on the Nizam plus interest due. If that is the case, Palmer’s creditors everywhere can expect a full repayment.
Vol 7 No 27 – Tues 8th July 1834
British trade to Java has increased and The Times gives information on it. (not reproduced here)
Vol 7 No 27 – Tues 8th July 1834
The London Times - British merchants are concerned at the state of Java. It is too late to complain of our retrocession of the island to the Dutch at the end of the last war, but we have a claim under the commercial treaties that were made at the time of the retrocession.
Readers will recall that Mr Canning, to compensate for British wartime sacrifice in respect of Java, made a treaty with the Dutch in 1824 which restricted duty on goods brought in British ships to no more than double the duty on goods brought in Dutch ships. And if goods were imported duty-free on a Dutch ship, the maximum duty to apply to British goods was 6%.
Now Dutch cotton and woollen cloth is imported duty-free but British competing products are taxed at 25%. Representations by the involved merchants have procured no redress. Java contains 5 million people and could be an important market.
Vol 7 No 39 – Tues 30th September 1834
A list of pay scales for officers in the Company’s Navy is given.
Vol 8 No 15 – Tues 14th April 1835
Manila – the expected trading junk from Nanking arrived early April.
Vol 8 No 26 – Tues 30th June 1835
The English brig Clementine of Mauritius arrived at Oahu (Sandwich Islands) from Ascension with news of Captain Dowsett. Readers will recall Dowsett took the schooner Victoria to the Pescadores for trade and disappeared.
The report from Oahu says the master of the Clementine was aware that two English traders chartered the Haverly (Capt Cathcart) to investigate the Victoria’s disappearance. Cathcart visited the Pescadores for a few days but found no trace of Dowsett. He was told by the island chief that Dowrett was dead and Cathcart abandoned his search.
The Clementine during her recent voyage met two Pescadores islanders on Strong Island who told the Clementine crew there were two survivors from the Victoria called Sam and George. Their descriptions matched those of Dowsett and a New Zealander who accompanied him ashore at Pescadores. The Clementine master gave this information to Cathcart of the Haverly at Ascension. It is possible he may now return to the Pescadores to resume his search. There is another ship from the Sandwich Islands which will shortly leave for the China seas to collect seashells and may touch at Pescadores.
It is conceivable that Dowsett may yet be found alive.8
Vol 8 No 28 – Tues 14th July 1835
Alexander’s East India Magazine, Feb 1835 – Clause 87 of the India Act requires that no native Indian be barred from holding office under the Company by reason of his religion, colour, descent, etc.
The Court of Directors have instructed the Madras Presidency in writing, as published in the Madras Gazette of 6th July 1834, to appoint Howe Daniel Showers as a cadet of infantry provided neither of his parents are of native extraction. Such is the system pursued by the Honourable Company.
This company is unfit to rule India. We have innumerable examples of its despotism. Here it is defying the express will of the British people.
Vol 8 No 42 – Tues 20th October 1835
At the end of 1834 HMS Raleigh seized a slaver and took her into Rio de Janeiro as a prize. The owner was a Portuguese with Brazilian nationality. The Brazilian Court thought the seizure unlawful and could not be persuaded to reassess the evidence.
To resolve the dispute, the two litigants picked straws and the British one got the longest. The ship was then judicially condemned as a slaver and lawful prize of HMS Raleigh.
Vol 9 No 18 – 3rd May 1836
Manila report – the following remarks are contained in a letter I have just received from Manila. Sgd Juvenis 4th May:
An iron ship called Vasco has been launched on the Pasig River here – 96 feet long, 26 feet wide and, with part of the engine installed, it presently draws 42”. The plates are ½” thick and riveted with 96,000 rivets. It was built by the engineers M/s Bailey and Granger who were called in by Sr. E de Otadui who has arranged the construction on behalf of the Spanish colonial government. Indeed the ship is now moored in the river opposite Otadui’s fine mansion.
The present governor Don Pedro Antonio de Solarax is a forward-looking modern administrator who is freeing commerce from its historical obstructions and spurring agriculture.
Manila has a beautiful river (the Pasig) that flows passed the walled town through the commercial area from some lakes 30 miles away. Around these lakes is rich soil. For one mile from the river mouth the draft is 17’ at low tide and it is the governor’s intention to make this the port of Manila once the ironside ship under construction has cleared the bar and widened the channel from the present 12 feet to 19 feet.
Vol 9 No 39 – Tues 27th September 1836
London news - A Bank of India is to be incorporated in England with £3,000,000 capital. The Bank of Bengal (the Company’s bank) is invited to merge with the new bank whereupon its capital will be repaid to the Company. The Company’s establishment at Madras and the ‘Finance Committee’ at Canton are to be abandoned.
The proposed joint-stock Bank in London will have 24 Directors and 3 Governors. 1 Governor and 6 Directors will be permanent Directors of the Company. The remainder will be elected by those shareholders holding a qualifying amount of stock. Shareholders are eligible to become Governors and Directors. The bank management in India (at Calcutta) will have 2 Governors and 12 Directors. 1 Governor and 3 Directors will be chosen by the Indian Government; the other Governor and 9 Directors will be chosen by Company shareholders in India but subject to the final approval of the London shareholders. Subordinate establishments will be formed at Madras, Bombay, Singapore and Canton subject to confirmation by the English Board.
The Bank will receive deposits (without paying interest), discount bills and issue demand notes. It will undertake the financial business of government throughout India if requested, receiving revenue, making payments and remitting to England the sums required for home charges, all upon such terms as may be agreed between the Indian Government and Company.
Vol 9 No 42 – Tuesday 18th October 1836
London Morning Advertiser 23rd June - Sir James (Rivett) Carnac for the Company has negotiated the agreement of the Board of Control to have Indian sugar imported into England on the same revenue tariff as West Indian sugar. This equalisation of duties is expected to divert some of the Company’s excess capital back into sugar production in India rather than putting it at the disposal of the China trade in Bills of Exchange.
Editor - We now look forward to the withdrawal of the Company’s ‘finance committee’ from Chinese affairs.
Vol 10 No 8 – 21st February 1837
Walsh’s Constantinople, Volume I on Turkish opium:
“The Turks are opium eaters. It was sold in the coffee shops and was once generally enjoyed but repeated firmans were issued banning its use in public and asserting its deleterious effects. These have ended the practice and the coffee shops have fallen into disuse. The Turks used to be very moral people and devout followers of the Koran. The use of wine was denied them but opium was not expressly forbidden and they naturally indulged themselves as an alternative. Finally their excesses caused the repeated firmans that resulted in its end. As opium use declined, people changed to wines and other stimulants. Now opium is consumed only in the growing districts.
“Making kef (a Turkish word indicating ‘delightful exhilaration’) occurs during the opium harvest but the people use it as a temporary gratification only and remain healthily unaddicted.
“Most Turkish opium is grown around Nicaea.9 I watched the villagers harvesting it. After the petals fall from the flower, they use a curved knife to incise around the capsule. A white sap is exuded which turns brown in sunlight. This is raw opium. Each evening they tend the plants and scrap the sap off. This substance was called opon by the Greeks hence our own name for it. Turkish opium is often adulterated with other narcotics. For the adulterated supply, they boil the poppy heads in water to inspissate the juice and wrap the dried residue in poppy leaves for sale. For their own use they use the pure sap. It produces an indefinably pleasant mental state which the people call Kef. A Turk takes a drachm of opium, drinks a glass of water, and lies down on the divan. In a few minutes he is transported to Heaven. It is widely used in the farming areas and seems to have no deleterious effects.”
Vol 10 No 7 – 14th February 1837
Commentary on the proposed Bank of India by an India merchant:
“A prospectus has been issued by influential London merchants for the incorporation of a Bank of India to provide banking services throughout all British India. The purpose of the bank is to take advantage of redundant capital in the burgeoning money market in London and provide £5 millions of it to invest in India (and probably £10 millions in paper issues and deposits) and to accumulate capital there. The shares are offered solely in London and no merchants in India have been invited to subscribe.
The prospectus was issued towards the end of a time when paper money had flooded the London market. Now the paper supply has been reduced, it has collapsed the gambling spirit that has influenced investments for the past few years. It may be true that British India provides an ample field for the investment of British capital but the outline given in the prospectus of existing banking services in this proposal is incorrect. The prospectus lists the Bengal and Union Banks of Calcutta, the Government Bank at Madras and the Military Bank of Agra as the sole providers.
In fact every European house of Agency in India provides banking services - they advance money to the indigo, cotton, silk, sugar and rice planters and to their constituents and they do everything a bank does except issue demand notes. There are also immensely wealthy native Shroffs who service the native landowners, farmers, merchants and tradesmen. Over one hundred Shroffs are resident in Calcutta alone and every other city has its own. These men are completely familiar with the risks they underwrite and even the poorest classes can obtain funding from them.
Nevertheless, the promoters of this Chartered Bank of India assert the great profits of the established Indian banks and the high interest rates pertaining throughout the country together evidence a lack of banking facilities. In fact the profits of Indian banks have historically been marginally less than the profits of London banks. Indian government loans at 4% are negotiable at 1-2% discount on par. Banks pay 4% on permanent deposits; they discount government and salary bills at the same rate and they loan on stock at 5%. This reveals that interest rates in India have become moderate and there is surplus capital awaiting investment. The commercial rates of interest may be higher in India than London but these reflect the risk rather than a shortage of money. Surplus funds are such that the Indian banks supply much of the needs of the American and French traders for their business in India and China. Indian banks often make their returns to London in bullion imported into India rather than in domestic production. This bullion re-export further reveals that capital is adequate.
The funds of the new bank, if forced on the market, will displace a like amount of capital at present provided by private individuals. One need look no further than the regular statements of the Indian Houses of Agency to their creditors to illustrate the ruinous consequences of forcing capital into employment in that country. These statements list debts due from civil, military and commercial constituents in respect of merchant ventures in India and abroad and in loans to indigo, coffee and sugar producers that today total nearly £20 millions. The unlimited credit of these agency houses, their consequent command of capital and need to employ it profitably have encouraged imprudent investments in which loans have been made without establishing basic supply and demand statistics for the commodity being produced with the loan. Production moved beyond demand, stocks of one or two year’s supply of each commodity accumulated, prices (on which the loan was notionally secured) collapsed and repayment became impossible. Numerous houses failed and the market has since returned to a solid foundation. This should be preserved.
Before any new flood of capital be permitted, some opening for its employment must be identified. This might be achieved by removing barriers to Indian foreign trade. I have in mind three measures: 1/ the reduction of British duty on Indian produce, 2/ the improvement in the quality of Indian production by encouraging the emigration of experienced and practical agriculturalists to the country and 3/ a rationalisation of internal factors – revenue and customs tariffs, improved communications and better law and order.
The bank’s promoters should be required to indicate how they can trade profitably when the value of Indian imports plus the tributary demand for ‘home charges’ equate with exports. They will likely say their Indian directors will identify and develop new business. More realistically, those directors are unlikely to take the trouble if they can seize existing business. In other words I anticipate a simple substitution of the Chartered bank’s new capital for existing old capital. The bank’s business plan allows the inference that corporate capital is intended to supplant individual enterprise. They propose to establish their principal branches at Calcutta, Madras, Bombay, Singapore and Canton with smaller branches in the other major cities.
They propose to amalgamate the business of the Bank of Bengal into the new bank. The Bank of Bengal is the only existing bank with sufficient resources to provide the new bank with competition. Irrespective of this monopolist tendency in the proposal, the intention to operate India-wide in a hierarchical structure will increase the risks of mismanagement and make the local distress of the parent a matter of national discomfort. Provinces will find capital availability tightened or loosened irrespective of local conditions. Better that each province and city had its own bank built on local capital and managed by independent local people.
The promoters suggest that 1/ all government treasuries and financial agencies be abolished and the new bank substituted for receipt and payment of Indian revenues and the transaction of all other government financial business; 2/ that their notes be made legal tender for payment of revenue and 3/ that they be allowed an intimate relationship with the British and Indian governments and the East India Company.
These suggestions would add a political dimension to a commercial body. Its India-wide note issue would tend to preclude other banks from issuing notes and prevent the existing financial institutions – banks, agency houses and Shroffs – from competing with it. Its temporary possession of the revenues and monopoly of the paper currency and banking facilities would thus provide it with absolute control over the commerce and prosperity of India. This immensely powerful institution, over which British banking law can provide no restraint, is to be directed by a Board in London composed chiefly of people concerned in the London and Indian Houses of Agency. Its primary object is to take over the East India Company’s exclusive privilege of remitting the ‘home charges’ - some £3 millions annually - to London. It has obtained the Company’s support by agreeing to take over the Company’s own Bank of Bengal which disposal was required by the British government but for which the Company has found no buyer. The new bank has submitted to accept whatever terms the Indian government (the Company) thought appropriate for the sale. Thus a mutuality of London capitalist interests (the Indian Agency houses) and the Company was obtained in support of the new bank.
The Company could never afford to discharge the ‘home charges’ in bullion and always sent produce either direct or via barter transactions in China. This necessarily created a permanent excess of Indian exports over imports. The cessation of the Company’s charter has disabled it from remitting the ‘home charges’ in produce and it is now accomplished by the company’s Bills business.
Effectively it is the Indian merchant who exports Indian produce and the Company cashes his Bills on London and credits the value to its home treasury. In transferring the remittance of ‘home charges’ to the bank, the government is giving it control over the Indian export trade at least to the value of the ‘home charges’. The bank may influence the value of that trade through its Bills on India issued in China and further by its Bills on London issued in India and China. This is an immense trading advantage over the private merchants of India and China.
The Company’s provincial governments in India and its ‘Finance Committee’ at Canton impartially distributed this money to commerce at each place but the proposed bank, having Directors interested in the London Agency houses, might be less equitable. Apart from this, the bank would require various foreign exchange accounts which, to be secure and profitable, would allure the bank into assuming a commercial character. It would be exposed to the monopolistic temptation, in the active season when demand for funds is high, to secure larger profits on its foreign accounts. Exchange operations between Calcutta and London and advances on Indian exports are presently handled by private merchants. The bank would represent unfair competition and those merchants, who are obliged to use the bank’s services, would feel resentment instead of the normal relationship between bank and customer, based on mutual benefit.
The promoters however say that, by assuming these functions of the defunct Company, they can procure its withdrawal from commerce. This is true. But the Company’s concern has been for Indian prosperity generally whereas the bank’s interest is solely for its own prosperity. And in any event the complaints against the Company’s purported continuance in trade can be obviated by the company selling Bills in London drawn on its Indian treasuries.
The British government should legislatively require the bank’s calculation of exchange rates to duplicate that presently used by the merchants. If not, its profit will come at the expense of the merchants’ business. If India was located near England it would have to adopt the same exchange rates or risk a transfer of bullion to effect the same end. As it is so remote, the costs of transferring bullion between the two countries are greater and anyway the bank proposes to be almost the sole source of supply. In such circumstances how can the merchants continue to calculate the exchange rates with any degree of certainty?
The promoters ask the British government for a charter of limited liability.10 Such limitations are entirely appropriate to undertakings that greatly benefit the public – infrastructural construction, for example, whereby communications are speeded and property values enhanced – but a company established at the expense of many for the benefit of few, which will print money and enjoy other concessions, is not an appropriate venture for limited liability.
The direction of the bank will be entrusted to a board of 24 members, mainly resident in London and mainly partners in Indian agency houses. Two thirds of its capital is to be raised in England from people who may have no community of feeling with the people of India. The Indian boards are to be nominated by the London board. This is effectively a Bank owned and managed in England that will trade in India and China, twelve months away by ship. If the situation was reversed it would cause an insurrection.
The bank’s directors are to be elected for a term of five years after which one third must retire but are eligible for re-election. Effectively a Directorship of this bank will become a permanent appointment like the India Company.
I do not wish to deter the extension of banking services in India or the transmission of capital to that country but I believe existing facilities are adequate. There is no need for a corporation, a charter, limited liability or the concession of privileges that this proposal requires. British merchants have already taken up the lapsed business of the Company and India can very well organise and fund what banks she needs – she has huge agricultural production and large amounts of specie in circulation. All that is required to utilise them is mutual trust and confidence. Sgd 15th September 1836
Vol 10 No 10 – 7th March 1837
We recently published an argument against the incorporation of a Chartered Bank of India. We have now an article from the Bombay Courier of 26th December 1836 which reveals that another local bank is to be formed in Bombay. The prospectus says:
The increase of commerce and consequent increase in available capital make the establishment of a new bank in Bombay timely. For the last few years local merchants have had over 2 million rupees on deposit at the government treasury. The recent withdrawal by government of the privilege whereby merchants could make deposits to and transfers from the treasury suggests all these deposits will become available to the new bank.
Using silver as currency is expensive when money has to be transferred over long distances. The bank will issue paper currency and use its capital to discount trade bills. This will enable customers to employ their capital more than once and thus stimulate trade.
There is however a plan in England and Calcutta to create a national bank which, if effected, will transfer the control of our money transactions to London and expose us to the vicissitudes of commerce elsewhere. We must move quickly. The proposed Bombay bank will have a capital of 3 million Rupees issued in shares of 1,000 rupees each. Half the capital will be subscribed by the proposers and the balance obtained from a public offering. A maximum limit on individual shareholdings will be placed to prevent the business being dominated by great capitalists.
The provisional committee is T R Richmond, T S Finlay, J Wright, D Greenhill, W Turner, M Brownrigg, E C Morgan, C Ashburner, Colonel Wood, Captain Henderson and Dadabhoy Pestonjee.
Dadabhoy and Muncherjee Pestonjee will be treasurers; Ashburner is secretary.
Further report 30th December – the shares have already been oversubscribed but applications will continue to be received until 1st February when a formula for distribution will be published.
Vol 10 No 17 – 25th April 1837
Letter to the Editor – The Singapore papers of March 1837 discuss the illegality of part of the American trade at that port. Some Americans use Singapore’s free port status to ship rice cargoes to China. The convention of 1815 between England and USA permits Americans to ship from British-controlled ports only to an American port. The Singapore Chronicle asserts the Americans should be bound by the convention; the Singapore Free Press contrarily asserts they should participate equally in Singapore’s free trade. The merchants of Singapore naturally want American business. The civil and naval authorities there support American interests and propose no interference.
I wish to canvass the views of the merchants at Canton. The purchase of Singapore in 1820 does not appear preparatory to territorial acquisition but rather to naval command of the Straits. This view is supported by the convention we subsequently made with the Netherlands whereby both countries agreed to confine themselves to their existing claims in eastern seas. The military purpose of Singapore was to be financed by trade and industry. The city was not extant in 1815 when we made the agreement with the Federal Government in Washington. That agreement was refreshed in 1818 and 1828 but in neither case was Singapore mentioned. America has never formally claimed for admission to Singapore trade but a local order was promulgated 2-3 years ago admitting them although it might be categorised legally as a concession and not an acknowledgement of right of any American claim.
The question thus reduces to ‘do the Americans take rice to China overtly or covertly?’ If overtly, it is at idem with the interests of Singapore. It does not appear to be covert as American ships openly offer Singaporeans to take mails etc., to China. It seems Singapore is an exception to the normal Company rule (applied in Calcutta or Bombay, etc) that security for destination be provided. Singapore requires no such security. Singapore has no Customs House. The only documentary requirements it places on the shipping are for statistical purposes. It follows that the British authorities at Singapore tacitly concede the right of trade to Americans. If they did not, the Americans might anchor ‘in the outer waters’ and obtain their cargoes there. In fact the resident American agents bring all their shipping into the roads. I myself recently saw an American ship at Singapore openly loading cargo for China within ½ mile of one of our warships. There is really no compelling argument for legalistic restrictions if one intends to develop one’s territory. Conceding a freedom of trade at Singapore to the Americans expresses the spirit of our law. America at present has little to sell in China. As a consequence, its traders go to England for their cargoes and touch at Singapore en route for rice. They might alternatively buy rice at Java or Manila. Of these Asian ports Singapore is still the least important. The rice that Americans ship is part of Singapore’s re-exports. It originates in Bali, Bangkok or Cochin China. In buying it the Americans spread wealth to both Singapore and the producing countries. This wealth creates an ability to buy other goods to our advantage as Britain continues to dominate the trade of Asia.
The Navigation Acts should not be applied to a territory that produces nothing, taxes nothing and consumes very little. Why drive this trade away? Our laws must be interpreted and enforced liberally. Advices from Java suggest the rice crop this year will be 18 million piculs. At least 1 million will be surplus to domestic requirements. If all the American ships trading to the east were to carry this surplus, they would require a year to shift it.
We should certainly not deter American trade at Singapore. They are allured to come mainly to re-export Indian opium to China. This is only a slight advantage to American trade and any unfriendliness would put them off. If American trade was closed out of Singapore, the Sultan of Johore would welcome it. Indeed he might sell them a harbour in the same way he sold Singapore to us. Sgd SSS
PS – I find the British Treasury was asked last May for its opinion on American trade at Singapore. It opined advisedly that Americans are authorised to trade between US or UK ports and Singapore and also between US ports and any British possession in Asia. A further explicit enquiry, whether Americans may share in all the privileges of the free port of Singapore, has been made and a reply is awaited.
Vol 10 No 22 – 30th May 1837
London paper - The people of the Sandwich Islands are dying off. In 1778 Captain Cook estimated their numbers at 400,000. On the arrival of American missionaries in 1819 this had reduced to 220,000. In the census of 1834 there were 110,000 (Hawaii 30,000; Maui 30,000, Oahu 28,000, Kamai 15,000, Molokui & Runai 7,000). The missionary records for the last 18 months suggest there are three deaths for every birth. The British government should act now to save these people.
Vol 10 No 25 – 20th June 1837
Banks in India – We reviewed the prospectus of the proposed Chartered Bank of India in February. The terms covering the existing Bank of Bengal and Union Bank of Calcutta are compared here:
Bank of Bengal – Charter of Incorporation from Indian Government with limited liability.11 One seventh of its stock held by Indian Govt the rest by the community. Nine directors, six from the British Indian community, three from Government. Issues demand notes for settlement of Bengal Customs and Land Tax secured by the value of a quarter of the note issue being deposited with government. No foreign exchange or trade finance functions. Has no branches but the Charter permits them to operate throughout Bengal province.
Union Bank of Calcutta – No charter. Incorporated on the Scottish joint-stock plan. Shareholders are the Indian community. Direction by English and Indian residents. Issues demand notes but these are not accorded legal tender status. No foreign exchange or trade finance functions. No branches but may establish them if prudent.
Vol 10 No 25 – 20th June 1837
Bombay Courier 11th May - A fire started at Surat on 24th April. There was difficulty getting water and a strong northerly breeze quickly spread the blaze. It burned all that day and the next, the wind veering to affect the entire town. The intensity of the heat was unprecedented. Apart from housing, the timber foundations of the bridge were burned and the bridge itself collapsed.
Those people who took sanctuary in stone buildings were cooked to death by radiated heat. The native Shroffs, who hold mortgages on much of the housing, have been bankrupted. Many corpses were discovered with jewels, gold and silver in their hands. 500 bodies have so far been recovered. 6,000 houses (out of 8,000) and a great number of cattle were destroyed.
The survivors are without food or shelter and Jamsetjee Jeejeebhoy has sent rice ships from Bombay at his own expense. The Parsee community of Bombay donated 125,000 rupees and a subscription amongst the Europeans there raised a further 20,000 rupees. Shortly after the fire, the Taptee River overflowed its banks and the ruined town was inundated. Many of the surviving buildings had their foundations washed away and collapsed.
Vol 10 No 27 – 4th July 1837
Calcutta Courier, 22nd April – Dreadful fires have broken out all over Calcutta during the last 3-4 days and, remarkably, they have all commenced around noon when the wind is strong. The fires all commenced in the native quarters and ten bodies have so far been recovered.
Vol 10 No 27 – 4th July 1837
Calcutta Courier 29th April. Mr Horsley Palmer has written to the Editor concerning the proposed Chartered Bank of India. Here is an extract:
“….. my last objection is the assumption that capital in India is deficient. With the single exception of Australia, there is no precedent for a bank to be formed and capitalised in one country for the purpose of trading in another. The basic principle of banking has always been to apply capital and deposits to the invigoration of its indigenous community. Do this Bank’s proposers mean that India is in need of a few millions to stimulate its productive abilities?
Capital is not just gold and silver, it includes all types of created property - the public debt of India, investment in agriculture, the extent of real property, foreign and domestic commerce. To imagine that a few millions Sterling cannot be found in this accumulated wealth of India is absurd. We should also recall the many times that the Company has required and received financing from the local community. There is manifestly no deficiency of capital in India.”
Vol 10 No 30 – 25th July 1837
Calcutta Courier, 30th May – Steam communication between England and India has been agreed. The British government will be responsible for the England – Alexandria portion and the Indian government will organise an overland route to the Red Sea and thence by steamer to Bombay.
Vol 10 No 44 – 14th November 1837
A sale has been made at Rio de Janeiro of some tea grown locally in the Lagoa de Freitas gardens. It sold for a good price and reveals that tea can be cultivated in Brazil.
Vol 10 No 47 – 21st November 1837
Friend of India 24th August - The Indian government has fixed a mission to Bhutan and Tibet purportedly to establish commercial relations but, from the employment of the people selected for the mission, it appears more likely intended to collect political information and to learn of those countries’ botanical and mineral production.
The mission is led by Captain Pemberton, a well-known explorer. He is assisted by Griffith of the Madras Medical Service who recently examined the tea plants in Assam. An important political duty will be to get accurate information on these countries lying between British India and China.
Vol 10 No 48 – 28th November 1837
Died peacefully at Madras in June 1837, Mrs R J Baboom 79 years; and in September 1837 her eldest daughter M Baboom of cholera.
Vol 10 No 50 – 12th December 1837
Dr McCosh has reported on the new territory of Assam. He says opium is widely grown by the natives who in March collect the capsule-juice on strips of cloth which they then dry and store in bundles. For use they tear off 2 sq ins of cloth and infuse it in water. After drinking this they chew the cloth until all residue of opium flavour is exhausted. Infusions are also made from the poppy head and from the dried and powdered remains of the capsule.
Tea trees identical to the Chinese trees grow on the hills of Assam and only require pruning to secure to us the blessings that presently go to China. These shrubs were only discovered ten years ago. The Commissioner for Assam sent some specimens to Calcutta during the Burmese war but little attention was paid to them. It was a subsequent Commissioner, Captain Jenkins, and Lieutenant Charleton of the Assam infantry, who drew attention to their commercial possibilities. The natives constantly drink tea but their method of production is simple. They roll the tea leaves into hard balls for preservation. The Brahmaputra provides direct communication between the tea hills of Assam and Calcutta.
Vol 11 No 1 – 2nd January 1838
Died at Manila 17th September 1837 Mary G, wife of Russell Sturgis of Boston.
Vol 11 No 8 – 20th February 1838
The Penny Magazine of August 1837 has an article “Newspapers in Asia”.
The first paper published east of India was the Prince of Wales Island Gazette which commenced at Penang in 1805 and continued to 1827. It was immediately replaced by the Penang Register and Miscellany but that was suppressed a year later and replaced by a government paper which only lasted a year as well. Then in 1833 the Prince of Wales Island Gazette resurfaced and is still circulated.
Malacca did not get a paper until 1828 when the Malacca Observer and Chinese Chronicle appeared for a year. Malacca also had a monthly Periodical Miscellany and a quarterly Indo-Chinese Gleaner (1817 – 1822) but they are hardly newspapers.
Singapore has two newspapers – the Chronicle, started in 1823, and the Free Press in 1836.
12 years ago Macau had the Abelha da China and Gazette de Macau but they have since closed. There are now the Chronica de Macau, a fortnightly in its third year, and the Macaista Imparcial, a twice weekly that began in 1836.
In China we have the Chinese Repository for the last six years. It is 48 pages of octavo and is published monthly. It has a circulation of 700 - 800. A third of the distribution is to USA with about 40 copies sent to England. It contains extracts from the Chinese government gazettes, translations of historical documents and much valuable information about China. The Canton Register is anti-Chinese. The Canton Press is strongly free trade, more commercial than the Canton Register and decidedly less anti-Chinese.
Vol 11 No 38 – 18th September 1838
The Indian papers are alleging Russian intrigue around the northern frontier has caused an alliance between the Persians, Afghans and Nepalese against British India.
Editor - Burma is thought likely to join. This will extend the British Indian army and treasury and ends hopes that the opium monopoly can be abandoned. The British and Bengal governments should together advise the Chinese Emperor on opium. Failure to get his agreement will provoke an adverse reaction. It must be done right at first instance. This is not something that individual traders can do. If Olyphant & Co of Canton is the only firm to sign the proposed opium pledge in November, and we hear of no other China traders holding the same views, it will make all the other China traders appear incorrigible.
There was a British trader many years ago who abandoned his bright pecuniary prospects because he would not join a company operating an opium agency in Canton. He left here and returned to England, but such people are rare.
Worse, fear for the future prospects of opium speculation is likely to increase today’s importation in anticipation of none tomorrow. This ‘pledge’ idea may do more harm than good.
Whilst the Viceroy does not encourage the trade, he does little to put it down. We think he will not believe individual foreigners who say they will willingly forego involvement in the business. It should be done by governments. If the British government would take the lead it should first enquire of those involved in the trade. The connivance of Chinese officials will make it difficult to stop. If Britain offers to abandon opium in return for China opening additional ports to our trade, the Emperor will likely refuse. He is more concerned with maintaining his Manchu dynasty than caring for his Chinese subjects.
Vol 11 No 38 – 18th September 1838
Letter of Admiral Maitland to Elliot – HMS Alligator (Sir J Bremer) is sailing to Australia to establish a colony on the north coast to be called Port Essington. This area is regularly visited by the Bugis traders who go there to harvest beche-de-mer. The purpose of the colony is to provide a sanctuary for seamen who are shipwrecked in Torres Strait. At present they have to sail or row to Timor.
I wish to publish this initiative in India and China. The few people presently at Port Essington are obliged to buy their building materials at inflated prices from the Dutch on Java. Perhaps there will be a trader somewhere who is willing to send a ship?
Vol 11 No 51 – 18th December 1838
The Russians are sending 10,000 troops across the Caspian to attack Herat. Should they succeed the whole province of Khorassan will be theirs and the Company will have a common frontier with the Tsar. Russia should realise that any move on Herat will be viewed by us as aggressive and brings the possibility of a European war into focus. This will be a naval war focused on the Baltic and Black Seas (where the Russian fleets are based).
To prevent this the Company is supporting Shah Shooja, the ex-King of Kabul. A forward party of 6,000 men has been sent to his assistance. Another 14,000 from Bengal and 10,000 from Bombay are preparing to depart for Afghanistan. A force is also reported to be preparing to leave England. It will have to pass through Sind to get to the war. Sir Henry Fane will command our forces.
Vol 12 No 6 – 5th February 1839
The Calcutta Englishman, 22nd October 1838 – The India Company’s Declaration of War on Afghanistan and Persia, 11th October 1838:
The Governor-General says the 1832 treaties with Sind, Bahawulpore and the Sikhs (Rajah Ranjit Singh) were all intended to open the Indus to our navigation, extend our commerce and increase our influence in central Asia. In 1836 Captain Burnes was sent to the de facto ruler of Afghanistan, Dost Mohamed Khan at Kabul, to arrange commercial matters. While on his way Burnes learned Dost Mohamed had attacked our ally Ranjit Singh. This was likely to produce war in an area where we wanted to trade. Burnes told Dost Mahomed to settle with Ranjit Singh and we would assist in the process. Ranjit Singh agreed to Company mediation and suspended hostilities.
We then learned that a Persian army was besieging Herat and Persian agents were intriguing in Afghanistan to extend Persian influence across the Indus. The British mission in Persia was insulted and it appeared the country was pursuing policies at variance with the terms of its alliance with us. Dost Mohamed was implacably opposed to Burnes and relied on Persia for aid. He persisted in his unreasonable misunderstanding with the Sikhs and made demands which the British government of India could not recommend to Ranjit Singh. Dost's policies endanger the security of British India and, as matters progressed, he openly called on Persian aid thus compelling Burnes to leave Kabul.
Our wishes to settle the differences between the Sikhs and the Afghans cannot progress while Dost remains de facto ruler in Kabul.
The siege of Herat has continued for months in spite of British protests and after our many offers of accommodation had been all rejected. The ill-will of Persia to England has been manifested and our envoy has been withdrawn. We now intend to raise the Persian siege. The acts of Persia in Afghanistan are directed against British interests and the Shah has been informed of our opinion. Dost's brother, who is chief of Kandahar, has been openly assisting the Persians against Herat.
In these circumstances we have re-evaluated the rival claim of Shah Shooja-al-Moolk to the throne of Kabul. He was previously helpful to us and is now living in asylum in India. We have already assessed the Barukzye chiefs for leadership but their disunion and unpopularity disqualifies them. We tolerate them provided they do not act against us but they are also injuring our interests.
The welfare of our Indian possessions requires a settled border in the west with good neighbours. Those western neighbours are now subservient to Persia which is hostile to us. We have decided to promote Shah Shooja-al-Moolk as King of Kabul and, in justice to our long friendship with Ranjit Singh, we have invited him to join us in a punitive attack. MacNaughten has concluded a tri-partite agreement with Ranjit Singh and Shah Shooja-al-Moolk whereby Sikh borders are guaranteed in return for Sikh assistance in placing Shah Shooja-al-Moolk on the throne at Kabul.
A guarantee of independence is offered to the Emirs of Sind and the integrity of Herat under its present ruler will be respected. Shah Shooja-al-Moolk will enter Afghanistan with his own troops supported by a British army. We expect the Afghan people to themselves overthrow Dost. Once Shah Shooja-al-Moolk is installed the British army will leave. The proposed measure will secure our western frontier and stimulate trade in Afghanistan.
Vol 12 No 11 – 12th March 1839
India Gazette 24th December - The Portuguese Viceroy at Goa was assassinated on 25th November 1838. An unknown assailant shot him three times while he was dancing. The archbishop and Jose Antonio Quoroda Pomicia have jointly assumed the government. Army units have been dispersed throughout the territory to prevent their acting in concert against the administration.
Vol 12 No 11 – 12th March 1839
London Globe, 5th November - Sir James Rivett-Carnac (the Company’s Chairman) has been nominated Governor of Bombay Presidency replacing Sir Robert Grant.
There is a standing Company order that no Director can become an administrator in India until two years after his directorship ended. It seems Sir James will not be able to take up the post.
Sir Wilmot Horton is rumoured to want the job.
Vol 12 No 21 – 21st May 1839
Alexandria Gazette – British India is perpetuating the slave trade with a new system. The inhabitants of the hill districts, called 'hill coolies', are being systematically transported to Mauritius and British Guiana. It is proposed to soon send some to the British West Indies as labourers.
London Spectator – Lord Glenelg is patronising a new slave trade. The trade in 'hill coolies' is becoming extensive. The Whitby has just arrived in West Indies. Out of a cargo of 289 coolies, only 8 died and few were ill. But only 8 female companions were sent with the men. They will need to form a self-sustaining community because the negro slaves speak a different language and will not mix with them.
Editor – these 'hill coolies' volunteer for service and they are well paid. The system may be abused – we have crimps supplying the navy – but it is not a slave trade.
Vol 12 No 23 – 4th June 1839
The Calcutta Englishman – Our explorers rush off to the poles or leave their bleached bones all over Africa, but they seldom explore the Eastern archipelago. From what little we know, this area has more mineral wealth than the Americas. It is unrivalled in natural beauty.
It is accordingly satisfying to announce that James Brooke, the Yacht Club member, is mounting an expedition in his yacht the Royalist, a 140 ton schooner. She has been equipped to make all sorts of observations and for the safe keeping of natural history specimens.
The ship will proceed to Singapore for interpreters and pilots. They will contact the Bugis merchants and seek for their goodwill in the usual way (civility and presents) to avoid any jealousy as trading rivals.
Vol 12 No 25 – 18th June 1839
The Observer, 10th February 1839 – The Russian Tsar has disavowed any hostility to India and considers the lands beyond the Indus to be surplus to his needs. He says he approved the Persian siege of Herat because the inhabitants around that town were continually rebelling. It appeared to him that the pacification of Herat was essential to the tranquillity of Persia.
Vol 12 No 28 – 9th July 1839 (actually published 12th July)
Bombay Times, 11th May - Maitland has arrived in the Wellesley at Bombay from Persian Gulf on Thursday night. He plans to stay a few days and then sail to Ceylon. He has withdrawn the British Resident from Bushire because the Persian administrator of the port is harassing Englishmen by withholding supplies from ships and demanding the Royal Navy use the public landing place in town (where their goods and persons are subject to Customs inspection) instead of the British Resident's private landing place.
Maitland led a force of several ships and thousands of men. The administrator of Bushire reports to the Prince at Shiraz whom we will influence to control his subordinate. In the interim Colonel Sherrif went to Bushire to patch-up things and the Administrator asked him if it was to be peace or war. The administrator said that if the Resident wished to return he would have to petition the Prince at Shiraz for permission. The closure of the Residency will disturb the British merchants of Bushire as it was their sanctuary in the event of an attack.
Vol 13 No 3 – 21st January 1840
Calcutta Courier, 4th Sept 1839 - The famine of 1837-38 in the upper part of Bengal province is believed to have killed over half a million Indians. This is in a country of unequalled fertility where much of the land remains unutilised and under jungle. We should do more to promote the welfare of Indians and British understanding of the country.
To this end the following subscribers have decided to form a British India Society to improve the conditions of the natives. They will publish and widely circulate impartial information on the state of Indian society. They will assemble a suitable library and print a periodical publication of their proceedings. The provisional committee is Jonathan Backhouse, John Bowring Ll. D., Sir Charles Forbes et al.
Vol 13 No 12 – 24th March 1840
As a result of the successful conclusion of the Afghan War, numerous officers have been recognised and the Russian Persian Company has been disbanded by the Tsar. Colonel Pottinger is made a baronet. The Shah of Persia has acceded to all our demands and diplomatic relations will soon be re-established. A commercial treaty will probably be one of the first fruits of victory.
The Morning Chronicle says ‘it is not so much the commercial advantages that will flow from victory as the improved security of our Indian possessions that results from prospective alliances with Persia and the central Asian states. The distrust between England and Russia is also reduced.
Vol 13 No 13 – 31st March 1840
India Review - Rustomjee Cowasjee is distinguished by appearance, habits, religion and enterprise. The Orientalist Wilford traced the exodus of the Parsees from Persia to the years 632-33 AD. Other Persian immigrants to India at that time were the Mahrattas and Ramas. Richie tells us that the Parsees are the most intelligent of the Bombay natives.
They were originally ordered in four castes. The first emigrants were artisans, many of whom became wealthy and were rewarded with leadership of their community. They displayed that common characteristic of a minority in liaising closely together for mutual benefit. In about 1800 AD the system of patronage operated by the wealthier Parsees broke down and the poorer members were thrown upon their own efforts. This produced a spirit of independence in the group. The group now has connections with almost every trading firm in Bombay.
The Company tried to restore the moral power of the higher Parsees by means of their punchayets12 but found it impracticable. The main difficulty arose from the increased numbers and wealth of the Parsees. Most of them preferred the British Indian courts to the restraints of the punchayet. These are the people who produced Rustomjee Cowasjee.
He was born in Bombay in 1790. He received a business education and entered trade in 1806 in partnership with his brother Framjee Cowasjee. In 1812 Rustomjee went to Calcutta, Madras and Ceylon. The following year he returned to Calcutta and from thence came on to China. He stayed for three years. He returned briefly to Bombay in 1817 and then came back for another three years. In 1820 he went to Calcutta and remained there, sourcing cargoes for his ships. In 1838 he brought his female relatives to Calcutta, reportedly the first time female Parsees had left Bombay since the emigration from Persia. He has five sons and one daughter. The eldest boy Dadabhoy is 28 years old and works here in China. All the other boys are in Calcutta working with their father. Rustomjee is Secretary to the Calcutta Douking Company, a joint-stock of 800,000 Rupees capital, and both he and his 2nd son Manackjee are shareholders in this company. Rustomjee is the owner of the ships Cowasjee Family, Rustomjee Cowasjee, Sylph, Mermaid and Bremar. He trades mainly with Bombay and China in cotton and opium.
His brother Framjee Cowasjee is a liberal donor to Elphinstone College in India and owns a splendid estate called Povoy about 10 miles out of Bombay where he grows sugar, indigo, etc.
Rustomjee donated 100,000 Rupees to build a Parsee church.
Vol 10 No 20 – 16th May 1837
Laing’s Residence in Norway – A group of Scandinavians called berserkers take a drug13 to make them insensible to pain or danger and briefly give themselves supernatural strength. The intoxicant is an ale but instead of hops they use the leaves of a marsh plant called Paast for flavouring.
A gentleman at Hardinger who has drunk it told me (the Canton Register Editor) he has no doubt it is the source of the berserkers’ energy. As the effect diminishes it is followed by a period of gross lethargy.
Vol 13 No 22 – 2nd June 1840
Tea in cakes forms an important staple of trade at Kyakhta. The Marquis of Londonderry in his ‘Recollections of a Tour in the North of Europe’ says the tea is mixed with the leaves of a plant of the saxafraga genus found on the Mongolian steppe. This additive is steeped in lamb’s blood before being mixed with the tea and dried in ovens. The drinker dissolves a piece of cake in boiling water and adds meal, fat and salt. All the nomadic tribes of central Asia are said by the Marquis to drink this infusion.
Vol 13 No 24 – 16th June 1840
The Bombay Gazette of 30th March carries a lamentable report of the loss of the transport Hannah at the mouth of the Indus shortly after sailing from Karachi on conclusion of the War. She carried 300 men of HM 17th Regiment and some 150 camp followers who all providentially survived but the ship itself has been lost and it contained all the clothing, arms and equipment of the regiment, its mess plate together with the loot from the battle of Kalat. All the jewels and prize money have gone.
Vol 13 No 24 – 16th June 1840
Bombay Courier, 25th April - The Portuguese Viceroys of Goa have become unlucky chaps. Baron Sabroso arrived in November 1838 but within a year he fell out of his carriage and died. The Archbishop succeeded him as Acting Viceroy but died five months later. Meanwhile, Baron Candal had been sent out as replacement. He arrived in November 1839 but has now died of fever associated with a cancer on his back.
Vol 13 No 25 – 23rd June 1840
Extract from Maxwell’s Life of the Duke concerning the Indian Sepoy:
The Indian army is commanded by British officers and is second to none in efficiency. The sepoy in battle is as gallant and as disciplined as a European soldier; in camp he is better in sobriety and general conduct. The Hindu is calm and resolute in danger; his fidelity is unbounded; his loyalty unshakable. Want and suffering can never induce him to desert – only death detaches him from the colours. His character unites the mildness of a woman with the indomitable courage of a hero. In many ways the Indian auxiliary is a model to every army in Europe. He could make-do with discomfort, pain, hunger, thirst and death but he would never abandon his faith.14
Vol 14 No 29 – 20th July 1841
At the election of new Company directors in April 1841, Plowden was successful along with five other applicants.
A statistical review of entrances and clearances of British shipping in and out of the Company’s domains in 1839 and 1840 shows a near doubling of registered tonnage trading to India.
Vol 14 No 48 – 30th November 1841
The Portuguese are producing tea in Brazil and the Spanish likewise in Paraguay. Since the war English importers have been investigating this supply and contracting for sample shipments. It is called Paraguay tea or maté and is made from a plant like the camellia but bigger. It has a bitter taste like Bohea.
Vol 15 No 9 - 1st March 1842
South Africa Commercial Advertiser, 30th Oct 1841 - The Royal Navy’s anti-slavery patrols off Angola have returned to Simon’s Bay (Simonstown) after a cruise of 16 months with 33 slave-trading ships and 3,427 negroes.
Friend of China 14.3.42 edition
The military disaster at Kabul is the worst incident in the Indian government’s history. When the Lion of the Punjab (Ranjit Singh) took Afghan’s fairest province, Dost Mahomed, the ruler of Kabul, and his brothers the rulers of Kandahar appealed to the Company for help but Bentinck was required to pursue an economical policy. He could not involve the company in territorial aggrandisement and he declined to oblige. Dost then applied to the Shah of Persia. The strong Russian influence at the Persian court was thus introduced into Northwest India. When Lord Auckland replaced Bentinck he immediately sent a supporting force in 1836-7 but Dost was still angry with England and rejected our assistance.
The mission’s object on this occasion became the removal of Dost, reinstatement of our old friend Soojah, whom Dost had dispossessed of the crown, and the declaration of the independence of Afghanistan from Persian/Russian influence. Of these aims, only Soojah was restored but he was so despicable, his subjects threw him out again. Our latest mission was thus opposed to a popular King and this might explain the force of feeling against it.
When Sir Wm MacNaughton went out to parley with the insurgents to obtain better terms for British withdrawal or a delay until reinforcements arrived (which the Afghans suspected was the case) he was shot and killed with his party and only two men (Capt Lawrence and Lt Connolly) survived as wounded prisoners. Mohamed Akbar Khan said ‘I have given you food and camels but still you are here’. MacNaughton replied that the weather was unsuitable for travel. He offered many advantages to Akbar if he would permit delay. Akbar was angered, MacNaughton rose and Akbar shot him. Capt Trevor was then cut down and two Indian escorts killed. The two other British officers were wounded and captured. They were held as hostages with Capts Drummond and Walsh, Lts Eyre, Webb and Warburton who were all previously in Soojah’s service.
The evacuation of the force and its subsequent annihilation en route to Jallalabad demands retribution. The Company’s expedition was denounced by the Duke of Wellington and disapproved by Ellenborough, who now has the job of restoring British honour.
Vol 15 No 13 - 31.3.42 edition
A report of 1.9.41 from Egypt indicates Aden will be a new Gibraltar of the East. The Arabs have ruined the coffee trade of Mocha and Odeida by overtaxing it. The Company has acquired Tajoum which is the only Abyssinian port that permits access to the interior. Hitherto access had required the permission of the governor of Aden. All the ports along the west coast of the Red Sea are under British influence and we can keep the French out. Mules, sheep and coffee are all available at very reasonable prices. There is a large slave trade. The women are dark but comely (they are Somalis), unlike the Africans. Boys and women are cheaper than horses and mules. If our influence predominates we can end this traffic.
Friend of China 7.4.42 edition
Notice from Fort William: intelligence from Kabul notes the British force there maintained its positions for six weeks against overpowering forces but finally had to make terms as their food ran out. They retired east towards Jallalabad but were pursued, harassed and suffered extreme disaster. Reinforcements are being sent to reassert British honour and interests.
Friend of China 7.4.42 edition
The Colonist says that the value of spirits consumed in New South Wales exceeds £2 per head per year whilst the consumption of opium by the Chinese community does not exceed 3d per head. The Aussies are spending 200 times more on booze than the Chinese spend on their own Drug of choice.
Editor - Indulging in the use of opium is, with the Chinese, far less subversive of individual duties and social rights than the immoderate use of ardent spirits.
Friend of China 7.4.42 edition
A group of six German missionaries recently passed through Nagpore travelling North to settle themselves on the Nerbudda in Malwa.
Vol 15 No 16, 19th April 1842
The great Calcutta agency house of Scott Fairlie and Co has failed.
Friend of China 21.4.42 edition
About 100 years ago we took possession of the Falklands islands after a war with Spain. Dr Johnson got a pension from the Crown for writing a pamphlet urging their retention. Now as a result of a dispute with Buenos Aires we are making them real colonies.
The land is on sale in London at 12/- per acre. It would be a great place for a penal colony now transportation to New South Wales and van Dieman’s Land is being stopped.
Friend of China, 21st April 1842:
Recited from the Sydney Gazette of 1.6.41 - Mr G R Dunlop is coming from Sydney to the Indian isles and China to select labourers for emigration without charge to them beyond the actual cost. The last harvest in New South Wales could not be collected due to lack of labour and whole fields of wheat rotted. The Sydney press supports his initiative.
Friend of China, 21st April 1842:
Mr Lyall, son of the Chairman of the India Company, has been nominated to succeed Lawrence Peel as Advocate General of Bengal. Peel becomes Chief Justice of the Supreme Court at Fort William
Friend of China 21.4.42 edition
Mr Allen, an American missionary in Bombay, reports the Jains there have established a hospital for animals where 50 old horses, 170 cows, 200 dogs (for whose heads a bounty is paid by the government) and numerous cats, monkeys and other animals are cared for.
Meanwhile humans die daily in the streets. They are excluded.
Friend of China 21.4.42 edition
The Sydney papers are asking what residents are entitled too. The last administrative legislation affecting Australians was Bathurst’s Act of 1823 when the population was 30,000 of whom only 16,000 were free. Now New South Wales has 140,000 residents of whom only 23,000 are convicts. London neglects its colonies. The 1823 Act was provisional for 4 years but is still unamended and in full force.
Friend of China 21.4.42 edition
The new colony at Port Essington (across the bay from Darwin) is providing a refuge for distressed seamen navigating the Torres Straits. The previous alternative was Timor which is very far. Dr Earle, in his recent publication on Borneo and the Eastern Seas, has provided much information on this colony.
Friend of China 21.4.42 edition
The Under Secretary of State for the Colonies Mr Stephen (known popularly as Mr Mother Country) has insisted Auckland, where 300 Europeans reside, be the seat of government in New Zealand. At Port Nicholson (Wellington) there are 4,000 Europeans.
Vol 15 No 17, 26th April 1842
Boggs Taylor & Co, another East India Agency at Calcutta, has suspended payments.
Vol 15 No 17, 26th April 1842
The 74 regiments of the Bengal army are to be augmented by the addition of an extra company each, making ten companies of totally some 1,200 soldiers per native infantry regiment. In Bombay the additions will total 2,600 and in Madras 5,400 making with Bengal a total increase in the Company’s army of 16,000 men.
By increasing unit size, the Company saves on European officers but makes each regiment unwieldy. HM regiments have about forty officers while the Company’s will have fifteen subsequent to this augmentation.15
Friend of China 28.4.42 edition
News from Kabul. Dr Brydon has returned to Jallalabad and described the annihilation of the entire expedition of 4,000 – 5,000 men. Six officers were given up as hostages and the sick and wounded left at Kabul. The force marched out of Kabul on 6th January under a safe conduct agreed with Mohamed Akbar Khan but was immediately and continually sniped upon. It appears Khan had required that the guns be left behind but General Sale refused to do so.
On the 3rd day the ladies of the party were sent back to Kabul under Khan’s supposed protection. Actions occurred at Huftcotal and at Tezeen where Generals Elphinstone and Shelton were captured. About 200 men survived to continue to Jugdulluk but Brydon separated from them on 12th Jan and reached Jallalabad the next day. A native trooper has also arrived here but, after 7 days wait, no further survivors have turned-up. About 160 officers have been lost.
Friend of China 12.5.42 edition
Cochin China and Thailand have a long standing dispute.
The Thais have sent 5 warships and 40 warjunks to Cochin China with 2,000 – 3,000 men. There are already many thousands of Thai men along the frontier between the two countries. Contention has arisen over the status of Cambodia which was formerly a Thai vassal. The Cambodians have asked Cochin China to protect them whilst the Thais wish to restore their former position.
It is reported that the Thais advanced on a frontier fort which was surrendered without a fight. When they occupied it, it blew-up.
Friend of China 12.5.42 edition
The Russians have been defeated by the Circassians. This is becoming a disastrous war for Russia and is lasting too long. It would be honourable of England to intervene with Russia to prevent the enslavement of these people.16 Does it not diminish the prestige of powers like France and Russia when they are stopped by Algerians and Circassians?
Friend of China 19.5.42 edition
8 years of labour (1833 –1841) has allowed Java to increase its coffee harvest from 12 to 55 million kgs and its sugar harvest from 7 to 50 million kgs
Friend of China 12.5.42 edition
Kabul : We now hear from letters of prisoners that an insurrection broke out in the city on 21st November and the Envoy, who was always keen on offensive action (whereas Elphinstone favoured the defensive), immediately sent an officer to the King, Shah Soojah al Mukh our candidate for occupier of the Durani throne. The messenger was attacked and fired upon but got through. He persuaded the King to permit Brigadier Sheldon’s two regiments and Capt Nicoll’s troops to take possession of the Bala Hissar from whence the shelling of the city emanated.17
The following day the insurgents took possession of the commissariat fort where all the stores etc of the British expedition were kept. Our cantonments had been drawing only 2 days reserve of atta so an immediate panic arose. On the previous day Sir Alexander Barnes, Capt Barnes and Capt Broadfoot had been killed. Capt Johnston’s treasury was also lost. Another fort, also used for storage, was attacked but Capt MacKenzie defended it for 3 days until his ammunition ran out. MacNaughton (the Envoy) captured two forts which contained some grain. Fighting continued all the time and many officers were killed. Then news of the destruction of Codrinton’s corp at Chareekar arrived.
After some days Brigadier Sheldon’s force was recalled from the Bala Hissar to the cantonment. He returned with one regiment but still the Envoy’s recommended offensive action was not commenced as General Elphinstone had concluded that the position was hopeless. The troops thus became despondent. Whenever they went out to clear enemy positions they were in small numbers and barely adequate to the task. The continual sniping kept them down as their food was incrementally expended. Then they found the bribes etc., paid for a supply of atta from the Afghans were no longer adequate and our reserves were only 6 days. Capt Connolly, who was with the king, suggested retiring into the Bala Hissar to which the envoy agreed but the force commanders thought the troops were no longer reliable. So the remaining regiment in the Bala Hissar (the 54th) was withdrawn and the king was left alone.
The Envoy continued to eschew negotiations until he heard that the brigade expected from Kandahar had gone back; General Sale’s brigade at Jallalabad was busy, and no assistance could be expected from Peshawar. Then he complied with the General and other C.O.’s wishes and put out feelers for a treaty. Several conferences were held at which Akbar Khan took a leading role and 20 articles were drawn up in Persian and approved. The native chiefs wanted the matter concluded quickly and sent a message through a cousin of Akbar’s to that effect on 22nd December. On the next morning MacNaughton, with Capts Lawrence, MacKenzie and Trevor went to the conference but within 5 minutes they were all seized. The party was tied and required to mount horses. The envoy refused and Trevor fell off. They were both killed. The other two officers were taken away behind mounted Afghans. The natives chopped at them but did not fire for fear of wounding the Afghan escorts. They were imprisoned for a few days and after interviews with Akbar were returned to our cantonment on 28th Dec.
The treaty negotiations were then taken up by Major Eldred Pottinger and on 6th January the force marched out over a foot of snow. It reached Beegroma unmolested apart from some casualties in the rear guard. On 7th Jan it moved to Bareekhar fighting a rear guard all the way and losing three mountain guns.18 The numbers of irregulars pursuing the force and collecting its lost baggage etc., increased hourly. The next morning they awoke to find the camp was surrounded.
Capt Skinner rode out to parlay with Akbar who blamed the British for leaving town before the troops he called for their protection had been assembled. He said only he could control the sniping tribesmen. He was willing to exert discipline on the tribesmen if the British gave six hostages and agreed not to move beyond Tazeen until Sale’s brigade had withdrawn from Jallalabad. He requested Capts Lawrence and MacKenzie as hostages and Major Pottinger, who was lame from a wound, volunteered to join them. The Khan appeared satisfied and the British force marched on to Khoord Kabul but the Sirdar could not restrain the tribesmen who continued to attack. When Akbar and the hostages followed-on they came upon a carnage. The remaining gun was unattended. Some children had been carried off. Only four women and a wounded soldier survived.
The next day Akbar said his men were uncontrollable and the only hope of the survivors was to take his protection. The women and hostages were halted for 1-2 days then continued on to Jugdulluck finding the road covered with dead and dying. Many of our dead were uninjured but frozen. At Jugdulluck the remaining troops made a stand in an abandoned fort until 30 rounds each were left. They tried to negotiate and Akbar called Elphinstone, Brigadier Shelton and Capt Johnson to attend him but when they came out they were cut down by the troops. The remaining hostages are at Buddiabad. The details of the 20 articles agreed are unavailable but one, presumably, is the restoration of Dost Mohamed as King.
Editor - People are going to ask how a well-provisioned army occupying a defensible post, generally an army better provided than that of Clive or Coote, could have been annihilated.
Friend of China 12.5.42 edition
A copy of the Friend of India dated 24th April says General Sale at Jallalabad was attacked by 2,500 cavalry and infantry under Akbar Khan but without much effect. A large supply of munitions reached Peshawar on 6th March.
Friend of China 19.5.42 edition
The Afghans have adopted the course of action that we taught the Spanish to use against the French in the Peninsular War. The Spanish defence was formerly characterised as noble and honourable by England.
The progress of British India has been checked and the cause of the Russians advanced. If we take any further action it should not be a war of retribution but the annexation of the Punjab. This is the only worthwhile province of Afghanistan and its possession will give us a frontier on the Indus which provides a natural frontier between British India and Afghanistan.
Friend of China 2.6.42 edition
Investigations preparatory to Courts Martial re Afghanistan have produced the following recommendations:
Major General Elphinstone for misdirection generally.
All political officers at Kabul.
Lt Colonel Palmer for surrendering the citadel of Ghuzne.
The direction and conduct of the troops at Kabul.
Friend of China, 2nd June 1842:
The export of sugar from Calcutta has tripled in the last 3 years. In 1839 it was 587,000 maunds, in 1842 it was 1,592,000.
In England 33 tons of untaxed sugar made from potatoes was recently seized by the Excise. A large processing factory exists somewhere in London and its production is used by the grocers to mix with East Indian sugar.
A large quantity of slave-grown coarse sugar was recently introduced into London via the Channel Islands. The duty is much less and, after processing, is still a saving of 10/- per ton.
There is a north China supply of bing tong (a solid brown sugar) at $2 - 2½ per picul which should be admissible at a lower rate than slave sugar and could thus find a market.
Friend of China, 9th June 1842:
The Union Bank of India, Singapore Branch, ceased discounting bills on 6th May at the direction of its head office in Calcutta, apparently due to the state of monetary affairs there.
We hear capitalists in London are arranging to open a bank here in China. The convenience of having paper money is attractive but all the colonial banks print too much, then the money gets too cheap and trade is destroyed by mad speculation. Finally the bank reduces the issue, credit tightens and a panic ensues. This has happened repeatedly in England and America and we don't want it introduced here.
Friend of China 16.6.42 edition
Afghanistan: The entire 27th Regiment of Native Infantry is rumoured to have been annihilated by the Ghazees. Peshawar has fallen to the Afghans.
General Pollock’s relieving column has crossed the Khyber Pass and is within 2 days of Jallalabad. Learning of his approach General Sale sallied out from Jallalabad with 1,500 men and routed Akbar Khan’s 6,000 besiegers. The enemy camp was taken and two of our standards and four of our guns were recaptured.
Friend of China 23.6.42 edition
The Heir Apparent in Siam is Chow Fah, an enterprising man who introduced ship building along western lines in Bangkok. Thailand now has six ships of 200 – 800 tons. The first attempts were not too good but the latest are strong and sail as well as anyone’s. They were first deployed trading with Singapore but this year they have been armed and sent to Cochin China for the war.
Prince Chow Fah has consulted visiting foreign ship captains and also mastered navigation. He understands enough English to use it in his mathematical studies. He drills his crews personally and requires orders for gunnery exercises to be given in English too. He has a few hundred Cochin Chinese prisoners. In the recent expedition to Cochin China he was commander in chief of 5 ships and 45 war junks.
His palace is furnished in the foreign style and many westerners stay there when in Bangkok. He also often visits the European and American residents and they visit him. The ladies of his palace have visited with the American ladies of Bangkok. His eldest son, now 3-4 years old has been given the name George Washington. His mother, the late Queen, died in 1838. While she lived, the Prince was obliged to prostrate himself before her in the custom of the Thais.
A Siamese prince when travelling in public is escorted by 15-20 servants. One carries his sword, one his betelnut box, one his teapot, one his cigar box and tinder, one his watch. Others propel his boat. The sword bearer goes in front of the Prince and all the others walk behind. All the Thais prostrate themselves as before a superior but the Chinese community withhold this sign of veneration and merely stand erect and motionless. This is ignored or made the subject of a joke by the Thai princes. Chow Fah is popular with the Chinese who call him O Che Wang (the Fukienese equivalent of ‘black-tongued king’)
Friend of China 23.6.42 edition
Maulmein report (extract from the Maulmein Chronicle reported in the Singapore Free Press, 12th May):
Many more Shan traders are coming to trade this year. Those Shan states to the north and east of Burma are dependencies of Thailand. The Shan states beyond them are dependencies of Ava &/or China and some few are independent.
The Shan traders bring ponies, silks and lacquerware. They say they have to find new routes to evade obstructions to their trade. They say Chinese merchants also want to trade at Maulmein but are prevented by the Chinese officials at Chiang Mai.
On the right bank of the Salween are the red Karens who assert independence but are often attacked by forces from Ava. The Siamese Shans are constantly at war with the Burmese Shans. The red Karens catch members of either group and sell them to the other as slaves. The red Karens say they have applied for the protection of England but received no response. Their country contains huge seams of tin in the hillsides, not the alluvial stuff, but rich tin ore. The tea plant flourishes in the north east of Burma but the area is so unsettled it could not safely be brought out. We should visit the area annually and try to make friends with the natives.
Editorial - This extract shows our trade is pushing close to the south-western borders of China. Chinese merchants trade at Chiang Mai and, but for the war, would probably come on to Moulmein. It (Moulmein) is a city of 25,000 people who do business with Yunnan, Bangkok and Ava. The area all about is densely populated and the people are intelligent and prosperous. The climate is very comfortable.
Vol 15 No 26, 28th June 1842
Friend of India - Six great Calcutta Agencies have stopped payments due to the financial problems of the London East India houses. They are Cantor & Co, Boyd & Co, Bruce Shand & Co, Gilmore & Co, MacLeod Fagan & Co and Harrison Brothers & Co,
J W Cragg of Bruce Shand & Co has drowned himself in the Hoogly.
Nevertheless, the Friend of China 23rd June edition notes that the reduction of the money supply that was forced on the Calcutta banks (by government’s withdrawal of funds from the market to fight the war with China) has ended, silver is returning to Calcutta from China and the money market is loosening. It says confidence should return and prices become stable again.
Friend of China 30.6.42 edition
Recital from the Delhi Gazette:
The Kabul prisoners are being well treated. Capt Colin MacKenzie has arrived at Jallalabad from Kabul to negotiate the terms of their return. He says he saw Akbar kill MacNaughton and believes Soojah was implicated in the outbreak. Elphinstone, luckily for him, died on 23rd April. Monteath’s and Rolton’s brigades have had to be merged to make up numbers. The scarcity at Jallalabad is severe and the sale of dead officers’ effects is attracting high prices.
Vol 15 No 26, 28th June 1842
Friend of India – The commercial problem in Calcutta was triggered by the failure of Boggs Taylor & Co in London which company precipitately declared itself bankrupt without hinting anything to the market thus disabling rich and poor alike from extricating themselves.
Taylor, who is influential with the ‘great house with pillars’ (the Company’s India House head office at Leadenhall St), got a cushy job within a month as Master Attendant at Calcutta on a salary of GBP3,000 pa while one of his victims (Craggs) killed himself.
Editor - Actually Capt Rogers got the Master Attendant’s job on the recommendation of Bremer for services rendered in China. We do not know what job Taylor got eventually.
Vol 15 No 26, 28th June 1842
The London East India firm of Forman Hadlow & Co has failed with liabilities of over £100,000.
Vol 15 No 26, 28th June 1842
The Company’s Court of Directors has instructed Calcutta to cease advancing money for crops grown in India as the investments have become considerably loss-making. They commend a gradual reduction of advances to avoid disturbing the Indian economy.19
Canton Register Vol 15 No 27 - 28th June 1842
A series of bankruptcy actions have been held in London in March 1842 against numerous East India merchants. These companies failed subsequent to the collapse of Calcutta finance. All the debtors have personal debts of £100,000+ and assets of rather less. Cantor, Cockburn, Taylor, Shand, Fairlie, Hare and Scott and others are the involved merchants – it’s a ‘who’s who’ of the India trade.
Friend of China 30.6.42 edition
The disastrous news from Afghanistan has prompted the home government to sent 10,000 British troops to India. All the infantry will get the new percussion lock rifles. The total augmentation of our Indian forces to date is 15,000 men.
Friend of China 7.7.42 edition
Arrangements are being made in London for a fortnightly overland communication with India.
Friend of China 7.7.42 edition
Experimental cultivation of flax in India has been successful. Flax and hemp grow well there. We should also introduce Ma Bo (the Chinese grass cloth plant). It would thrive in India and obtain the sort of price that Belgian flax obtains in London; indeed a French source tells us it is superior to flax. Specimens given to French lace manufacturers were said to be suitable for their finest work and M Hebert is successfully cultivating Ma Bo in Southern France. By introducing flax and hemp, which are Russian staple exports, into India, we aim a blow at Russian aggrandisement in central Asia more severe than the destruction of her fleets or armies.
Friend of China, 14th July 1842:
In the year ending 5.5.36 the revenue of British India had a surplus of £1,530,000. Last year the deficit was nearly £2,000,000. In the present year a deficit of £3,000,000 is expected. It is inflated by the costs of containing the Afghan outbreak and preparing for the threatened invasion of Tharawaddy in Burma.
Peel should have noted in his budget speech the direct connection between Indian and English finances through the credit mechanism. England is pledged to make good the dividends on Company stock on expiration of its charter. If India cannot pay, England will have to.
All these financial dangers flow from Lord Auckland’s fear of Russian influence in Persia. It is sad that Lord Wm Bentinck did not continue as Governor-General. As England is the final guarantor of the Company’s debt, it would make sense to raise any loans for India in London where the cost of funds is so much less. Everyone knows the new India 5% loan is only slowly receiving subscriptions and many say a 6% loan will be necessary. In London the money could be had for 3½ - 3¾%. Foreign and American securities have lost us millions which could have been safely invested in Indian and Colonial stocks. It was not long ago that the Indian Government had to pay 10% for money.
Friend of China 14.7.42 edition
A terrible storm hit Calcutta on 3rd – 5th July causing much death, damage to property and shipping. 40 ships ran aground or hit each other and were totally lost. Small boats have been completely shattered with contents lost. Two of the new iron steamers went down. The Globe and the Symmetry went down off Kedgeree with only 5 survivors. A budgerow was swamped and found to contain four bodies, two of them ladies. Full details are awaited.
Friend of China 14.7.42 edition
Letter from Siam - Opium has long been illegal here but is brought in junks from China and in English and Arab ships from Singapore and Bombay. The users are mainly Chinese but some Thais smoke it.
By 1839 consumption had became so widespread the King ordered imprisonment and confiscation of property for those who persevered in its use. The habit was taking money out of the country and not returning anything to the King’s coffers. To some who were addicted he permitted a reduced daily quantity while they discontinued the habit.
As a result of His initiative some 500 chests were surrendered, thousands of Chinese were imprisoned and others were extorted by the petty officers. Because of the corruption, some innocents have been imprisoned and many guilty remain free. Seizures of the drug continue and the prison population gets bigger and bigger. From time to time the prisoners are pressed into the army and sent off to fight in the war over ownership of Cambodia. This makes room for new prisoners to be taken in.
As a result of the King’s initiatives opium use appears to have decreased but drinking wine has become worse. 7 years ago a drunkard was a rare sight and was treated with disgust. Now it is a daily sight with people of rank and monks amongst the inebriated. We find the vice of drinking is being spread from those who have connection with foreigners – ship’s pilots, interpreters etc. – to the rest of the mercantile community.
The extent of drinking can be gauged from the revenue that the King receives from the alcohol tax farmer. Last year it was 18 piculs of silver (c. $150,000) and the farmer only controls the market in Bangkok and its immediate vicinity. The farmer is a Chinese who arrived here penniless aged 20 years. First he rowed a small boat around the klongs selling pork by the catty. Besides the official duty that he must surrender to the King, he also has to give a catty of silver to each royal prince and smaller gifts to other nobles.
Toddy is sold at 30¢ per gallon so the volume of the market has become huge to provide such a handsome revenue. It is not surprising that some people suspect the suppression of opium was done for commercial reasons. Opium, being contraband, yielded no income to the King’s treasury.
Friend of China 21.7.42 edition
Mr Cameron is the law officer who, on behalf of Lord Ellenborough, is looking through all the papers concerning the disaster at Kabul. We hope the enquiry will not be Burked. Public justice demands that the truth be known.
Friend of China 21.7.42 edition
British East India merchants and their related ship owners, the importers of Bengal rice, are concerned that Peel proposes to reduce the duty on foreign rice from 15/- to 5/- per cwt. They wonder why India does not produce a long grained rice like Carolina rice which is preferred in England and Germany. It does not need Carolina slaves to produce - it can be grown just as well with free labour. The Chinese long grained white table rice would also find a market in Europe under the proposed tariff. We estimate it could be wholesaled at 1½d per lb and we think it tastes better than Carolina and would soon be preferred. The advantage of the reduced tariff will be to Carolina and Java. Carolina rice, once cleared for consumption, is 36/- per cwt. Bengal is 18/- per cwt but the superior grain from Carolina preserves its market. With the duty reduction, Carolina will clear for 26/- per cwt and Bengal will sell for some 8/- per cwt. Java rice which has become popular in North Europe could be imported at a sale price of 16/- to 20/- per cwt. It is comparable to Carolina and would probably take the entire market at that price. This is why the traders and shipowners think the colonial supply is not sufficiently protected.
Friend of China 21.7.42 edition
Thai trade report - The chief commodities of commerce at Bangkok are sugar, sapan-wood, silk, salt, stic-lac, rice, coconut oil, indigo, ivory, betelnut, beeswax, deerhorn and tigerskin.
The extensive teak forests provide good timber for the developing English communities on the China coast. The trees are 4 - 5 feet diameter at the base and 80 - 100 feet tall. It is the Chinese community who cut them and float them down the rivers. They would be delighted to load their junks with spars and planks and ship them to China if they knew they would find a market. The port duties on a junk and its cargo are tiny whereas a European ship has an onerous measurement fee to pay. There are normally 50-60 junks trading from Siam to China annually but our blockade has diminished the number in the last two years. These junks are owned by Chinese in China and Siam and a few by Thais. They sail from Macau, Amoy, Swa Ka (Swatow or Swa Bui perhaps?) and Ningpo and return with mainly sugar, sapan-wood and ivory. If teak export is encouraged we should make a steam- or water-powered saw mill as the present hand sawing that is done in Bangkok is imprecise.
Friend of China 21.7.42 edition
We wrote previously about tin from the Shan States. The Singapore Free Press is drawing attention to alluvial tin from Mergui throughout the Tenasserim provinces and from the Malayan peninsula. A specimen of tin ore from the Karen country has been analysed by Mr Tremenheere of Moulmein and contains 78% metallic tin. Given the duties, it might be good to import the ore to England and smelt it there, same as we recently started to do with copper (which has become a very profitable venture).
Our Cornish experts say it would take but little capital transfer to Banca, Malacca and Burma to supply refined tin from there at the cheapest prices in the world.
Friend of China, 28th July 1842:
Afghanistan - Cat MacKenzie has left Jallalabad for Tezeen bearing General Polock’s reply to Akbar Khan’s proposals regarding the prisoners but the details are unknown. Elphinstone’s body has reached Jallalabad
and been interred in the fort. The London papers allege he was a coward and a fool. All the chief actors are dead
– Shah Soojah, Sir Alexander Barnes, Sir Wm MacNaughton, Brigadier Anquetil, Colonels Orchard and Chambers. H M Govt has informed the Governor-General of India that the entire disposable force of the United Kingdom will be available to him to effect any measures essential to the maintenance of our Eastern Empire.
Friend of China 28.7.42 edition
The rumour is that MacNaughton was plotting treachery. He is said to have asked Akbar Khan to betray Ameenoulah, the soul of the Afghan revolution, and bring him to the conference where MacNaughton had prepared two regiments nearby to seize him. This seems unbelievable but we recall Eldred Pottinger saying ‘the English name is sunk beyond redemption in Kabul’ so perhaps it is true. Mr Cameron has the statements detailing this part of the proceedings and his report is awaited.
Friend of China 28.7.42 edition
The Vansittart was completely destroyed by fire on 3rd June whilst at the outer anchorage at Calcutta. Smoke was seen at 2am coming from a hatch under which the hold contained a cargo of cotton. The fire spread so quickly it is fortunate the crew were able to escape without injury. Only the European carpenter and another died.
The ship carried 6,000 bales of cotton and valuable shipments of Malwa opium all for China. Both hull and cargo are said to be insured.
Damp baled cotton is notorious for spontaneous combustion. The Russians have made experiments into spontaneous combustion. M Georgi roasted 4lbs coffee beans until brown. 2lbs he ground to powder. He then separately tightly tied whole beans and powder in linen. After ¾hr the powdered beans burst into flames and burnt to ash.
Vol 15, No 31 – 2nd August 1842
Bombay Times, 11th June 1842 - The Cornwallis has been burnt to the water in Bombay harbour. A few days ago the Vansittart was also destroyed by fire. Each case is attributed to arson by discontented crew-members. Both ships were about to leave and fully loaded. In each case the Lascar crews had just received six months pay in advance. A very large reward is being offered for information.20
The Cornwallis is an 800 ton teak ship belonging to Khimchand Motichand. It was almost fully-laden with cotton at the time. The ship, freight and cargo were all insured. The Vansittart carried a cargo of fish maws, shark’s fins, opium and ivory for the Canton market.
(NB – two weeks later the Adelaide was allegedly torched as well. It was also fully laden and about to depart Bombay)
Vol 15, No 31 – 2nd August 1842
Sir George G de H Larpent, the East India trader, has ‘retired’ from the representation (MP) of Nottingham
Canton Register Vol 15, No 31 – 2nd August 1842
East India and China Association Annual Report:
…. We addressed the subject of the remittance of Indian revenue in our 2nd year. The Company has since maintained records of the amount of Indian revenue sent home to meet charges arising in England. The records are copied to parliament.
Recently we obtained the Company’s agreement to let us have monthly reports (before the departure of the Indian mail) of the amount of Bills drawn on each Presidency.
The Home Charges approximate £3.5 millions annually. The evil we complain of arises from having two channels for remittance of the Home Charges. First there is the sale of Bills in England payable in India; secondly there are the loans made to the free trade in India and China, secured on their exports to England. We wish the Company to confine the transfer of its capital to the first channel.
We understand that the Court and the Governor-General both agree it would be equitable. City merchants have obtained the Company’s agreement to cease using its Agency at Canton for financing purposes and we understand no advances are now made. The value of Bills issued here Dec 41 – Feb 42 for payment in India is about £375,000. 90% is payable at Calcutta and the balance at Bombay and Madras.
The sum raised from sale of Bills here, payable in an Indian presidency, has steadily increased from £1.2 millions (1838) to £1.3 millions (1839) to £2.0 millions (1840) and is expected in 1841 to be £2.2 millions. The Company intends to maintain its new system and this will enhance commercial stability in its domains.
Friend of China 4.8.42 edition
The recent typhoon at Calcutta caused 6 million rupees of damage. 41 pukka and 367 tiled buildings were destroyed. 625 boats are lost. Of the trading ships 3 are lost, 10 blown ashore and 28 seriously damaged.
Friend of China 4.8.42 edition
40,000 emigrants were sent to New South Wales from United Kingdom last year (c. £900,000 in passages to the India Company)
Vol 15, No 33, 16th August 1842
Naval & Military Gazette – The evils arising from the sale of cadetships in the Company’s army have increased. An infantry cadetship now costs £700. We protest. If it was legal it would appear to equate with the sale of commissions in the British army. But in a cadetship, a solemn declaration is made that no monies have changed hands. Both the parties involved know this is false. What sort of impression does this give to new entrants to the Company’s army?
Friend of China 18.8.42 edition
Capt MacAlpine of the Ann struck a rock in the Basselan Straits on 15th June and was taking 12" per hour but hoped to make Java with his cargo of tea.21
Canton Register Vol 15 No 34 – 23rd August 1842
In 1834 linseed was not exported from India at all. Now Yorkshire cattle are raised on Indian linseed.
Friend of China 1.9.42 edition
The expedition of the Russian General Pesowski to Khiva has strangely frightened our diplomats. We think it demonstrates English strength and Russian weakness. The general has been cooked by day and frozen by night; he has eaten his camels and horses and has been lucky to get most of his force back to Orenburg. In that part of the globe we should let the savages fight each other. All the petty principalities around British India are powerless. A brigade sent here and there to deter robbery is all that is required to control them.
The siege of Herat by the Persians deeply concerned the Indian Government. Herat is a small group of mud huts in the middle of a desert. It is absurd to describe it, as the India Company describes it, as the ‘key to India’. The idea of this siege being the prelude to a Persian invasion of India is silly. Our experience in Afghanistan shows how inhospitable the country is. It is said the Persians have assembled 60,000 men to attack Herat. Let them do so.
Friend of China 1.9.42 edition
Lord Ellenborough has not indicated to his council what he will do about Afghanistan. He is at Allalabad and the council is at Calcutta. For the first time in the history of the British Raj there is no communication between the two.
The armies are in the field and the Company incurs the same expense whether they fight or sit around.
Friend of China 8.9.42 edition
The large fleet that the Thai King sent against Cochin China has returned to Bangkok without attaining its objects. The King is displeased. He is said to intend to fit out another larger expedition.
Friend of China, 8th Sept 1842
Java Tea - The Dutch government has been encouraging tea farming and has brought qualified people from China to organise it. The tea plant thrives in Java. When 4 years old it is 3-4' high and ready for picking. The government has established a factory at Batavia for curing, classifying and packing the tea. It receives the semi-dried leaf from the plantations and fires them at Batavia. Its start-up costs make the product expensive.
All tea comes from the same plant. The green teas are picked and fired. Once heated they are pressed very tightly and worked by hand to exude an oily substance. The black teas are dried in the sun between picking and firing. This makes the colour darker. The only difference is that the black is more dry than the green.
Here in Hong Kong we are familiar with tea production as we have recently imported sun-dried tea from the coast and prepared it locally for consumption. The Dutch product is not cheap but its flavour is fresh and it was very popular at the Leipzig Fair where the dealers, particularly the Russian merchants, seemed to prefer it to China. The Dutch have exported 100,000lbs already and in 2 years they expect to be exporting 2,000,000lbs a year.
Here is a report from our Java correspondent:
We left Batavia and travelled into the mountains passed an active volcano to Tsanjor, about 70 miles away. We passed a garden producing a fine sort of cochineal which is as good as the South American product. From Tsanjor we travelled 35 miles to Bandong where the government grows coffee. About 100,000 piculs is harvested annually.
14 miles further on is the Hoflands estate, about 1,000 sq mls of land with a low population of tenant farmers largely employed in coffee production. About 4,500,000 coffee bushes are planted. The estate used to belong to Sir Charles Forbes and his group of investors but was sold a few years ago for £250,000. There is also 1,000 acres under sugar cane and tea is grown on the slopes. The resident natives produce much rice. After paying management costs, and ignoring coffee and sugar profits, the new owners get a nett 10% per annum on their investment from the rental income. This estate is not only valuable but it is readily improvable.
We travelled on via Somidong and Karong Sambon and crossed the river that separates Java from Sunda. The natives at the Sunda-side speak a different language and dress differently. This is the Cheribon district (north east Barat) and it is flat, well-cultivated and rich. The roads and houses are good.
Contrast the report of Mr Crawford, who came here 28 years ago, which is cited in Sir Stamford Raffles' 'History of Java' – ‘after Batavia and Bantam, Cheribon is the next most badly effected by bad management. The people display a careless indifference to the pursuit of gain and are indolent and ignorant. This is the result of forty years of mismanagement and oppression under the vicious colonial policy of the Dutch.’
Last week we mentioned Java tea. It is packed in chests made of wood of no odour. They use much thicker inner lining of lead-sheet than the Chinese. The higher quality is due to these two causes. A specimen was submitted to a taster here who valued it at 40 Taels per picul.
Friend of China 22.9.42 edition
Agricultural production on Java (continued):
Coffee
is a staple crop on Java. It is planted in rows, each plant 4 - 5
feet apart and the rows 8 feet wide. They don't prune them to 4 - 4½
feet high like in the West Indies but let them grow to 10 - 15 feet
height. At the government garden near Bandong they are 25 feet high
but 8 - 12 feet seems to be preferred. The berries only grow on the
new shoots. The Javans use long bamboo steps resting against the
shrubs to climb up and harvest the fruits. The first crop is in May
and crops are taken-off continuously through October. The trees need
shade from direct sun and protection from wind. Dadap trees are
planted in every 3rd row to provide slight shade and protection,
Plantains are also used. Each bush can produce ½ - ¾
lb of dried coffee beans.
The fruit is cured by sun-drying then
milling to remove the husk. The mill has hard wooden wheels powered
by a buffalo. Cost of production in Java is said to be 12 - 14 Dutch
florins a picul while sale price is
20-27 florins.
The
government indigo factories are at Cheribon. Production started 10
years ago. The local indigo plant is superior to the Bengal variety
in colour. It is called tom by the Javans and tarum by
the Sundas. The factories are small and little investment has been
made but the quality of the product is excellent, quite equal to the
very best Indian marks. Unfortunately, one chest is often of
different quality to another and this uncertainty reduces overall
value.
The plant they use is the one Stamford Raffles described
as tom ménir. It
is propagated by cuttings and gives three crops a year. It grows to
3-4 feet tall and flowers without seed. The leaves, flowers and
smell are indistinguishable from Bengal indigo. It is cut in small
branches when ripe and the stem then throws out new shoots which are
again cut. This permits usually three cuttings from the same plant
each season.
The Dutch grow indigo in paddy fields. They put the
cuttings in the moist ground and they invariably shoot. Nothing more
is done except to occasionally hoe away the weeds. Its so easy.
Planting is done when the rains cease in May. The first harvest is
taken in July. One acre is said to provide 150lbs dried indigo. This
season the crop totals 8,000 - 9,000 chests of 250 lbs each. The
government is a little concerned that using paddy will reduce the
rice crop but indigo is so much more lucrative the farmers cannot
resist. The natives produce for the government under contract and
receive 1 guilder per lb (about 1/8d). They have to do all the
processing themselves for this price. There are some other quite
slight expenses and overall we doubt Europeans could farm indigo at
the same low cost as the Dutchgovernment. Sir Stamford said 25 years
ago that "the climate, soil and society of Java are
particularly suited to indigo cultivation. With skilful manufacture
it could become an important export" In Bengal the monsoons are
so destructive they reduce the growing season for indigo to a few
months of the year.
Friend of China 22.9.42 edition
The currency of Java is in a mess. Only paper money and copper are used. Silver is so scarce it trades at a 25% premium. Government issues notes through the Bank of Java and the circulation is about £600,000 although the bank’s starting capital was only £200,000 (much of which has been recently lost as bad debts).
The economic problem results from Dutch insistence on sending all produce back to the Netherlands. Until they practice free trade and permit foreigners to invest, it will be the same. Everything is paid for in this depreciated paper currency. Civilians get their salaries paid in copper cash.
It is sad that a place so rich in natural resources should be deficient in capital. It's the dead hand of monopoly and the consequent absence of a spirit of free enterprise. As an example there is a single steamer monopolising the route between Batavia and Surabaya and it cannot pay for its own fuel.
Friend of China 6.10.42 edition
The 'Bengal Hurkaru' reports a 300 ton 280HP iron steamship is to ply between Calcutta and Singapore. It will carry 12 passengers and 100 tons of cargo. The voyage will take 8 days. It will make 10 - 12 round trips each year. It is expected to cost 200,000 Rupees to build and the costs have already been subscribed in Calcutta with a proportion reserved for Straits investors. Mackey & Co are the scheme promoters. The one-way passenger fare is expected to be 360 Rupees.
Friend of China 20.10.42 edition
The failure of the large house of Fergusson Brothers and Company (in India) is said to be due to their connection with the bankrupt London house of Briggs and Company.
Friend of China 20.10.42 edition
Asian News:
Lord Ellenborough is said to have determined on an immediate advance of our punitive force on Kabul
Several horrible murders and robberies have been committed in the Straits Settlements.
Friend of China 3.11.42 edition
The Friend of India reports that a large column of English troops is advancing on Kabul.
Friend of China 10.11.42 edition
The financial difficulties of South Australia, which are attributed to the nomination of an incompetent Governor, have now been relieved by an Act of Parliament. This fine colony will now soon attain a sufficient population to warrant its having representative institutions.
Friend of China 10.11.42 edition
Manila is the port of the fine and fertile island of Luconia. The islands belong to Spain and under liberal rule would be commercially important but the colonial government largely excludes foreigners from participating in trade and the island remains commercially insignificant.
Sugar and coffee could be produced here in huge quantities but Spain only requires 20,000 tons of sugar, 600 tons of coffee, 2,000 chests of indigo and some fine tobacco, As Spain has become so poor with the loss of her silver colonies, Manila is always pressed to send money home - like the Dutch and Java.
The Spanish government draws Bills on Manila and negotiates them in London but the amounts are greater than the resources of Luconia so that a part is protested and unpaid. One well-known firm holds $1,250,000 in protested Bills and only occasionally gets a few thousands towards payment.
The civil servants and army are regularly paid and maintain a firm control of the colony. The chief product is rice of high quality. It is esteemed in China. Sugar cane grows extremely well. The farmer gives it a single boil and brings it to market in Manila in that semi-processed condition. The cost is said to be very low - $2 per picul - but the quantity produced is small and only 18,000 tons are exported. Coffee grows well on the hills but is planted by the natives and not diligently tended so the beans are small but the flavour is pleasant. Indigo farming is also entirely in the hands of the natives.
The only thing that is really good is the tobacco. The government asserts a monopoly on the supply and makes cheroots in well-managed factories. It is the principal source of government income. 8,000 women and 1,500 men are employed in it. The annual profit is a secret but is estimated at $1,500,000.
Friend of China 24.11.42 edition
A note from Sydney says the settlers resent not being permitted to import Indian labourers in the same way as the sugar growers of Mauritius have been allowed to do under Lord Stanley's recent Bill.
We cannot see why they should be treated differently. The Sydney authorities are now offering a bounty on immigration from Africa and China.
Friend of China, 1.12.42 edition
Salt evaporation is a big business in Bengal where it costs half a rupee to 14 annas for a maund (80lbs). The monopoly that Warren Hastings established resells this at 6 - 8 times more. The profit in 1827 for Calcutta was
18,278,185 Rupees. The latest price for salt we have from Bengal is 14-15 rupees per Rash. Three months ago
it was 18-20 rupees. In 1840-41 1,498 tons was exported to Singapore and the Straits for 6,316 Rupees.
Friend of China 22.12.42 edition
Report from the Company’s army of retribution in Afghanistan via Calcutta:
On 30th Aug 42 General Nott defeated an enemy force and on 5th Sept 42 came before Ghazni. The city was full
of men and the hills to the north east were covered with troops of infantry and cavalry. Cavalry and artillery were
used to drive the enemy out of the suburbs and into the town. The low hills to the north-east were cleared and
occupied and the ground marked out for breaching batteries. Before the siege could commence it was
discovered that the occupying force had slipped away from Ghazni overnight. Nott dismantled the citadel,
destroyed the principal gate and released 327 sepoys of our 27th Native Infantry who had been sold into slavery
there. The British loss was 3 killed and 43 wounded. Nott was expected to arrive at Kabul on 17th Sept 42. He has
seized as prize the celebrated sandalwood gates of the temple of Ghazni that were brought there by Mahmood
from Somnath.
On 16th Sept 42 General Pollock entered Kabul. He had encountered and defeated Akbar Khan and 10,000 men at
Tezeen three days earlier. Fighting was hard and some engagements were decided with the bayonet. Several
hundred dead and wounded Afghans were left on the field with two field guns, lots of stores and ammunition and
three standards. Resistance was less than had been expected and British losses were only 32 killed and 130
wounded.
Akbar Khan was deserted by his troops and fled north into Turkestan with his British prisoners pursued by Sir
Richmond Shakespeare with 700 kuzzulbashees. Shakespeare hopes to rescue the rest of the British prisoners
although many have already come into camp. He went to Bamian looking for Akbar who has said he will not
release the prisoners unless he gets Dost Mohamed in exchange. Mrs Trevor and 8 children, Capt and Mrs
Anderson and 3 children, Capt Troup and Dr Campbell have all come into camp. Supplies are abundant and
Kabul remains quiet.
The gallant General Sale's injury was from a spent ball and was only slight.
There has been an invasion of Bamkhan by the King of Bokhara
Editor - Having restored British honour and displayed our power to the Afghans it would be wise to withdraw
back across the Indus. The disturbed state of the Punjab will likely require our intervention soon and the
'mushroom' dynasty of the Singhs should there be uprooted and their whole country taken under British
protection.
Friend of China 22.12.42 edition
Letter from a foreign merchant in Bangkok, 16th Sept 42:
The King controls the sugar trade here. He sends his own fleet of ships 30 miles up the river to meet the sugar
boats coming down and buys up their entire cargo. This is resented by the boatmen as the king pays when he
feels like it and even forgets his debts whereas if they can get the cargo passed the King’s men to Bangkok
they can sell it for cash.
The King has recently arrested 50 monks for intoxication and perversion of the sacred texts. Two are sentenced
to execution by swallowing molten lead (the Thai penalty for slandering the Buddha). The others are to be
disgraced for the remainder of their lives.
Friend of China 29.12.42 edition
Afghan War - The Company’s Court of Directors asked Peel to pay a portion of the expenses incurred in the
recent war to install our man on the throne of Kabul. Peel told them to ‘go away’.
The India Company need not worry. With the end of the opium war, demand for the Drug along the China coast
has increased and prices in some places have more than doubled. This has translated into higher auction prices.
We expect the increase to be worth 5,000,000 - 7,500,000 Rupees beyond this year's sale proceeds. With Lord
Ellenborough's general policy of economy, this should satisfy the India Company.
Friend of China 29.12.42 edition
Report from Australia:
Both van Dieman's Land and New South Wales are in economic depression due to high interest rates and a poor
wool harvest. Immigration to New South Wales has been suspended and is very limited to van Dieman’s Land,
at least until things improve.
Some whaling ships have returned to Hobart with little oil. The crews say the Americans have occupied the best
fisheries and do not permit our competition.
Friend of China 5.1.43 edition
Australian trade report - exports for the year 1.10.41 - 30.9.42:
|
Colonial goods British goods re-exported Foreign goods re-exported |
£577,500 (of which wool = £437,000) £183,320 £101,207 |
A memorial from the settlers of Australia to Lord Stanley is noted – it requests that coolies may be imported from India.
The French have possessed the Marquesas Islands. They have now planted their flag in Tahiti saying Queen Pomare and her chiefs asked them to do so.
The copper ores on Great Barrier Island at the mouth of the Thames River in New Zealand are to be commercially exploited.
Editor - the copper assays are encouraging but to be profitable in such an out-of-the-way place, the copper content will either have to be twice that of Cornwall copper ore or the vein be more extensive. The New Zealanders will need very handy loading facilities.
Friend of China, 12.1.43 edition
Report from Afghanistan:
The last British prisoners have been released and we have turned our backs on this unlucky country. The retribution the Company’s army has extracted is called a ‘needless ruthless barbarity’. Dost Mohamed and the other Afghani prisoners are being returned to their devastated country and will no doubt hate us implacably for turning their towns to rubble. Even now in evacuating the country, the infuriated inhabitants were able to kill a few of our people and steal guns and baggage as we marched-out.
Friend of China 2.2.43 edition
The Spanish have authorised the first newspaper at Manila - the Seminario Filipino. The Editor says our treaty with China is good. Before Chinese lived isolated in China now they will live in the world, he says. The prestige of Chinese power is destroyed. The world can see how weak this colossal Empire really is. The Spanish consul at Canton, Sr Halcon, has reported the peace treaty and it is published in the Manila Chamber’s circular to members.
Editor - We hope the commercial advantages we have won here for maritime nations will be reciprocated in Spain and elsewhere.
Friend of China 16.2.43 edition
The Penang Gazette says coal has been discovered in the Lancawi Islands and specimens have been sent to Dr Cantor for analysis. The Lancawi Group is about 60 miles north west of Penang near the Queda coast. It consists of three large islands and many smaller ones. Between the two largest islands at their southern end is a safe port called Bass Harbour.
Friend of China 16.2.43 edition
The Seminario Filipino reports that part of the garrison of Manila revolted and tried to capture the city’s fort but was driven off by the artillery men inside. It appears to have been a nationalistic or patriotic revolt by Filipinos rather than Spaniards. Prices current, freight and exchange rates are unaffected.
Friend of China 16.2.43 edition
New Zealand now has the Auckland Times. It is printed on a mangle according to the Editor who, when discussing previous issues, repeatedly refers to ‘in our last mangle …..’ Actually it seems the New Zealand authorities are trying to suppress the newspaper and seize the press, hence the editor’s amusing description of his printing machine. He says opposition to the government is supported by the newspaper’s owner at Port Nicholson (Wellington).
Friend of China, 16.2.43 edition
The indefatigable Dr Martin has published his opinions on New Zealand in 1842, or the effects of bad management on a good colony:22
The home government made a mistake in appointing inexperienced men to rule this country. British colonial administration is quite autocratic and requires wise and experienced men to conduct it fairly. To have entrusted the government of New Zealand to the officers and crew of a man-of-war was a mistake.
The second bay of Auckland has been called locally Official Bay because government officials have seized title to the lots and occupied it almost exclusively. M/s Mathew, Rough, Fisher, Coates and Spain, Dr Johnson and Capt Richmond all live there. The third bay remains in government hands and has not been offered for sale. The fourth bay is called Cooper’s Bay because Cooper (now Collector of Customs) and Mr Clarke (Protector of Aborigines) have assigned the entire bay to themselves (Mr Churton the Episcopalian owns a small lot in the same bay). The fifth bay (called Iniquity Bay or Judge’s Bay) is in the hands of the Judge and Attorney General who have exhibited extreme cupidity in appropriating this lovely bay to themselves. The remaining officials are the Postmaster General and the Surveyor General. They are also speculating in land but their selections have been poor and will not diminish the prospects of the colony.
Apart from taking all the best land, the officials have involved themselves in trade. Some are brick-making and others are pig and cattle dealers. Some issue government contracts to their (non-government) friends with whom they are in business partnership. They were able to do this by not publishing any government contracts for tender until very recently.
When the settlers complained about all this and published broadsheets at Bay of Islands and Auckland to air their grievances, both papers were suppressed.
Friend of China, 23.2.43 edition
Egypt is in fearful trouble from a cow disease that has killed off over 200,000 animals valued at £2 millions. Worse, the cows are used as draught animals and in their absence agriculture is stopped. The Pasha has ordered his cavalry horses to work his own fields and has seized any healthy cows he can still find to assist. This year we have had an economic recession, earthquake in Haiti, the Hamburg fire and now this….
Friend of China 23.2.43 edition
In an address at Simla following the recent success of the Company’s army in Afghanistan, Governor-General Ellenborough referred to the original war in these terms ‘disasters which were unparalleled in their extent, unless by the errors in which they originated, and by the treachery by which they were completed, have been avenged.’
This consigns to everlasting infamy the policy of Lord Auckland.
Friend of China 23.2.43 edition
Ceylon – the papers say coffee cultivation in the interior has been very successful. In 2 - 3 years Ceylon will supply all the needs of the English market.
Friend of China 2.3.43 edition
Report from the Bombay Mint on re-minting of silver coin. A company rupee is one tola (180 grains) and is 91% pure (i.e. 165 grains of pure silver).
Sycee averages 98% purity and the various old Spanish dollars average 89% purity. The silver in Spanish coins was worth fractionally less than face value.
Assay of sycee, old Spanish and new Spanish dollars was done at the Bombay Mint in Nov 1842 in respect of silver coins received in the quarter ending 31st Oct 42.
Every piece of silver sycee weighs 100 tolas and is 98% pure. A tola is an Indian measurement equivalent to 180 grains.
The new silver dollars we use (Mexican and Peruvian) contain 230 tolas (230 x 180 grains) containing 207 tolas of pure silver and are intrinsically worth 1% more than the old head dollars (Spanish Carolus dollars).
The old heads contain 206 tolas of pure silver but are loved by the Chinese and trade at 13% premium to face value whereas the new coins are at a 6% discount to face value.
Friend of China 2.3.43 edition
The Seminario Filipino reports the army revolt at Manila has failed. The leader was publicly executed by garrotte while his followers, about one hundred Filipinos, were fusilladed.
Friend of China 9.3.43 edition
Australia wants to export salt beef. Perhaps they could use Mr Payne’s ingenious device which evacuates the air and seals the meat within a metal can thus preserving the contents. The quotations in the parliamentary Blue Book reveal Australian beef production is greater than the Cape (of Good Hope), which could produce more cheaply if only the natives can be encouraged to work. USA and Buenos Aires can both supply beef to England at prices comparable to Australia, but Sydney has her domestic market and the markets of New Zealand and Ile de France (Mauritius) as well as provisioning the whaling vessels and other shipping that calls.
Friend of China 16.3.43 edition
From Bombay we hear the Emirs of Sind are agreeable to making convivial terms with the Company’s Emissary Major Outram.
Friend of China 16.3.43 edition
The occupation of the Marquesas Islands by the French has excited people in Europe. It is said the island chiefs agreed to French protection only because they had offended the Americans whom they feared would attack them. Surely the French and the Americans can sort this out.
The French bombardment of Barcelona has maddened all Europe.
Friend of China 16.3.43 edition
Manila trading partners and tax rates:
|
Exports - - - Export tax - - - Import Tax - - - |
Sugar 60% to Singapore, 20% to Europe 20% to Australia Hemp 70 % to America Rice 90% to China 10% to Australia Cigars 70% Singapore 30% Australia Exports to Spain by Spanish ships 1% (elsewhere 1½%) Exports to Spain by foreign ships 2% (elsewhere 3%) Rice shipped on Spanish ship free, foreign ship 4½% Gold and silver free. Spanish goods in Spanish bottoms 3% ad valorem duty Spanish goods in foreign bottoms 8% ad valorem duty Foreign goods in Spanish vessels 7% ad valorem duty Foreign goods in foreign vessels 14% ad valorem duty |
Add extra tax in each case depending on the nature of the item imported.
Competing tropical products - arrack and gunpowder - are prohibited.
Friend of China 30.3.43 supplement
Manila trade report:
The US buys much of the Manila production of hides, coffee and sugar and a predominate share of the entire national supply of hemp. Sydney buys 40% of the sugar and 20% of the rope.
Friend of China, 30.3.43 edition
The Russian naturalist Professor Lehmann has died. It is hoped his manuscripts have been preserved and his travels in Samarkand and elsewhere in central Asia will be published.
Friend of China 30.3.43 edition
It is astonishing that Britain is the only major European country to not have a consul at Manila. The French have a Consul-General there who is raised over their Consuls in Indo-China and China. This anomaly in British diplomatic coverage arises because Manila fell within the geographical limits of the India Company’s charter. Now that has been abolished we should really have a representative in a country with which we do so much trade. Manila is also the city to which so many of our nationals, shipwrecked in the Sulu Sea, are brought.
Friend of China, 30.3.43 supplement
Letter from Oahu dated 4.2.43:
Mr Charlton the British consul to the Sandwich Islands (Hawaii et al) left here last September for England via Mexico to explain to the home government the great potential of these islands. The present administration is a mockery and he will mention British grievances. Every British subject except the representative of the Hudson's Bay Company has signed the memorial of complaint to the British government. That company, having neglected the national interest, now seeks to acquire influence detrimental to sound British policy.
Charlton has done well and the Hudson's Bay Company’s attempts to deprecate his work are unjust. Capt Lord George Paulet of HMS Carysfort has been sent to put matters right. We hope he will take possession of the islands or we fear the French, who have already seized Tahiti, will do so.
Friend of China 11.4.43 edition
The victory of Sir Chas Napier over the Emirs of Sind at Meeanee (near Hyderabad) is a complete success. Two crore (20 million rupees) of treasure was found in the Hyderabad treasury which will make this another profitable war. We hope the army gets its prize money quickly.23 The part of Sind we now occupy is all that we need for control of navigation on the Indus.
Friend of China 27.4.43 edition
Mohamed Akbar Khan is King of Kabul again. He has proclaimed a holy war (jihad) against the infidel Sikhs to recover the lands seized from the Dooranee monarchy by Ranjit Singh (Kashmir et al). Dost Mohamed, the ex-Emir of Kabul, is said to be loath to trust himself to the power of his son.
Friend of China 4.5.43 edition
The French are said to have occupied the Marquesas in contemplation of the effects that the opening of the proposed Panama Canal will have on British trade from Australia and New Zealand. Clearly an enemy in the Marquesas would straddle the trade route and could do our trade considerable damage. Many ships going to/from Sydney stop at Bali and Lombok. We ourselves ship rice and other agricultural produce from that area annually and we have whaling interests nearby yet British men-of-war never cruise in these seas. That is a shame as the South East Asian island natives hate the Dutch and would willingly exchange them for us if we promised them protection.
If Hong Kong soon becomes the base for an Admiral's station as expected, then patrols can proceed from here throughout the eastern seas.
Friend of China, 18.5.43 edition
The P&O Shipping Company has offered to provide a steamship ferry to India if it can have the mail contract. We have discussed this with an expert and we believe there should be two routes - Calcutta/China and Bombay/Madras/ China.
The steamer from Suez leaves on the 24th of each month. The steamer from Calcutta leaves on the 14th of each month. The Bombay/Suez steamer leaves Suez on 24th and Bombay on the 1st arriving back at Suez on about 8th each month.
P&O propose that the China steamer should leave Bombay on 10th, arrive Colombo on 15th collect the mail left by the direct Suez/Calcutta steamer, leave on 17th for Trincomalee and arrive Madras 19th. Leaving 21st, arrive Penang 28th and Singapore 2nd.
The Calcutta/Suez steamer arrives Calcutta 18th so Calcutta/China steamer should leave Calcutta on about 21st, Maulmein 24th, Penang 28th, Singapore 2nd.
The steamer leaving Vina on 18th - 20th each month arrives Singapore 30th, leaving 2nd, Penang 4th, Maulmein 7th, Calcutta 11th in time for the steamer to Suez on 14th.
(The editor thus works out a complex schedule for an inter-linking service with the London/Suez/Bombay overland route.)
If P&O carry cargo they could easily attract some of the opium traffic. Also about £4 millions in treasure is exported each year. P&O could get most of this. the present freight rate for silver/gold is 1%.
In the NE monsoon the steamers should go via Palawan or Celebes Sea and Manila. In the SW monsoon they should go down the western side of the China Sea
Editor – China traders say steel hulls cause damage to opium by conducting electricity. It is necessary to have non-conducting bulkheads to freight the Drug.24
Friend of China, 25.5.43 edition
The Sandwich Islands were discovered by Capt Cook in 1778. He was killed on Hawaii the following year. England has the better claim to occupancy of these islands for this reason.
There are about ten islands midway between Hong Kong and America. The population is 160,000, half of which is on Oahu - the island of the King and locus of the capital. Honolulu has 24,000 people and over 8,000 live in the town. The climate is comfortable and many are urging a British colony on one or other of the islands. Everyone agreed but it was thought the protection of the British flag was necessary first. With the late cession, this difficulty is removed. We hope the undertaking will now proceed as the Sandwich Islands are lovely.
At present the islands are visited by whalers for repairs and provisions. They constitute a half-way house between Asia and California. According to Stewart's Visit to the South Seas, they received 125 American ships in 1829-30 with a total tonnage of 40,000 tons. They produce tropical fruits, vegetables, cocoa and sugar. The main export has been sandalwood but the forests are exhausted and not much of it remains to be felled. The trade with China is small - only some silk and chow-chow goods. The natives are mild and docile. Many understand English and Christianity is widely professed.
Friend of China 25.5.43 edition
Annexation of the Sandwich Islands to the British Empire:
The British flag now flies over the Sandwich Islands.
The Americans have contrarily recognised their independence conditionally. They say any interference with the native government will draw American resentment. So America and no doubt France will both be angry about this British annexation. We hope the British will be firm. The islands should not continue under the missionaries who have most recently solicited a theocratic Constitution from the King.
We (the Editor) have now seen "the official correspondence up to 3rd March 1843 relating to the provisional cession of the Sandwich Islands". The documents say Capt Lord George Paulet arrived in HMS Carysfort at Oahu in February and declared his visit was to protect British subjects and support the British Resident who has been repeatedly insulted by government servants. He said he would only communicate with the King in person. He demanded:
1/ the immediate removal of the attachment of the property of Mr Charlton, the British Representative.
2/ Reparations for his heavy losses.
3/ acknowledgement of Mr Simpson's right to deputise for Mr Charlton.
4/ a guarantee that no British subject will be imprisoned or fettered unless accused of a crime recognised in England as a felony, and
5/ sundry other minor points.
Copies of these demands were given to Capt Long of the USS Boston, then at Honolulu, and he was told that an attack would be commenced on the town the next day if the British ultimatum had not been accepted. Kamahameha III said it was impossible for him to meet the demands (he is a tool of the missionaries). He then ceded the islands to Paulet on behalf of Queen Victoria.
Paulet proclaimed the provisional cession of the islands; the British flag to be hoisted on each island; natives to receive the protection and privileges of British colonists; commission for the government of the islands to be instituted.
The papers also note that the French consul M Jules Dudoit declined to lay his authorisation before Paulet’s government commission resulting in his non-recognition.
A notice requiring notification of all land claims has been published.
An offer to sell liquor licences at $150 each seems a bit precipitant (the missionaries had forbidden alcohol) but it is said the prohibition of its sale is illegal under British law (this might be one of the grounds of Kamahameha III's willingness to forego control).
Friend of China, 8.6.43 edition
Letter to the Editor from Per Fas (an American):
You say the Sandwich Island missionaries are ignorant fanatics. You have spent too long in the turmoil of London, too influenced by the Quarterly Review.25 You are ignorant of these men and what they have done.
It is 22 years since the first missionaries arrived in the Sandwich Islands. There was no government, the weak were oppressed by the strong, they had no written language and no education. Now their language has a written form (in English letters), there are 335 schools with 18,034 students are enrolled. They have made their own Constitution securing to each the fruits of his own industry. They are now a well-organised society with laws and rights.
The missionaries have not created a theocracy "repugnant to sound policy and liberal principles" as you say. The French Catholic missionaries are pressing the people against their wishes to celebrate high mass - you say nothing about it. The commanders of the French frigate L'Artimise and the British frigate Carysford have both authorised the sale of liquors but this is small matter compared with Paulet's seizure of the islands for Britain.
This is as disgusting as the recent partition of Poland.
Friend of China, 8.6.43 edition
The Gentleman's Gazette reports the Emirs of Sind have been dispatched to Bombay as prisoners. Sir Charles Napier has received the submission of the two principal power groups in Sind and is so confident of peace in his new acquisition that he has sent for Lady Napier to join him.
Friend of China 15.6.43 Supplement
From the Bombay Times - Sir Charles Napier achieved a victory over the Baluchis on 24th March. The General took his whole army of 6,000 men plus 18 guns to meet Sher Mohamed of Meerpur, who had 20,000 men. All the Baluchis eleven guns and some of their standards were captured. Sher Mahomed escaped on horseback with some friends into the desert pursued by Napier’s irregular horse. We lost 39 killed and 228 wounded.
Friend of China 15.6.43 edition
According to the Penang Gazette of 13th May 43, HMS Dido has taken Mr Brooke to Borneo as a passenger and will perform station duty there. This will benefit our influence in that quarter.
Friend of China, 29.6.43 supplement
All that England has gained from the Friendly and Society Islands (so named because the girls are friendly and
social) has been yams and fresh water for our ships' crews. Now with the presence of Admiral du Petit
Thouars at the Court of Queen Pomare, the whalers and missionaries have managed to create a sort of semi-civilisation.
Otaheite (Tahiti), known to the missionaries as the Isle of Saints, has been renamed by de Bougainville as la
nouvelle Cythere (in recollection of the old cult of Aphrodite)
Friend of China 13.7.43 edition
News from the London papers:
India is much in the news in London. The success at Hyderabad has been well received but Lord Ellenborough’s policy in Sind is disapproved as he had agreed on appointment that his administration would be pacific.
Lady Sale has published her memoir of the Afghanistan fiasco which confirms the worst features of Lt Eyre’s history and has revived popular demand for further enquiry.
Sir Robert Peel has commended the Pasha of Egypt for his apparent treason - whilst our forces were blockading Alexandria, he still permitted the British mails to pass overland to/from Suez.
The Thomas Grenville was burned in the Bay of Bombay and all her cargo destroyed.
The Singapore Free Press reports a terrible storm affecting the entire Bay of Bengal. A long list of damaged vessels from the Indian coast to Penang is shown.
Friend of China 20.7.43 edition
Editorial - On 29.4.43 the French Prime Minister Guizot said that the new French possessions in Polynesia will be their advanced posts to China.
We have frequently mentioned what good claims the Polynesian islands and our (British) Oregon territory have as advanced posts to China. They form part of the Pacific rim which, with Australia, will become an important trading area. Apparently the government has finally agreed to make a survey of the Columbia River Territory. The French occupation of the Marquesas Islands and Otaheite (Tahiti) may encourage our government to annex Borneo and the Sandwich Islands. France has held the Marquesas for as many months as Britain has held Hong Kong in years but the French parliament has already voted £240,000 for permanent buildings and steamships for the colony. What have we got?
Friend of China 10.8.43 edition
Newspapers from our Australian colonies at Sydney and Port Phillip say their communities are in financial trouble. The banks have been reckless with credit. They have given away the peoples’ savings and two have now suspended payments. Some of the finest land in the colony can be had for 5/- per acre (£1 today buys what £1,000 bought five years ago).
On the other hand, New Zealand is doing well. 600 ships have visited Wellington in the last three years.
Friend of China 10.8.43 supplement
Sydney Morning Herald of 14th April 1843:
Mismanagement at the Bank of Australia has shocked all Sydney. The day before discovery of the bankruptcy, the cashier extracted the last £15,000 from the iron chest that is the bank’s treasury and took ship to America.
Examination of the accounts reveals a local firm, for no commercial reason, received an unsecured loan of £108,000. The same firm had another prior loan of £50,000. One bank director is indebted to the bank in £40,000; another to £80,000.
The thing is that men will do concertedly what they would be ashamed to do individually. The managers have jointly approved a loan of £20,000 on the security of one name only. The result is that the shareholders have probably lost all their capital and will no doubt be asked to make-up any deficiency.
Friend of China 10.8.43 supplement
Sydney - The United Company of Merchants Trading to China held a third sale of teas on Thursday of the cargoes ex Australasian Packet, Lord Eldon and Trinidad. Some buyers turned up but none made bids in spite of the auctioneer’s best efforts. The tea wholesalers say they will never again attend an auction of the United Company.
Friend of China, 10.8.43 supplement
The Bay of Honolulu on Woahoo (Oahu) is like a European harbour. In 1833 26,000 tons of shipping passed through. At most times there were 50 foreign ships anchored there from America, England, Spain, Russia and Otaheite. Above the bay is a fortress mounting 40 guns. The town is laid out in squares. The streets are fenced and the houses built of wood. There is a regular police force; two hotels, two billiards halls and a dozen taverns. A British and American consul work there. 900 hundred seminaries instruct 50,000 children in reading.
Friend of China 17.8.43 edition
HMS Semarang (Capt Sir Thomas Belcher) struck a rock at high water whilst navigating the Sarawak river in Borneo en route to Mr Brooke’s settlement. The ship has been seriously damaged. As the tide fell the ship went over and filled. The admiral here has dispatched the steamer Vixen to assist. The Semarang was supposed to survey the China Seas. The Royalist, Mr Brooke’s schooner, is in attendance.
Mr Brooke’s colony is progressing. The native residents approve the suppression of slaving and piracy and welcome the incentives to trade.
Friend of China 17.8.43 edition
The ports of Wellington, Auckland and Russell (in the Bay of Islands) in New Zealand have been declared free ports as of 1st January 43
Friend of China 24.8.43 supplement
C Alex Challaye has been posted eleve consul to Egypt from China by Guizot, Minister for Foreign Affairs, in a letter dated 14.3.43.
Friend of China 7.9.43 supplement
Sir Charles Napier marched his troops out of Hyderabad in mid June. The heat extinguished some of his European soldiers – one lieutenant, two sergeants and 29 privates fell down and died in a couple of hours.
Its not the marching that is fatal – within the fort of Hyderabad itself three sergeants, one drummer and 14 privates have also died of the same cause. They just fall down dead.
Friend of China, 14.9.43 supplement
Captain Lord George Paulet of the Royal Navy took possession of the Sandwich Islands but English merchants have no interests in these islands. The Hudson’s Bay Company, in whose Chartered bailiwick they are sited, is averse to occupation. Sir George Simpson, the Governor of the Company, says he accepted the offer to be envoy of the islands solely to argue for and obtain their independence at the Court of St James.
Lord George Paulet contrarily, has put himself under the direction of the acting Consul who is reputed to work against his own government.
If England takes over these islands it is America that will mainly suffer. 200 U S ships arrive here annually. Many Americans own property in the islands to a value of $2,520,500 in 1843. The Americans have developed the islands and have most to lose from British usurpation. They have developed sugar farming and export it by the shipload. Their whaling fleet uses the island for refitting and supplies. No other country has so many ships visiting.
If a Panama canal is opened, the islands will become strategically important. It will be interesting to see what America does but it is unlikely that the home government will ratify Paulet’s annexation. The value it seems to see in colonies is as places providing patronage.26
Friend of China, 14.9.43 edition
The French and American press are disgusted with Britain for occupying the Sandwich Islands. They should note that this occupation is professedly provisional and may not be ratified by parliament.
Friend of China, 21.9.43 Edition
Report from The Spectator of New Zealand as reprinted in the Bombay Times
The Chinese buy green stone at up to £1,500 per ton. The south island has a green stone that the natives call poonamor which is a talc slate. A ship from Wellington called Royal Mail has sailed down the west coast of the south island to Milford Haven to collect a shipment. Mr Deans, one of our most enterprising colonists, has just returned from Milford Haven and reported the above facts. He says the Royal Mail has already loaded 10 tons of green stone.
Editor - This report misled many traders. The consignment of New Zealand green stone arrived here and the Chinese found it almost valueless. New Zealand has many valuable minerals but we doubt it will be commercially expedient to export any of them. The most valuable product for the foreseeable future is flax which will soon be in demand in China.
Friend of China 21.9.43 edition
Bombay newspapers report frequent violations of the navigation laws. The American Brig Princess, renamed the Petrel, arrived with a cargo from China. Any ship owned by a British subject may fly British colours and you can then buy a pass from the Company here that entitles you to the privileges of British registration. The Petrel flew a British flag and bought the pass and thus landed her cargo here. Actually foreign-owned ships can only re-export from here.
Friend of China 21.9.43 supplement
Singapore trade report - Opium is selling better. We have 1,200 chests but the stock remaining in Bengal is small - about 2,800 Patna and 950 Benares. Calcutta prices are 1,950 Rupees for Patna and 1,550 Rupees for Benares. The Sylph, Water Witch and Persian (opium clippers) are loading here.
Friend of China 28.9.43 edition
The Temperance Advocate of 27th June 43 reports that 26th April 42 was the day that King Kamehameha III and the Kings of all the other Sandwich islands jointly signed the total abstinence pledge.
On the first anniversary Kamehameha brought from his cellars the remaining stock of wine in his possession which had lain there untouched for a year. He asked what should be done with it. The suggestion to use it for drying paint was not widely approved. It was then agreed to pour it all into the sea.
Friend of China 5.10.43 edition
The Friend of India – Singapore has received 952 square-rigged ships in the last year. 2,824 native vessels have visited in the same period. Prosperity is immense. The tonnage of the above shipping exceeds 360,000 tons and the value of cargoes exceeded 50 million Rupees. The cost of maintaining Singapore is £50,000 pa which is raised entirely within the island itself.
This Company outpost stands alone in our Empire as a self-supporting colony.
Friend of China 12.10.43 supplement
The Moffatt (Gilbert), just arrived from Bali, reports the Dutch government at Batavia has hoisted its national flag on Bali, apparently in a claim of sovereignty over the Rajah and his people. The Moffatt has brought Java coffee, coconut oil and 14 Bali ponies for auction here.
Friend of China, 12.10.43 supplement
Lord Ellenborough said the following in a dinner address at the army mess at Dum Dum, Calcutta. It is reported by the Singapore Free Press of 21.9.43:
I am a great admirer of the army. But the infantry and cavalry officers present should allow me to give first place to the artillery. Their gallantry, exact science and precision of fire conduce to the extraordinary successes of British arms.
The Commander of the Army in India, Sir Hugh Gough, deserves the highest compliments for his forbearance in the war with China, for his sagacity and his clear vision of the ultimate objective. By focusing thus, he neglected many opportunities for personal aggrandisement.
Friend of China 12.10.43 supplement
The King of Siam appears to ignore the terms of the treaty he made with us. When our ships go to Bangkok the King is inserted between our merchants and the Thai exporters. The exactions have risen to the point that our trade will soon stop. Recently the Good Success called at Bangkok for sugar and made contracts with the merchants but they did not supply it. Appeals to the treaty were ignored. The only sugar available was from the King at 15% over the contracted rates with the merchants. We should send a frigate.
Friend of China 19.10.43 edition
The Calcutta papers report a sale of Assam tea by government and native growers. Some of the government pekoes were rated good but the rest was poor. The shippers of teas from the last Calcutta sale lost money. Previously the government was reportedly intent on vacating the market and transferring its tea estates to the Assam Tea Company but these sales suggest otherwise.
Friend of China, 26.10.43 Edition
The barque British Isle, 60 days out of Sydney, reported the arrival of HMS Vindictive at Tahiti. The captain, Sir Troup Nicholas, finding the French flag flying, had it pulled down and sent his 1st lieutenant to England for instructions. This will revive all the warlike acrimony of the Thiers party in Paris against Britain.
Friend of China, 23.11.43 supplement
Alexandria 20.6.43 – The overland route is now operating satisfactorily. Instead of two there are now five ferries on the canal section. Two steam tugs and 48 horses provide the motive power. On the Nile section, instead of one there are now four steam boats and the three new ones are particularly comfortable.
The wretched 80 horses on the desert section have been replaced by 250 horses. A relay horse team is now at every station house (every 10 miles) instead of every 40 - 60 miles. The vans and harnesses are well serviced and the station houses are most comfortable. An English couple resides at the principal bungalow in the middle of the desert crossing. They attend to your needs. All the staff at the other station houses are more civil and extortion has stopped.
Anyone can now cross Egypt in perfect safety and without delay. This is all due to the Pasha. The Transit Company and P&O propose to soon combine their operations to provide an even better service.
Friend of China, 16.3.44 edition
A fierce battle was fought between British forces under Sir Hugh Gough and a Mahratta army at Gwalior in Sind. About 40 officers and 500 of our men were killed. The Indians were well assisted by the French Artillery Colonels Baptiste and Jacob. Jacob commanded the batteries at Shikarpore, Baptiste the batteries at Maharajpore.27
Friend of China 19.3.44 edition
Letter to the Editor from George Duddell of Hong Kong complaining against the Dutch envoy J H Koopmar:
He arrived in Bali early 1840 in the schooner Dudo and raised the Dutch flag on the west beach of the island, called Rhinoceros Bay (it was here that the rhinoceros that the Dutch gave to the Rajah of Bali was landed). At the end of the same year the envoy returned in the Dudo bringing representatives of many nearby islands to see the rhinoceros.
By early 1841 the well known firm (Burd & Co) that trades to Bali, and which had hitherto always hoisted the Danish flag over its store, ceased to do so. The Dutch envoy then hoisted the Dutch flag over the Bali ports Oarangagsan, Blileling and others. He made a treaty with the Rajah, written in Pidgin, which at Article 10 says (edited) ‘I, the Rajah, will not give up this island to any other white man as it is yours (Dutch) as well as mine’.
A treaty regarding shipwrecked vessels was enacted at end 1842 only after the great Dutch ship Overysal, carrying a complete steam-powered sugar refinery, was lost. Koopmar’s treaties pre-dated that event and were not a response to it.
The envoy is represented on Bali by the staff of the Dutch East India Company (VOC). In January 1842 the Company made a treaty for the taxing of all trade entering Bali through its one safe harbour at Bali Badung. Onerous anchorage fees and all sorts of duties are charged to non-Dutch ships under this treaty. This is reflected in the increased price of Bali rice now being brought to China.
Friend of China 23.3.44 edition
Calcutta Star Obituary - Major Eldred Pottinger
He entered the Company’s military academy at Addington, Kent in 1826, obtained his commission in Dec 1827 and arrived Bombay the following year. In a few years he was made adjutant to a battalion and then appointed to command a detail of the Cutch Horse escorting his uncle (now the Governor of Hong Kong), then the British Resident in Sind.
He was then appointed to survey a part of Central Asia. Disguised as an Asiatic with two NCO’s and a few others he made his way through Afghanistan via lower Sind, Cutch, Gundava and the Bolan Pass to Quetta thence to Kandahar through Kakur country to Nowah where the party joined the road to Ghuzni near Ab Istadah. Passing through Ghuzni he went to Kabul remaining some time to learn the habits, feelings and history of the people. From Kabul he walked to Bamian, Sinipul, Mymunah and Kilanow to Herat from whence he was able to transmit his first political messages. Herat was at that time besieged by a Persian army supported by a powerful artillery mainly staffed by Russians. Russians also directed this siege of Herat which Eldred reported.
The occupants of Herat were prepared to surrender. Lt Pottinger wished to prevent this. He attended the Durbar, threw-off his disguise, identified himself and volunteered his services in a more vigorous defence. This was accepted and he then commenced to manufacture the necessary materials within Herat to accomplish the defence. He mined the besiegers on one occasion and sallied out to their trenches on another. It was not just skill and perseverance but moral courage. Aware of what was at stake, he did everything necessary including drawing bills on India for his costs. In 1838 the British representative to the Persian Court was finally able diplomatically to get the siege raised.
Eldred was then nominated by the Governor General to the Political Department as assistant to Sir Wm McNaughton. The King concurrently appointed him to an Indian Majority and made him a CB. In 1839 he returned to India and was employed at Calcutta settling accounts for his journey and arranging the results of his surveys for publication. In 1841 he joined Sir Wm McNaughton at Kabul and was appointed Political Agent at Kohistan. On arrival at Chareekar he assessed the dangerous state of the defences and removed the troops to an old fort nearby where abundant water was available. In the outbreak at Kabul, his position was attacked early but he defended it until it became untenable. His extraordinary escape with a wounded companion is well known. His subsequent performance at Kabul was splendid. He became a prisoner of Akbar Khan but was honourably acquitted of any responsibility for the overall fiasco. With a shattered limb he returned to the British lines and was then abused in every respect until offered employment in Hong Kong. His life serves as a model for all young Englishmen. He was a credit to the uniform.
Friend of China 23.3.44 edition
Letter to the Editor - English tonnage involved in carrying Bali rice to China is extensive. We should note Duddell’s comments about the Dutch. A naval force should be sent down there. The Royal Navy protects British commercial interests worldwide. In the last 20 years particularly in South America, the Navy has saved much property and lives. Now some Dutch in Bali have been killed. Mr Lange of Burd & Co, who flies the Danish flag, is safe.
An expedition is being sent from Batavia. 300 troops went today to Surabaya where more are collecting. If the Dutch try to annex the island they may be surprised. Those Bali natives are tougher than the Javans.
The Dutch are encouraging the natives throughout the islands to grow sugar and indigo rather than rice. Only Bali and Lombok provide rice sufficient for export. Perhaps that is why the Dutch are taking a foothold in those islands – to control the lucrative rice trade and ensure a supply for their people.
1 Diponegoro was captured in 1830 and exiled whereupon the insurrection ended.
2 A cavan is said to equate with 75 kgs; an arroba with 25 lbs.
3 The Company has had a simple telegraph operating between the three continental Presidencies for the last ten years. Information at Bombay can be received at Calcutta within a couple of hours, provided it is clear weather.
4 Crawfurd’s British embassy in 1822 found their shoes had disappeared and had to hobble about barefoot for the rest of the day
5 This sentence suggests China accepts a duty to protect its vassal Annam from Cochin China.
6 The characteristic of all capitalist booms and busts over the centuries. So long as new investment exceeds old withdrawals, the endeavour appears profitable.
7 This is an attempt to re-establish the usurious loans business in which the Madras army was involved at the time of the mutiny. Such records as I have found are inscrutable but a good place to start for a feel of the affair is the Zemindar of Nozeed Act of the British legislature. Palmer is an AngloIndian and thus exempt from the Company’s restriction of English trade to the Presidencies. He is able to open businesses in the native states.
8 Dowsett was reportedly killed on Bikini Atoll, Marshall Islands, in early June 1834.
9 Near the Sea of Marmara.
10 This has become the flavour of the month in the City since the Bank of England received limited liability by the suspension of payments legislation during the wars with France and thereafter. The Bank of Bengal actually asked Cornwallis for limited liability during his Governor-Generalship – they all want profits divorced from losses.
11 One of Barlow’s initiatives in 1806 in the interregnum between the viceroyalties of Cornwallis and Minto. Limited liability was one of the first and greatest legislative concessions obtained by merchants.
12 A term used in Sind, Gujerat and the Punjab denoting a Senate with judicial functions for the resolution of disputes, applicable to all sorts of popular groupings.
13 Amanita muscaria – the red-cap mushroom with white spots that is often shown on Christmas cards.
14 A perceptive final sentence in light of the Brahmin Mangal Panday’s later contribution to Indian independence.
15 This re-organisation is contemporary with the setback in Afghanistan but must be unrelated.
16 The Romanoffs established serfdom on obtaining sovereignty and continue to maintain it.
17 The Bala Hissar is an ancient fort within the city of Kabul that performed the functions of a citadel.
18 Mountain guns were the lightweight knock-down cannon designed at Woolwich for Spanish guerrillas in the Peninsula War. They could be carried on muleback.
19 The profitability of the great Agency Houses depends on controlling the volume of production of cotton and indigo by funding the farmer to plant and buying his subsequent harvest. Without these investments the surviving Agencies will inevitably be tempted into other fields. The withdrawal of the Company from these markets should assist the Agencies.
20 Apparently a recital of the 1790s problem – the crew get paid in advance, fire the ship and go home.
21 This is another Ann, nothing to do with the Taiwan shipwreck in the China chapters
22 This the ubiquitous Montgomery Martin
23 It appears from former distributions that terms of service in the Company’s army allow the men half the value of enemy property seized with the Company retaining the rest, although when these distributions were litigated in London the Company’s share was struck-out. Control of the Indus is requisite to assure both control over the supply of Maratha opium from Malwa and to open the Indus hinterland to British trade.
24 Misinformation to exclude P&O from the carrying trade and permit existing ship-owners to work their teak clippers until they need replacement.
25 This is a reference to John Carr, the replacement Editor for Rev Shuck since the first anniversary of the Friend of China.
26 Ten years after the great Reform Act.
27 A rare case of heavy British losses in India, due to an assault ordered on the Sikh artillery.